Published: Feb 06, 2026 at 08:54
The crypto market is currently in a state of “free-fall” as Bitcoin (BTC) plummeted by 8% in a single trading session today, February 5, 2026, briefly touching the $69,500 level.
Futhermore, the fall continued to the low of $63,300. This move has effectively erased the entire post-election rally and triggered a massive $1.03 billion liquidation event across the derivatives market.
The crash was catalyzed by a combination of the “Warsh Shock”—fears of aggressive interest rate hikes from the newly nominated Fed leadership—and a disappointing silence from the White House regarding immediate purchases for the Strategic Bitcoin Reserve.
Institutional exodus
The bleed is being led by an unprecedented exit from institutional products. U.S. Spot Bitcoin ETFs recorded a staggering $545 million in net outflows on Wednesday alone, with BlackRock’s IBIT seeing its largest single-day withdrawal of $373 million.
This panic has rippled through the corporate world; MicroStrategy (now renamed Strategy Inc.) saw its stock drop 9% as it officially paused its aggressive Bitcoin buying spree. While the company still plans to raise $21 billion in preferred stock for future acquisitions, the “pause” has been interpreted by the market as a loss of immediate momentum.
The altcoin bloodbath
The contagion has spared no one. Ethereum (ETH) has slipped below $2,000, its lowest level since May 2025, while XRP suffered a 10.02% daily loss. Even Tether (USDT) faced a brief “peg wobble,” dipping to $0.998, fueling a fresh wave of market anxiety. Analysts now point that BTC entered the “do-or-die” level; a breakdown here could signal a return to the multi-year lows seen in 2024.
Disclaimer. This analysis and forecast are the personal opinions of the author. The data provided is collected by the author and is not sponsored by any company or token developer. This is not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coinidol.com. Readers should do their research before investing in funds.
Source: https://coinidol.com/billion-liquidation-bitcoin/
