Why Is Crypto Crashing Today? What’s Behind the Feb 6 Selloff

The cryptocurrency market endured intense selling pressure on February 6, 2026, as Bitcoin briefly plunged to around $60,000–$60,074 (its lowest since late 2024) before staging a dramatic rebound, closing the day near $70,555 (Yahoo Finance and CME data). This marked one of the sharpest intraday recoveries in recent memory, with BTC swinging over 11% higher after the low. The broader crypto market cap shed significant value amid cascading liquidations, with reports indicating $2–$2.67 billion in leveraged positions wiped out over 24 hours (CoinGlass and various trackers), predominantly long positions. Over 100,000 traders were affected, exacerbating the downturn through forced selling.

The selloff stemmed from a confluence of factors rather than a single catalyst. Macroeconomic headwinds played a central role: rising U.S. bond yields, a strengthening dollar, geopolitical uncertainty, and expectations of prolonged higher interest rates under potential Federal Reserve policy shifts reduced appetite for risk assets like crypto. This mirrored selloffs in global stocks, tech shares, and even precious metals volatility, driving investors toward safer havens.

Profit-taking intensified the move after Bitcoin’s prior rally to peaks near $126,000 in late 2025. Institutional outflows from U.S. spot Bitcoin ETFs accelerated (notable in BlackRock’s IBIT and others), reversing earlier inflows and signaling waning traditional investor interest. Heavy deleveraging occurred, with futures open interest dropping sharply and miners potentially forced to sell amid tighter margins. Additional pressures included resurfacing concerns over governance, quantum computing risks, and the psychological impact of Bitcoin’s four-year cycle patterns, where investors anticipate corrections.

Altcoins like Ethereum (dipping to ~$1,880–$1,920 ranges) and others followed suit, reflecting correlated weakness. Sentiment hit extreme fear levels, with the Fear & Greed Index plunging.

Analysts view this as a necessary correction to purge excess leverage and speculation after 2025’s parabolic gains. While painful, it could establish a healthier base for recovery, especially if macro conditions stabilize. Near-term volatility persists, with traders monitoring key supports (around $60,000–$62,000) and awaiting economic data or Fed signals. As of February 9, 2026, Bitcoin hovers in the $68,000–$70,000 range, underscoring ongoing choppiness but partial stabilization post-selloff. Caution remains key amid fragile risk sentiment.