Bitcoin has fallen below $70,000: what is happening in the cryptocurrency market
For the first time since late 2024, Bitcoin has dropped below $70,000, reaching a yearly low of $60,900 in the first half of February 2026. According to experts, this is the sharpest Bitcoin decline in the past three years: at one point, "digital gold" lost more than 14% of its value.
As of February 2026, the price of Bitcoin stands at $68,500. Compared with its all-time high (ATH) of $126,000 in October 2025, Bitcoin's price has almost halved, while its market capitalization has fallen from $2.48 trillion to $1.37 trillion. Moreover, over the last 30 days alone, Bitcoin has lost more than $1 trillion in market capitalization — this factor may worsen the short-term decline.
Why has Bitcoin crashed?
One of the key reasons for the crash has been capital outflows from crypto funds (BTC ETFs). According to data from the monitoring service CoinMarketCap, net outflows from Bitcoin funds reached nearly $500 million in just one month. Outflows from BTC ETFs have now been observed for three consecutive weeks.
The ongoing outflows from Bitcoin funds indicate that panic sentiment is dominating among investors. This is also reflected in the Fear and Greed Index. As of February 2026, the indicator dropped to 9 out of a possible 100, signaling extreme fear in the market and marking the lowest level in its recorded history. As a result, in the last month alone, Bitcoin has fallen by more than 23%, dropping from $90,400 to $69,150.
Experts also note that Bitcoin has fallen amid capital outflows from major investors, including banking institutions and hedge funds. Some investors believe that the bull run phase within the classic four-year cycle tied to Bitcoin's halving has already passed, and that further declines in the main cryptocurrency's price should be expected. As a result, large players are hedging against a potential drop and moving their assets out.
According to analysts, one of the global reasons for the crash is overall economic and geopolitical instability in the world, including tensions related to U.S. trade wars. In addition, analysts fear the potential for conflicts involving the United States with Greenland and Iran, prompting investors to hedge their digital asset positions and diversify risks by moving part of their capital into reserve assets such as gold and other precious metals — this explains their growth in January–February 2026.
Analysts also believe Bitcoin has fallen for two additional reasons: the blocking of legislative initiatives related to crypto assets and expectations of a tighter monetary policy from the U.S. Federal Reserve.
Donald Trump, the current U.S. president, has proposed Kevin Warsh — known for his hawkish stance on interest rates — as a candidate for the position of Federal Reserve chairman. Investors fear that if approved, Warsh will continue raising the key interest rate, which could trigger a new wave of sell-offs in the crypto market. Historically, Bitcoin's price has often declined when interest rates rise and increased when they fall.
On February 2, another event occurred that may have contributed to the crash — the blocking of the CLARITY Act, a bill intended to regulate digital assets in the U.S. market. Investors and traders were expecting clearer regulatory rules for the crypto industry, but Democrats in the U.S. Senate blocked the bill. This event may have spread pessimism among market participants and intensified sell-offs in Bitcoin by both large and retail investors.
An additional factor behind Bitcoin's fall to 2024 lows may have been the slowdown in the growth of the IT sector. Experts noted that the stock growth of major tech companies such as Alphabet (Google), Apple, and Microsoft has slowed, which also affects the price dynamics of the first cryptocurrency. The relationship between cryptocurrencies and tech stocks is explained by their high correlation, which has been observed since 2018.
Bitcoin has crashed — should we expect a recovery?
Analysts are divided on Bitcoin's future movement: some believe the "bottom has already been reached" and that "digital gold" may return to growth, while others think the decline may continue. For example, well-known analyst Rami Zeitsman allows for a short-term drop in BTC to $53,000. At the same time, Bloomberg chief strategist Mike McGlone suggests a possible collapse of the main cryptocurrency's price to as low as $10,000.
However, such a scenario is considered extremely pessimistic. The fact that Bitcoin has fallen below $70,000 is a dangerous development for the mining industry. Analysts believe this level is a critical threshold for the profitability of Bitcoin mining. In their view, a drop below $70,000 could lead to the shutdown of computing power and the sell-off of miners' Bitcoin reserves, resulting in a decline in the network's hash rate and mining difficulty.
Experts also note that Bitcoin has fallen to levels reflecting extreme stress for the crypto sector, as confirmed by the low readings of the Fear and Greed Index. In their opinion, market reversals most often occur during such periods. However, amid the panic, analysts do not rule out the scenario that the decline could continue in the coming months.
Fundstrat Global analyst Tom Lee notes that although Bitcoin has fallen, the main cryptocurrency is ready for a new rally. Experts note that institutional investors closely follow Tom Lee's comments, which often signal entry or exit from the crypto market.