- Bitcoin value fell to $60,000, the largest single-day drop for the reason that FTX crash.
- Costs rose above $66,000 as analysts predicted a attainable useless cat rebound.
- Market sentiment stays in a state of maximum worry.
Bitcoin fell sharply on Friday, collapsing to a low of $60,000, however this triggered a widespread sell-off that shortly led to a dramatic restoration to round $67,100.
This unstable volatility has despatched crypto market sentiment into excessive worry, with prime altcoins corresponding to Ethereum, XRP, and Solana reaching key help ranges beneath $1,900, $1.40, and $80, respectively.
However can the bulls maintain the reversal after experiencing essentially the most extreme one-day sell-off in historical past?
Bitcoin suffers greatest drop in 24 hours since FTX crash
As talked about above, Bitcoin plummeted by greater than $10,000 in a number of hours on Thursday, dropping to a low of practically $60,000 at one level.
Bitcoin has since made some restoration, stabilizing round $67,000 on the time of writing, however the general market stays beneath stress following the cryptocurrency’s steepest single-day decline for the reason that FTX collapse in November 2022.
In contrast to earlier declines, which have been attributable to apparent triggers corresponding to regulatory actions or alternate failures, this downturn seems to have been pushed primarily by technological components.
Analysts say the sudden reversal in momentum caught merchants who had taken positions for continued income off guard, resulting in a wave of liquidations and compelled unwinding of extremely leveraged positions.
Crypto analyst and investor Lark Davis stated of X:
There may be an argument that the huge launch of Bitcoin is an element of a bigger domino impact.
Folks borrowed cash to purchase Bitcoin, gold, and silver. When costs fell, lenders stated, “Give me more cash now or I will promote your stuff.”
Drawback: Folks did not have money, in order that they bought different issues…
— Lark Davis (@LarkDavis) February 6, 2026
Greater than $2.6 billion in crypto positions have been liquidated previously 24 hours, with Bitcoin derivatives accounting for the lion’s share, based on information from Coinglass.
The decline unfold throughout main altcoins. Ethereum fell beneath $1,800 for the primary time in over a 12 months, and Solana fell to round $67, its lowest since December 2023.
XRP was additionally beneath vital stress, hitting lows round $1.13, rising the danger of the Ripple-related token falling beneath $1.
Market individuals famous that open curiosity in Bitcoin futures had risen to document ranges earlier than the financial downturn, leaving extremely leveraged lengthy positions uncovered throughout sharp value reversals.
Bitcoin Worth Outlook: Useless Cat Bounce or Sustained Rise?
As Bitcoin trades close to $66,000, merchants are weighing whether or not this pullback indicators the start of a sustained restoration or a short-term “useless cat rally” that might give approach to contemporary losses.
Market confidence is extraordinarily low and bearish sentiment stays dominant.
CoinMarketCap’s Concern and Greed Index at the moment stands at 5 out of 100, indicating extreme investor anxiousness.
Nonetheless, some analysts argue that supporting components nonetheless exist.
The magnitude of the latest decline, pushed partly by massive lengthy liquidations, will increase the chance of a brief squeeze.
If quick sellers proceed to cowl their positions, costs might prolong the restoration.
For bulls, a sustained rally above $70,000 and a retest of $73,000 will probably be key technical milestones.
Nevertheless, if momentum weakens amid ongoing macroeconomic and geopolitical pressures, Bitcoin might fall towards $60,000, undermining the rebound.
On this state of affairs, some market individuals see the subsequent potential draw back goal as $50,000.