Bitcoin Slides Below $70K as Crypto Fear Deepens
Bitcoin dropped below $70,000 on Monday and hovered near $69,700 as sentiment deteriorated across the cryptocurrency market. The decline extends a severe start to 2026, which has erased nearly half the market’s value since its October peak. Earlier this month, Bitcoin fell to $60,057, its lowest level since October 2024, before rebounding modestly over the weekend.
Meanwhile, trading activity weakened sharply. Daily volume slid to about $111 billion, down from more than $300 billion during the October 2025 rally. As a result, liquidity tightened, and volatility intensified.
Extreme Fear and Heavy Liquidations
Investor sentiment deteriorated further as the Crypto Fear and Greed Index dropped to 5 on February 5 and 6, its lowest reading since launch in June 2023. Although the index ranges from 0 to 100, it has rarely reflected such persistent pessimism.
At the same time, forced liquidations accelerated the downturn. More than $1.4 billion in leveraged positions closed within 24 hours on February 5. Bitcoin accounted for $738 million of those losses, while Ethereum represented $337 million. Notably, leveraged long positions made up roughly $1.24 billion of total liquidations, which amplified selling pressure across major exchanges.
Institutional Outflows and Market Outlook
Institutional flows also reversed direction. U.S. spot Bitcoin ETFs recorded $434 million in outflows on February 5 alone. Over twelve consecutive trading days ending February 4, total ETF outflows exceeded $2.9 billion. Consequently, funds that accumulated large Bitcoin positions last year have turned into net sellers in 2026.
Nevertheless, some indicators suggest tentative stabilization. ETF inflows resumed on Monday, with 417 Bitcoin entering U.S. funds. However, projections for the coming months remain divided, as price targets range from $50,000 to a stabilization near the $60,000 production-cost level.
