Analysts describe Bitcoin’s 50% decline to $60K as mild, pointing to institutional flows as evidence of a maturing cryptocurrency market.
According to the most recent market report from Binance’s research department, Bitcoin (BTC) dropped over 50% from its peak above $126,000 to roughly $60,000 on February 5.
According to the analysis, the size and structure of the collapse, when compared to previous cycles, point to a market that was more influenced by institutional capital and macro dynamics than by individual speculation.
Data Drawdown and Macro Influences Creating the Slide
The current 50% retreat “represents a minor correction relative to recent cycles,” according to a post by Binance Research on February 13. The company also noted that Bitcoin has had nine separate drawdowns of that size or more.
The company cites two distinct 94% declines in 2010 and 2011, a 78% decline from November 2021 to November 2022, and an 84% collapse during the bear market of 2017 to 2018.
Rather than crypto-specific failings, the paper ascribed the current downturn to macro conditions, citing firm labor data and Fed policy uncertainty as factors that have kept liquidity tight and decreased appetite for risky assets. Digital assets are now vying for investors’ attention as capital has shifted into defensive industries and AI-related stocks, the researchers stated.
According to CoinGecko’s price statistics, Bitcoin was trading less than $200 below $67,000 at the time of publication. The currency had gained almost 3% over the previous week but had scarcely moved in the previous day. With losses of over 19% in two weeks and nearly 30% in a month, momentum is likewise weak over longer time periods.
Capital has concentrated in huge assets, causing altcoins to lag more drastically, according to Binance Research. Following the issuance of over 11 million new tokens in 2025, many of which are no longer actively trading, the researchers attributed that change to a saturated token market.
Particularly in light of the fact that an Alphractal research revealed that Bitcoin’s long-term Realized Cap Impulse has gone negative for the first time in three years, not all metrics provide the same image. As capital inflows slowed, this signal has historically been associated with longer downturns. Institutional purchasing and ETF accumulation, according to the company’s creator, Joao Wedson, have not completely relieved supply pressure.
With data from CryptoQuant indicating its Global Uncertainty Index at a record level, higher than readings during events like the 2008 financial crisis and the COVID-19 era, macro uncertainty may also be a factor. Investors frequently minimize their exposure to risky assets when there is a high level of uncertainty.
But according to Binance’s analysts, structural participation has increased. They pointed to increased demand in tokenized real-world assets, stablecoin supply close to cycle highs, and stable assets under management in spot Bitcoin ETFs.
This week, for instance, BlackRock used Uniswap technology to settle trades for its tokenized Treasury fund, indicating that conventional financial institutions are still experimenting with blockchain settlement rails.
