SYDNEY, February 5, 2026, 17:25 (AEDT)
- Bitcoin slipped below $71,000 amid a wave of selling in tech and other high-risk assets
- Analysts pointed to thin liquidity and leveraged bets as factors that amplified the drop
- Traders are focused on big tech earnings and central bank cues, searching for signs of a mood shift
Bitcoin dipped under $71,000 on Thursday amid a widening tech selloff that pushed traders to shed risk across the board.
The token dropped to $70,160, its lowest since November 2024, as investors shied away from soaring AI costs and offloaded crowded trades. Alphabet, Google’s parent company, forecasted capital expenditures between $175 billion and $185 billion this year. Meanwhile, chipmaker Advanced Micro Devices plunged 17%, contributing to a tech sell-off that has erased roughly $830 billion in market value since Jan. 28, according to Reuters. “That increase in (Alphabet) capex was absolutely enormous,” said IG analyst Tony Sycamore.
The crypto market has taken a sharp hit. According to LiveMint, total market value has plunged $467.6 billion since Jan. 29, citing data from CoinGecko. Pi42 co-founder Avinash Shekhar told the outlet the drop “does not appear driven by a single catalyst,” but rather a combination of position adjustments and widespread jitters. mint
Investing.com reported bitcoin last fell 7.6% to $70,427, after dipping as low as $70,129. Traders blamed thin liquidity — meaning buying or selling moves prices sharply — alongside a heavy derivatives unwind. According to CoinGlass data cited by Investing.com, nearly $770 million in crypto positions were liquidated within 24 hours. The slide below $75,000 triggered stop-loss orders, which automatically sell once certain price levels break.
The Economic Times reported that the crypto market wiped out nearly $500 billion in a week, with bitcoin dropping about 20% over that period to hover around $70,122 on Thursday. WazirX founder Nischal Shetty described the decline as part of a broader “risk-off” trend, noting that leverage—borrowed funds—exacerbated losses and triggered liquidations. Meanwhile, CoinSwitch Markets Desk pointed to support near $71.5K, warning that a clear break below could open the door to $66K–$68K. The Economic Times
The bigger question dogging the market is whether bitcoin actually acts as a hedge during stress. A Bloomberg story, picked up by the Economic Times, said the recent drop has reignited skepticism about bitcoin’s status as “digital gold.” It quoted investor Michael Burry, who called the token purely speculative. Galaxy Digital CEO Michael Novogratz noted the old instinct to hold “no matter what” has faded. Meanwhile, BTC Markets analyst Rachael Lucas said dipping below $73,000 has sent sentiment into “extreme fear.” The Economic Times
Alphabet’s budget is ramping up the heat among Big Tech rivals. Reuters noted analysts predicted Alphabet’s spending would hit around $115.26 billion this year. At the same time, Amazon Web Services and Microsoft’s Azure are heavily investing in AI infrastructure, with Meta following suit, as investors wrestle with the timing of returns.
Worries have spilled over from crypto to broader markets. A Bloomberg wrap on Swissinfo pointed to the tech selloff spreading into Asia, with money shifting toward defensive sectors amid soaring capex and mounting valuation stress. “There is room in the market for more correction,” said Nick Twidale, chief market analyst at AT Global Markets, as bitcoin briefly edged close to $70,000. swissinfo.ch
