Bitcoin Drops Below $75K for First Time Since April as Whales Dump 50K BTC

Bitcoin Breaches $75K as Whales Dump 50,000 BTC

Bitcoin dropped below $75,000 on February 4, 2026, marking the first time the asset has traded at this level since April 2025. The breach came alongside alarming on-chain data from Santiment via Cointelegraph showing that large whale wallets had dumped more than 50,000 BTC in recent days while smaller retail wallets aggressively bought the dip.

According to Santiment's analysis, this whale-sell, retail-buy divergence is a historically bearish combination. The pattern suggests that the largest and most sophisticated market participants are distributing their holdings to smaller buyers, a dynamic that has preceded further price declines in previous market cycles.

Why $75K Was the Line in the Sand

The $75,000 level was widely regarded as a critical psychological and technical support zone. Its breach represents the continuation of a broader downturn that began with the "Black Sunday" crash on February 1, when Bitcoin fell below $80,000 and wiped hundreds of billions from crypto markets.

For the millions of people who hold Bitcoin directly, through crypto cards, or as part of staking and rewards programs, this price action has direct financial consequences. BTC-denominated cashback rewards, yield positions, and card balances are all losing real purchasing power as the price slides.

The whale behavior is particularly concerning because it signals that the largest holders, entities that typically have the best market intelligence and the longest time horizons, believe further downside is likely. When these wallets distribute en masse while retail accumulates, it historically means the bottom is not yet in.

The Details

The on-chain data paints a clear picture of market divergence:

Whale Activity: Wallets holding large BTC balances have been net sellers, collectively offloading more than 50,000 BTC. At current prices, that represents approximately $3.7 billion in sell pressure. This is not routine portfolio rebalancing. It is sustained distribution over multiple days.

Retail Behavior: In contrast, smaller wallets have been aggressively buying the dip. This is a common pattern during corrections: retail investors see lower prices as an opportunity, while institutional and whale-level participants see them as a signal to reduce exposure.

Historical Precedent: This whale-retail divergence has preceded extended downturns multiple times in Bitcoin's history. In 2022, whale distribution preceded the collapse from $40,000 to $16,000. In mid-2024, a similar pattern preceded a 30% correction. The pattern does not guarantee further decline, but it warrants caution.

Technical Levels: With $75,000 broken, the next major support zones sit in the $69,000 to $72,000 range, levels that were last tested in late 2024. Below that, the $60,000 to $65,000 zone represents the next significant cluster of historical support.

Timeline: This move follows the February 1 crash that took BTC below $80,000 for the first time since the late-2025 rally. The market has now lost an additional $5,000 per coin in just three days, suggesting sellers remain firmly in control.

The Impact on Your Holdings and Card Rewards

The practical implications vary depending on how you interact with crypto:

BTC Holders: Direct holders have seen significant portfolio value erosion. Anyone who bought above $80,000 during the late-2025 rally is now underwater. Dollar-cost averaging strategies are being tested.

Crypto Card Users: If your card pays cashback in BTC, the fiat value of your accumulated rewards is declining. A 2% BTC cashback earned at $100,000 per coin is now worth 25% less in spending power. Users with stablecoin-denominated cards (USDC, USDT) are unaffected by the price decline.

Yield Positions: BTC staking and lending positions continue to earn nominal yields, but the asset value erosion may outpace interest income. A 5% APY on BTC means nothing if the asset drops 25%.

Tax Considerations: Selling at these levels may crystallize capital losses that can offset gains elsewhere in your portfolio. This is worth discussing with a tax professional if you have significant unrealized losses.

Stablecoins Over Volatile Rewards Until the Dust Settles

The broader crypto ecosystem is feeling the effects of Bitcoin's decline. Altcoins typically suffer even more during BTC-led downturns, and this cycle is no exception.

For crypto card holders specifically, this environment highlights the importance of understanding what asset your rewards are denominated in. Cards that pay in BTC or other volatile tokens see their effective reward rates fluctuate with the market. In a downturn, a 2% BTC cashback card could effectively deliver 1.5% or less if the price drops between earning and spending.

Stablecoin-based cards and spending solutions become more attractive during volatility. Products from issuers that let you hold and spend USDC or USDT directly avoid the price risk entirely. Self-custody solutions also gain appeal, as users may want more control over their assets during uncertain periods rather than leaving funds on exchange-linked cards.

For DeFi users, liquidation risks increase as collateral values drop. Anyone using BTC as collateral for loans should monitor their health factors closely. The speed of this decline means liquidation cascades could accelerate if the next support level fails.

FAQ

Is this the bottom for Bitcoin? On-chain data from Santiment suggests probably not. The whale-sell, retail-buy pattern has historically preceded further declines rather than marking bottoms. However, no indicator is perfect, and the market could stabilize at any point.

Should I sell my Bitcoin now? This is not financial advice. The decision depends on your time horizon, risk tolerance, and portfolio allocation. If you need funds in the short term, the risk of further decline is real. If you have a multi-year horizon, corrections of this magnitude have historically been followed by new all-time highs.

Are crypto card rewards still worth it during a downturn? Yes, but consider switching to stablecoin-denominated rewards if your card offers that option. Earning cashback in a declining asset reduces your effective reward rate.

What is the next major support level for Bitcoin? The $69,000 to $72,000 range represents the next significant support zone based on historical price action and volume profiles.

Overview

Bitcoin's drop below $75,000 marks a significant escalation in the ongoing market correction. The on-chain divergence between whale selling and retail buying is a historically bearish signal that suggests further downside may be ahead. For crypto users, the actionable takeaway is straightforward: review your exposure, consider shifting volatile asset holdings to stablecoins if you need near-term stability, and monitor liquidation levels if you have leveraged positions. Capital preservation should take priority over trying to catch the bottom.