 ▲ Bitcoin (BTC) / ChatGPT-generated image |
Bitcoin (BTC) plunged to the $60,000 level, sending investor sentiment tumbling to its worst state since the Luna crisis and leaving the cryptocurrency market in utter disarray.
According to cryptocurrency-focused outlet Cointelegraph on February 6 (local time), as Bitcoin prices precariously hover around the $60,000 support line, the market’s Fear and Greed Index has fallen to levels comparable to those seen during the 2022 collapse of Luna (LUNA). This crash, which has halved prices from the October peak of $126,000, triggered forced liquidations of more than 156,000 investors in the past 24 hours alone. In particular, the $70,000 level that bulls had anticipated collapsed with ease, wiping out approximately $790 million worth of long positions in an instant.
The extreme fear dominating the market is fueling anxiety beyond a simple price decline. Cryptocurrency data analytics firms report that average daily realized losses have recently surpassed $1.2 billion, indicating that panic selling—investors exiting the market while accepting losses—has reached its peak. While some experts view this capitulation as a potential signal of a market bottom, they also warn that the market’s underlying strength may already be stretched to its limits.
The altcoin market is facing an even more brutal wave of selling than Bitcoin. Ethereum (ETH) fell more than 9% and is struggling to defend the $3,200 level, while Solana (SOL) plunged 12% to around $88, its lowest level in two years. Escalating trade tensions fueled by U.S. President Donald Trump’s tariff threats delivered the decisive blow, completely freezing risk-asset investment sentiment.
Analysis from Santiment shows that social interest in cryptocurrencies has dropped to its lowest level in the past five years, with new capital inflows virtually cut off. Although large whales attempted to defend certain levels, they appear powerless against the overwhelming wave of selling by retail investors. Technical analysts are issuing bleak forecasts, warning that if Bitcoin fails to hold the $60,000 level, a further slide toward the long-term support around $54,000 could follow.
The cryptocurrency market is currently being swept up by macroeconomic headwinds after losing its ability to generate an organic rebound. Legislative developments such as the proposed U.S. cryptocurrency market structure bill (CLARITY) have proven insufficient to thaw frozen sentiment, while high interest rates and weak tech stock earnings continue to weigh on the market. A cautious view is spreading among investors, urging conservative asset allocation rather than attempting to call the bottom, in preparation for further risks of market deterioration.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on this information. The content should be interpreted solely for informational purposes.*