Bitcoin dropped about 15% in a single session on February 6, briefly trading near $60,000 — its lowest price since October 2024 and roughly 52% below its all-time high. Around $2.67 billion in positions were liquidated that day alone.
What triggered the sell-off
- No backstop from Washington: Treasury Secretary Scott Bessent testified on February 5 that he had "no authority to stabilize crypto markets."
- China: Beijing banned yuan-pegged stablecoins on February 6.
- Forced deleveraging: bitcoin had already broken below $70,000 on February 5, accelerating margin calls.
- Macro pressure: an AI-driven tech sell-off, new U.S. tariffs and rising Middle East tensions pushed investors out of risk assets.
A week of capitulation
Bitcoin posted its worst week in more than three years, falling about 16%. Total liquidations across crypto for the week were estimated at $3–4 billion, with $2–2.5 billion concentrated in bitcoin futures. From roughly $90,000 on January 28, BTC fell to a low of about $60,033 by February 11 — the steepest correction since the FTX collapse.
Where it leaves the market
February ended as digital assets' toughest month in years: BTC finished down about 21.7% and ETH about 28.5%. Capital that stayed in the market rotated toward narrative tokens tied to AI agents, real-world assets and institutional DeFi, while majors bore the brunt of the selling.
