The cryptocurrency market just experienced one of its roughest days this year. In just 24 hours, total market capitalisation dropped 8% to around $2.3 trillion—wiping out roughly $200 billion in value. What’s striking is how widespread the damage was: 90 of the top 100 coins ended the day in the red. Yet despite the carnage, trading volumes actually surged to $356 billion, the highest we’ve seen in months. That tells us this wasn’t about people losing interest—it was about panic selling and forced exits.
Three main factors seem to be at play here. First, global dollar liquidity has suddenly contracted, making it harder for risk assets like crypto to maintain their momentum. Second, traditional stock markets have turned cautious, pulling money away from riskier bets. And third, once key price levels broke, a cascade of forced liquidations kicked in. Five of the ten largest tokens fell more than 10%, and on-chain data revealed that Bitcoin wallets alone realised $3.2 billion in losses on February 5th—a classic sign of capitulation.
Bitcoin and Ethereum Take a Hit
Bitcoin dropped 9.1% to $64,744, punching through the psychologically important $70,000 level and briefly dipping as low as $60,255 overnight. Technical analysts are now watching the $54,000 to $60,000 range closely—that’s where Bitcoin’s 200-day moving average sits, and historically it’s been a zone where real support tends to form. The weekly relative strength index has dropped below 30 for the first time since mid-2022, which often signals a longer-term bottom, though rarely an immediate bounce.
Ethereum didn’t fare much better, falling 1.7% to $2,281 in regular trading, with an intraday low touching $1,756. Breaking below $2,000 is particularly concerning because it reinforces a pattern of lower highs that stretches back to last August when ETH was near $5,000. If the selling continues, the next support levels to watch are $1,700, $1,620, and potentially $1,500 as a round-number psychological floor.
The mood across the market is decidedly grim. Forty-one of the top 100 assets saw double-digit losses, and the crypto fear-and-greed index has plummeted to just 5—firmly in “extreme fear” territory and the lowest reading since the indicator launched in mid-2023.
What the Data Is Telling Us
ETF Outflows Continue
Spot Bitcoin and Ethereum ETFs recorded another day of net outflows—$434 million and $81 million respectively. The heavy redemptions, particularly from major issuers like BlackRock and Fidelity, challenge the idea that institutional money would act as a permanent safety net for crypto prices. Total net inflows across all U.S. Bitcoin spot ETFs now stand just above $54 billion, down more than 3% from the January high.
Miners Under Pressure
Bitcoin miners are feeling the squeeze as revenue per hash continues to fall. Marathon Digital moved 1,318 BTC—worth roughly $87 million—to custodial wallets in a single ten-hour window, raising concerns about balance-sheet stress and the possibility of forced selling. As a group, miner wallets have been net sellers for four straight weeks, a trend that typically weighs on prices until their operations become profitable again.
Derivatives Market Shows Deleveraging
The derivatives side of the market is undergoing a significant deleveraging. Nearly $770 million in leveraged long positions were liquidated within 24 hours—the biggest flush since the volatility spike in November 2025. Funding rates on major exchanges have turned negative, meaning traders are actually paying a premium to hold short positions. Historically, that’s often a signal that a relief rally could be on the horizon once the selling pressure finally runs out of steam.
