Risk-Off Mood Hits Both Stocks and Crypto
Major U.S. stock market indexes closed lower on February 5, as investors reacted to rising geopolitical tensions and renewed weakness in technology shares.
The risk-off sentiment spilled over into digital assets, with winter-like conditions settling into the cryptocurrency market. Bitcoin fell below the $70,000 level for the first time since October 2024, extending the broader crypto sell-off.
Bitcoin Drops Sharply in Early Trading
On the Chicago Mercantile Exchange (CME), the price of bitcoin slid by $4,910, or 6.67%, to $68,536 as of 10:08 a.m. ET on February 5.
The steep decline highlighted growing pressure on risk assets as traders reduced exposure amid uncertain macroeconomic conditions.
Flagship Cryptocurrency Under Heavy Pressure
Bitcoin remains the dominant digital asset, accounting for around 60% of the total cryptocurrency market. However, its leadership has not shielded it from the recent downturn.
Since reaching an all-time high of $127,240 in October 2025, bitcoin has fallen by approximately 45%, marking one of its sharpest corrections in recent years.
Year-to-Date Losses Continue to Mount
The losses have also accelerated in 2026. Bitcoin is down more than 20% year to date, reflecting sustained selling pressure across the crypto space.
With broader financial markets under stress and investor appetite for risk assets fading, cryptocurrencies continue to struggle to regain momentum.
Outlook Remains Uncertain
As long as geopolitical risks persist and global equities remain volatile, bitcoin may face difficulty finding near-term support.
Traders are now watching macroeconomic signals and market sentiment closely, looking for signs that the crypto sell-off may be nearing exhaustion—or could deepen further.
