In the last 24 hours, the cryptocurrency world faced a major shake-up as prices fell sharply across the board. Bitcoin, the biggest crypto, dropped to around $60,000, its lowest point since late 2024, wiping out billions in value and sparking fears of a new “crypto winter.”
Bitcoin started the day trading above $70,000 but quickly lost ground, falling as much as 17% in a single session. By early February 6, it bounced back slightly to around $64,000, but the damage was done. This plunge erased all the gains from the so-called “Trump rally” after the U.S. president’s re-election in 2024, leaving many investors worried about more drops ahead.
The pain spread to other major cryptos. Ethereum, the second-largest, slipped below $2,000 for the first time in months, down about 10% to trade near $1,900. Smaller coins like Solana and XRP also saw big losses, with the whole market losing around $2 trillion in value since its peak in October 2025. That’s a huge hit, showing how fast things can turn in this volatile space.
Traders faced massive liquidations, with over $2.7 billion in positions wiped out in just one day—mostly from people betting on prices going up. This “long squeeze” added to the chaos, as forced sales pushed prices even lower. The Crypto Fear & Greed Index hit a low of 9, signaling “extreme fear” among investors, the worst since 2022.
Analysts point to a mix of reasons for the crash, including a sell-off in tech stocks and weaker risk appetite in global markets. Some predict Bitcoin could fall further to $40,000 if the trend continues. The once-popular “supercycle” idea—that crypto would keep rising without big dips—now looks shaky, as sentiment hits rock bottom.
Despite the gloom, there were some bright spots. Fidelity launched a new stablecoin for big investors, and companies like Cathie Wood’s ARK kept buying crypto stocks on the dip. Plus, over $2.6 billion in Bitcoin and Ethereum options expired, which could ease some pressure. Japanese firms are even adding Bitcoin to their reserves to hedge against yen weakness.