Bitcoin Plummets Below $70,000, Triggering $1 Billion in Liquidations
By John Nada·Feb 5, 2026·3 min read
Bitcoin's fall below $70,000 has sparked a major selloff, resulting in over $1 billion in liquidations across the crypto market, according to CryptoSlate.
Bitcoin has retreated below the crucial $70,000 threshold, igniting a significant selloff across digital assets. This decline has erased over $1 billion in trading positions, according to CryptoSlate. The world's largest cryptocurrency hit lows not seen since the November 2024 election, dragging the broader market into negative territory. Ethereum slid 7% to around $2065, while XRP, which had been a recent outperformer, plummeted more than 14% to $1.35. Other major tokens, including Cardano, BNB, Solana, and Dogecoin, also suffered substantial losses, as selling pressure swept through the asset class.
This downturn represents the industry's weakest performance since the onset of the second Donald Trump administration, illustrating a swift shift in sentiment from post-election optimism to risk-off behavior. Traders have noted that, unlike previous downturns caused by specific shocks, this selloff reflects a gradual erosion of confidence, as capital moves toward equities and commodities. Samson Mow, founder of Bitcoin-focused firm Jan3, highlighted the painful asymmetry of this selloff. He pointed out that Bitcoin has struggled to capitalize on positive narratives while remaining vulnerable to broader risk-off trends.
On-chain data indicates that the decline has triggered a substantial increase in forced selling. Glassnode reported that Bitcoin's capitulation metric recorded its second-largest spike in the past two years, signaling an alarming rise in liquidations and position unwinds. Such events typically coincide with heightened volatility as traders reassess their exposure. Indeed, the price drop led to a cascade of liquidations in derivatives markets. Data from Coinglass revealed that over $120 million in positions were liquidated within just one hour as prices fell through key technical levels.
Long positions took the brunt of the damage, with approximately $116 million liquidated, while short positions lost about $6 million. Bitcoin-linked contracts were particularly hard hit, suffering losses exceeding $86 million. Ethereum traders closed around $16 million in positions, while Solana and the HYPE token saw liquidations totaling approximately $3 million and $6 million, respectively. Over a 24-hour span, total liquidations reached approximately $1.06 billion, highlighting the extent of leverage embedded within the market. Long positions accounted for nearly $900 million of that total, underscoring how quickly bullish sentiment can unravel in the face of sharp price declines.
This market turmoil raises critical questions about the current state of investor confidence in digital assets. As the market struggles with this latest wave of selling, the implications for future trading strategies and overall market sentiment will be profound. The current environment suggests a cautious approach may be warranted, as traders navigate this turbulent landscape.
In summary, Bitcoin's dip below $70,000 has not only impacted its value but has also triggered significant liquidations across the crypto market. The shift in sentiment underscores the fragile state of investor confidence and highlights the potential for further volatility in the near term.