Bitcoin’s Plunge: A Tale of Greed, Folly, and the Abyss

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Ah, the tempestuous dance of Bitcoin, that digital chimera, continues its macabre waltz toward the precipice! Galaxy Digital, those harbingers of financial doom, whisper in our ears that the selloff is but a prelude to a grander tragedy. On-chain data, they proclaim, is a mirror reflecting the soul of a market in torment, while technical levels crumble like the hopes of a gambler on a losing streak. And the catalyst calendar? As barren as the heart of a miser. Thus, Bitcoin stands naked, vulnerable to a retracement that may drag it, kicking and screaming, into the high-$50,000s-a fall as inevitable as the sins of mankind.

In a missive dated February 1, 2026, the prophet Alex Thorn, Galaxy’s oracle of woe, declared last week’s drawdown no mere tremor but a harbinger of apocalypse. Bitcoin, that fickle idol, plummeted 15% from January 28 to 31, its descent accelerating with the fervor of a damned soul. Saturday alone witnessed a 10% slide, a cataclysm that triggered liquidations of biblical proportion, wiping out $2 billion in long positions-a massacre of optimism on the altars of greed.

The Bear’s Embrace: A Future Draped in Shadow

The selloff drove BTC to the depths of $75,644 on Coinbase, a fall so precipitous it pierced the cost bases of the faithful. Thorn, with the precision of a coroner, noted that BTC dipped 10% below the average cost basis of US spot ETFs, a wound that bled before it scabbed over. Even Strategy’s cost basis of $76,037 was not spared, and the specter of the April 2025 “Tariff Tantrum” loomed near. At this writing, Bitcoin languishes 38% below its October 2025 zenith of $126,296-a fall that, in the annals of history, portends a deeper plunge. For save the year 2017, when has a 40% drawdown not been followed by a 50% descent within three months? Thus, $63,000 beckons like a siren’s call.

Thorn’s prophecy is anchored in two pillars of doom: the 50-week moving average, lost in November 2025, and the 200-week moving average, now lurking at $58,000. These, he declares, are the gravitational forces that have pulled Bitcoin into the abyss in cycles past. And let us not forget the realized price, that on-chain specter, hovering at $56,000-a floor that rises only if BTC ascends above it, a condition as likely as a sinner’s redemption.

The ETFs, those modern-day idols, have seen their inflows wane, from $62.2 billion in October 2025 to $54 billion by January 30, 2026. The prior weeks bled $2.8 billion, yet the faithful clung to their holdings, a testament to either loyalty or folly. On-chain data reveals a gap in ownership between $82,000 and $70,000, a void that may beckon the price downward, for where demand is absent, there the market shall seek.

And what of the narrative? Thorn laments that catalysts are as scarce as virtue in a den of thieves. Bitcoin, once hailed as a hedge against debasement, now falters as gold and silver soar. Accumulation is but a whisper, and the “debasement hedge” framing lies in tatters. Yet, Thorn stops short of declaring the fall to the $50,000s inevitable, for long-term holders, those weary souls, have begun to abate their profit-taking-a sign, perhaps, that the endgame approaches.

For traders, the question is as existential as it is tactical: will the ETF cost basis near $84,000 hold, or will the void below swallow BTC whole? And if $70,000 falls, will the realized price and the 200-week moving average in the high $50,000s serve as a floor, or are they but illusions in a market’s fever dream? At press time, Bitcoin trades at $78,301-a fleeting respite in a storm of uncertainty.

Bitcoin Price Chart

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2026-02-03 21:38