#BitcoinDropsBelow$65K
Bitcoin has indeed dropped below $65,000 recently .As of the latest updates (around February 5-6, 2026), Bitcoin (BTC) is trading in the $62,000 to $65,000 range, with some sources reporting lows dipping toward $60,000-$61,000 during intense sell-off periods. For example:
It's down approximately 9-15% in the last 24 hours in many reports.
The 24-hour trading volume remains extremely high (often exceeding $140-150 billion), indicating heavy liquidation and panic selling.
This puts BTC at its lowest levels since October 2024, wiping out massive gains from late 2024 and 2025.
The all-time high was around $126,000 (reached in October 2025), meaning Bitcoin has lost nearly 50% (or more in some intraday swings) from that peak in just a few months. This is one of the steepest drawdowns in recent history, comparable to major crashes like post-FTX in 2022.
Key Reasons for the Drop Below $65K
Several interconnected factors are driving this decline:
Massive Institutional ETF Outflows
Spot Bitcoin ETFs (approved in prior years) saw heavy inflows during the 2024-2025 bull run, but 2026 has reversed this trend dramatically. Institutions are redeeming shares en masse, removing a major source of buying pressure. Analysts from Deutsche Bank and others have highlighted this as a primary mechanical driver of the sell-off.
Leverage Unwind and Forced Liquidations
The market has entered a vicious cycle: falling prices trigger margin calls on leveraged positions (futures, options, etc.), leading to automatic sales, which push prices even lower. This has caused cascading liquidations, with some describing it as a "structural" unwind rather than a reaction to one specific event. It's similar to leverage flushes seen in past bear phases.
Broader Risk-Off Sentiment in Markets
Bitcoin is behaving like a high-risk asset, correlating with tech stocks (e.g., Nasdaq down significantly). Geopolitical tensions (e.g., U.S. actions involving Venezuela, threats over Greenland, and global instability) have driven investors toward traditional safe-havens like gold and silver, which have surged to record highs. Crypto is losing its "digital gold" narrative in this environment.
Macro and Policy Factors
Trump's aggressive foreign policy and tariffs have created uncertainty.
Nomination of Kevin Warsh (seen as hawkish) for Fed chair has raised concerns about tighter policy.
No clear government bailout or pro-crypto rescue from the U.S. Treasury has fueled doubts.
Some investors are reassessing crypto's utility as an inflation hedge or alternative asset, especially as adoption for payments remains limited.
Loss of "Trump Bump" and Post-Election Hype Fade
Much of the 2024-2025 rally was tied to optimism around Trump's pro-crypto stance. That "Trump premium" has completely eroded, with prices wiping out all election-related gains and more. The hype didn't translate into sustained fundamentals.
Market Impact and Broader Crypto Effects
Altcoins are suffering worse: Ethereum (ETH) has fallen below $2,000 in some reports, XRP and others have seen sharper drops.
Total crypto market cap has shed hundreds of billions (potentially over $1-2 trillion from peaks).
Companies like MicroStrategy (heavy BTC holder) are facing massive paper losses.
Sentiment is extremely bearish, with some calling it the start of a "crypto winter" in 2026.
Technical and Support Levels
$65,000 was a psychological and technical barrier; breaking it has opened the door to lower levels.
Key supports now: $60,000-$65,000 range (mentioned by many analysts as next zone).
Some predict further downside to $58,000, $50,000, or even $40,000 in worst-case scenarios if capitulation doesn't occur soon.
Market depth is thin (30% below October peaks), making moves more volatile.
What Could Happen Next?
Bearish views: Continued ETF outflows, more liquidations, and macro risk-off could push BTC lower (some analysts warn of $40K or a "death spiral" if confidence collapses fully).
Bullish/counter views: This could be a deep correction in a longer bull cycle. Capitulation (extreme selling) often precedes bottoms. If liquidity returns or positive catalysts emerge (e.g., regulatory clarity), recovery is possible.
Neutral/realistic take: Bitcoin has historically seen 50-80% drawdowns even in bull markets. The current phase looks like deleveraging after an overheated run-up.
This drop below $65K is a major event, highlighting crypto's volatility and how tied it is to broader risk sentiment. It's painful for holders, but markets often overcorrect before finding balance.
Bitcoin has indeed dropped below $65,000 recently .As of the latest updates (around February 5-6, 2026), Bitcoin (BTC) is trading in the $62,000 to $65,000 range, with some sources reporting lows dipping toward $60,000-$61,000 during intense sell-off periods. For example:
It's down approximately 9-15% in the last 24 hours in many reports.
The 24-hour trading volume remains extremely high (often exceeding $140-150 billion), indicating heavy liquidation and panic selling.
This puts BTC at its lowest levels since October 2024, wiping out massive gains from late 2024 and 2025.
The all-time high was around $126,000 (reached in October 2025), meaning Bitcoin has lost nearly 50% (or more in some intraday swings) from that peak in just a few months. This is one of the steepest drawdowns in recent history, comparable to major crashes like post-FTX in 2022.
Key Reasons for the Drop Below $65K
Several interconnected factors are driving this decline:
Massive Institutional ETF Outflows
Spot Bitcoin ETFs (approved in prior years) saw heavy inflows during the 2024-2025 bull run, but 2026 has reversed this trend dramatically. Institutions are redeeming shares en masse, removing a major source of buying pressure. Analysts from Deutsche Bank and others have highlighted this as a primary mechanical driver of the sell-off.
Leverage Unwind and Forced Liquidations
The market has entered a vicious cycle: falling prices trigger margin calls on leveraged positions (futures, options, etc.), leading to automatic sales, which push prices even lower. This has caused cascading liquidations, with some describing it as a "structural" unwind rather than a reaction to one specific event. It's similar to leverage flushes seen in past bear phases.
Broader Risk-Off Sentiment in Markets
Bitcoin is behaving like a high-risk asset, correlating with tech stocks (e.g., Nasdaq down significantly). Geopolitical tensions (e.g., U.S. actions involving Venezuela, threats over Greenland, and global instability) have driven investors toward traditional safe-havens like gold and silver, which have surged to record highs. Crypto is losing its "digital gold" narrative in this environment.
Macro and Policy Factors
Trump's aggressive foreign policy and tariffs have created uncertainty.
Nomination of Kevin Warsh (seen as hawkish) for Fed chair has raised concerns about tighter policy.
No clear government bailout or pro-crypto rescue from the U.S. Treasury has fueled doubts.
Some investors are reassessing crypto's utility as an inflation hedge or alternative asset, especially as adoption for payments remains limited.
Loss of "Trump Bump" and Post-Election Hype Fade
Much of the 2024-2025 rally was tied to optimism around Trump's pro-crypto stance. That "Trump premium" has completely eroded, with prices wiping out all election-related gains and more. The hype didn't translate into sustained fundamentals.
Market Impact and Broader Crypto Effects
Altcoins are suffering worse: Ethereum (ETH) has fallen below $2,000 in some reports, XRP and others have seen sharper drops.
Total crypto market cap has shed hundreds of billions (potentially over $1-2 trillion from peaks).
Companies like MicroStrategy (heavy BTC holder) are facing massive paper losses.
Sentiment is extremely bearish, with some calling it the start of a "crypto winter" in 2026.
Technical and Support Levels
$65,000 was a psychological and technical barrier; breaking it has opened the door to lower levels.
Key supports now: $60,000-$65,000 range (mentioned by many analysts as next zone).
Some predict further downside to $58,000, $50,000, or even $40,000 in worst-case scenarios if capitulation doesn't occur soon.
Market depth is thin (30% below October peaks), making moves more volatile.
What Could Happen Next?
Bearish views: Continued ETF outflows, more liquidations, and macro risk-off could push BTC lower (some analysts warn of $40K or a "death spiral" if confidence collapses fully).
Bullish/counter views: This could be a deep correction in a longer bull cycle. Capitulation (extreme selling) often precedes bottoms. If liquidity returns or positive catalysts emerge (e.g., regulatory clarity), recovery is possible.
Neutral/realistic take: Bitcoin has historically seen 50-80% drawdowns even in bull markets. The current phase looks like deleveraging after an overheated run-up.
This drop below $65K is a major event, highlighting crypto's volatility and how tied it is to broader risk sentiment. It's painful for holders, but markets often overcorrect before finding balance.
