Bitcoin Price Crash & Market Volatility₿ Crypto•Bitcoin

Bitcoin Plummets: $2.2T Crypto Wipeout & Volatility Surge

February 7, 2026, 12:00 AM164 words10 sourcesAI-Generated · Reviewed by editorial team
Bitcoin
Bitcoin Plummets: $2.2T Crypto Wipeout & Volatility Surge

Photo: Pexels / Melvin Silva

The cryptocurrency market experienced a severe downturn, erasing $2.2 trillion in market capitalization since October, with Bitcoin falling below $65,000 – a level not seen in over a year – before a partial rebound to over $70,000. The initial crash was fueled by a confluence of factors including ETF outflows, particularly from BlackRock’s IBIT, leveraged position liquidations exceeding $1 billion, and substantial Bitcoin deposits onto exchanges indicating potential selling pressure from 'whales'. Concerns over interest rate hikes, a lack of White House support for a Bitcoin reserve, and weaker US jobs data further exacerbated the decline. A Bithumb exchange error, mistakenly airdropping $30 billion in Bitcoin, briefly intensified the panic. Crypto sentiment has plummeted to levels reminiscent of the Terra Luna collapse, with the Fear and Greed Index in 'Extreme Fear' territory. While XRP saw a significant rebound, institutional outflows remain a concern. Analysts identify potential support levels between $54,000-$60,000 for Bitcoin, but recovery depends on improved global financial conditions and restored investor confidence.

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This article is based on analysis of 17 source articles from our news database.

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