Bitcoin Drops Below $70,000: Ongoing Sell-Off Hits Crypto Market Hard

Bitcoin (BTC) has broken below the key $70,000 psychological and technical level in early February 2026, extending a sharp sell-off that began after the asset hit multi-month highs in late January. As of February 5, 2026, BTC trades around $68,200–$69,000, down roughly 12–15% from its recent peak.Why Bitcoin Is Selling OffProfit-Taking After Rally BTC surged nearly 40% from December 2025 lows. Many traders locked in gains, especially leveraged longs, triggering cascading liquidations. Macroeconomic Pressure U.S. equities (Nasdaq, S&P 500) pulled back on higher-for-longer Fed rate expectations. Risk assets (crypto, tech stocks) are highly correlated; when stocks dip, BTC often follows. Leverage Flush Over $1.2 billion in BTC long positions liquidated in the past 48 hours (Coinglass data). Funding rates turned deeply negative, accelerating downward momentum. Technical Breakdown BTC lost the 50-day EMA ($72,500) and 200-day EMA ($68,800) support. Next major support: $65,000–$67,000 (previous consolidation zone). Market ImpactAltcoins bleeding harder: Ethereum (-18%), Solana (-22%), Cardano (-25%), memecoins down 30–60%. Crypto stocks: MicroStrategy (MSTR) -20%, Coinbase (COIN) -15%, mining stocks (MARA, RIOT) -18–25%. Sentiment: Fear & Greed Index plunged to Extreme Fear (lowest since November 2025). Outlook & Key Levels to WatchBull case: $65,000–$67,000 holds → potential bounce to $75,000+ on renewed risk appetite. Bear case: Break below $65,000 → retest $60,000 or lower. Catalysts: Fed minutes (Feb 5), CPI data (Feb 11), Bitcoin ETF flows, and macro risk sentiment. At digital8hub.com, we cover Bitcoin price analysis, crypto market trends, sell-off recaps, trading strategies, and more. Looking for support/resistance levels, liquidation heatmaps, or how to trade the dip safely? Check our finance and crypto sections.Bitcoin below $70K is a sharp correction — not a death knell. Watch $65K closely; the next move could set the tone for Q1 2026.