Bitcoin Plummets, Erasing 2024 Gains Before Partial Recovery
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A sharp selloff in early Asia trading on Friday sent the price of Bitcoin tumbling as much as 4.8% to $60,033, its lowest level since October 2024. This dramatic decline effectively wiped out all of the gains the cryptocurrency had accumulated following the 2024 United States presidential election. However, the digital asset later recovered some ground, climbing over 2% to surpass $64,400 by 9:12 am in Singapore.
Volatility Returns to Crypto Markets
The initial plunge sparked widespread concern among investors, but a subsequent rebound offered a glimmer of hope. As of February 6, 2026, at 11:25:01 GMT+0700, the Bitcoin price against the US Dollar varied slightly across exchanges, with values ranging from approximately $64,039.06 (Revolut) to $65,178.14 (Binance), with the most frequently cited figures around $64,692.00 and $64,601. The volatility wasn’t limited to Bitcoin; other cryptocurrencies, including Solana, also experienced significant declines before staging their own recoveries.
Liquidation Cascade Fuels Sell-Off
The current market downturn is largely attributed to a series of forceful liquidations that began in October, eroding investor confidence. This week, the selling pressure intensified due to the unwinding of leveraged positions and broader market instability. Within a 24-hour period, approximately $2.3 billion of leveraged long bets across the entire cryptocurrency market were liquidated, exacerbating the downward spiral.
Key Support Level Under Threat
According to one analyst, there was a noticeable lack of buying interest to counteract the liquidation-driven selloff. “Repeated failures to hold support levels have shifted behaviour,” the analyst noted, emphasizing the critical importance of Bitcoin maintaining the $60,000 support level. A breach of this level, they warned, could trigger a further decline, potentially pushing the price into the mid-$50,000 range.
The market’s turbulence has also impacted major Bitcoin holders. Michael Saylor’s Strategy Inc., for example, reported a net loss of $12.4 billion for the fourth quarter, primarily due to the mark-to-market decline in its substantial Bitcoin holdings.
Factors Driving the Recent Selloff
Several factors contributed to the recent intensification of the cryptocurrency selloff:
- Brutal Series of Liquidations: The market has been under pressure since October due to ongoing liquidations.
- Unwinding of Leveraged Bets: Selling accelerated this week as traders closed out leveraged positions.
- Broader Market Turbulence: General instability in financial markets added to the downward pressure.
- Lack of Market Appetite: There was limited demand to absorb the selling pressure.
- Repeated Failures to Hold Support Levels: Inability to maintain key price levels further damaged market sentiment.
Broader Economic Concerns at Play
Market analysts suggest the initial drop in Bitcoin’s value may have been triggered by growing concerns surrounding tightening monetary policies and increased regulatory scrutiny in key markets. Despite the partial recovery, volatility remains elevated, with traders closely monitoring global financial developments. Fluctuations were also observed in other major cryptocurrencies, such as Ethereum and Binance Coin, indicating a widespread sense of uncertainty within the digital asset space.
Investors are advised to exercise caution as the market continues to react to external economic pressures and evolving sentiment.
