The crypto market is experiencing a severe correction. Over six consecutive months, Bitcoin has fallen from its peak near 127,000 USD to the current area around 60,000 USD, while most altcoins have dropped 70–90%, signaling that a bear market has arrived.
If you are feeling anxious, confused, or even angry at yourself or the market, pause for a moment. Take a deep breath. Whether this is your first bear market or your second or third, the principles below have been tested across multiple cycles. They are practical, effective, and still highly applicable.
Key Takeaways
- Sharp market drawdowns are driven as much by psychology as by price action, so staying disciplined, avoiding leverage, and preserving capital matter more than trying to catch the bottom.
- Bear markets reward patience: holding stablecoins, DCA selectively into high-quality assets, and cutting weak positions helps protect capital for the next cycle.
- Every major crypto cycle has recovered after deep pain, and periods of extreme fear are often when long-term opportunities are quietly formed.
1. Market Overview Today
As of the morning of February 6, 2026, red continues to dominate the crypto market, with a sell-off that has lasted more than 12 hours showing no clear signs of stopping.
According to data from MEXC, Bitcoin (BTC) dropped as low as 60,000 USD or even lower at one point, marking a 24-hour decline of over 16%. This ranks among the worst trading days in Bitcoin’s history, second only to the darkest moments of the FTX collapse in 2022.
This also marks a new low for Bitcoin in 2026 and the lowest price level since September 2024, effectively erasing all gains accumulated since before Donald Trump was elected President of the United States with promises to support the crypto industry. From its all-time high above 124,000 USD in October 2025, Bitcoin has fallen more than 50% in less than five months.
At the time of writing, BTC has temporarily rebounded to around 64,500 USD, but there are still no clear signals that a sustained recovery will follow.
Meanwhile, many altcoins are also being heavily sold off. Ethereum (ETH) has dropped more than 14% in the past day, falling below 1,800 USD.
ETH is facing significant pressure from whale selling and has sparked controversy within the community after co-founder Vitalik Buterin unexpectedly shifted his stance on Ethereum’s scaling roadmap. He recently argued that Ethereum’s layer-1 has already solved the blockchain trilemma, while layer-2 solutions are struggling to justify their existence.
According to DropTabs, the BTC and ETH portfolios of Strategy and BitMine, two companies pursuing leading digital asset treasury strategies, recorded losses of approximately 5.7 billion USD and 1 billion USD respectively in just one day, as prices fell well below their dollar-cost-average levels.
During the 2020–2023 cycle, Strategy also experienced deep unrealized losses when Bitcoin crashed, with BTC trading more than 22% below its DCA price. However, the company maintained its long-term conviction and did not sell. At present, a 22% drop below Strategy’s DCA would correspond to around 58,000 USD. Given that its treasury is now far larger than in the past, it remains uncertain whether the company will continue to uphold the same philosophy under today’s very different market conditions.
Solana (SOL) has plunged more than 25% to below 70 USD, a level not seen since December 2023. BNB has fallen nearly 20% to around 570 USD, with similar declines across other large-cap names such as SUI, ZEC, APT, AAVE, and NEAR.
The Crypto Fear and Greed Index dropped to 9 this morning, a level not seen since June 2022 following the LUNA–UST collapse and the liquidity crisis among major industry players. This reflects extreme fear, panic, and growing fatigue among investors after a prolonged period of declines with no positive progress, while equities and gold continue to rally.
2. What to Do When the Market Drops Sharply?
When the market is falling sharply, the most important thing isn’t what to do quickly, but what to do right.
Hasty decisions made in panic often have consequences that last longer than the price drop itself.
The following focuses on practical actions that will help you preserve your capital, maintain your composure, and avoid being swept away by the emotions of the crowd.
Keep Yourself Emotionally Stable Amid Market Volatility
A sharp market decline does not necessarily cause heavy losses. In many cases, it is your reaction to falling prices that leads to real damage. When the market crashes, keep the following principles in mind:
- Do not try to revenge trade to recover previous losses. This usually results in even larger drawdowns
- Minimize futures and margin trading. Bear markets are when exchanges aggressively hunt liquidity
- Do not borrow money to DCA. Prices can continue falling and compound your psychological pressure
Hold Stablecoins and Wait for Better Opportunities
A sharp market decline creates opportunities to buy strong assets, which is why holding stablecoins is critical regardless of how low BTC falls. Real opportunities appear when others are forced to sell or get liquidated while you still have cash.
Do not all-in too early during a bear market. That is not bravery, it is impatience.
DCA in a Smart Way
Trying to catch the bottom or buying aggressively just because prices drop may sound logical, but in a bear market prices can always fall further. Instead:
- Split your capital and accumulate quality assets like BTC, ETH, and MX over time
- For altcoins, only DCA into projects you truly understand and are willing to hold for multiple quarters, with clear teams and real users
Never assume you can buy the exact bottom. There is no single bottom price, only bottom zones.
Cut Weak Coins, Keep Strong Assets and Cash
A bear market is a true cleansing phase. Some low-quality projects may shut down entirely and go to zero. Most coins from previous cycles will never return to their former highs.
Accept losses, sell weak or dead coins, and preserve capital. This will give you mental clarity and position you for better opportunities in the future.
Use Idle Capital Wisely, Prioritize Safety
Leaving stablecoins idle at 0% yield is inefficient, but chasing high APY in a bear market is extremely risky.
- Consider low-yield, low-risk options such as MEXC Earn, BTC or ETH staking, or flexible Earn products on MEXC
- Prioritize high liquidity, fast withdrawals, and avoid long lock-ups
- Stay away from “thousands of percent” APY schemes or complex farming strategies, as bear markets are when rugs and impermanent loss hurt the most
Small but consistent returns are better than sitting in constant anxiety.
Use the Bear Market to Prepare for the Next Cycle
Bear markets are not for making money. They are for preparation.
This is the best time to:
- Deepen your understanding of on-chain data, technical analysis, and fundamental analysis
- Identify projects that continue to operate well after panic selling, rather than chasing short-lived trends
- Build real-world income through jobs, freelancing, or content creation to reduce financial pressure
- Connect with real builders and long-term thinkers, not groups that only appear when the market pumps
Most people who win big in the next bull market quietly accumulated knowledge and positions during these dark periods.
Zoom Out: Markets Always Move in Cycles
Looking back at history:
- 2018: BTC fell over 80%, the market went quiet for a long time, then rallied in ways few expected
- 2022: BTC dropped around 75%, followed by deep cleansing and recovery
- 2026: macro pressure, mass liquidations, and shaken confidence
3. Conclusion
Every cycle is painful, and when you are inside it, it always feels like “this time is different.” In reality, this phase will also pass.
When everyone is exhausted, disillusioned, and no longer wants to talk about crypto, that is often when the market is quietly building a base for the next phase. Do not give up.
Disclaimer: This content does not constitute investment, tax, legal, financial, or accounting advice. MEXC provides this information for educational purposes only. Always do your own research, understand the risks, and invest responsibly.