New York, February 5, 2026, 10:17 (EST) — Regular session
- Bitcoin dropped roughly 9% to near $68,000, slipping under $70,000 during U.S. morning trading
- Analysts highlighted Kevin Warsh’s Fed nomination and ongoing ETF outflows as major headwinds
- Traders are eyeing ETF flow data alongside next week’s delayed U.S. jobs and inflation reports
Bitcoin dipped below $70,000 on Thursday, falling 9.0% to $67,999. During the session, it swung between $74,947 and $67,999, after closing the day before at $74,749.
Bitcoin has dropped nearly 8% this week, pushing 2026 losses close to 20%, hitting its lowest point since November 2024 — the month Donald Trump, a crypto-friendly candidate, won the U.S. election. Analysts link the recent slump to Kevin Warsh’s nomination as the next Federal Reserve chair, sparking fears he might shrink the Fed’s balance sheet and drain liquidity. “The market fears a hawk with him,” said Manuel Villegas Franceschi from Julius Baer. Deutsche Bank reported over $3 billion in outflows from U.S. spot bitcoin ETFs in January, while CoinGecko data showed the broader crypto market has lost roughly $1.9 trillion since early October. Jefferies strategist Mohit Kumar cautioned that “we could be looking at forced liquidations” among miners if prices continue to slide. (Reuters)
Daily flow data from Farside Investors revealed U.S. spot bitcoin ETFs saw net outflows of $544.9 million on Wednesday, with BlackRock’s IBIT accounting for $373.4 million of that. This came after investors pulled $272 million on Tuesday, following a $561.8 million inflow on Monday. (Farside Investors)
Spot bitcoin ETFs are funds that directly buy and hold bitcoin, allowing investors to gain exposure via their brokerage accounts. If investors pull out money, these funds might need to sell bitcoin to cover redemptions, potentially increasing selling pressure.
Crypto-linked stocks reflected the shift. Coinbase dropped 6.4%, Strategy slid 9.7%, and miner Marathon Digital fell 8.2%.
Bitcoin tumbled amid another selloff in risk assets on Wall Street, driven by steep losses in big tech. Alphabet shares plunged 5.4%, while the S&P 500 and Nasdaq each slipped 0.8%, AP reported. (AP News)
Derivatives markets are under pressure. According to a Deribit Insights report from Block Scholes, funding rates on perpetual futures have slipped into negative territory for both bitcoin and ether. This means short sellers are now paying to maintain their bearish positions. (Deribit Insights)
The selloff has been steep, and that works two ways. If ETF flows shift or the Fed signals a slower pace on liquidity withdrawal, shorts could rush to cover, triggering a sharp rebound.
Ether dropped 8.2% to roughly $1,997, adding strain to smaller tokens.
Traders are eyeing if bitcoin can hold above $70,000 and how deeply the recent pullback hits crypto-related stocks. The U.S. Bureau of Labor Statistics confirmed January’s jobs report will drop Feb. 11, with the CPI following on Feb. 13 — both delayed by a brief government shutdown. (Reuters)
