Bitcoin’s Five-Month Losing Streak: Can Corporate Treasuries Stop the Bleed?

If you’re looking for a case study in how quickly sentiment can turn in crypto, look no further than Bitcoin’s latest streak. The world’s largest digital asset is staring down its fifth consecutive red month, a stat that would have been unthinkable during the 2021 bull run. As of February 6, 2026, Bitcoin is down over 16% to start the month, and the pain is compounded by a string of ugly headlines: Strategy Inc, the poster child for corporate Bitcoin treasuries, just reported a jaw-dropping $17.4 billion Q4 operating loss, driven almost entirely by unrealized losses on its massive 713,502 BTC stack.

The scale of the drawdown is historic. Bitcoin’s relentless slide has wiped out over $10 billion in corporate treasury value, and the market is now openly questioning the wisdom of putting balance sheets on the blockchain. Strategy’s loss is a 17-fold jump from the prior year, and the company now controls roughly 3.4% of all Bitcoin in existence. The risk? If Strategy or a peer starts selling, the market could see a liquidity event that makes March 2020 look tame.

But here’s the twist: even as the pain deepens, whales are buying. Binance just scooped up $233.37 million worth of Bitcoin, and Metaplanet is doubling down on its accumulation strategy. The market is split between panic and opportunism, and the next move could define the crypto landscape for years.

The facts are stark. Bitcoin is on track for five straight losing months, a rare feat even in the asset’s volatile history. The last time Bitcoin posted this kind of sustained drawdown was during the 2018 bear market, but the scale is larger now. The current correction has erased over 16% in just the first week of February, and the tape shows little sign of stabilization. Crypto news outlet NewsBTC notes that the broader market is in lockstep, with altcoins posting even steeper losses. Solana, for example, just retested its $68 low before a modest bounce.

Strategy Inc’s Q4 report is a gut punch for the “Bitcoin as treasury reserve” narrative. The company’s $17.4 billion operating loss is almost entirely due to mark-to-market pain, and while the firm claims to have raised $25.3 billion in 2025, the market is skeptical. Blockonomi reports that Strategy now holds 713,502 BTC, making it the single largest corporate holder by a wide margin. The company’s digital credit platform is expanding, but the market is laser-focused on the risk of forced selling.

The broader crypto market is feeling the heat. RWA perps are seeing record volume as traders rotate out of Bitcoin and into real-world asset proxies. Binance’s massive purchase is a rare bright spot, but it’s not enough to offset the wave of selling from smaller holders. The options market is pricing in extreme volatility, with implied vols at multi-year highs.

The macro context is equally fraught. The Fed’s steady hand on rates isn’t providing any relief, and policy uncertainty is triggering cross-asset repricing. The risk-off mood is pervasive, and crypto is at the epicenter. The CNN Money Fear and Greed Index is stuck in “fear,” and sentiment is deteriorating by the day.

Historically, Bitcoin has been resilient in the face of adversity, but the current streak is testing even the most hardened hodlers. The drawdown is now larger and longer than any since 2018, and the market is openly questioning whether the “digital gold” narrative still holds. Corporate treasuries, once seen as a stabilizing force, are now viewed as a source of systemic risk. If Strategy or another whale is forced to liquidate, the market could see a cascade of selling that tests the very foundations of crypto liquidity.

But there’s a counter-narrative brewing. Whales like Binance and Metaplanet are accumulating, betting that the pain is temporary and that Bitcoin will ultimately reclaim its status as a store of value. The market is split, and the next move will be decisive.

Strykr Watch

Bitcoin is teetering at critical support. The $40,000 level is the line in the sand, with a break below opening the door to a quick move down to $36,000. Resistance is overhead at $45,000, and any bounce will need to clear that level to signal a reversal. RSI is deeply oversold, but there’s no sign of capitulation yet. Volume is spiking on down days, a classic sign of panic selling.

The options market is pricing in extreme volatility for the next two weeks, with implied vols at a multi-year high. The pain trade is lower, but don’t rule out a violent short-covering rally if the sector gets too stretched. Watch for whale activity, if Binance or Metaplanet steps in again, it could trigger a squeeze.

The risk is that the market has only just begun to price in the new reality for corporate treasuries. If Strategy starts selling, the market could see a liquidity event that makes March 2020 look tame. The opportunity? For brave souls, a flush below $40,000 could set up a mean-reversion trade. But don’t get cute, use tight stops and watch the tape like a hawk.

The bear case is clear: Bitcoin’s narrative is broken, corporate treasuries are a source of systemic risk, and the market is bracing for more pain. The bull case? Capitulation is coming, and the best names will survive. But you’ll need to be selective, this is not a market for index hugging.

Actionable ideas? Short weak altcoins on failed bounces, but be ready to cover fast. Long Bitcoin on a flush below $40,000 with a tight stop. Avoid the middle of the pack, this is a market for extremes.

Strykr Take

Bitcoin’s five-month losing streak is a wake-up call for anyone who thought the asset was immune to macro shocks. The corporate treasury narrative is under siege, and the market is finally pricing in the risk of forced selling. If you’re still clinging to the old playbook, you’re going to get steamrolled. The winners will be those who adapt, rotate, and trade the tape, not those who pray for a return to 2021. Strykr Pulse 42/100. The risk is real, and the pain isn’t over. Threat Level 4/5.