Bitcoin slumps with key $70,000 level in sight as risk selloff deepens
Bitcoin prices weakened further during Asian trading hours, edging dangerously close to the critical $70,000 support level and extending a decline that has lasted more than a week. The world’s largest cryptocurrency has now lost nearly 20% of its value year-to-date, highlighting the pressure facing digital assets. This sustained sell-off has shaken market confidence, keeping traders cautious and sentiment fragile across the broader crypto market.
In the latest move, Bitcoin slipped to around $70,052, hovering just above the closely watched psychological and technical threshold that many investors view as decisive for near-term direction. A break below this level could invite further volatility. Meanwhile, Ether also remained under pressure, trading near $2,086, reflecting similar weakness among major altcoins. Overall, uncertainty continues to dominate crypto markets as investors assess macro risks and near-term price support levels.
Market snapshot and drivers
Bitcoin’s drop came amid a broader risk-off move across Asian equities and tech shares, with multiple regional benchmarks in the red. Crypto’s intraday lows near $70,000 align with a week that’s seen sharp swings and thin liquidity.
Analyst commentary: policy and liquidity
Some market participants pointed to policy uncertainty after President Trump nominated Kevin Warsh to lead the Federal Reserve, reviving debate over balance-sheet policy and its implications for risk assets. “The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer, noting that a smaller Fed balance sheet may remove a tailwind for speculative assets.
At the same time, spot bitcoin ETFs in the United States have recorded sustained outflows since November, which analysts say can amplify downside moves when redemptions force underlying BTC sales into a falling market. January alone saw more than $3 billion in net outflows, following sizable outflows in December and November.
Price levels and technical context
Bitcoin is testing support in the low-$70,000s; a decisive break below $70,000 could open the way to prior consolidation areas. Ether’s proximity to $2,000 is another marker for risk appetite in majors; a breakdown there would mark the first sub-$2,000 print since May last year.
Bitcoin slumps with key $70,000 level in sight what to watch next
Whether BTC holds the $70k area on closing bases
ETF flow trends and any shift from net outflows
Policy signals around the Fed chair confirmation timeline
Broader market tone
Asian equities extended losses and risk proxies remained heavy, reinforcing the risk-off backdrop. That feedback loop lower stocks, weaker crypto has been visible across sessions this week.
Context & Analysis
Crypto remains highly sensitive to liquidity expectations and institutional flows. The nomination of a Fed chair perceived as more balance-sheet hawkish can lift term premia and tighten financial conditions at the margin, historically a headwind for high-beta, liquidity-dependent assets. ETF outflows since November may have reinforced the move, though flows can reverse quickly on macro surprises.
Concluding Remarks
With Bitcoin sliding toward the crucial $70,000 level, market participants are closely watching whether prices can hold on key closing timeframes. The focus remains on short-term price stability, as this level is seen as an important psychological and technical support for determining the next market direction.
Investors are also monitoring whether spot demand strengthens, ETF inflows stabilize, and clearer signals emerge from U.S. policy developments. Until these factors improve, uncertainty is expected to dominate the crypto market. As a result, volatility and sensitivity to news headlines are likely to stay high, keeping traders cautious in the near term.
FAQs
Q : Why did Bitcoin fall today?
A : A mix of risk-off sentiment in Asian markets, uncertainty around the U.S. Fed chair nomination, and continued ETF outflows put pressure on prices.
Q : What price level are traders watching?
A : The $70,000 psychological level. A clear break below it could open the door to deeper support tests.
Q : How did Ether perform?
A : Ether traded near $2,086. A drop below $2,000 would mark its first move under that level since May last year.
Q : Are ETFs driving the move?
A : Yes. U.S. spot Bitcoin ETFs have recorded multi-month net outflows since November, adding selling pressure.
Q : What does Kevin Warsh’s nomination mean for crypto?
A : Markets are evaluating how his views on the Fed balance sheet may impact liquidity, a key driver for crypto assets.
Q : Is this the start of a longer bear phase?
A : It’s unclear. ETF flows and macro signals can change quickly, so traders are watching policy and flow data closely.
Q : Does “Bitcoin slumps with key $70,000 level in sight” imply a breakdown?
A : Not necessarily. It signals proximity to a major level; confirmation depends on price closes and follow-through.
Facts
Event
Bitcoin tests major round-number support amid broad risk selloffDate/Time
2026-02-05T00:00:00+08:00 (Singapore)Entities
Julius Baer Group; Deutsche Bank; Federal Reserve; Kevin WarshFigures
Bitcoin low ≈ $70,052.38; Ether ≈ $2,086.11; U.S. spot BTC ETF outflows > $3bn in Jan (after ~$2bn Dec, ~$7bn Nov).Quotes
“The market fears a hawk with him.” Manuel Villegas Franceschi, Julius Baer.Sources
Reuters (BTC nears $70k) • AP (Asia risk selloff) • Axios (Senate on Warsh) • Investing.com (session move)