Bitcoin Crashes Below $70,000 as Collapse of Crypto Continues

 

Bitcoin Crashes Below $70,000 as Collapse of Crypto Continues

As of February 7, 2026, Bitcoin (BTC) has indeed fallen below the critical $70,000 psychological threshold, recently touching lows near $60,000 before seeing volatile attempts at recovery. This sharp downturn has wiped out all gains made since the November 2024 U.S. presidential election, following an all-time high of $126,080 set in October 2025.

The crash has been driven by a combination of aggressive deleveraging, with over $950 million in crypto positions liquidated within a single 24-hour window, and shifting institutional sentiment as Bitcoin ETFs recorded significant outflows. Market sentiment has plunged to "Extreme Fear," with the Fear & Greed Index hitting a rare low of 6.

 

Key Market Insights

Widespread Liquidations: The slide below $70,000 triggered a cascade of forced selling. On February 5, 2026, roughly $790 million in long positions were liquidated.

Institutional Shift: Formerly a major driver of the 2025 rally, institutional demand has reversed; Bitcoin ETFs are currently net sellers in 2026.

Geopolitical Stress: Rising global tensions and macroeconomic uncertainty have pushed investors toward traditional safe havens like gold and silver, while Bitcoin failed to capture defensive inflows.

Technical Breakdown: Bitcoin has decisively broken below its 200-day Moving Average (DMA), shifting its technical profile from neutral to bearish for the first time since early 2022.

 

Analyst Outlook for 2026

While short-term sentiment is bearish, long-term projections remain divided:

Bearish Targets: Some analysts warn of a deeper correction toward $38,000 or even $35,000 if historical drawdown patterns repeat.

Bullish Rebounds: Others suggest this "crypto winter" is a necessary deleveraging event, with price targets of $120,000 to $170,000 still possible in the second half of 2026 supported by potential rate cuts.