Kuala Lumpur, 6 February 2026 – Bitcoin tumbled toward the critical US$60,000 level, hitting a 16-month low as investors rapidly exited high-risk positions amid a broader global sell-off in technology stocks and speculative assets.
The world’s largest cryptocurrency fell to an intraday low of US$60,008.52, before recovering slightly to around US$64,153.24, highlighting sharp volatility as markets reassessed risk exposure.
Crypto Market Loses US$2 Trillion in Value
The decline reflects broader weakness across digital assets. The global cryptocurrency market has lost roughly US$2 trillion in value since its peak of US$4.379 trillion in October, with more than US$1 trillion wiped out in the past month alone, according to CoinGecko data.
Bitcoin itself is on track for a 16% weekly loss and has dropped approximately 27% year-to-date, underscoring one of the sharpest corrections since its previous rally. Ether, the second-largest cryptocurrency, also declined sharply, falling to a 10-month low before recovering modestly.
Investor Sentiment Turns Defensive
Market participants said the downturn reflects unwinding speculative positions that had built up during crypto’s strong rally.
Chris Weston, head of research at Pepperstone, noted that heavily crowded trades are now being unwound quickly, contributing to heightened volatility.
Cryptocurrency prices have also been closely tied to broader technology sector sentiment, which had previously benefited from enthusiasm surrounding artificial intelligence but is now facing pressure amid market corrections.
ETF Outflows Signal Cooling Institutional Demand
Institutional appetite has weakened, with analysts noting that U.S. spot Bitcoin ETFs saw more than US$3 billion in outflows in January, following similar withdrawals in prior months.
This shift reflects declining confidence among institutional investors and signals caution as markets transition from speculative enthusiasm toward more risk-averse positioning.
Key Level to Watch: US$60,000
Analysts view the US$60,000 threshold as a crucial technical and psychological support level. Sustained declines below that point could trigger further selling pressure, while stabilisation may restore investor confidence.
For investors, Bitcoin’s recent volatility underscores its increasing correlation with broader global markets, particularly tech stocks, reinforcing its status as a high-risk, high-reward asset in evolving financial conditions.
