New York, Feb 6, 2026, 06:13 EST — Premarket
- Bitcoin last traded at $65,785, slipping roughly 7% after dipping close to $60,300.
- Traders cited a tech-driven risk-off swing alongside ongoing outflows from U.S. spot bitcoin ETFs.
- Attention now turns to the rescheduled U.S. jobs report on Feb. 11, along with inflation figures due next week.
Bitcoin settled close to $66,000 on Friday following an early drop that pushed it down near the $60,000 mark, dealing another blow to a market that’s been struggling since last year’s high.
This shift is significant since bitcoin has been behaving more like a high-beta version of tech stocks than as an inflation hedge. When risk aversion kicks in sharply, crypto usually takes a double hit — initial price drops followed by forced selling triggered by leveraged positions.
Pressure is also building in the infrastructure supporting the trade. U.S. spot bitcoin exchange-traded funds, which provide investors with bitcoin exposure via listed products, have faced steady outflows, recent bank notes and market estimates show. These flows serve as a rough barometer for institutional demand. (Source: Reuters)
Bitcoin last traded at $65,785, slipping 7.0% from the previous close. It fluctuated between $70,760 and $60,297, according to market data.
“Many of these large, crowded trades are being liquidated rapidly,” said Chris Weston, head of research at Pepperstone in Melbourne. (Source: Reuters)
Joshua Chu, co-chair of the Hong Kong Web3 Association, dismissed the idea that crypto is “dying.” Instead, he pointed to a clash between excessive leverage and weak risk controls hitting real volatility. (Source: Reuters)
The recent drop has sparked fresh concerns about a feedback loop: as prices fall, forced liquidations—where borrowed positions fail to meet margin requirements—kick in, driving prices even lower. Reuters referenced CoinGlass data revealing about $1 billion in bitcoin positions were liquidated during Thursday’s selloff over the last 24 hours.
Politics and central bank signals have pushed their way back into focus. Selling picked up pace after President Donald Trump named Kevin Warsh as his choice for the next Federal Reserve chair. Some analysts flagged concerns that Warsh might push for a leaner Fed balance sheet — a move usually tough on speculative assets. (Source: Reuters)
“The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer’s next generation research team, speaking on Warsh. (Source: Reuters)
Ether, the second-largest token, also surged back following an earlier steep decline, highlighting that the rebound wasn’t limited to bitcoin alone but reflected a wider crypto rally.
Bitcoin’s recent slump is rippling through public markets as well. Reuters noted this week that stocks of firms holding bitcoin on their balance sheets have been tossed around alongside the cryptocurrency, creating another channel for market volatility to spread. (Source: Reuters)
Downside risk remains clear: should the tech sell-off worsen or ETF outflows pick up pace, bitcoin might drop back to — and slip below — the $60,000 mark, a key psychological level linked to earlier liquidations.
Traders are gearing up for the rescheduled U.S. January employment report set for Wednesday, Feb. 11, followed by the delayed January CPI report due the next Friday. Both releases have the potential to quickly alter rate expectations and risk appetite. (Source: Reuters)
