Key Highlights
- Bitcoin fell below $70,000, losing over 44% since October and dragging the entire crypto market down.
- Over $1 billion in leveraged crypto positions were liquidated in 24 hours, affecting more than 215,000 traders.
- Around $2.5 billion in crypto options are set to expire tomorrow, including $2.15B in Bitcoin and $408M in Ethereum.
The crypto market extended losses today as Bitcoin (BTC), the largest cryptocurrency in the market by capitalization, fell below the $70,000 level for the first time in about 15 months, pulling the broader market lower.
Bitcoin fell as low as $69,121 during early trading in New York before slightly bouncing back a bit to around $69,639. This is about a 7% drop in the last 24 hours. The drop extended a long decline that began after Bitcoin peaked in October last year. Since that high, the asset has now lost more than 44% of its value.
Meanwhile, trading activity is up 31% in the last 24 hours, reaching about $90.8 billion in volume. However, with the price drop, this suggests the activities are just traders selling to the market.
ETH falls to $2,055, XRP drops 13% in 24 hours
The altcoin market is in the red as well. Ethereum (ETH), the second-largest cryptocurrency, has dropped to $2,068, its lowest price since May 2025. The decline is a result of weak demand for Ethereum exchange-traded funds and heavy selling on decentralized finance platforms.
XRP saw the sharpest fall among major altcoins during the sell-off. The token is down about 13% over the same period, currently trading for $1.36, down from an intraday high of $1.57. Its trading activity is up by 63%, indicating that the majority of traders are dumping the token.
Other large altcoins, including Solana and Cardano, also declined, with many now trading near their lowest prices in years. Dogecoin slipped under the $0.10 level, according to data from CoinMarketCap.
As a result, the overall crypto market has declined by 5.77% to about $2.4 trillion. This is a 4% drop from $2.7 trillion, which it was when the week started. The Fear and Greed Index is currently at 11, suggesting that traders are cautious and staying away from the market.
Over $1 billion liquidated in 24 hours
The sell-off was intensified by forced selling, with about $1.05 billion worth of leveraged crypto positions liquidated in just 24 hours. According to Coinglass, about 215,390 traders were affected.
The majority of the liquidation came from traders who had placed their bets on prices going up, with over $870.61 million in losses, while $170 million came from short-position traders. On the trading platform Hyperliquid alone, more than $50 million in long positions were wiped out as prices fell quickly.
The liquidation created a fast chain reaction of selling that spread across the market. In short, when prices started falling, many traders who used borrowed money were forced to sell automatically to cover their losses. These forced sales added more selling pressure and pushed prices down further, which triggered even more liquidations.
Spot ETF outflows add pressure
Institutional investors also added pressure to the already intense sell momentum. According to data from Sosovalue, US-listed spot Bitcoin ETFs recorded strong withdrawals, with more than $544 million leaving the funds as of Wednesday.
BlackRock IBIT contributed the most to the outflow, with over $377 million withdrawn from the market. Fidelity saw an outflow of about $86.44 million, while Grayscale’s GBTC followed closely with a $41.77 million withdrawal.
These withdrawals followed earlier redemptions, bringing total outflows over two days to more than $800 million. This continued withdrawal removed key support for Bitcoin, which made the price even harder to stabilize during the market slump.
The Ethereum Spot ETF market also experienced a major outflow, reaching about $79 million. The majority of the outflow came from BlackRock, as iShares investors withdrew about $58 million, and Fidelity saw an outflow of $20.53 million. The rest of the funds stayed dormant.
ETF analyst James Seyffart said that despite the withdrawals, holders of these products are “underwater and collectively holding,” which shows a level of conviction even amid the losses. “The ETFs are still hanging in there pretty good,” he said on X.
But even with this, current market sentiment says investors are cautious and pulling out of risky assets, especially crypto.
$2.5B in crypto options set to expire
Crypto traders are also preparing for a major options expiry set to occur tomorrow. According to data from Deribit, over $2.5 billion in crypto options will expire at 16:00 UTC+8 on February 6, including $2.15 billion in Bitcoin options and $408 million in Ethereum options.
Bitcoin options have a put/call ratio of 1.42 with maximum pain at $82,000, while Ethereum options show a put/call ratio of 1.13 and maximum pain at $2,550.
Deribit noted that Bitcoin’s open interest is stacked between $80,000 and $90,000, with elevated put activity suggesting traders have been leaning defensive, while Ethereum’s positioning is concentrated in the mid-2000s strike range, with stronger put interest below spot and active call interest above.
This upcoming expiry could reset dealer hedging flows and alter short-term price behavior, potentially removing the “gravity” around big strikes that has influenced prices in recent days.
Also Read: Bhutan Moves $22.4 Million in Bitcoin Amid Market Dip
