Money

Bitcoin Plunges Below $70K

Is Bitcoin's drop a dangerous unraveling or just another typical crypto cycle?

Published FEB 5

Story

Above: A Bitcoin is illustrated on a smartphone showing a BTC-USD price chart in Chongqing, China on Feb. 4, 2026. Image credit: Cheng Xin/Getty Images

The Facts

Bitcoin dropped below $70,000 on Thursday, marking its lowest level since November 2024. The cryptocurrency has declined approximately 40% to 44% from its October 2024 peak above $126,000, with losses accelerating throughout the week.
CNBC
Business Insider
The Tech Buzz
Over $2 billion in cryptocurrency positions were liquidated this week as bitcoin fell through key support levels. Strategy, the largest publicly traded holder of bitcoin, saw its stock decline over 5% and is trading nearly 80% below its November 2024 high.
CoinDesk
The Tech Buzz
U.S. spot bitcoin Exchange-Traded Funds (ETFs), which accumulated 46,000 bitcoin at this time last year, have reversed to net sellers in 2026. CryptoQuant reported that "institutional demand has reversed materially," contributing to downward pressure on prices.
CNBC
The Tech Buzz
Gold surged 69% over the past year while bitcoin declined nearly 29% in the same period. Gold recently exceeded $5,500 per ounce, while bitcoin failed to capture defensive inflows during periods of geopolitical and macroeconomic uncertainty.
CNN
Forbes
President Donald Trump's nomination of Kevin Warsh as Federal Reserve Chair triggered market concerns about potential balance sheet reduction. Warsh has been described as a "monetary policy hawk," with analysts suggesting reduced liquidity could pressure speculative assets.
South China Morning Post
Forbes
Analysts warned that bitcoin falling below $70,000 could result in over $4 billion in losses for Strategy and force crypto miners toward bankruptcy if prices reach $50,000. Polymarket traders assigned an 86% probability to Bitcoin declining to $65,000.
BeInCrypto
Futurism
Business Insider

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Bitcoin's plunge below $70,000 marks a critical turning point — highlighting a troubling trend driven by institutional investors fleeing the market and significant technical failures. This 40% drop from October's peak is more than mere volatility. The trajectory toward $60,000 now seems unavoidable.

Walter Bloomberg on X

The Tech Buzz

Forbes

Narrative B

Bitcoin's current downturn is just another typical crypto cycle, not a fundamental failure. The token has crashed harder before and bounced back every single time. This volatility is normal for an emerging asset class still finding its footing in global markets.

The Australian Economy Hub on Youtube