Why is crypto down today? – February 6, 2026

‘Strengthening transparent corrections'

Matt Howells Barby, VP at Kraken, said, “Bitcoin breaching the 2021 all-time high of $69,000 is very important, but does not rule out further short-term decline.”

He argued that the coin's price is entering a known support zone between $54,000 and $69,000.

Additionally, the weekly RSI dipped below 30 for the first time since mid-2022. This signal was “historically ahead of major bottoms that have occurred in a three-to-six-month window”.

“In our view, it is more likely to establish in the $54,000-$60,000 range, especially as the low-50,000s align with the 200-day moving average,” the VP concluded.

Moreover, Antonio Di Giacomo, senior market analyst at XS.com, opined that Bitcoin has suffered a sharp decline amid global liquidity crunch and a broad sell-off in technology stocks.

“The cryptocurrency has recorded losses in seven of the last eight sessions, reinforcing a correction phase that has significantly dampened market sentiment.”

Therefore, the number one coin showed a decline of almost 50% from its ATH, “confirming a structural change in price volatility. According to the analyst, “the market has shifted from a speculative and leveraged environment to capital preservation, with a broad correction in risk assets.

The break of key technical levels added to the downward pressure and triggered a wave of forced liquidation in the underlying market. About $770 million worth of positions were liquidated in just 24 hours. This, in turn, increased volatility and accelerated price declines in an environment of low liquidity.

“This transfer reflects a market that has not yet completed its clearing phase. High leverage in recent months has left Bitcoin vulnerable to violent activity, and recent technical support breaks have served as catalysts for deep and disorderly corrections.”

Moreover, BTC no longer functions as an alternative safe-haven asset. It is now re-aligned with the risk-asset cycle.

Di Giacomo writes: “In the short term, price action will depend on liquidity stability and changes in the macroeconomic environment.”

The following stages and events

At the time of writing on Friday morning, BTC was trading at $64,744. While it started the day at $71,702, it slowly, but quickly, fell below the key psychological support level of $70,000 and the daily low of $60,255.

It is now down nearly 22% in one week, with a high of $84,177 during this period. BTC is down 48.5% from its October 2025 peak of $126,080.

Having dipped to the $60,250 level, Bitcoin is now more likely to fall below $60,000 to $58,500, followed by $56,300. The defensive position is now at the $77,000 level.

At the same time, Ethereum was changing hands at $1,878. It fell from $2,136 a day to a low of $1,756. It has since recovered slightly.

Last week, the price fell by 31.5%, retreating 62% from the August ATH of $4,946.

Like BTC, ETH also shows a strong bearish trend. If the course does not change, it has fallen below $2,000, the coin is now at risk of a return to $1,700 and $1,620, the next stop will be the $1,500 level.

Moreover, since CoinMarketCap started tracking this metric in mid-2023, the sentiment of the crypto market has dropped to an all-time low.

The crypto fear and greed index now stands at 5, down from 11 seen a day ago. This is deep in the extreme fear zone.

Given the inflation in the market, the decline in sentiment is not surprising. It will be interesting to see how low it can go with this massive return. The number reflects heightened concern among market participants, and it could get worse.

ETFs continue to flow

US BTC spot exchange-traded funds (ETFs) closed the session low on Thursday, with negative flows of $434.15 million. Total net income is down from the current $54.32 billion.

Six of the twelve ETFs posted negative inflows, and none were inflows. BlackRock released $175.33 million on Feb 5th.

Fidelity recorded withdrawals of $109.48 million, followed by Greyscale's $75.42 million.

Additionally, US ETH ETFs also saw outflows on Thursday, leaving $80.79 million. Total net income fell to $11.83 billion.

Of the nine funds, three posted negative inflows and two inflows. Fidelity released $55.78 million, followed by Greyscale's $27.08 million and BlackRock's $8.52 million.

At the same time, Grayscale Mini Trust and Invesco received $7.05 million and $3.53 million respectively.

Quick FAQ

Did crypto move with stocks today?

The crypto market recorded another comeback in the last day. Also, the US stock market was significantly lower in Thursday's session. At the close of trading on February 5, the S&P 500 was down 1.23%, the Nasdaq-100 was down 1.38%, and the Dow Jones Industrial Average was down 1.2%. Investors weighed the latest HR data and Big Tech earnings reports.

Is this drop permanent?

The price may still go down. Unless significant macroeconomic and/or geopolitical factors provide enough of a tailwind for another leg up, there is room for further reversals.