Bitcoin (BTC) is trading near £62,500 in early February 2026, marking its weakest levels since April 2025. The drop has caught the attention of UK investors and traders, as broader risk sentiment and macroeconomic signals weigh on the cryptocurrency.
This article explains why Bitcoin is falling, how it compares with traditional assets, and what traders should watch next.
How Low Has Bitcoin Fallen in February 2026?
Bitcoin is currently hovering around £62,500–£64,000, down from highs above £65,500 at the start of the year.
Data from major cryptocurrency trackers shows Bitcoin dipping below £65,000 on 31 January 2026, with selling pressure persisting into February.
The recent slide includes a single-day fall of nearly 7%, marking the largest drop since March 2025.
Across the crypto market, roughly £2 billion in leveraged positions were liquidated over the same period. UK investors are watching the £60,500–£61,500 range closely as a critical support zone.
Support & Resistance Levels for Bitcoin:
| Level Type | Price (£) |
|---|---|
| Support | 61,500 – 62,500 |
| Resistance | 64,500 – 65,500 |
| True Market Mean | 66,000 |
Bitcoin is trading below its “true market mean” of roughly £66,000, suggesting many holders are currently underwater.
Why Is Bitcoin Dropping Right Now?
Bitcoin’s decline is closely tied to broader global market trends. The nomination of Kevin Warsh as the next US Federal Reserve Chair sparked fears of tighter monetary policy. Markets are reassessing risk assets, including crypto, as a result.
Precious metals like gold and silver have also seen sharp falls, erasing trillions globally. US stock futures weakened, while the stronger US dollar has made non-yielding assets such as Bitcoin less attractive.
A lot of people are asking me about the recent #Bitcoin price drop.
ANSWER: Bitcoin is behaving as it always behaves. Zoom out. I don’t worry about it. All you really need to know is . . .
1) There will never be more than 21 MILLION Bitcoins for 8 Billion people. (19.9 Million… pic.twitter.com/7EVgh5Tp41
— Ben Hart (@BenHart_Freedom) February 2, 2026
“Bitcoin is increasingly behaving like a risk asset rather than a safe haven,” says Dr Jane Patel, senior analyst at London-based CryptoWatch. “Investors are pulling back as uncertainty rises in traditional markets.”
Are Technical Indicators Bearish?
On-chain data shows increasing selling pressure, with Bitcoin trading below its cost-basis level. Liquidations of leveraged positions continue to push prices lower, confirming that this is more than a short-term dip.
A recent tweet from crypto analyst Chris / Digital highlighted the breakdown of the four-year cycle that Bitcoin historically follows, suggesting the market may be entering a new phase: “Four Year Cycle is DEAD. New rules are being written.”
How Does Bitcoin Compare With Traditional Assets?
Bitcoin is losing its reputation as “digital gold.” While UK investors traditionally view gold as a safe haven during uncertainty, Bitcoin is sliding alongside equities and other risk assets.
In early February 2026, both US stock futures and cryptocurrency markets fell together, indicating higher correlation and shared sensitivity to macroeconomic risk.
“If you’re seeking shelter during a crisis, Bitcoin no longer offers the same hedge as gold,” notes Patel.
What Should UK Traders Watch Next?
Key Levels to Monitor
- Support: £61,500–£62,500
- Resistance: £64,500–£65,500
- A sustained move below support may signal further declines.
- Reclaiming resistance levels could indicate renewed bullish sentiment.
Short-Term Catalysts
- Fed statements and liquidity updates
- Inflation data releases
- Market liquidations and funding rate shifts
- AI-assisted institutional trading tools are increasingly analysing macro signals for crypto
Technical Signals for a Potential Rebound
- Positive funding rates
- Higher volume on green candles
- Closing above key moving averages
These indicators may point to recovery, but cautious investors should remain alert to macro conditions.
