Bitcoin’s slide to a 16-month low highlights how cryptocurrencies are increasingly tied to global risk sentiment amid tech stock selloffs and ETF outflows.
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| Bitcoin briefly hit its weakest level since October 2024 as tech stock losses and ETF outflows deepened pressure on crypto markets. Image: CH |
New York, United States — February 6, 2026:
Bitcoin’s fall to a 16-month low has sharpened concerns that cryptocurrencies are no longer insulated from broader market stress, as a global selloff in technology stocks triggered a widespread retreat from risk. Although the world’s largest cryptocurrency later recovered from near the $60,000 mark in volatile trading, the move underscored fragile investor confidence and the speed at which leveraged positions are being unwound.
The decline came as investors pulled back from high-growth and speculative assets, mirroring sharp swings across equity and commodity markets. Bitcoin briefly touched its weakest level since October 2024, a period that had preceded renewed optimism following Donald Trump’s U.S. presidential election victory and his public support for crypto. The contrast highlights how quickly sentiment has shifted as liquidity conditions tightened and volatility returned.
Market observers note that Bitcoin’s downward trajectory has been building for months, raising the possibility that crypto was an early signal of broader stress rather than a market outlier. Chris Weston of brokerage Pepperstone described the selloff as a rapid unwinding of large, crowded trades, suggesting that what appeared stable during periods of easy liquidity has become vulnerable as investors reassess risk exposure.
Ether tracked Bitcoin’s turbulence, sliding to a 10-month low before rebounding alongside the broader market. The parallel moves reinforced the view that major digital assets remain tightly correlated during risk-off episodes, offering little diversification when sentiment turns defensive. Industry data shows the total cryptocurrency market has lost around $2 trillion in value since its peak in early October, with more than $1 trillion erased in just the past month.
The scale of the pullback has been amplified by sustained investment outflows. Analysts at Deutsche Bank pointed to heavy withdrawals from U.S. spot Bitcoin exchange-traded funds over recent months, signaling that institutional investors are scaling back exposure. These redemptions suggest that caution is spreading beyond retail traders to funds that had previously embraced crypto as part of broader portfolios.
Some industry figures argue the move reflects a necessary repricing rather than a collapse in the long-term case for digital assets. Joshua Chu of the Hong Kong Web3 Association said Bitcoin’s retreat toward $60,000 represents a reckoning for investors who treated the asset as a one-way bet, often relying on leverage and minimal risk controls. In this view, the volatility is less about crypto failing and more about markets rediscovering discipline.
For now, Bitcoin’s ability to hold above key psychological support levels will remain a focal point for investors. Whether the latest slide marks the start of a deeper downturn or a volatile reset may depend less on crypto-specific developments and more on the direction of global risk appetite. As long as equity markets remain under pressure and liquidity tight, cryptocurrencies are likely to continue moving in tandem with broader financial markets rather than charting an independent course.