Bitcoin fell below $70,000 and reached an annual low: what happened to the market

The week turned out to be painful for crypto-optimists: bitcoin, which a few months ago flirted with records over $120,000, is now trading below $70,000 and heading towards its lowest values ​​of the last year. In just a few days, the largest cryptocurrency lost tens of thousands of dollars in value, and the entire crypto market wiped out hundreds of billions of dollars from its capitalization.

According to data from major crypto trading platforms, on Wednesday and Thursday bitcoin fell to around $70,000, and at times the price slipped below this threshold – levels not seen since November 2024. Compared to the peak of October 2025 at around $126,000, the cryptocurrency is already more than 40% below the maximum.

"A week from hell" for the crypto market

The last few days have shown how quickly market enthusiasm can turn around. In less than a week, bitcoin lost nearly 20% of its value, and many alternative cryptocurrencies ("altcoins") crashed by double digits.

According to market data, the total capitalization of the crypto market has decreased by nearly half a trillion dollars. On the futures markets alone, liquidations of forcibly closed positions exceeded hundreds of millions of dollars for several sessions, and some estimates also speak of amounts in the order of billions – the "domino" effect, when excessive leverage amplifies every downward movement.

What is behind the crash: beyond "someone sold their bitcoin"

Experts point to a combination of factors that have pushed the price down:

• Risk-off sentiment in global markets – rising real yields, a stronger dollar and uncertainty around economic data in the US are making investors more cautious towards risky assets, including crypto. Bitcoin continues to behave more like a "risky stock" than a "digital gold".
• Unclear monetary policy – The Federal Reserve signaled a more cautious approach to future interest rate cuts. Some analysts warned at the end of 2025 that a pause or slower interest rate easing could return bitcoin to zones around $70,000 – a scenario that materialized in early 2026.
• Bitcoin ETF outflows – after the initial wave of interest in exchange-traded funds backed by bitcoin, net outflows have been observed in recent weeks. ETF sales add additional pressure, especially when they coincide with a negative macro background.
• Technical factors – the price broke several key support levels – 82,500, 80,000, 75,000 dollars – as well as important moving averages, which triggered a series of stop orders and liquidations. Analysts also note a violation of the upward trend line from the end of December.

$70,000 – "bottom" or just an intermediate stop?

The psychological limit of $70,000 is emerging as a key level that many traders are watching closely. Part of the technical analysis points to it as an important support within a wider correction after the strong appreciation in 2024–2025.

Various forecasts:

• Some analysts see the current decline as a "normal correction" in a long-term upward market and expect consolidation above or around $70,000 before there is a chance for a new increase if the macro environment improves.
• More pessimistic scenarios talk about a possible drop to the range of $58,000–60,000 if 70,000 does not hold and ETF outflows intensify. Some technical models allow for such a deeper correction in 2026.
• Large investment banks and crypto funds remain long-term "bullish", but are already talking about a wider range – from 75,000 to over 200,000 dollars in 2026, emphasizing the high volatility and dependence on interest rate policy and regulations.

How the big players reacted

The price crash hit not only small investors, but also companies associated with bitcoin – public treasuries, mining firms and crypto platforms. The shares of companies holding significant amounts of BTC on their balance sheets also fell noticeably, following the movement of the asset.

Against the backdrop of the decline, certain critical voices towards cryptocurrencies were activated again. Some of them define bitcoin as a "speculative asset" that does not fulfill the role of a "safe haven" in times of geopolitical tension and weakening market risk.

What this means for the average investor

For people who do not live on trading platforms, but simply hold or are considering buying bitcoin, the current situation is a reminder of a few old lessons:

• cryptocurrencies remain highly volatile – movements of 10–20% for days are not the exception, but part of their "normal" life;
• "nobody knows the bottom" – technical levels can help, but do not give guarantees;
• risk management (sums we can afford to lose, diversification, long-term horizon) is more important than trying to "catch the perfect moment".

For some investors, these levels are seen as an opportunity for a "discount" on the tops. For others – as a signal to reduce their exposure to risky assets while the geopolitical and economic picture remains tense. In any case, however, one thing is clear: bitcoin is once again proving that it is not for people with weak nerves.

Whether the drop below $70,000 will turn out to be the "bottom of the year" or just an intermediate stop to lower levels, will become clear in the coming months. For now, February begins with a clear message to the market – euphoria has a price, and cryptocurrencies have not come out of the "roller coaster" mode.