Bitcoin Price Plummets Below $65,000

The price of Bitcoin fell below $65,000 on February 5-6, 2026, wiping out gains made since the ‘Trump rally’. This decline was triggered by a combination of factors, including a forced-deleveraging cascade, macro risk-off sentiment, and the erosion of the ‘Trump rally’.

Broader Market Impact

The sell-off had a significant impact on the broader financial market, including traditional stocks and commodities. The S&P 500 fell by 0.7%, while gold declined by 1.1%. The Dow Jones Industrial Average also experienced a decline, erasing earlier gains made after Trump’s remarks.

Key Statistics

• $1.03 billion of BTC positions liquidated in 24 hours, with 89% of those being long contracts
• Volume spiked by 110% compared to the prior day
• Bitcoin’s market cap fell below $1.2 trillion for the first time since 2022
• The crypto market cap slipped by approximately $200 billion, hovering around $2 trillion

  Expert Insights

  Experts warn that a further decline in Bitcoin’s price could have a cascading effect on the broader market, potentially leading to a multi-month bear market. The correlation between Bitcoin and traditional assets, such as the S&P 500, has increased, making the crypto market more vulnerable to market swings.

Sources

• Bloomberg: Bitcoin drops below $70,000 as forced-deleveraging accelerates
• Forbes: Bitcoin Crashes Below $65,000 as Historic Free-Fall Worsens
• CoinDesk: Bitcoin spirals toward $65,000, heading to worst one-day drawdown since FTX blowup
• Reuters: Bitcoin slumps with key $70,000 level in sight
• Yahoo Finance: Bitcoin falls 9% and Asian shares slip after Wall Street is hit by tech stock losses