Market situation of crypto today (02/05/2026):
The market is experiencing a sharp decline. Bitcoin (BTC) is trading around 70,000 - 71,000 USD
After a strong increase in 2025 (Bitcoin once reached over 120,000 USD), the market is now undergoing a deep adjustment. The main reason from the outside: technology stocks are plummeting (tech selloff), and investors are withdrawing money from high-risk assets like crypto. The Bitcoin ETF in the US has seen significant capital outflows (hundreds of millions to several billion USD in recent weeks, only on 02/02 there was an inflow of about 560 million).
The crowd is in a panic selling frenzy. But history shows that Bitcoin often recovers strongly after such deep declines, especially if it holds a crucial support zone (around 65,000 - 68,000 USD according to some analyses). Some predict it might hit the bottom and then rise back to 100,000 USD in 2026 if the economic situation improves (Fed lowers interest rates, money flows back). Conversely, if the economy worsens (high inflation, recession), prices could drop further down to 60,000 USD.
The safest approach: Hold cash or stablecoin 80-90%, wait for the market to stabilize (pros: protect capital; cons: may miss out if prices bounce back early).
Balanced: Use 10-30% of capital to gradually buy Bitcoin or Ethereum (DCA – regular purchases) around the current price range, keep most cash (pros: lower average price if recovery occurs; cons: still incur losses if it declines deeply).
Bold: Accumulate Bitcoin around 70,000 USD if long-term bullish, only use high-risk money (pros: large profits if it rises; cons: high risk of losing more if it continues to fall).
Currently is not the time to allocate all funds, prioritize holding cash and being patient. Monitoring ETF cash flows and major economic news is the most important.
