Bitcoin Price Today: BTC Drops Below $70,000 as Crypto Selloff Deepens and Leverage Unwinds

Bitcoin is sliding sharply again, extending a multi-day retreat that has dragged the broader crypto market lower. As of mid-afternoon on February 5, 2026 ET, BTC was trading around $66,982, down roughly 7.7% on the day after briefly dipping to the mid-$66,000s. The move has revived the most searched question in crypto right now: why is bitcoin dropping, and why does this feel like a broader crypto crash rather than a routine dip?

What happened to BTC price and crypto today

The immediate story is speed and structure. Bitcoin’s decline accelerated as prices slipped through widely watched round-number levels, triggering waves of forced selling in leveraged derivatives. When long positions are financed with borrowed money, even a modest drop can push traders into margin calls. If they cannot post more collateral quickly, positions get closed automatically, turning a slide into a cascade.

At the same time, risk appetite across markets has softened. When investors rotate away from growth and high-volatility trades, crypto tends to sit near the front of the “sell first, ask questions later” line. That dynamic can pull down bitcoin, major altcoins, and more speculative tokens together, even when there is no single crypto-specific headline driving the move.

Behind the headline: why bitcoin is dropping

Several forces are layering on top of each other:

Macro pressure and a risk-off tape
Crypto often behaves like a high-octane version of tech risk. When investors get nervous about earnings, economic momentum, or interest-rate uncertainty, they reduce exposure to assets that depend on confidence and liquidity. A stronger dollar and choppy bond markets can tighten financial conditions, making leverage more expensive and reducing the pool of marginal buyers.

Deleveraging, not just “selling”
A true “crypto crashing” day usually features heavy liquidations, not just spot selling. Liquidations can create mechanical selling that ignores valuation, narratives, and long-term conviction. Once the chain starts, it can overshoot fair value in both directions, meaning sharp down days can be followed by violent bounces that still leave the trend damaged.

A thinning bid from fast money
After a big rally phase, markets often rely on continuous inflows from new participants. When that flow slows, dips stop getting bought quickly. That does not necessarily mean long-term holders are all leaving; it can mean fewer incremental buyers are willing to step in while volatility is rising.

Crowded positioning and “trap doors” at key levels
Bitcoin markets tend to cluster orders around obvious price landmarks. When those levels break, stop-loss orders and hedging activity can amplify the move. The drop below $70,000 acted like a trap door, increasing downside velocity.

Stakeholders: who feels this move most

Leveraged traders and short-term speculators
They face the most immediate damage from liquidations and whipsaws.

Retail investors who entered late in the last rally
They tend to have less tolerance for volatility and may sell into weakness, adding to short-term pressure.

Institutional allocators and risk managers
Some treat bitcoin as part of a broader risk bucket. If portfolio volatility targets get hit, they reduce exposure mechanically.

Crypto-linked businesses
Revenue tied to trading activity can rise with volatility, but sustained drawdowns can also reduce risk-taking and new participation over time.

What we still don’t know

The single biggest missing piece is where forced selling ends. Liquidation-driven moves can stop abruptly once leverage is cleared, but it is hard to identify that moment in real time.

Also unclear is whether today’s drop is primarily macro-driven or whether there are large, specific positions unwinding behind the scenes. Markets can fall for “no headline reason” when positioning is stretched.

What happens next: 5 realistic scenarios for BTC and crypto

Stabilization and chop
Trigger: liquidation pressure fades and bitcoin holds the mid-$60,000s for multiple sessions. Expect wide intraday swings but less downward acceleration.

Relief bounce, then retest
Trigger: short-covering and bargain buying lift BTC back toward the prior breakdown area. A failed retest near $70,000 would keep the broader trend fragile.

Deeper washout
Trigger: another leg lower in risk assets or renewed leverage build-up that gets flushed again. This is the scenario that fuels “bitcoin crash” headlines.

Range rebuild
Trigger: macro volatility cools and spot buying returns gradually. BTC may spend weeks digesting in a broad band before choosing direction.

Trend reversal higher
Trigger: a decisive shift back to risk-on conditions and sustained spot demand. This requires more than a one-day bounce; it needs follow-through and calmer volatility.

Why it matters beyond crypto

Bitcoin’s move is functioning as a real-time stress gauge for speculative appetite. When BTC is falling hard, it often signals tighter liquidity, reduced leverage tolerance, and a market that punishes crowded trades. For investors, the key is separating forced selling from fundamental deterioration. The next few sessions should clarify whether this is primarily a deleveraging event that can stabilize, or the start of a longer risk-off regime that keeps pressure on the entire crypto complex.