MW Your bitcoin investment may have been based on an illusion

By Philip van Doorn

Also in Weekend Reads: Some looks ahead for gold and silver prices, how your Social Security data might have been breached, and stock picks for investors rotating from AI

Bitcoin was down 27% for 2026 through Feb. 5.

Bitcoin was taking a breather from its recent brutal decline on Friday, with the pioneering virtual currency's price up 11% to $70,647, according to data provided by CoinDesk.

Through Thursday, bitcoin (BTCUSD) was down 27% for 2026 as it headed toward its worst one-week decline since 2022. It had declined 44% since Sept. 30.

Despite the recent plunge, bitcoin still holds remarkable value, if you take the long view. Here is a 10-year chart provided by LSEG showing bitcoin's price movement (note that data sources vary when it comes to day-to-day pricing for bitcoin):

This 10-year chart shows bitcoin holding tremendous value despite its recent decline. The virtual currency was trading below $500 early in 2016.

But the recent action for bitcoin should lead to some deep thinking, especially for investors who might still be sitting on huge gains for their holdings of the virtual currency. Joe Adinolfi considered the long-term thesis for bitcoin as an investment and how enthusiasts' perceptions have been changing.

Tomi Kilgore and Claudia Assis looked in on Strategy (MSTR) CEO Michael Saylor's decision to bet the farm on bitcoin, and the company's quarterly net loss of more than $12 billion.

Quentin Fottrell - the Moneyist - wrote about a different type of fallout from the virtual currency's decline - the cost to borrowers who borrowed against the value of their bitcoin.

A mixed week for gold and silver, and some warnings

Investors holding silver and gold have been on a rough ride so far in 2026, following price surges during 2025.

Silver has been in a bear market (defined as a decline of at least 20%) since a brutal selloff on Friday, Jan. 30, based on the movement of continuous front-month contract prices (SI00) on the New York Mercantile Exchange. Gold (GC00) has held up better, but it was down 11.5% from its 2026 intraday high of $5,626.80 (on Jan. 29) to $4,982.10 an ounce in midday trading on Friday.

Myra P. Saefong interviewed professional traders who shared their thoughts on how long the bull market for silver might last. She also explained the technical factors behind silver's 9% decline on Thursday.

Mark Hulbert concluded that the selloff for gold was likely to continue, based on investors' sentiment.

A Social Security data warning for everyone

Jessica Hahn interviewed a whistleblower who pointed to a potentially massive breach of the Social Security Administration's personal data. Here's the warning - and how to make sure your Social Security data hasn't been stolen.

Mulling a trade to short sell AI?

Investors have grown used to Big Tech leading the S&P 500's gains over the past several years. But the S&P 500 SPX was down 0.6% through Thursday, with dividends reinvested. Here's how the U.S. large-cap benchmark index's 11 sectors have performed on the same basis:

The information technology sector has been the worst performer among the 11 sectors of the S&P 500 this year through Feb. 5.

The sectors are weighted by market capitalization. This means the largest three companies in the State Street Technology Select Sector SPDR ETF XLK - Nvidia (NVDA), Apple $(AAPL)$ and Microsoft $(MSFT)$ - make up 39.1% of the exchange-traded fund's portfolio. Through Thursday, Nvidia's stock was down 7.8%, Apple was up 1.5% and Microsoft was down 18.6%.

Despite what appears to be a cooling of enthusiasm for companies focused on developing generative artificial intelligence technology, traders might want to think twice before short selling AI-related stocks. In Thursday's Need to Know column, the call of the day came from Carson Block, a well-known short seller who explained why he was cautious about betting against AI, at least for now.

Every day, the Need to Know column features opinions from professional investors or traders. You can sign up here to have it waiting in your inbox.

Tech stocks

Here is a sampling of this week's coverage from the MarketWatch Technology team:

-- Arm's stock falls after earnings, showing how high the bar is for AI companies now

-- Why Uber's cheap stock is worth a fresh look despite the company's spending spree

-- SpaceX rivals AST SpaceMobile and Rocket Lab join space-stock selloff

-- Why Alphabet's stock is falling despite booming cloud growth

Can TrumpRx be useful to you?

Centers for Medicare & Medicaid Services Administrator Mehmet Oz discussed TrumpRx at the White House on Feb. 5 as President Donald Trump looked on.

TrumpRX is now online and offers what it says are the lowest prices for prescription medications. But there is a catch, as Jaimy Lee explained.

More from Jaimy Lee:

-- Burry says he's 'happy' even as shares of insurer he's championed, Molina, dive nearly 30%

-- Hims & Hers launch of compounded $49 Wegovy pill pummeled Novo Nordisk's shares

Stocks to consider outside the technology sector

Michael Brush interviewed Bill Nygren, who has co-managed the $25 billion Oakmark Fund OAKMX since 2000. He shared six stocks of strong companies outside the tech sector that are attractively priced. The Oakmark fund is rated four stars (out of five) within Morningstar's Large Value category. Nygren also co-manages the $1.1 billion Oakmark U.S. Large Cap ETF OAKM, which follows a similar strategy but isn't yet rated by Morningstar, since it was established in December 2024.

Related coverage:

-- A tech wreck has rattled markets. Why this battered S&P 500 sector could be primed for a bounce.

-- These hot S&P 500 stocks show where investors are heading as they run away from tech

Don't short yourself, or your fiancée

If you are shopping for an engagement ring, keep in mind that it is not indestructible.

For the second installment of the Don't Short Yourself newsletter, Weston Blasi described his experience buying an engagement ring and shared this advice.

A case for bonds, a case against bonds

Brett Arends made a detailed argument that investors near retirement age should add bonds to their portfolios.

In the Fix My Portfolio column, Beth Pinsker shared warnings about the bond market from large asset managers and described other fixed-income investments.

Help Me Retire: I'm 59, earning six figures, but my daughter wants me to retire to watch my future grandkid for a year. Can I afford it?

Super Bowl LX

Kickoff for Super Bowl LX, featuring the Seattle Seahawks and the New England Patriots, will be at 6:30 p.m. Eastern time Sunday at Levi's Stadium in Santa Clara, Calif.

Ahead of the Super Bowl on Sunday, Charles Passy explained how the event is in some ways turning into an AI party.

And here is excellent news for Super Bowl snackers.

Want more from MarketWatch? Sign up for this and other newsletters to get the latest news and advice on personal finance and investing.

-Philip van Doorn

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 06, 2026 13:31 ET (18:31 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.