Bitcoin Price Crash and Market Sentiment₿ Crypto•Bitcoin

Bitcoin Plummets: $2.5B Liquidated as Market Sentiment Sours

February 6, 2026, 06:00 PM150 words8 sourcesAI-Generated · Reviewed by editorial team
Bitcoin
Bitcoin Plummets: $2.5B Liquidated as Market Sentiment Sours

Photo: Pexels / Melvin Silva

Bitcoin experienced a dramatic price crash this week, falling nearly 40% from its peak to briefly dip below $60,000, triggering over $2.5 billion in liquidations across the crypto market. The downturn was fueled by a confluence of factors including fears of delayed interest rate cuts, a strengthening US dollar, and outflows from spot Bitcoin ETFs, including BlackRock’s IBIT. Institutional investors like MicroStrategy paused purchases, further exacerbating the sell-off. Ethereum, XRP, and other major cryptocurrencies also suffered double-digit losses. The Crypto Fear and Greed Index has plummeted to levels not seen since the Terra Luna collapse, indicating 'extreme fear' among investors. Technical analysis points to broken support levels, with potential further declines to $45,000 - $35,000, and $56,000-$58,000. A significant $2.1 billion in Bitcoin options expired, potentially adding to volatility. While some analysts suggest a short-term correction, the prevailing sentiment is bearish, with derivatives markets showing a shift towards short positions.

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This article is based on analysis of 8 source articles from our news database.

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