The crypto market is currently navigating a significant downturn, with Bitcoin hitting its lowest levels since late 2024. As of today, February 5, 2026, the sentiment is dominated by "Extreme Fear" following a 40% crash from October's record highs.
Market Snapshot: February 5, 2026
Bitcoin (BTC): Trading around $72,378, down over 4% in the last 24 hours. It recently dipped as low as $72,100, breaching key support levels.
Ethereum (ETH): Hovering near $2,220, facing intense selling pressure as it struggles to maintain its footing above the psychological $2,000 mark.
Market Sentiment: The Fear & Greed Index is currently at 17 (Extreme Fear).
Key Headlines Driving the Market
The "Bessent Rebuff": U.S. Treasury Secretary Scott Bessent clarified to the House Financial Services Committee that the Treasury has no authority to bail out cryptocurrency or use federal funds to buy digital assets. This dismissed rumors of a "national crypto reserve" bailout, triggering a fresh wave of selling.
Project Crypto Launch: The SEC and CFTC have officially launched "Project Crypto," a unified inter-agency effort to clarify digital asset taxonomy. While this aims for long-term regulatory clarity, the immediate uncertainty regarding "leveraged trading rules" has made traders cautious.
Mass Liquidations: Over $730 million in leveraged positions were wiped out in the last 24 hours. Technical analysts note that BTC is now firmly in a "technical bear market," trading well below its 200-day moving average.
Institutional Outflows: U.S. Spot Bitcoin ETFs have seen nearly $2.8 billion in net outflows over the past two weeks, suggesting that institutional "dip-buying" has yet to materialize at these levels.
Pro-tip: While traditional safe-havens like Gold are surging (up 11% recently), crypto is currently behaving more like a high-risk tech stock than a digital hedge.$BTC #MarketRebound
