Bitcoin Prices fell below $66,000 in the US afternoon session as this week’s cryptocurrency sell-off accelerated into a bloodbath on Thursday.
The largest cryptocurrency fell more than 10% in the past 24 hours to an intraday low of $65,156, its lowest level since October 2024 and below its 2021 peak, according to CoinDesk data.
February 5th may have been one of the worst days in Bitcoin history. BTC is on track to suffer its biggest single-day drop since November 8, 2022 (down 10.5% since midnight UTC at current prices), when the collapse of cryptocurrency exchange FTX sent BTC below $16,000 after falling 14.3% on the day.
Cryptocurrencies are not the only asset class facing continued selling pressure. Silver also plunged 15% on the day and is now nearly 40% below its all-time high a week ago. Gold also fell more than 2.8% to $4,820, but the decline was not as severe as silver. The precious metal is currently trading about 15% below last week’s record.
Software stocks, which typically move in tandem with Bitcoin, continued to sell off, with the thematic iShares Expanded Tech-Software ETF (IGV) down more than 3% and down 24% year to date. The S&P 500 and the tech-heavy Nasdaq also fell 1%.
Crypto stocks are not immune. Coinbase (COIN), Galaxy (GLXY), Strategy MSTR), and BitMine (BMNR) fell more than 10%, while several cryptocurrency miners including Bitfarms (BITF), CleanSpark (CLSK), Hut 8 (HUT), and Mara (MARA) posted similar losses.
“A big factor is that liquidity is very thin,” said Adrian Fritz, chief investment strategist at 21shares. “If there’s a little bit of selling pressure, it usually triggers a lot of liquidation.”
In a fragile market environment, with only a small number of buy and sell orders to cushion trades, even a mild sell-off can trigger a large price reaction that triggers further liquidations.
While some say the worst is weeks away, Fritz doesn’t think so.
“There’s still no sign that we’ve hit bottom. I think it’s too early. There’s no definite turnaround yet,” he said.
He points to the 200-day moving average, currently around $58,000 to $60,000, as a key support level to watch. The level is also consistent with Bitcoin’s “realized price,” or the average cost basis for all Bitcoin holders, which he believes could serve as strong multi-year support.
Read more: Bitcoin could still fall further. Historical data shows $60,000 will be the bottom
Altcoins plunge
Bitcoin’s performance seems insignificant compared to the brutal sell-off in altcoins.
Nearly all CoinDesk index prices, including major coins and memecoins, have fallen by more than 10% in the past 24 hours.
XRP fell 19% in the same 24 hours, lagging most other large-cap cryptocurrencies.
While Fritz said he didn’t see a specific trigger that would put additional pressure on the coin, he said, “XRP doesn’t have much support from a technical perspective.”
Read more: Here’s what industry veterans have to say as Bitcoin falls below $70,000
