# SHOCKING PREDICTION: Bitcoin CRASHES Below $65K as AI Threat Looms – Is Crypto Doomed?
February 4, 2026 – The cryptocurrency market is abuzz with apprehension today as Bitcoin, the flagship digital asset, faces a grim outlook. Traders on the prediction platform Polymarket are now pricing in a staggering 72% probability that Bitcoin will plummet below the critical $65,000 mark in 2026, following a sharp sell-off over the weekend. This bearish sentiment is amplified by growing concerns surrounding the potential impact of advanced Artificial Intelligence on the tech sector, with some analysts warning of cascading effects that could lead to “massive value destruction” across the broader digital asset landscape. The cryptocurrency’s slump through several important thresholds has ignited fears of a prolonged bear market, challenging the optimism that characterized the end of 2025.
The latest wave of market anxiety appears to be fueled by a confluence of factors, with the burgeoning advancement of Artificial Intelligence taking center stage. Recent developments, such as the release of an AI-powered productivity tool by the AI startup Anthropic for in-house lawyers, have sent shockwaves through the tech industry. This has led to a significant downturn in the stock prices of companies associated with legal software and data services, and the sell-off has begun to snowball across the wider tech sector. The fear is that sophisticated AI applications could disrupt traditional business models, leading to a reevaluation of growth prospects for many technology-driven companies, including those in the blockchain and cryptocurrency space.
Michael Burry, the investor famously known for predicting the 2008 financial crisis, has weighed in on the current market conditions, stating that Bitcoin’s slide below key support levels could indeed trigger a cascade of negative effects, leading to substantial value destruction. This sentiment is echoed by market analysts who are closely monitoring the interconnectedness of traditional finance and the digital asset market. As cash conditions in the U.S. continue to tighten, liquidity in the crypto market thins, making it more susceptible to sharp downturns. The rotation into more economically sensitive industries, as observed in Asian markets, further underscores a shift away from speculative growth assets like many cryptocurrencies.
Bitcoin’s Precarious Position: Live Data Snapshot
As of February 4, 2026, the live price of Bitcoin (BTC) is hovering around $76,335.00 USD. The 24-hour trading volume stands at approximately $53.69 billion USD, indicating significant market activity despite the prevailing downward pressure. Over the past 24 hours, Bitcoin has experienced a notable decline of -2.94%. Its market capitalization is currently valued at an immense $1,526,054,040,604 USD. This price action paints a concerning picture for investors who were anticipating a continued upward trajectory. The sharp sell-off over the weekend has seen Bitcoin briefly dip below $75,000 before a slight rebound, adding to the tension after months of uneven price movements.
The current market sentiment is further reflected in the Polymarket odds, where the likelihood of Bitcoin trading below $65,000 in 2026 has surged to 71%, with nearly $1 million in volume backing this bearish outcome. This data point is crucial as it represents a real-time reflection of trader sentiment, often acting as an early indicator of market psychology. The $65,000 level has historically served as a significant support zone, and its potential breach has traders on edge.
Market Impact: Beyond Bitcoin’s Slump
The implications of a significant Bitcoin downturn extend far beyond the performance of the largest cryptocurrency. A prolonged bear market for Bitcoin often exerts downward pressure on the entire crypto ecosystem. Altcoins, which are typically more volatile, are likely to experience even steeper declines. For instance, Solana (SOL) is currently trading at approximately $97.32 USD with a 24-hour trading volume of $6,100,697,032.71 USD, and has seen a -3.34% change in the past 24 hours. Ethereum (ETH) is priced at around $2,254.20 USD, with a 24-hour trading volume of $48.52 billion USD and a -2.14% change in the last 24 hours. XRP is trading at approximately $1.60 USD, with a 24-hour volume of $4.11 billion USD and a -0.82% change in the last 24 hours. Cardano (ADA) is currently priced at around $0.29130 USD, with a 24-hour volume of $680.65 million USD and a -3.06% change in the last 24 hours.
The news of the SEC approving generic listing standards for commodity-based exchange-traded products in late 2025 has created an environment ripe for increased ETF offerings. However, the current market downturn could significantly dampen investor appetite for new crypto-related ETFs, regardless of their structure or underlying assets. The Grayscale Digital Large Cap Fund, which includes Solana, Cardano, and XRP, might face headwinds if the broader market continues its slide. The anticipation of new ETFs, such as BlackRock’s proposed iShares Bitcoin Premium Income ETF, could be overshadowed by these immediate market concerns.
Expert Opinions: Whales and Analysts Sound the Alarm
The prevailing sentiment among market commentators and influential figures is one of caution, bordering on alarm. Michael Burry’s stark warning about “massive value destruction” due to Bitcoin’s slump is a clear signal of deep-seated concerns. While specific whale movements are difficult to track in real-time without dedicated on-chain analytics, the general sentiment on platforms like X (formerly Twitter) reflects a growing unease. Many analysts are pointing to the correlation between the tightening U.S. cash conditions and the crypto market’s vulnerability, suggesting that liquidity constraints are exacerbating the current price decline.
Some experts are drawing parallels to past market cycles, emphasizing the importance of risk management and diversification. The recent regulatory clarity provided by the SEC regarding tokenized securities and the upcoming changes to crypto regulation in the UK also add layers of complexity. While these regulatory developments could be positive in the long term, they do little to alleviate the immediate pressure on asset prices. The narrative of AI posing a fundamental threat to technological and, by extension, financial innovation is gaining traction, leading many to question the long-term viability of certain high-growth, tech-dependent sectors, including cryptocurrencies.
Price Prediction: The Next 24 Hours & Beyond
Next 24 Hours: Given the strong bearish sentiment indicated by Polymarket odds and the broader market sell-off, the next 24 hours are likely to remain highly volatile for Bitcoin. The immediate target for resistance will be the $77,000 level, while support could be tested around the $75,000 mark. A breach below this level could accelerate the downward trend, bringing the $65,000 target into sharper focus. Any positive news regarding regulatory clarity or a shift in macroeconomic sentiment could provide a temporary reprieve, but the overarching fear of an AI-induced tech sector downturn is likely to cap any significant upward movements.
Next 30 Days: The outlook for the next 30 days is decidedly cautious. If Bitcoin fails to reclaim critical support levels and the concerns surrounding AI’s impact on tech companies intensify, a sustained decline towards the $65,000-$60,000 range is a distinct possibility. The recent trend of value shares outperforming growth shares in traditional markets further suggests a flight to safety, which is not conducive to crypto assets. Investors may continue to hedge against potential AI-driven disruptions by reallocating capital away from speculative assets. A significant catalyst would be required to reverse this downward momentum, such as a clear and reassuring resolution to the AI concerns or a substantial shift in global monetary policy towards more accommodative stances.
Conclusion: A Critical Juncture for Crypto
The cryptocurrency market finds itself at a critical juncture. The confluence of a bearish macroeconomic environment, increasing regulatory scrutiny, and the looming specter of AI-driven disruption has created a potent cocktail of fear and uncertainty. Bitcoin’s price action, coupled with the stark probabilities being traded on platforms like Polymarket, paints a grim short-to-medium term picture. While the long-term potential of blockchain technology remains undeniable, the immediate challenges are significant. Investors would be wise to exercise extreme caution, prioritize risk management, and stay closely informed about the rapidly evolving narrative surrounding AI and its potential impact on the broader financial landscape. The coming weeks will be pivotal in determining whether crypto can weather this storm or if it’s on the cusp of a prolonged and painful correction.
