Bitcoin slides to the mid-$60,000s as liquidations, ETF outflows, and macro jitters hit crypto

Bitcoin extended its sharp February selloff on Friday, dropping into the mid-$60,000s as forced liquidations swept through leveraged crypto positions and investors pulled back from risk assets more broadly. The move dragged major tokens down with it, turning a week that started as a grind lower into a fast, air-pocket decline that has traders watching key psychological levels for signs of stabilization.

As of 11:10 a.m. ET on Friday, Feb. 6, 2026, Bitcoin traded near $65,468, down about 9.5% from the prior close, after swinging between roughly $60,297 and $72,494 intraday.

Bitcoin price today in USD: key levels

Crypto’s biggest tokens moved together, with Bitcoin leading the tape and altcoins showing larger percentage swings—typical of risk-off days when leverage gets unwound.

Why is Bitcoin dropping?

This decline looks less like a single-headline shock and more like a chain reaction driven by market structure.

1) Leverage flush and forced selling
When Bitcoin breaks widely watched levels, long positions that were financed with leverage can get liquidated automatically. That creates market sell orders, which push price lower, triggering more liquidations—a feedback loop that can turn a normal down day into a waterfall. The wide intraday range in BTC is consistent with that “deleverage first, think later” pattern.

2) Spot Bitcoin fund outflows weaken the bid
Investor demand through U.S.-listed spot Bitcoin funds has softened recently. When flows turn negative, it removes a steady source of marginal buying that helped support rallies. In a falling market, outflows can matter twice: they reduce demand at the same time sentiment is turning defensive.

3) A broader risk-off mood
Crypto has been trading like a liquidity-sensitive risk asset, not a defensive hedge. When markets get nervous—whether because of interest-rate expectations, tighter financial conditions, or weakness in high-growth equities—speculative assets tend to get sold first. That macro overlay helps explain why Bitcoin, Ethereum, and XRP are all sliding together rather than reacting to token-specific news.

Why is crypto crashing?

“Crashing” is often about speed, not just direction. Crypto’s 24/7 market structure amplifies moves when liquidity is thin or one-sided.

• Round-number breaks accelerate momentum. Levels like $70,000 and $65,000 draw clustered stop orders and hedges. Once they fail, price can travel quickly to the next pocket of demand.

• Altcoins magnify BTC’s move. Tokens like XRP tend to swing more because they’re more sensitive to leverage and risk appetite.

• Positioning gets conservative fast. When traders see repeated liquidations, they pull orders or reduce exposure, which can thin order books and worsen slippage.

Ethereum price USD: why ETH is falling harder

Ethereum’s drop into the high-$1,000s reflects the same deleveraging wave, plus the reality that ETH often behaves like a “high beta” version of BTC in selloffs. Another near-term factor is the market’s tendency to reposition around major derivatives settlement windows, when hedges and short-term bets can intensify volatility.

XRP: why the move looks outsized

XRP’s double-digit decline fits a familiar pattern in broad crypto risk-off episodes: when traders reduce exposure, they often cut “non-core” positions first, and thinner liquidity can make percentage moves look dramatic. In this case, the slide appears driven by the market-wide selloff rather than a clear, new, token-specific catalyst.

What to watch next: stabilization signals and risk levels

Crypto markets often calm down only after two things happen: liquidations fade and flows stop deteriorating.

Three practical indicators to monitor over the next 24–72 hours:

1. Liquidation intensity: If forced selling slows while price holds a range, it can signal the leverage overhang has been cleared.

2. Spot fund flow trend: A shift from persistent outflows toward neutral or positive flows would help stabilize BTC.

3. BTC’s ability to reclaim broken levels: If Bitcoin can recover and hold above recently lost round numbers, it can reduce the “sell rallies” reflex.

The near-term outlook remains fragile, but crypto has a history of violent moves in both directions after leverage resets. The next phase will be less about headlines and more about whether buyers step in with enough size to absorb supply without triggering another liquidation loop.

Sources consulted: Reuters, Financial Times, Axios, Yahoo Finance