Українська
Русский
English
Bitcoin Tests the $70,000 Level Amid Macro Pressure and ETF Outflows
Bitcoin Tests $70,000 Level Amid Macro Pressure and ETF Outflows
On February 5, the price of the leading cryptocurrency fell to $70,119, marking its lowest level since October 2024. Ethereum followed Bitcoin’s decline, dropping to $2,079.
15-minute BTC/USDT chart on Binance. Source: TradingView.
15-minute ETH/USDT chart on Binance. Source: TradingView.
Vincent Liu, Chief Investment Officer at Kronos Research, attributed the decline to a breakdown of a key support level after a failed rebound attempt. According to him, market pressure was driven by three main factors:
-
a wave of long position liquidations;
-
sell-offs in the U.S. technology sector;
-
capital outflows from spot Bitcoin ETFs.
The negative trend also affected the stock market. Shares of Coinbase fell by 6.14%, mining company BitMine dropped 9.17%, while the Nasdaq Composite index declined by 1.51%.
Presto Research Head of Research Peter Chang believes the current correction reflects broader global macroeconomic processes rather than internal issues within the crypto industry. Investor sentiment has fallen to its lowest levels since the previous bear market. A widely followed sentiment indicator dropped to 12 points, signaling “extreme fear.”
Crypto Fear & Greed Index. Source: Alternative.
At the same time, Chang advised investors to ignore short-term market noise and focus on the long-term adoption potential of digital assets.
Some market participants have linked the current situation to the aftermath of the October 10, 2025 incident, when a database failure at Binance caused transaction delays and incorrect price displays. This triggered cascading liquidations totaling approximately $19 billion. The exchange acknowledged the technical issues and paid more than $283 million in compensation to affected users.
Dragonfly Managing Partner Haseeb Qureshi noted that during the October liquidity disruption, there was insufficient buy-side liquidity, while liquidation mechanisms continued operating as designed.
With all respect to Star, this story is candidly ridiculous.
Star is trying to claim that the root cause of 10/10 was Binance creating an Ethena yield campaign, causing USDe to get overleveraged from traders looping it on Binance, which eventually unwound because of a small…
— Haseeb ＞|＜ (@hosseeb) January 31, 2026
According to Qureshi, this dealt a blow to market makers, who “will need time to recover.” He emphasized that unlike traditional finance, crypto exchanges lack built-in circuit breakers, and liquidation mechanisms are designed primarily to protect platforms from insolvency.
Additional tension came from unconfirmed rumors about a $9 billion Bitcoin sale by a client of Galaxy Digital, allegedly driven by concerns over quantum computing.
Hooo buddy. To translate what @novogratz is saying here (via $GLXY earnings call this AM): The $9B block trade Galaxy did last quarter was for someone 1) early/rich (clearly), 2) smart, 3) fairly concerned about $BTC Quantum Resistance
— Kellan Grenier (@kellangrenier) February 3, 2026
However, researcher Alex Thorn dismissed these claims:
quantum is not why the whale sold
novo didn’t connect the two. he said it was one reason ppl are claiming for btc weakness, but he disagrees with that (this is clear if you read the full transcript)
he then clarified on bloomberg that quantum isn’t the reason for btc weakness
— Alex Thorn (@intangiblecoins) February 3, 2026
Earlier, on February 3, analyst Vetle Lunde of K33 Research stated that an 80% decline in Bitcoin from its all-time high is unlikely under current conditions.
