The first week of February 2026 has been nothing short of a nightmare for crypto investors, as nearly $500 billion was wiped from the total market capitalization in just seven days. Bitcoin has fallen over 40% from its 2025 record high, officially entering what many analysts are calling a "Deep Bear Market." The total market cap has slipped below $2.6 trillion, a level not seen since late 2024. This latest rout isn't tied to a single exchange failure but rather a "Confidence Crisis" fueled by fading demand and thinning liquidity. With market sentiment sitting at a score of 18 out of 100—indicating extreme fear—investors are bracing for a prolonged period of re-accumulation and stagnant prices.

$BTC $ETH

#MarketUpdate #2026