Crypto markets shake as Bitcoin slides to $70k
Crypto markets faced ongoing challenges this week, as Bitcoin dipped to the $70,000 mark, its lowest point since November 2024, in a pullback largely influenced by market sentiment across the volatile global landscape. The leading cryptocurrency has experienced a decline of more than 18 percent year-to-date, as the overall crypto market has lost over $460 billion in value in just the past week. Analysts noted that the decline was exacerbated by forced liquidations as prices fell beneath crucial technical support levels. Even with the reduction in geopolitical tensions and the latest remarks from the US and China, the appetite for risk has stayed subdued, providing minimal respite for digital assets. As of the latest update, Bitcoin is trading at $70,063, reflecting a decline of nearly 8 percent, accompanied by a 24-hour trading volume of $75.57 billion, as reported. The digital asset currently sits approximately 45 per cent below its all-time high of $126,198, which was reached in October 2025. Inflows into US spot Bitcoin exchange-traded funds persistently dampened market sentiment. Farside Investors reported net outflows totaling $272 million on February 3. As of February 4, the data was not fully available, but significant redemptions were noted, with Fidelity’s FBTC seeing $86.4 million and ARK 21Shares’ ARKB at $31.7 million. Altcoins mirrored a comparable risk-off trend. During the pullback, Ethereum, BNB, and Solana exhibited diminished bid depth. In the latest market movements, BNB experienced a drop of 8.85 per cent, while XRP saw a decline of 9.92 per cent. USDC slipped by 0.01 per cent, and Solana faced an 8.01 per cent decrease. TRON was down 2.17 per cent, Dogecoin lost 5.93 per cent, Bitcoin Cash fell by 2.05 per cent, Cardano declined 5.49 per cent, and Hyperliquid eased by 0.37 per cent.
Market participants are observing that macroeconomic factors are becoming increasingly influential in determining crypto price movements. Analysts are closely watching the upcoming US data releases, such as the January jobs report and consumer price inflation figures, as these could swiftly recalibrate interest rate expectations, impact the dollar, and shape risk appetite across various asset classes. Prediction traders are wagering that Bitcoin could dip below $65K as the sell-off intensifies “Bitcoin is facing pressure in the market as buyers exercise caution, even with the US government concluding its partial shutdown—a development that is expected to gradually improve liquidity conditions. The ongoing volatility indicates a wider macro sensitivity instead of any inherent weakness specific to the crypto market. Geopolitical tensions between the US and Iran are also keeping risk appetite in check, though ongoing dialogue offers scope for sentiment to improve,” said Akshat Siddhant.
In alignment with these sentiments, Vikram Subburaj stated, “Macro, meanwhile, is lining up fresh catalysts.” Following a short-lived US government shutdown that threw the schedule into disarray, the January US jobs report has been pushed back to February 11. The January Consumer Price Index is set to be released on February 13. The release of these two prints has the potential to swiftly recalibrate rate expectations and influence the dollar, which in turn could affect the risk appetite for cryptocurrencies. Looking ahead, the next significant event on the Fed’s schedule is the FOMC meeting set for March 17 to 18. Piyush Walke anticipates additional downside pressure from a technical standpoint. He indicated that Bitcoin might drop to $68,000, with $64,000 becoming the next significant support level. On-chain indicators indicate that early accumulation is starting to take shape in the $70,000 to $75,000 range. Analysts have pointed out that conviction continues to be uneven, particularly in light of ongoing ETF outflows and a cautious macroeconomic environment. “As significant US data approaches, it is crucial for investors to focus on risk management, stagger their entries, and steer clear of leverage until prices establish a more robust support level above the mid-$70,000s.” That said, it is wise to continue accumulating at this price level. “Investors should use instruments like SIPs to gradually add to their portfolio,” Subburaj added.
The sell-off was clearly visible in Ethereum as well. At the latest update, ETH was down 8.248 per cent, trading at $2,087, with a 24-hour trading volume recorded at $49 billion, as per data. In the last 24 hours, prices have experienced a range, oscillating between $2,075 and $2,287. Ethereum is currently trading over 58 percent below its all-time high of $4,953, which was reached on August 5 of the previous year. Ethereum’s chart reveals a bearish inverse cup-and-handle formation, signaling a concerning bearish trend. “ETH has now entered the breakdown phase of this pattern, signaling a potential decline of approximately 25 per cent from current levels,” said Walke.
