Bitcoin below $70,000: Why crypto market crashed

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Bitcoin below $70,000

The market decline led by Bitcoin

Bitcoin hit its lowest level since October 2024 this week. For a moment, it looked like the downturn was over and the market was starting to recover. But on February 5, the decline resumed, and at the time of writing BTC is trading around $67,000. The market feels nervous, and buyers are still reluctant to step in and “buy the dip.”

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The move has been sharp and almost nonstop: after every small bounce, the price quickly turned lower again. In derivatives markets, this quickly turned into a chain of liquidations that only accelerated the sell-off.

At the same time, other top-5 cryptocurrencies also slid. At the time of writing, Ethereum is trading slightly below $2,000, BNB is at $660, XRP is at $1.3, and Solana is at $85. A broad drop like this usually means the market is in “sell first, explain later” mode — and attention once again shifts back to Bitcoin as the main benchmark.

Why the crypto market crashed

Some of the reasons behind the drop are already clear, and they are not limited to crypto-specific factors. Analysts note that the current move looks like part of a broader risk-off environment, as investors pull out of risky assets amid rising uncertainty in global markets. Market sentiment reflects this shift: the Crypto Fear & Greed Index has fallen to 12, deep in “extreme fear” territory.

Another factor is pressure coming from the U.S. market. During the sell-off in U.S. equities, cryptocurrencies moved in sync: not only did digital assets fall, but crypto-related stocks also declined. For example, Coinbase shares closed down 6.14%, reinforcing the “contagion” effect — when investors sell everything tied to risk.

Finally, technical levels and derivatives activity played a major role. After a failed rebound, Bitcoin lost support again, triggering a wave of long liquidations. Total crypto liquidations exceeded $654 million in just 24 hours, with roughly $272 million coming from BTC positions. Additional pressure, according to analysts, came from ongoing ETF outflows, which in moments like this become another source of selling.

What to expect next

A scenario in which the market falls even further still looks very realistic — and many experts are saying so openly. Veteran trader Peter Brandt believes the decline is not over yet, and that the current price action resembles sustained selling pressure rather than a one-off panic move. In his view, the market still shows no signs of even a modest rebound, suggesting buyers are not ready to step in at these levels.

Based on his estimates, Bitcoin could soon drop below $64,000. He also notes that selling pressure is visible among large players: in January, miners increased BTC distribution, while Bitcoin ETF balances fell to 1.27 million BTC from 1.29 million at the start of the year.

A more bearish scenario is also being discussed by on-chain analysts. For example, GugaOnChain highlights a potential bottom zone in the $54,600–$55,000 range. This could be the area where the market transitions from capitulation to accumulation.

Caution amid uncertainty

For now, the market remains in a cautious mode: Bitcoin has moved well below $70,000, and the entire crypto sector has followed. The coming days will be crucial — investors will be watching closely to see whether demand starts to return and whether the chain of sharp sell-offs finally breaks, or if selling pressure continues.

Risks remain elevated: some experts still expect further downside, and target levels vary widely — from a move below $64,000 to a deeper drop toward $55,000. The takeaway is simple: the market has not yet delivered a clear signal that the sell-off is over, and caution still looks more reasonable than trying to guess the exact bottom.

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