CRASH ALERT: Bitcoin Falls Below $70K
February 5, 2026 -- BTC crashed to $68,200 as Trump's global tariff war triggers massive selloff. $2.1B liquidated in 24h. Fear & Greed Index at 9 (Extreme Fear). 5th consecutive red month.
February 2026 Bitcoin Crash: BTC Below $70K
Bitcoin suffered its worst week of 2026, crashing from $78K to $68,200 as Trump's global tariff war triggered a massive risk-off selloff. 25% tariffs on Canada/Mexico and 10% on China ignited retaliatory measures, crushing global markets. $2.1B in crypto liquidated, 310,000+ traders wiped, and the Fear & Greed Index plunged to 9. Here's the complete analysis.
February 5, 2026 Summary
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5 Triggers Behind the Crash
Trump Global Tariff War Escalation
On February 1, President Trump signed executive orders imposing 25% tariffs on Canada and Mexico and 10% tariffs on China, effective February 4. China immediately retaliated with 15% tariffs on US coal and LNG and 10% on crude oil. Canada and Mexico announced counter-tariffs. Global trade war fears triggered a massive risk-off selloff across all asset classes.
Bitcoin ETF Outflow Acceleration
Bitcoin spot ETFs experienced their worst weekly outflows since inception. Over $1.2B exited in 3 days as institutional investors de-risked ahead of tariff implementation. BlackRock IBIT saw its first multi-day outflow streak. ETF selling amplified spot market pressure and cascaded into derivatives.
Cascading Liquidations & Leverage Wipeout
Over $2.1B in crypto was liquidated in 24 hours on February 4-5 as BTC fell from $84K to below $70K. 310,000+ traders were wiped out. Overleveraged long positions collapsed in a chain reaction, with $890M liquidated in a single 45-minute cascade. 91% of liquidations were longs.
Macro Selloff: Stocks, Commodities, Crypto
The tariff announcement triggered a broad macro selloff. S&P 500 futures dropped 2.3%, Nasdaq lost 3.1%, and the US Dollar Index surged to 109.5. Oil spiked on supply disruption fears while gold hit new highs as a safe haven. Crypto was hit hardest as the most speculative asset class.
Fear Contagion & Panic Selling
The Fear & Greed Index plunged to 9 -- the lowest since the FTX collapse. Social media panic reached fever pitch. Retail investors panic-sold as the $70K psychological level broke. Exchange inflows surged 340%, indicating mass selling. Miner capitulation accelerated with hash rate dropping 8%.
Liquidation Dashboard
February 4, 2026
February 5, 2026
Long Liquidations
91% of all liquidations were longs
Short Liquidations
Bears dominated -- shorts barely touched
Altcoin Damage Report
| Asset | Price | Change | Liquidated |
|---|---|---|---|
Bitcoin (BTC) | $68,200 | -46% from ATH | $850M |
Ethereum (ETH) | $2,080 | -18% | $520M |
Solana (SOL) | $78 | -28% | $310M |
SUI | $1.85 | -35% | $180M |
Aptos (APT) | $5.20 | -32% | $95M |
XRP | $1.38 | -22% | $145M |
* Altcoins fell 2-3x more than BTC from their recent highs due to higher beta and lower liquidity.
$310 Billion Wiped in 48 Hours
Total crypto market cap fell from $2.73 trillion to $2.42 trillion between February 4-5 -- a massive 11% decline. This followed January's already devastating 20% BTC loss, bringing total drawdown from ATH to -46%. The Fear & Greed Index at 9 is the lowest since the FTX collapse and the second-lowest ever recorded.
Frequently Asked Questions
Important Risk Warning
- •Cryptocurrency markets are experiencing extreme volatility due to global trade war escalation.
- •Bitcoin has fallen 46% from its ATH of $126,210 to $68,200 in just 4 months. Further downside is possible.
- •$2.1 billion in crypto was liquidated in 24 hours. 310,000+ traders were wiped out. Leverage amplifies losses dramatically.
- •Trade wars can last months or years. The 2018-2019 US-China trade war lasted 18 months before resolution.
- •Always use stop-loss orders and isolated margin. Never risk more than 1-2% of your account on a single trade.
- •This article is for informational purposes only and does not constitute financial or investment advice.
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This article is for informational and educational purposes only. Trading futures involves substantial risk of loss. The information provided does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before trading. Bitcoin fell 46% from its all-time high due to global trade war escalation. $2.1 billion in crypto was liquidated on February 4-5, 2026. Further declines are possible. Never invest more than you can afford to lose.