Bitcoin dropped 9.34% to $64,587 after $2.71 billion in liquidations wiped out $2.28 billion in long positions, pushing volatility to FTX-era highs.
Hyperliquid, Cardano, and Bitcoin Cash all continue to vie for the tenth position in the world’s top ten cryptocurrencies by market cap. Hyperliquid won today by rising 2.97%.
The US crypto bill saw partial progress while CME announced that it will launch Cardano futures, sending mixed short-term signals.
Crypto prices today reflected broad market panic. Bitcoin and other top cryptocurrencies saw steep declines of over 9% and upto 14%. For anyone who’s been through bear cycles like 2022, this felt familiar; a sharp, high-volume flush that punished over-leveraged long positions. This, in turn, sent the broader market into a state of shock.
The global crypto market cap stood at $2.22 trillion, down by 8.02% at press time. A total of $2.28 billion in long bets were wiped out in hours, as reported by cryptonews. Bitcoin's volatility index, the BVIV, reached nearly 100%. Here’s what happened in the crypto market today based on CoinMarketCap data.
Bitcoin price crashed 9.34% to trade at $64,587.67, one of its worst single-day performances in recent months. Bitcoin suffered record single-day realized losses of $3.2 billion on February 5. Trading volume surged to $139.5 billion as investors rushed to exit positions amid growing uncertainty.
This figure exceeded the losses seen during major black swan events like the Luna collapse and the FTX bankruptcy. Bitcoin's volatility index (BVIV) spiked to nearly 100%, from 56% showed the intense fear gripping the market. Traders rushed to buy put options for downside protection.
CoinSwitch Markets Desk noted, “Markets saw sharp selling as risk appetite weakened, pointing to a broad liquidity squeeze rather than asset-specific stress. Bitcoin led declines, falling nearly 25% over seven days to around $62,500, levels last seen in October 2024. Traditional safe havens also failed to hold, with gold down around 4% and silver sliding nearly 17%, highlighting forced de-risking across portfolios.”
CoinSwitch analysts further added, “The total crypto market cap fell over 10% in a single day, an unusual correlation that signals leverage unwinds and margin-driven selling. With ETF demand slowing and spot absorption limited, Bitcoin may test $60,000–$62,000 support, with downside risk toward $56,000 in a deeper risk-off scenario.” The market cap by press time recovered by 2%. However, the cautious mood among investors continued.
Avinash Shekhar, Co-founder and CEO, Pi42, said, “Bitcoin’s sharp drop around the $60,000 range marks its weakest stretch since late 2024, with the asset now down nearly half from its October 2025 peak as heavy liquidations and persistent ETF outflows intensify selling pressure. The repeated failure to sustain rebounds above the $70,000-$72,000 zone has reinforced a defensive market tone, while extreme fear readings and elevated volatility point to ongoing deleveraging.”
Co-founder and CEO, Pi42, further commented, “Ethereum’s slide below $1,900 highlights the broader stress across digital assets. Despite the severity of the correction and fragile sentiment, the $58,000-$60,000 support band remains technically significant as of now, and a stable hold in this region could gradually restore confidence and open the door to a measured recovery, with bargain buying potentially emerging if volatility eases.”
Ethereum price fell 10.27% to $1,901.88, with its market cap dropping to $229.5 billion. Solana was the biggest loser in world’s ten largest cryptocurrencies. The coin declined 15.67% to $76.94. XRP was not far behind, decreasing 12.60% to $1.26. BNB dropped 10.94% to $617.83, and Dogecoin (DOGE) declined 11.73% to $0.09042.
Hyperliquid, Bitcoin Cash, and Cardano all continued the battle for the tenth position in the world’s top ten cryptocurrencies by market cap. Hyperliquid took the throne for the time being, rising 2.97% to trade at $34.87. It also became the only top coin to trade in the green zone, except for stablecoins, USDT, and USDC.
The rally came after confirmation that Hyperliquid integrated Ripple's technology stack. This move is aimed at improving interoperability and settlement efficiency. Market participants viewed the integration as a practical enhancement, helping HYPE outperform the bearish market.
Hyperlquid was followed by Bitcoin Cash at eleventh position and Cardano at twelfth place. Cardano (ADA) slipped 11.82% to $0.2499 while Bitcoin Cash (BCH) dipped 14.26% to $452.19.
While crypto prices today showed widespread declines, stablecoins were largely stable. Tether (USDT) traded at $0.9988 with minimal change, while USDC held at $0.9997. Both stablecoins maintained their dollar pegs despite the market turbulence. Hence, offering a safe haven for traders looking to exit volatile positions.
Also Read: Dogecoin News Today: DOGE On-Chain Activity Rises Sharply While Price Holds Key $0.10 Zone
Here are the top global cues impacting crypto prices today:
The downturn in crypto prices today triggered massive liquidations across derivatives markets, wiping out $2.71 billion in positions. More than $2.28 billion came from long bets alone, as leveraged traders faced margin calls during the rapid price decline.
One analyst suggested the crypto market turmoil may stem from a major blowup involving BlackRock's spot Bitcoin ETF (IBIT). It was argued that the record trading volume of $10.7 billion and nearly $900 million in options premiums in a single day were some of the reasons behind the market crash. The synchronized sell-off in Bitcoin and Solana, combined with modest centralized finance liquidations, pointed to a large IBIT options position unwinding under leverage.
Bitcoin payments platform Strike also reported an unusually high surge in traffic on February 6 that temporarily disrupted parts of its network. Hence, raising suspicions of a possible DDoS attack. The platform confirmed some services were affected but have since been fully restored.
Senate Agriculture Committee Chairman John Boozman said he feels ‘very strongly’ about reaching Senate agreement on the US cryptocurrency market structure bill, this year. The committee voted along party lines on January 29 to advance its version of the bill, building on the bipartisan CLARITY Act that the House passed last summer.
However, Democrats backed out of supporting the version advanced last week. Democratic concerns included President Trump's involvement in crypto and the lack of provisions banning public officials from engaging in the crypto industry.
President Trump's crypto advisor, Patrick Witt, led a meeting between banking and crypto executives to work through points of contention. The main issue discussed was whether digital asset companies should be allowed to offer users stablecoin rewards, something banks have opposed. The White House gave participants a deadline to reach a compromise on stablecoin yields before the end of February. Investors are worried about potential restrictions on the industry.
The Chicago Mercantile Exchange (CME) announced it will start trading Cardano futures contracts on Monday, February 9, 2026, as reported by AD HOC News. This offers regulated market access for institutional investors for the first time and could enhance the ecosystem's liquidity.
The timing comes as Cardano's ADA token recently touched a new 52-week low of $0.25, registering a weekly decline of approximately 26%. The CME will offer two contract variants; standard contracts with 100,000 ADA and micro-contracts covering 10,000 ADA. The exchange is also shifting to 24/7 trading for crypto derivatives, removing operational limitations for institutional traders.
JPMorgan analysts suggested that bitcoin's relatively low volatility versus gold highlights its long-term potential as a safe-haven asset. The bank noted that if bitcoin were to match the recent volatility seen in gold. It would have to rise to near $266,000 to match gold investments.
The analysts acknowledged that this target is unrealistic for this year but shows the upside potential over the long term once negative sentiment reverses. However, they also noted that digital assets came under pressure as tech stocks weakened and gold and silver saw a sharp correction.
Polymarket announced it will partner with USDC, with plans for user balances to be backed 1:1 by US dollars. The prediction market platform said further details will be released soon. This is another step in integrating stablecoins into mainstream crypto applications.
The sharp decline in crypto prices today reflects genuine market panic, with volatility looking overstretched in the near term. Institutional and retail sentiment has turned bearish amid regulatory uncertainty and heavy liquidations. However, infrastructure developments like CME's Cardano futures suggest long-term stability. The massive liquidations, although painful, removes the excessive leverage that makes the market fragile. We are likely looking at a period of consolidation.
Also read: Bitcoin News Today: Sovcombank Launches BTC-Backed Loans, Expands Crypto Lending in Russia
1. Why is Bitcoin price down today?
Bitcoin price fell sharply today due to a sudden wave of forced selling across derivatives markets. Over $2.28 billion in long positions were liquidated as prices broke key technical support near $65,000. Weak risk appetite, slowing ETF inflows, and broader sell-offs in equities and commodities intensified panic-driven exits, accelerating Bitcoin’s decline.
2. Why is the crypto market crashing today?
The crypto market is crashing today mainly because excessive leverage unwound rapidly. A $2.71 billion liquidation event triggered margin calls across exchanges, forcing automated sell orders. At the same time, regulatory uncertainty in the US, falling tech stocks, and declining liquidity caused investors to exit high-risk assets simultaneously, worsening market-wide losses.
3. Why is Cardano price going down today?
Cardano’s price dropped today despite positive news around CME futures because broader market fear overshadowed fundamentals. During panic phases, investors tend to sell mid-cap altcoins first to reduce risk exposure. ADA also broke key support near $0.25, triggering stop-loss orders and adding technical selling pressure amid the overall crypto downturn.
4. What is the latest crypto news for February 6?
Today’s crypto news includes Bitcoin plunging over 9%, total market liquidations exceeding $2.7 billion, and volatility reaching levels last seen during the FTX collapse. CME announced the launch of Cardano futures, US lawmakers made partial progress on a crypto market structure bill, and Hyperliquid briefly entered the top ten cryptocurrencies.
5. What is the future outlook for the crypto market?
The near-term outlook for the crypto market remains cautious due to elevated volatility and weak sentiment. However, large-scale liquidations have reduced excessive leverage, which could stabilize prices. Continued institutional developments, regulated futures launches, and clearer US regulations suggest long-term fundamentals remain intact despite short-term market stress.
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