<p>Last week, <strong>Bitcoin</strong> (CRYPTO: BTC) experienced a significant drop, plummeting to a low of $60,000, marking a 19% decline. The downturn is attributed to multiple factors, including massive deleveraging and miners being forced to sell, rather than a single catastrophic event.</p>



<p>According to reports, futures open interest has dropped from $61 billion to $49 billion within a week, indicating a more than 20% decline in borrowed bets against Bitcoin. This drop in leverage parallels the decline in Bitcoin’s price, suggesting a simultaneous fall rather than a chaotic forced selling scenario.</p>



<h2>What The Latest Bitcoin Drop Reveals</h2>



<p>According to <strong>Matthew Sigel</strong>, head of digital asset research at <strong>VanEck</strong>, the selloff isn’t driven by a single trigger but by a combination of factors including collapsing leverage, AI hype unraveling, and quantum computing risks. </p>



<p>“The list reveals a market under siege from multiple directions,” Sigel stated in a post on X.</p>



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<blockquote><p lang="en" dir="ltr">Bitcoin Market Update: Deleveraging, Narrative Shock, and an Oversold Setup<br/><br/>Bitcoin has experienced a sharp drawdown over the past week, with prices falling roughly 19 percent and currently trading in the mid-$60,000s. The move has been driven by a rapid unwind of leverage from…</p>— matthew sigel, recovering CFA (@matthew_sigel) February 5, 2026</blockquote>
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<p>Sigel highlighted the skepticism surrounding AI investments, which has particularly impacted Bitcoin miners who had pivoted to AI and high-performance computing. With financing drying up and Bitcoin prices falling, miners have been forced to sell Bitcoin to maintain their operations.</p>



<h2>Are Quantum Computing Fears Justified?</h2>



<p>Quantum computing concerns have also contributed to the market’s unease. Sigel pointed out that “investor interest in the topic has increased,” even as some developers downplay the immediacy of these risks. Quantum computers could potentially break Bitcoin’s encryption, putting 20% to 50% of circulating coins at risk.</p>



<p>Despite these challenges, Sigel sees potential opportunities amid the turmoil. He believes the current price washout is attractive for building positions. “The depth of the drawdown and the degree of leverage reset have made the current price washout increasingly attractive for building positions on a one- to two-year view,” Sigel wrote.</p>



<h2>How Miners’ Actions Shape Bitcoin’s Future</h2>



<p>The actions of Bitcoin miners are crucial in shaping the cryptocurrency’s future. As miners sell off Bitcoin to fund their operations amid AI pivots, the market faces additional pressure. </p>



<p>“As financing conditions tightened alongside Bitcoin weakness, miners faced increased pressure to sell Bitcoin to bolster balance sheets,” Sigel explained in the post.</p>



<p>Despite the current challenges, the four-year cycle narrative remains an important reference point for investors. Sigel emphasized that the cycle’s psychology still plays a significant role, and he has been actively adding to his Bitcoin holdings.</p>

<p>Bitcoin (CRYPTO: BTC) saw a significant drop last week, falling to $60,000, a 19% decline. This downturn is attributed to multiple factors, including massive deleveraging and miners being forced to sell. Futures open interest dropped from $61 billion to $49 billion, indicating a decline in borrowed bets against Bitcoin. Matthew Sigel from VanEck noted that the selloff is driven by collapsing leverage, AI hype unraveling, and quantum computing risks. Despite these challenges, he sees potential opportunities for building positions in Bitcoin amid the turmoil.</p>

- Bitcoin recently dropped to $60,000, reflecting a 19% decline due to factors like massive deleveraging and miners being pressured to sell.  
- Futures open interest fell over 20%, from $61 billion to $49 billion, indicating a synchronized decline rather than chaos in the market.  
- Analysts emphasize the impact of AI skepticism and quantum computing risks, while some see potential opportunities for investment amidst the current turmoil.

Bitcoin Price Crash: VanEck Analyst Explains What Triggered the Drop