Bitcoin has faced renewed volatility in early 2026, with prices briefly dropping as low as $60,074, sparking concerns of a potential Bitcoin crash. The recent 20% pullback, which pushed Bitcoin back to $66,000, highlights the market’s sensitivity to large trades and concentrated holdings, raising questions about whether Bitcoin and other crytocurrencies could experience further declines.
As of writing, Bitcoin trades at $66,129, down 6.16% in 24 hours.
Strategy’s Holdings and Market Concerns
One factor drawing attention is Strategy, the largest corporate Bitcoin holder, with over 713,000 BTC under management, which is approximately 3.4% of total supply. Recent price declines have exposed the company to substantial unrealized losses, prompting speculation that it might be forced to liquidate some of its holdings.
⚡️ JUST IN: #Strategy has bought another 855 #Bitcoin.
They now HODL 713,502 $BTC
Now thats conviction! pic.twitter.com/uuFIlggbvS
— RR2Capital (@RR2Capital) February 2, 2026
However, according to Stretegy CEO, even Bitcoin fall to around $8,000, the company will not sell and get liquidated. Investors should therefore view the recent price drop as a correction rather than a sign of imminent collapse. Strategy, meanwhile, will just keep buying more Bitcoin in the future.
?? STRATEGY $MSTR CEO JUST SAID BITCOIN COULD GO TO $8,000 AND THEY WILL STILL NOT GET LIQUIDATED ?
THEY WILL JUST KEEP BUYING MORE pic.twitter.com/zqrVqywiwg
— Vivek Sen (@Vivek4real_) February 5, 2026
Institutional Accumulation Supports Price Floors
Counterbalancing these concerns is growing institutional demand. Exchanges and investment firms have been actively acquiring Bitcoin when the market is down, reducing liquid supply and helping stabilize the market. Binance’s Secure Asset Fund for Users (SAFU) recently purchased 3,600 BTC, bringing its total holdings to over $434 million, signaling confidence in the asset even amid bearish sentiment. Similarly, Metaplanet, a Tokyo-listed investment firm, has continued aggressive Bitcoin accumulation as part of its treasury strategy, further tightening supply.
Binance SAFU Fund just bought another 3,600 $BTC($233.37M), bringing its total purchase to 6,230 $BTC($434.5M).https://t.co/WwuOOWlMjj pic.twitter.com/3MOB3UAPXs
— Lookonchain (@lookonchain) February 6, 2026
This coordinated accumulation by institutional buyers acts as a natural buffer against extreme declines. By removing coins from circulation, these entities help maintain a price floor and reduce the likelihood of Bitcoin revisiting lows like $30,000. Moreover, their long-term investment strategies reinforce market stability, as holdings are not intended for short-term trading but for treasury and strategic purposes.
Balanced Outlook
While Bitcoin remains sensitive to large holders and market liquidity, current evidence suggests that fears of a drastic crash are mitigated by both Strategy’s limited near-term selling pressure and ongoing institutional accumulation. As a result, the cryptocurrency’s near-term outlook is characterized by cautious stability rather than extreme downside risk. Market watchers will continue to monitor supply dynamics and institutional activity, which remain key determinants of Bitcoin’s price trajectory.