Bitcoin crashed below the key $70,000 level on Thursday morning. The world’s largest cryptocurrency hit a low of $69,101 on Bitstamp exchange during Asian trading hours.
The decline marks Bitcoin’s lowest point since November 2024. Prices on other major exchanges including Coinbase also tested the $70,000 support level, with BTC touching $70,002.
Bitcoin has now fallen nearly 20% year-to-date. The cryptocurrency peaked above $126,000 in early October before entering a sustained downtrend.
Ethereum also suffered losses, dropping nearly 2% to $2,086.11. A move below $2,000 would represent the first time since May of last year for the second-largest cryptocurrency.
The selling accelerated after President Trump nominated Kevin Warsh as the next Federal Reserve Chair. Market participants fear Warsh could push for a smaller Fed balance sheet.
“The market fears a hawk with him,” said Manuel Villegas Franceschi from Julius Baer’s research team. “A smaller balance sheet is not going to provide any tailwinds for crypto.”
Cryptocurrencies have historically benefited from Fed liquidity. The digital assets tended to rally when the central bank expanded its balance sheet to support markets.
Deutsche Bank analysts pointed to massive institutional withdrawals as the primary driver of the decline. U.S. spot Bitcoin ETFs witnessed outflows exceeding $3 billion in January.
$1.6B IN BITCOIN ETFs SOLD IN JAN, 3RD LARGEST IN HISTORY
U.S. spot Bitcoin ETFs saw –$1.61B in net outflows in January, the 3rd largest monthly ETF sell-off in history.
Institutions weren’t buying the dip.
They were selling it.pic.twitter.com/P7OpknEHZ1
— Coin Bureau (@coinbureau) January 31, 2026
The funds saw $2 billion leave in December and $7 billion exit in November. The steady selling suggests traditional investors are losing interest in digital assets.
“This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing,” the analysts wrote in a client note.
The crypto market saw over $800 million in liquidations over the last 24 hours. Leveraged positions continue getting washed out as prices decline.
Rising tensions between the United States and Iran contributed to market weakness. Reports indicated that planned diplomatic talks between the two countries this Friday look unlikely to happen.
MOMENTS AGO: President Trump responds after Iran's supreme leader warned of a regional war if the U.S. attacks Tehran.
"If we don't make a deal, then we'll find out whether or not he was right." pic.twitter.com/wDb3ABLuLP
— Fox News (@FoxNews) February 1, 2026
President Trump had previously warned of potential military action. The geopolitical uncertainty added to selling pressure across risk assets including cryptocurrencies.
Michael Saylor’s Strategy company faces mounting unrealized losses on its Bitcoin holdings. The firm’s BTC investment shows an unrealized loss exceeding $2.6 billion.
Strategy holds 713,502 Bitcoin acquired at an average price of $76,052 per coin. The company’s stock fell 7% as Bitcoin prices declined.
Crypto is setting up for a generational buying opportunity that won’t last long…$BTC will bottom near $60,000 by May, & from here its super cycle squeeze will begin.
This setup will be identical to buying $SLV at $30, right before the 300%+ rally.$BTC will hit $200,000+ in… pic.twitter.com/yqEOd6ux9Q
— Mike Investing (@MrMikeInvesting) February 5, 2026
Some analysts expect further downside ahead. Investment bank Stiffel warned Bitcoin could fall to as low as $38,000 based on past cycles and current market conditions.
Polymarket data shows a 73% probability that Bitcoin will hit $70,000 this month. Traders are increasing bets on continued weakness in the near term.
Bitcoin traded around $73,000 at the time of latest reports after briefly touching $72,000 earlier in the session.
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