Bitcoin Plunge Steepens, Down 48 Percent from January 2025

Crypto's Worst Day Since 2022 Crash as MicroStrategy Faces $12 Billion Paper Loss

Published on Feb. 6, 2026

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Bitcoin tumbled 13% on Thursday, its worst 24-hour trading period since June 2022, with the cryptocurrency trading at $63,596.56 at 4 p.m. Eastern time. This steep decline has left MicroStrategy, a major bitcoin holder, with a staggering $12.4 billion paper loss in the fourth quarter, as the company has transformed itself into a storehouse of bitcoin over the past six years.

Why it matters

The latest bitcoin plunge highlights the volatility and risks associated with the cryptocurrency market, particularly for companies like MicroStrategy that have heavily invested in digital assets. This could raise concerns about the stability and long-term viability of bitcoin and other cryptocurrencies as mainstream investment vehicles.

The details

MicroStrategy, led by co-founder Michael Saylor, has issued stock and debt to raise billions of dollars to fund its crypto-buying spree, and as of February 1, the company held 713,502 bitcoins. The selloff in bitcoin this week was driven by crypto exchanges automatically selling trader assets because the value of their collateral has dropped too low. While MicroStrategy faces no immediate consequences for bitcoin's decline, the company's mNAV (enterprise value divided by the value of its crypto holdings) has dropped below 1, meaning it may have difficulty selling shares to buy more tokens or buying back stock without selling some of its bitcoin holdings.

  • Bitcoin tumbled to $63,596.56 at 4 p.m. Eastern time on Thursday, February 6, 2026.
  • MicroStrategy reported a $12.4 billion net loss in the fourth quarter of 2025.

The players

Michael Saylor

The co-founder of MicroStrategy, who has transformed the company into a major bitcoin holder over the past six years.

MicroStrategy

A software company that has become a storehouse of bitcoin, having issued stock and debt to raise billions of dollars for its crypto-buying spree.

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What they’re saying

“HODL”

— Michael Saylor (X (formerly Twitter)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.