Bitcoin Correction: What’s Happening Now
Bitcoin slipped below $70,000, its lowest point in 15 months, down 44% from the October 2025 peak near $127,000. This isn’t hype—real market forces are at play.
1. Macro Moves
The nomination of Kevin Warsh as Federal Reserve Chair has triggered expectations of tighter monetary policy and a stronger US dollar, which puts natural pressure on Bitcoin.
2. Institutional ETF Flows
January saw over $3B leave Bitcoin ETFs, showing institutions are treating crypto as a tactical asset rather than a long-term hold.
3. Risk-Off Sentiment
Global tech stock declines and market uncertainty have pushed investors away from riskier assets like Bitcoin, contributing to the drop.
4. Liquidation Cascade
Breaking key support levels around $80k and $75k triggered automated selling, wiping out nearly $5.4B in leveraged long positions in just a few days.
5. Regulatory Pause
Optimism over new crypto legislation has slowed. Recent meetings didn’t resolve stablecoin frameworks, and banks aren’t required to hold crypto, keeping adoption cautious.
Snapshot (Feb 5, 2026)
• Price: ~$69,800‑$71,000
• 24h Change: -6% to -9%
• Drop from ATH: ~44%
• Sentiment: Extreme Fear
This is a significant correction, but not necessarily a long-term reversal. Watch support levels, follow risk carefully, and make decisions based on research, not hype.#WhenWillBTCRebound #WarshFedPolicyOutlook #BitcoinDropMarketImpact
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Disclaimer: Educational content only. Crypto markets are risky and volatile. Not financial advice. Do your own research. Trade at your own risk.
