Crypto Market Crashes Hard: Bitcoin Plunges Below $65K in Massive Selloff

The cryptocurrency market is experiencing a brutal selloff today, with the total market capitalization plummeting 8% in the past 24 hours to $2.3 trillion. This marks one of the most severe corrections we’ve seen in months, as 90 out of the top 100 cryptocurrencies by market cap are bleeding red.

Trading volume has surged to $356 billion—the highest level in months—suggesting this isn’t just a minor pullback but a full-blown capitulation event that’s shaking the foundations of the crypto ecosystem.

Bitcoin Takes a Beating: Below $65K and Still Falling

Bitcoin (BTC), the bellwether of the crypto market, has suffered a devastating 9.1% drop, now trading at $64,744. This represents a staggering 22% decline over just the past week, with prices reaching as low as $60,255 during intraday trading before finding some temporary support.

The world’s largest cryptocurrency is now down nearly 50% from its all-time high of $126,080 recorded in October 2025, confirming a structural shift in market dynamics. Technical analysis suggests Bitcoin could test even lower levels, with $58,500 and $56,300 emerging as potential downside targets if the selling pressure continues.

Ethereum Follows Suit in the Bloodbath

Ethereum (ETH) hasn’t fared much better, dropping 11% to $1,878. The second-largest cryptocurrency has seen its price collapse by 31.5% over the past week alone, representing a 62% decline from its August all-time high of $4,946.

If the bearish momentum persists, ETH could test support levels at $1,700, $1,620, and potentially even $1,500. The technical breakdown has been swift and severe, with key support levels crumbling under intense selling pressure.

Crypto Winners & Losers: A Sea of Red

The carnage extends far beyond just Bitcoin and Ethereum. Nine out of the top ten cryptocurrencies by market cap have seen their prices fall, with five recording double-digit percentage losses:

• Solana (SOL): Down 14% to $79
• Dogecoin (DOGE): Down 11.3% to $0.09056
• Tron (TRX): Down 4% to $0.2687
• Figure Heloc (FIGR_HELOC): The only green spot, up 2.9% to $1.03

Among the top 100 cryptocurrencies, 41 have experienced double-digit pullbacks, with Official Trump (TRUMP) taking the crown for worst performer, down a staggering 21.3% to $3.23. LEO Token (LEO) follows closely behind with a 17.2% decline to $6.69.

Record Capitulation: Bitcoin’s Entity-Adjusted Realized Loss Hits $3.2 Billion

On-chain analyst Murphy has identified this selloff as a clear capitulation event, with Bitcoin’s entity-adjusted realized loss reaching a record $3.2 billion on February 5th. This level of loss-taking surpasses what the market absorbed during some of its strongest previous shocks, including the Luna and FTX collapses.

“The scale of loss-taking we’re seeing now indicates that traders are rushing to exit positions en masse,” Murphy noted on Twitter. “This is textbook capitulation behavior that typically precedes major market bottoms.”

Mining Sector Under Pressure: Marathon Digital Moves $86.9 Million in BTC

The price crash has taken a significant toll on Bitcoin miners, with Marathon Digital (MARA) transferring 1,318 BTC worth $86.9 million across three crypto wallets in just ten hours. This massive movement has raised concerns about potential forced selling from miners struggling to maintain profitability amid falling prices.

ETFs Continue Outflow Streak: $434 Million Leaves Bitcoin Funds

US spot Bitcoin ETFs recorded another day of negative flows, with $434.15 million exiting the funds on February 5th. This brings the total net inflow down to $54.32 billion. Six of the twelve ETFs posted outflows, with BlackRock leading the way at $175.33 million, followed by Fidelity at $109.48 million and Grayscale at $75.42 million.

Ethereum ETFs also saw outflows of $80.79 million, with Fidelity, Grayscale, and BlackRock all recording negative flows.

Market Sentiment Hits Rock Bottom: Fear and Greed Index at 5

The crypto fear and greed index has plunged to just 5—the lowest level since CoinMarketCap began tracking this metric in mid-2023. This represents extreme fear among market participants and suggests the selling pressure could continue until we see some stabilization in global financial conditions.

Expert Analysis: “Consolidating a Clearly Corrective Phase”

Matt Howells Barby, VP at Kraken, warns that while Bitcoin breaching the $69,000 level in 2021 was significant, it doesn’t rule out further short-term downside. He believes a base is most likely to form in the $54,000-$60,000 range, particularly as the low-$50,000s align with the 200-day moving average.

Antonio Di Giacomo, Senior Market Analyst at XS.com, provides additional context: “Bitcoin has recorded losses in seven of the last eight sessions, consolidating a clearly corrective phase that has significantly weakened market sentiment. The cryptocurrency has seen a nearly 50% drop from its ATH, confirming a structural shift in price dynamics.”

Di Giacomo explains that the market has transitioned from an environment dominated by speculation and leverage to one focused on capital preservation amid a broader adjustment across risk assets. The break of key technical levels triggered a wave of forced liquidations in the derivatives market, with almost $770 million in leveraged positions liquidated in just 24 hours.

What’s Driving This Crypto Crash?

Several factors are contributing to the current market turmoil:

Global Liquidity Contraction: Bitcoin has posted a sharp decline amid a contraction in global liquidity and a broad sell-off in tech stocks. The cryptocurrency has recorded losses in seven of the last eight sessions.

Risk-Off Sentiment: BTC no longer acts as an alternative safe-haven asset and is now aligned with the risk-asset cycle again. In the short term, price action will remain conditioned by liquidity stability and the evolution of the macroeconomic environment.

Deleveraging Process: Over recent months, elevated leverage left Bitcoin vulnerable to sharp moves, and the recent break of technical supports acted as a catalyst for a deeper, more disorderly adjustment. This deleveraging process reflects a market that has yet to complete its cleansing phase.

Levels and Events to Watch Next

Bitcoin is currently trading at $64,744, having dropped from an intraday high of $71,702 to a low of $60,255. The next major support levels to watch are $58,500, followed by $56,300. Resistance now stands at the $77,000 level.

For Ethereum, the price could test further support levels at $1,700, $1,620, and potentially $1,500 if the bearish momentum continues.

Quick FAQ

Did crypto move with stocks today?
Yes, the crypto market recorded another pullback while the US stock market also closed sharply lower on Thursday. The S&P 500 was down 1.23%, the Nasdaq-100 decreased by 1.38%, and the Dow Jones Industrial Average fell by 1.2%. Investors weighed the latest labor data and Big Tech earnings reports.

Is this drop sustainable?
The prices can still go lower. There is room for additional pullbacks unless significant macroeconomic and/or geopolitical factors provide a strong enough tailwind for another leg up.

Crypto Market Crash: Key Terms & Viral Phrases

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