SINGAPORE, Feb 5, 2026, 20:55 SGT
- Bitcoin fell below $70,000, dipping to $69,858—its lowest point since November 2024.
- Analysts highlighted concerns over tightening liquidity and the unwinding of leveraged crypto positions.
- Stifel analysts identified $38,000 as a potential downside target for this year.
Bitcoin plunged below $70,000 on Thursday, slipping to $69,858—the lowest level since November 2024—and erasing all gains since Donald Trump’s 2024 U.S. presidential win. The cryptocurrency has shed nearly 8% this week and is down close to 20% for the year. Ether has plunged around 30%. Traders are bracing for tighter liquidity following Kevin Warsh’s nomination as the Federal Reserve chair. “The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer. Jefferies strategist Mohit Kumar warned that miners could face “forced liquidations” if prices continue to slide. Deutsche Bank analysts noted that U.S. spot bitcoin ETFs experienced over $3 billion in outflows during January, after $2 billion in December and $7 billion in November. 1
That’s key because the decline has shifted from a gradual slide to something sharper. Glassnode noted that futures markets have entered a “forced deleveraging” phase, with traders being liquidated on borrowed positions. Meanwhile, spot volumes remain subdued, creating what it calls a demand vacuum. The firm points to $66.9k to $70.6k as a strong support zone where selling pressure might ease in the short term, but cautions that any relief rallies could be merely corrective moves, not a full reversal, as leverage continues to unwind. 2
The recent slump has rattled the Trump-era crypto hype that fueled the last big rally. Bitcoin cracked $100,000 back in December 2024 and peaked at $127,000 in October but has dropped since as policy signals grew more confusing. Trump vowed to turn the U.S. into a crypto hub and unveiled plans for a strategic crypto reserve. Yet, a Trump-backed bill aimed at regulating crypto trading is stuck in the Senate. Adding to the pressure, Democratic lawmaker Ro Khanna announced an investigation into Trump-linked World Liberty Financial following a Wall Street Journal report about a $500 million deal in which an Abu Dhabi official bought 49% of the company, according to 6 .
Bearish whispers are gaining ground once more, despite bitcoin hovering near support zones seen in previous pullbacks. Stifel analysts warned bitcoin might plunge to $38,000, a Yahoo Finance story revealed. 3
The mood has clearly shifted toward risk-off. Crypto prices are falling in step with a wider tech sell-off, eroding the distinction between bitcoin and typical risk assets, Reuters’ Morning Bid podcast noted. 4
Things could get messy if bitcoin keeps dropping. Investor Michael Burry warned that if it stays below $70,000, Strategy might face losses exceeding $4 billion and see capital markets “essentially closed.” He also highlighted the risks in the “interconnected world” of crypto collateral and tokenized metals, saying it could worsen the turmoil. A slide to $50,000, Burry noted, might drive crypto miners to collapse and turn tokenized metals futures into “a black hole with no buyer.” 5
Traders now face a key question: will the market steady after forced selling slows, or is thin demand setting the stage for a swift drop? Policy updates will keep shaking things up, from the Warsh confirmation hearings to the uncertain path of crypto regulation.
