Bitcoin crashed below $72,000 on February 4, 2026, plunging to its lowest level since November 2024. The cryptocurrency briefly touched $69,332 early Thursday morning, shattering the critical $70,000 psychological support level that traders had been nervously watching for weeks. Not good. Not good at all.
The selloff has been brutal. Bitcoin has cratered nearly 19% in a week, retracing over 40% from its October 2025 all-time high above $126,000. Remember when everyone was screaming “$200K by Christmas”? Yeah, about that.
Market liquidations have been downright savage, with $235 million in derivatives positions wiped out on February 4 alone. The weekly damage? A staggering $2 billion across crypto markets. Forced selling kicked into overdrive as support levels crumbled like stale cookies.
The bloodbath didn’t spare crypto-related stocks either. Coinbase dropped 7%, closing at $169. MicroStrategy, once crypto’s golden child, fell 9% to $121.19—a brutal 72% decline from its November peak. The company’s CEO Michael Saylor will release an earnings report on Thursday. Bitcoin miners got absolutely hammered: HUT 8 down 8%, Core Scientific nearly 9%, Marathon 9%, and IREN a whopping 17%. Ouch.
Technically speaking, Bitcoin’s broken through every important support level imaginable. The 200-week EMA? Gone. The 61.8% Fibonacci retracement? History. The 365-day moving average? Smashed for the first time since March 2022. Not exactly confidence-inspiring.
Institutions are heading for the exits. Spot ETF outflows hit $1.49 billion amid persistently negative Coinbase premium indexes. Translation: U.S. investors have lost their appetite. Galaxy Digital reported a massive $482M loss in Q4 2025, further reflecting the impact of declining digital asset prices.
Analysts can’t agree if this is officially a bear market, but it sure looks, smells, and feels like one. The $70,000 support level now appears critical—if it fails to hold, prepare for a slide to $60,000-$65,000. This dramatic volatility contrasts with Bitcoin’s historical market dominance of approximately 62.7% and reputation as a relatively stable cryptocurrency. Any recovery would need to reclaim $78,000-$82,000 to shift sentiment.
For now, crypto’s narrative of unstoppable momentum has hit a wall. Hard.
