Bitcoin Tests $60,000 Support As Tech Rout Hits Risk Markets

Bitcoin slid to a 16-month low on February 6, 2026, briefly trading at $60,008.52 before rebounding into a choppy range above $64,000. The move pulled attention back to a psychological Support zone that has become a line in the sand for positioning after a global Tech selloff accelerated de-risking across equities and digital assets.

The world’s largest cryptocurrency was last trading around $64,153, after swinging between gains and losses during Asian hours. For Markets, the speed of the drop matters as much as the level, because it forces leveraged funds to cut exposure and can transmit stress into crypto-linked equities, credit, and volatility products.

Leverage Unwinds Turn A Price Move Into A Funding Event

Bitcoin Tests risk controls when liquidation cascades take hold, and February’s slide has carried that signature. A large share of recent demand had been expressed via derivatives and financed structures, which can Squeezes liquidity when prices fall quickly and margin calls hit at the same time.

Chris Weston, head of research at brokerage Pepperstone, said crowded positions were being unwound “very, very quickly,” reflecting a rapid reversal in the “one-way” mindset that built during the late-2025 rally. That unwinding dynamic is a mechanical driver: forced selling tends to ignore valuation and focuses on reducing exposure per unit of volatility.

Spot Bitcoin ETF Outflows Tighten The Bid

Flows have reinforced the downturn. U.S. spot bitcoin exchange-traded funds saw more than $3 billion of outflows in January, following roughly $2 billion in December and about $7 billion in November, according to a Deutsche Bank note. When passive vehicles turn into net sellers, they remove a steady source of demand that previously absorbed dips, which can deepen drawdowns even if long-term holders remain inactive.

The impact is visible in liquidity conditions. With fewer inflows recycling into spot purchases, marginal price-setting shifts toward derivatives, where funding rates and liquidation thresholds can amplify intraday swings.

Ether Follows, Signaling Broad Risk, Not A Single-Token Story

Ether moved in the same direction, dropping to a 10-month low of $1,751.94 before bouncing toward $1,891.27. Ether was on pace for a weekly decline of about 17% and had lost roughly 36% so far in 2026, a reminder that the selloff has not been limited to one asset or one narrative.

Cross-coin weakness tends to matter for risk sentiment because many crypto portfolios are built as a basket. When both Bitcoin and Ether break down together, correlation rises and portfolio hedges become less effective, lifting implied volatility and widening bid-ask spreads.

Macro Link: Tech Rout Reprices The Same Risk Budget

Bitcoin’s slide has tracked a broader Rout in technology and artificial intelligence-linked equities, tightening financial conditions for speculative assets. The linkage is straightforward: when high-duration equities drop, the same investors often reduce exposure to high-beta alternatives, and crypto remains one of the most liquid ways to do that quickly.

That cross-asset connection has made Bitcoin more sensitive to rates and dollar moves than in prior cycles. When real yields rise or risk appetite fades, the opportunity cost of holding a non-yielding, volatile asset increases, which tends to pull fresh inflows away from crypto and back toward cash-like instruments.

Crypto Market Wealth Effect Has Reversed Since October

The wider ecosystem has also been hit by a sharp contraction in total value. The global crypto market peaked near $4.379 trillion in early October 2025, and about $2 trillion of value has been erased since then, with more than $1 trillion wiped out in the past month alone. That drawdown changes behavior: risk limits tighten, retail dip-buying slows, and institutions often demand clearer catalysts before adding exposure.

Bitcoin itself was on track to fall about 16% for the week, taking its year-to-date loss to roughly 27%. Those numbers matter because weekly momentum often drives systematic strategies, and a double-digit weekly drop can force de-risking irrespective of fundamentals.

Where The Pressure Shows Up First In Public Markets

The most direct equity channel runs through listed companies tied to crypto prices and activity. Exchanges and brokers face volume sensitivity, miners face margin pressure when prices fall and energy costs do not, and corporate holders with large bitcoin positions can see balance-sheet volatility that affects their equity risk premium.

Credit is a secondary channel with real consequences. When crypto prices fall fast, lenders reprice collateral quality, and spreads can widen for issuers linked to mining, hosting, or leveraged treasury strategies. That can raise refinancing costs during 2026 maturities and reduce capex, feeding back into hash rate economics and earnings.

Volatility is the fastest transmission mechanism. A rapid move toward $60,000 can lift options premiums, push dealers into defensive hedging, and amplify intraday swings, especially when liquidity thins in Asian trading hours.

Commodities And Safe Havens Are Not Immune

Recent volatility in gold and silver has underscored that “safe haven” positioning can also become crowded when leverage is involved. When multiple crowded trades unwind together, correlations rise and investors cut exposure across the board, which can hit commodities, equities, and crypto in the same week.

Base Case, Upside, And Downside Scenarios

Base case: Bitcoin holds Near the $60,000 area without a sustained break, as forced selling eases and ETF outflows slow from January’s pace. In this path, spot trades between $60,000 and $70,000 through February, while implied volatility stays elevated and crypto-linked equities remain sensitive to tech earnings and rate moves. A key trigger is stabilization in daily ETF flow prints and fewer liquidation spikes during U.S. hours.

Upside scenario: a strong rebound follows if risk appetite improves and flows turn less negative, allowing Bitcoin to reclaim $70,000 and force short covering. Triggers would include a broad recovery in large-cap tech, calmer rate volatility, and visible net inflows returning to spot vehicles for multiple sessions. In that environment, miners and exchanges could outperform, credit spreads could tighten, and volatility could compress as realized swings fall.

Downside scenario: a decisive break below $60,000 extends the move toward the mid-$50,000s, driven by another wave of deleveraging and continued ETF selling. Triggers would include renewed equity drawdowns, a sharper dollar rally, or another funding shock that forces systematic selling. In that outcome, crypto-linked equities would likely underperform, credit conditions would tighten for the sector, and implied volatility would stay bid as hedging demand rises.