On February 6, the price of Bitcoin dropped to $60,000, marking its lowest point since September 2024. It later partially recovered to the $65,000-$66,000 range.
As of this writing, Bitcoin is trading at $65,889, down 6.6% in the last 24 hours.
Following Bitcoin's decline, altcoins also took a hit: Ethereum fell to $1,756, Solana to $70, and BNB to $574. The total market capitalization decreased by 6.1%, now standing at $2.3 trillion.
The drop from approximately $73,300 to around $60,000 represents a decline of about 18%.
The sharp price drop triggered a cascade of liquidations. According to CoinGlass, the daily volume of forced liquidations reached $2.59 billion, with the majority affecting long positions, totaling $2.11 billion.
A popular sentiment indicator plunged to 9 points, indicating "extreme fear." This is the lowest level since the metric was launched in mid-2023.
The Perfect Storm
Vincent Liu, Chief Investment Officer at Kronos Research, described the situation as a "perfect storm." He identified three factors contributing to the market's turmoil:
- Liquidations of highly leveraged positions;
- Capital outflows from ETFs and institutional funds;
- Investors fleeing risk amid the macroeconomic climate.
"This is classic deleveraging: aggressive and rapid selling driven by emotions. The Bitcoin capitulation metric showed the second strongest spike in two years," Liu noted.
He believes that for Bitcoin to begin recovering, it must hold the $58,000-$60,000 range and wait for a stabilization of the fundamental backdrop.
Rachel Lucas, an analyst at BTC Markets, added that traders have shifted to capital preservation and stopped buying the dips.
Institutions and ETFs
Spot Bitcoin ETFs are experiencing capital outflows, with funds losing over $900 million on February 3 and 4.
However, trading activity remains high: the trading volume of BlackRock's IBIT fund reached a record $10 billion, despite a 13% drop in share price, according to Bloomberg senior analyst Eric Balchunas.
$IBIT just crushed its daily volume record with $10b worth of shares traded as its price fell 13%, second worst daily price drop since it launched. Brutal. pic.twitter.com/HxMDl9fxbW
— Eric Balchunas (@EricBalchunas) February 5, 2026
Experts at CryptoQuant warned of "broad structural weakness" in the market. Institutional demand has sharply reversed, and the Bull Score index has dropped to zero. Technical indicators confirm a bearish trend: Bitcoin has settled below the 365-day moving average for the first time since March 2022.
Analysts noted that the current support zone between $60,000 and $70,000 aligns with the cost of mining Bitcoin ($65,000-$70,000).
Signal for Recovery?
Despite the pessimism, some on-chain indicators show renewed interest from buyers. Analyst Darkfost noted an increase in stablecoin inflows to exchanges.
Stablecoin Inflows Double Despite Persistent Selling Pressure
— CryptoQuant.com (@cryptoquant_com) February 6, 2026
“Positive signal, as it shows that investor interest is gradually returning at this level of correction.” – By @Darkfost_Coc
Read the complete analysis ⤵️https://t.co/meVXiwiKRX pic.twitter.com/JUALrZNGXE
At the end of December, the average weekly deposit volume was $51 billion. It has now risen to $98 billion, surpassing the 90-day moving average ($89 billion).
Experts believe this indicates a revival of capital: investors are starting to buy the dip, although selling pressure remains too strong for a complete absorption of supply.
Darkfost noted that Bitcoin is gradually approaching the 50% correction level from the October peak.
"This is a positive signal. Market participants' interest is gradually returning at these price levels," the analyst concluded.
It’s worth noting that on February 3, K33 Research analyst Vetle Lunde ruled out the possibility of an 80% price drop. Later, technical analyst Peter Brandt described the decline of the leading cryptocurrency as a "planned campaign" by major players.