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Cryptocurrency markets extended their sharp decline on Thursday, with Bitcoin, Ethereum and XRP dropping to multi-month lows as institutional selling, heavy liquidations and weak market sentiment combined to push prices lower.
Bitcoin fell below $69,000, slipping under its previous 2021 all-time high, while Ethereum dropped below $2,000 for the first time since May 2025. XRP also recorded steep weekly losses as selling spread across major altcoins.
The total crypto market capitalization declined to roughly $2.3 trillion, down more than 7% in 24 hours.
Bitcoin’s sharp decline from record highs
Bitcoin has now fallen roughly 45% from its recent peak near $126,000, marking one of the fastest multi-month corrections of the current cycle. Over the past 120 days, the cryptocurrency has dropped by more than $56,000, averaging a decline of roughly $14,000 per month.
BREAKING: Bitcoin just dropped below its 2021 all time high of $69,000
while ETH fell below $2,000 for the first time since May 2025.
Crypto market is in free fall. pic.twitter.com/E7KPMUUKkw
— Bull Theory (@BullTheoryio) February 5, 2026
Market analysts say the fall below the $69,000 level is psychologically significant because it represents a loss of a major long-term support zone that had held since the previous bull cycle.
Institutional selling and ETF outflows pressure markets
The sell-off has been driven largely by institutional flows rather than retail activity. Analysts pointed to large deposits of Bitcoin onto major exchanges and continued outflows from U.S. spot Bitcoin exchange-traded funds, which together increased available supply in the market.
Some blockchain tracking services reported that several large trading firms and exchanges collectively moved billions of dollars worth of Bitcoin during low-liquidity trading hours, accelerating the downward move.
Liquidations intensify the crash
The decline triggered a wave of forced liquidations across leveraged trading positions. More than $1.3 billion in crypto positions were liquidated in 24 hours, including hundreds of millions of dollars in Bitcoin long positions.
Market sentiment indicators reflected the stress, with the Fear and Greed Index dropping to “extreme fear” territory while momentum indicators signaled heavily oversold conditions.
Ethereum and XRP follow broader market weakness
Ethereum fell sharply during the week, losing more than 25%, while XRP also posted double-digit declines as traders reduced exposure to higher-risk altcoins during the downturn.
Historically, altcoins tend to fall faster than Bitcoin during risk-off phases because of thinner liquidity and higher speculative positioning.
Macro pressures and market correlation
There is also rising correlation between crypto markets and traditional financial assets, including equities and gold, suggesting the sell-off may be partly driven by broader macro positioning rather than crypto-specific news.
The lack of a single major negative headline has led some analysts to describe the downturn as a liquidity-driven reset, where institutional positioning, leverage unwinding and weak sentiment collectively pushed prices lower.
What happens next?
Technical analysts say the near-term outlook depends on whether Bitcoin can hold the $66,000 support zone. Holding above this level could trigger a short-term relief rally as oversold conditions attract buyers, while a decisive break lower could open the path toward the $62,000–$60,000 range.
