Crypto Reporter
Shalini Nagarajan
Crypto Reporter
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Bitcoin tumbled more than 10% toward $64,000, extending a brutal week for crypto as selling pressure spread across risk assets and shook markets from New York to Asia.
The drop dragged Bitcoin to its weakest level since late 2024, reversing momentum that had built after Donald Trump’s election win, when he signalled a more supportive stance on crypto during the campaign trail.
Crypto losses came as investors dumped tech stocks and even safe-haven trades turned jumpier. Volatility in precious metals also picked up, as leveraged bets and speculative flows amplified price swings.
Market snapshot
- Bitcoin: $64,798, down 9.2%
- Ether: $1,900, down 9.7%
- XRP: $1.27, down 12.4%
- Total crypto market cap: $2.29 trillion, down 8.2%
ETF Outflows Mount As Crypto Selloff Deepens Into February
CoinGecko data showed the global crypto market has lost about $2 trillion in value since its October peak, with roughly $800B erased over the past month. Bitcoin was down about 17% for the week and roughly 28% for the year so far, while Ether was headed for a 19% weekly slide and a 38% drop year-to-date.
Traders also kept an eye on the plumbing of the rally that powered crypto higher last year, especially flows into exchange-traded funds.
Analysts from Deutsche Bank said in a note that US spot Bitcoin ETFs witnessed outflows of more than $3B in January, following outflows of about $2B and $7B in December and November, respectively.
Akshat Siddhant, lead quant analyst at Mudrex, said currently bears remain in control of the crypto market.
“The recent decline was driven by softer US labour data and growing concerns around heavy capital spending in the AI sector, which weighed on broader risk sentiment,” he said.
“Continued ETF outflows and short-term holders moving nearly 60,000 BTC to exchanges have added to near-term selling pressure. That said, for long-term investors, this phase offers a favourable accumulation opportunity through disciplined, staggered buying.”
Matt Howells Barby, VP at Kraken, said Bitcoin’s recent tumble doesn’t rule out further short-term downside.
“Price is now entering a well-defined support zone between $54,000 and $69,000, but the weekly RSI has dipped below 30 for the first time since mid-2022 — a signal that has historically preceded major bottoms forming within a three-to-six-month window,” he said.
“In our view, a base is most likely to form in the $54,000–$60,000 range, particularly as the low-$50,000s align with the 200-day moving average.”
Risk Appetite Fades As Labour Data And Tech Losses Combine
In Asia, the risk-off mood hit equities early. MSCI’s broadest index of Asia-Pacific shares outside Japan fell about 1%, led by a 5% dive in South Korea’s Kospi that triggered a brief trading halt shortly after the open, and Japan’s Nikkei 225 also slipped.
US stock futures pointed lower too, after Wall Street ended sharply down overnight as tech heavyweights fell and investors questioned whether massive AI spending would translate into near-term profits.
Alphabet added to the anxiety after saying it could lift 2026 capital spending as high as $185B, part of an AI arms race that has investors watching cash burn as closely as revenue growth.
Fresh labour market signals also fed the unease, with a report showing US layoffs announced by employers surged in January to the highest level for the month in 17 years, reinforcing a broader pullback in risk appetite.
