Bitcoin Price sinks below $70,000 as liquidation wave and risk-off mood hit crypto
Bitcoin slid sharply Thursday morning, falling below the closely watched $70,000 level and extending a week of heavy selling across crypto. The drop is being amplified by forced unwinds in leveraged trading, ongoing outflows from U.S. spot Bitcoin funds, and a broader shift away from risk assets as markets reassess the outlook for interest rates and liquidity.
As of 9:59 a.m. ET on Thursday, Feb. 5, 2026, Bitcoin was trading around $69,545, down about 6.4% from the prior close after touching an intraday low near $69,130 and a high near $74,947.
Bitcoin price today: the key numbers
The move has pulled Bitcoin to its lowest levels since late 2024, erasing much of the surge that followed late-2025 optimism about friendlier U.S. policy toward digital assets. The decline is also dragging the broader crypto complex, with major tokens dropping in tandem as risk appetite thins.
| Metric | Level (USD) | Notes |
|---|---|---|
| Spot price (9:59 a.m. ET) | 69,545 | Down ~6.4% vs. prior close |
| Intraday low | 69,130 | Hit during the morning selloff |
| Intraday high | 74,947 | Earlier rebound attempt failed |
| Year-to-date performance | ~-20% (approx.) | Reflects a weak start to 2026 |
| Drawdown from late-2025 peak | ~-45% (approx.) | Peak around $126,000 in Oct. 2025 |
Why is Bitcoin dropping today?
Several forces are stacking up at once, and together they’re creating the kind of feedback loop crypto is prone to in down markets:
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Liquidity fears and rate expectations: Investors have been bracing for a less supportive liquidity backdrop. Recent policy signals around the Federal Reserve’s direction have pushed traders to price a tougher environment for speculative assets, and crypto tends to react quickly when “easy money” assumptions fade.
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ETF outflows sap demand: U.S. spot Bitcoin funds have seen persistent withdrawals, including more than $3 billion in net outflows during January. That matters because these vehicles were a steady source of marginal demand when flows were positive; when flows reverse, they can remove a meaningful bid.
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Leverage unwind accelerates the move: As prices drop, leveraged long positions get forced out, triggering market sells that push prices down further. Recent market tallies show hundreds of millions of dollars in crypto liquidations over 24 hours, with multi-day liquidation totals climbing into the billions during this pullback.
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Broader risk-off tape: Crypto is moving alongside weak sentiment in tech and other high-beta assets. When traders cut exposure across portfolios, liquid and volatile assets often get sold first.
Why the crypto selloff feels “crashy”
Many people searching “bitcoin crashing” are reacting to the speed of the decline rather than a single headline. Crypto’s structure—24/7 trading, high leverage availability, and thin liquidity during off-peak hours—can turn a steady slide into sudden air pockets.
Two features are especially important right now:
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Stop-loss clustering near round numbers: Levels like $70,000 attract both psychological attention and mechanical triggers. When they break, they often unleash a wave of automatic selling and hedging.
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Thinner liquidity below the market: After prolonged declines, order books can become less robust. That means even modest bursts of market selling can move price more than traders expect.
What to watch next: levels, flows, and catalysts
Near-term attention is likely to stay on whether Bitcoin can reclaim $70,000 and hold it into the weekend. If it can’t, the next big “line in the sand” for many traders will be the low-to-mid $60,000s, simply because that’s where some prior congestion and buying interest has shown up during past pullbacks.
Three practical indicators to monitor over the next several sessions:
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Daily net flows into U.S. spot Bitcoin funds: Continued outflows would reinforce the idea that institutional demand is cooling. A turn back to sustained inflows would help stabilize price action.
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Liquidation intensity: If forced selling starts to shrink even while price remains weak, that can signal the leverage overhang is clearing.
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Macro risk sentiment: A calmer tone in rate expectations and a steadier equity market backdrop often reduces the urgency of “sell everything volatile” trades.
What this means for everyday investors
For long-term holders, the key issue is not just today’s price but whether the market can rebuild conviction after a sharp drawdown. For shorter-term traders, volatility is the headline: wide intraday ranges can persist until leverage resets and flows stabilize.
One point is clear from this week’s action: Bitcoin is trading less like a standalone “digital gold” story and more like a liquidity-sensitive risk asset. That doesn’t define its future, but it does explain why the market is moving so fast right now.
Sources consulted: Reuters, Financial Times, Barron’s, Yahoo Finance
