Bitcoin Whales and ETFs Exit Market as UBS Declares ‘Crypto is Not an Asset’
By Jim Edwards, Executive Editor, Global News | February 6, 2026
Bitcoin’s recent trajectory continues to cast a shadow over the cryptocurrency market, which is currently experiencing significant sell-offs by major holders as well as exchange-traded funds (ETFs). UBS has weighed in with a stark assessment, bluntly stating that “crypto is not an asset,” fueling ongoing skepticism around digital currency investments.
Bitcoin Price Declines Despite Morning Uptick
Bitcoin has seen a modest 5% rise early this morning, trading at approximately $65,900 per coin. However, this is little solace given that the flagship cryptocurrency has plummeted nearly 50% from its October 2025 peak of $125,000 to a low of around $61,300 just yesterday. This dramatic correction largely defines current market sentiment.
Strategy Shares Suffer Steep Losses Amid Falling Bitcoin Value
One of the clearest indications of the downturn has come from Strategy, Michael Saylor’s Bitcoin treasury company. Its shares plunged 17% yesterday and have now tumbled 75% from their peak last year. At current Bitcoin values, the price per coin is below the average acquisition price Strategy paid—around $76,000—which has eroded the company’s market capitalization significantly below the value of its actual Bitcoin holdings.
During its fourth-quarter earnings call, Strategy reassured investors that it can cover all convertible debt even if Bitcoin falls by as much as 90%, and that sufficient cash is on hand to meet dividend obligations for the coming two and a half years. Still, the market remains cautious.
Whales and ETFs Dump Bitcoin, Signaling Declining Confidence
Jefferies analyst Andrew Moss offered insight into possible catalysts. He noted that large Bitcoin holders, or “whales,” have begun selling into market weakness after a period of accumulation since early January. This trend was evidenced by significant net outflows from spot Bitcoin ETFs during the weeks ending January 19 and 26, followed by further large outflows in the first week of February.
Moss expressed a bleak outlook, stating, “The all-too-familiar ‘Crypto Winter’ chatter has emerged yet again,” and highlighted the absence of buying support from small and medium investors as a concern, undermining hopes that a market bottom might be near.
Market Experts Weigh In: Bitcoin’s Worst Decline Since FTX Collapse
Deutsche Bank’s Henry Allen described yesterday’s sell-off as Bitcoin’s most severe daily drop since November 2022, when the collapse of the FTX exchange shook the crypto industry, resulting in billions of lost investor funds.
Further skepticism comes from UBS’s Paul Donovan, who stated candidly: “Crypto is not an asset, and is held by a tiny portion of society. It is unlikely that consumer behavior will change because of recent market moves.” This perspective underscores lingering doubts about crypto’s role in mainstream finance.
Market Sentiment: A Prolonged Downtrend Expected
Chevy Cassar, author of the popular Milk Road crypto newsletter, acknowledged the current difficulties, saying “This sucks.” He predicted the market could continue downward, possibly bottoming out anywhere from one to eleven months, in line with historical cycles in crypto assets.
Meanwhile, Fabian Dori, chief investment officer of Sygnum Bank—a regulated digital asset bank—referred to the market as “near exhaustion, peak fear territory.” This sentiment aligns with a cautionary stance among investors, bracing for sustained volatility.
Broader Market Overview
As of the New York market open, major global equities showed mixed performance:
- S&P 500 futures were up 0.54% following a 1.23% drop in the previous session
- STOXX Europe 600 rose 0.29%
- U.K.’s FTSE 100 increased by 0.21%
- Japan’s Nikkei 225 gained 0.81%
- China’s CSI 300 fell 0.57%
- South Korea’s KOSPI declined 1.44%
- India’s Nifty 50 inched up 0.2%
- Bitcoin maintained trading around $65,900
Conclusion
The cryptocurrency market is navigating turbulent waters. Large holders are selling, ETFs are seeing substantial outflows, and mainstream financial institutions like UBS are openly questioning the asset’s legitimacy. Market watchers anticipate ongoing volatility, with few currently convinced that Bitcoin and other cryptocurrencies have found a stable floor.
As the market digests these developments, investors remain cautious amid an environment rife with uncertainty and skepticism about crypto’s future role in the global financial system.
Jim Edwards is the executive editor for global news at Fortune. His investigative journalism has influenced major legal rulings and earned top industry awards. He continues to provide in-depth reports on finance and technology developments worldwide.