Bitcoin Capitulation: Major Selloff Hits $65K as ETFs Bleed and Miners Eye AI Lifeline

Capitulation is a word that gets thrown around a lot in crypto, usually by people who have never actually seen a real one. Today, Bitcoin traders got a front-row seat to the genuine article. On February 6, 2026, Bitcoin’s price cratered to $65,000 in a single, brutal session, with the market collectively realizing that gravity still works, even for digital gold. The selloff was so violent it wiped out a chunk of leveraged longs, triggered a cascade of forced liquidations, and left the ETF crowd clutching their risk disclosures like a security blanket.

According to NewsBTC, the move was a classic flush: a major capitulation event that sent Bitcoin tumbling to $65,000, its steepest two-week drop since June 2022. ETF flows tell the story: Bitcoin and Ether ETFs shed $515 million in outflows, extending February’s sharp drawdown. The carnage wasn’t limited to the spot market. On-chain data shows whales and funds offloading, with Trend Research dumping over 400,000 ETH and sending 94,000 ETH to Binance. Legendary trader Peter Brandt called it 'campaign selling.' The algos didn’t just go haywire, they went full scorched earth.

The macro backdrop is as ugly as the price chart. Risk-off sentiment is everywhere. AI stocks are imploding, the labor market is softening, and inflation expectations are falling. The Bitwise CIO tried to put a brave face on it, insisting that 'bad news is already priced in.' But the tape says otherwise. This is not a normal correction. This is panic, pure and simple.

Let’s put this in historical context. The last time Bitcoin saw a two-week drop this steep was the 2022 crypto winter, when the market was reeling from systemic collapse and fraud headlines. This time, the catalyst is different. There’s no FTX, no Luna, no existential rug pull. Instead, it’s a classic liquidity crunch: ETF selling, whale offloads, and a sudden realization that the AI narrative can’t prop up risk assets forever. The ETF flows are especially telling. For years, the bulls argued that institutional flows would stabilize the market. Now, those same institutions are heading for the exits, and the volatility is even worse.

Cross-asset signals are flashing red. Tech is flat, commodities are dead, and volatility is creeping higher. The S&P 500 is holding up, but only just. Crypto is the canary in the coal mine, and right now, the bird is not singing.

The analysis is simple: Bitcoin is still a high-beta macro asset, not a safe haven. When risk appetite vanishes, so does the bid. The ETF narrative has flipped from savior to executioner. Instead of providing a floor, ETF redemptions are now a source of forced selling. The miners, once thought to be the marginal buyer, are now looking to AI for salvation. According to CryptoSlate, Big Tech is eyeing Bitcoin mining infrastructure as a way to feed its insatiable AI compute needs. If that lifeline materializes, miners might survive. If not, expect more forced selling as margins get squeezed.

Strykr Watch

Technically, Bitcoin is clinging to support at $65,000. Below that, the next real level is $62,500. Resistance is now $68,000, with a wall of supply above. RSI is in the low 30s, approaching oversold, but don’t mistake that for a buy signal, momentum is negative, and the trend is down. ETF flows are the key: if outflows persist, expect more pain. Watch for signs of miner capitulation, if hash rate drops or large wallets offload, the bottom is not in. On-chain metrics show rising exchange balances, a classic sign of distribution, not accumulation.

The risks are obvious. If Bitcoin loses $65,000, the next stop is $62,500, then $60,000. ETF outflows could accelerate, especially if macro risk-off persists. Miner distress is a ticking time bomb. If AI demand for mining infrastructure fails to materialize, expect a wave of bankruptcies and forced sales. And don’t forget the regulatory wildcard, if the SEC or another agency drops a surprise, all bets are off.

But there are opportunities for traders with steel nerves. If Bitcoin holds $65,000, a relief bounce to $68,000 is possible. ETF outflows could reverse if risk sentiment stabilizes. For the bold, buying blood in the streets has always been the crypto way, but use stops. If miners get a Big Tech bailout, the narrative could flip fast. And for the truly contrarian, this is the kind of panic that sets up the next bull run, just don’t try to catch the knife with both hands.

Strykr Take

This is not the end of Bitcoin, but it’s a brutal reminder that leverage cuts both ways. The ETF era was supposed to bring stability, but right now it’s just another source of volatility. Strykr Pulse 45/100. Threat Level 4/5. If you’re trading this, size down, use stops, and don’t believe the bottom-calling crowd. Capitulation is ugly, but it’s also where real bottoms are made. Just don’t expect it to be quick or painless.