In a turbulent financial landscape, major cryptocurrencies, precious metals, and stock markets all witnessed declines on Wednesday, reflecting a pervasive 'extreme fear' sentiment among investors. This downturn occurred despite a surprisingly strong U.S. job market report for January. Analysts are closely watching Bitcoin's trajectory, with predictions of a continued 'slow bleed' before a market rebound, while large investors appear to be accumulating assets during this period of price weakness.
Global Markets Face Downturn as Crypto Whales Accumulate Amidst 'Extreme Fear'
On Wednesday, February 11, 2026, global financial markets experienced a broad decline, impacting leading cryptocurrencies, traditional equities, and precious metals. This widespread downturn unfolded despite a robust U.S. job market, which saw significant growth in January.
In the digital asset realm, Bitcoin, the world's largest cryptocurrency, dipped below $65,000 during early trading hours before partially recovering to $68,000 by evening. The surge in trading volume, up 25% over 24 hours, pointed to intense selling pressure. Ethereum also faced pressure but found support around the $1,900 mark, while XRP and Dogecoin registered losses. Data from Coinglass revealed a substantial liquidation of over $470 million from the crypto market within 24 hours, with approximately $300 million in bullish long positions being erased. The increase in Bitcoin's open interest by 1.49%, coupled with a falling spot price, suggests an influx of new short positions. The Crypto Fear & Greed Index continued to signal 'extreme fear' among market participants, reflecting deep investor apprehension. The overall cryptocurrency market capitalization decreased by 2.12%, settling at $2.35 trillion.
Concurrently, traditional markets also faltered. The Dow Jones Industrial Average retreated from its all-time highs, closing down 0.13% at 50,121.40. The S&P 500 remained largely unchanged at 6,941.47, and the tech-heavy Nasdaq Composite saw a 0.16% loss, ending at 23,066.47. These movements followed the U.S. economy adding an impressive 130,000 jobs in January, nearly double economists' expectations, though this was tempered by significant benchmark revisions that re-evaluated approximately 898,000 jobs from April 2024 to March 2025 payroll estimates. The probability of an interest rate cut in the upcoming month also declined sharply, from 20% to just 5.4%, according to the CME FedWatch tool.
Precious metals mirrored the trend, with spot gold falling 0.62% to $5,053.99 per ounce, after briefly touching $5,100. Spot silver saw a more pronounced drop of 1.93%, settling at $82.68 an ounce, reversing from an intraday peak of $84.97.
Amidst this market volatility, CryptoVizArt.₿, a lead research analyst at Glassnode, highlighted a significant trend: large Bitcoin holders, known as 'whales,' have been consistently accumulating Bitcoin since its price dropped below $80,000. The analyst noted that the 30-day simple moving average of Bitcoin whale outflows from exchanges has climbed to 3.2%, drawing parallels to the accumulation patterns observed in the first half of 2022, which preceded the last bull market. Popular cryptocurrency commentator Jelle echoed this sentiment on X, forecasting a gradual descent for Bitcoin to the low $50,000s, followed by a strong rebound, citing historical market behaviors from the 2022 bear market.
This period of market uncertainty and 'extreme fear' underscores the inherent volatility of financial assets, particularly cryptocurrencies. While short-term movements may be discouraging, the accumulation by sophisticated investors like 'whales' suggests a long-term belief in Bitcoin's value. This pattern implies that current dips could be viewed as strategic entry points for those with a long-term investment horizon. For individual investors, such times emphasize the importance of independent research, risk management, and avoiding emotional decisions. The interplay between macroeconomic indicators, central bank policies, and investor sentiment will continue to shape the trajectory of both digital and traditional markets, making careful observation and informed decision-making paramount.