Crypto Market in Breif | 6 Feb 2026
On February 6, 2026, the cryptocurrency market experienced a severe, broad-based sell-off characterized by high volatility and massive liquidations. Total market capitalisation fell approximately 9% during the session, dropping to roughly $2.2 trillion to $2.3 trillion. The market sentiment reached "Extreme Fear" (index level 12) as over $2.7 billion in derivative positions were liquidated.
Market Performance Summary
Despite a sharp late-day rebound for major assets like Bitcoin, the overall market remained deeply under pressure.
Bitcoin (BTC): Slipped as low as $60,017—its lowest level since October 2024—before staging a recovery back above $70,000 by the day's close.
Ethereum (ETH): Traded as low as $1,748 during the session, eventually rebounding toward the $2,060 level late Friday.
Altcoins: Performance was mostly negative, with 90 of the top 100 coins seeing price drops. However, some tokens like DCR (+31%) and PARTI (+14%) managed significant gains against the trend.
Key Market Drivers
Institutional Capitulation: BlackRock’s Bitcoin ETF recorded a record $10 billion in volume as heavy selling signaled a potential shift in institutional sentiment.
Macroeconomic Pressure: A strong US dollar and rising bond yields reduced the appeal of non-yielding digital assets.
Corporate Impact: MicroStrategy (MSTR) faced paper losses exceeding $12 billion as the price dipped well below their estimated average cost of acquisition during the crash.
Operational Incident: South Korean exchange Bithumb faced scrutiny after an error caused an accidental transfer of 620,000 BTC to users, though nearly 100% was reportedly recovered.
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