Bitcoin Tumbles Below $75,000 in Brutal Overnight Selloff
Published Date: 7th Feb, 2026
February 07, 2026
Bitcoin endured one of its sharpest declines of 2026 early Saturday, crashing more than 12 percent to intraday lows near $74,200 before modest buying lifted it back toward $76,000 in late trading. The cryptocurrency shed approximately $10,000 from its value in under 24 hours, triggering a cascade of liquidations that erased over $220 billion from the total digital asset market capitalization.
The selloff unfolded rapidly during Asian and early European sessions, catching leveraged traders off guard and amplifying downside pressure through widespread margin calls and automated stop-loss triggers.
Liquidations Exceed $1.8 Billion
Tracking platforms reported more than $1.8 billion in cryptocurrency positions liquidated within a single 24-hour period, with long positions comprising nearly 94 percent of the forced closures. Bitcoin alone accounted for over $950 million in liquidations, while Ethereum and major altcoins contributed heavily to the total.
The breach of critical support levels around $82,000 and then $78,000 unleashed a classic capitulation spiral, as clustered orders below prior swing lows fueled relentless selling momentum.
Primary Drivers of the Drop
Several factors converged to spark the reversal:
- A surging U.S. dollar index, up over 1.3 percent against major currencies, following remarks from Federal Reserve nominee Kevin Warsh that emphasized preserving central bank credibility and adopting a cautious stance on monetary easing.
- Widespread profit realization after Bitcoin's strong advance through December and January, when prices briefly neared $105,000 amid earlier geopolitical safe-haven flows.
- Heavy outflows from spot Bitcoin exchange-traded funds, with single-day redemptions topping $950 million according to some estimates, reflecting accelerated institutional de-risking.
- Heightened macro caution ahead of next week's major U.S. employment report and inflation data, which added pressure on risk-sensitive assets including cryptocurrencies.
- Accelerated distribution from mid- and long-term holders near recent resistance zones, compounding the initial downward move.
Ethereum dropped roughly 14 percent to trade near $2,420, while prominent altcoins recorded losses between 16 and 28 percent. The overall crypto market capitalization fell more than 10 percent during the session.
Technical and On-Chain Indicators
On-chain data showed substantial selling pressure from longer-term holders, though certain whale addresses continued accumulating on the dip. Perpetual futures funding rates turned deeply negative, underscoring dominant bearish sentiment among leveraged participants.
Shorter-term momentum oscillators reached oversold territory, potentially paving the way for a short-covering rally if exhaustion sets in. However, a sustained break below $75,000 would likely expose deeper support zones near $70,000 and $65,000 in more prolonged correction scenarios.
Market Outlook Remains Tense
The violent drop served as a clear reminder of cryptocurrency's extreme sensitivity to dollar strength, macro policy expectations, and shifts in global risk sentiment. While some traders regard the pullback as a necessary cooldown after an overheated run, others caution that persistent dollar momentum and ongoing institutional outflows could extend the weakness.
With critical U.S. nonfarm payrolls data due early next week and continued uncertainty around the Federal Reserve leadership transition, volatility is expected to remain elevated. The digital asset space is currently locked in a fragile consolidation phase, with traders watching closely for signs of stabilization, renewed dip buying, or further capitulation pressure in the sessions ahead.
Bitcoin's retreat stands in stark contrast to the continued strength in traditional safe-haven assets such as gold, highlighting the divergent paths risk-on and risk-off investments have taken so far in 2026. The coming week will reveal whether the cryptocurrency finds a floor or faces additional downside in a macro environment increasingly shaped by dollar dynamics and policy signals.
Date: 7th Feb, 2026
