Crypto markets reel as Bitcoin dips to $70k; analysts signal caution

Crypto markets remained under sustained pressure this week, with Bitcoin slipping to the $70,000 level, its lowest since November 2024, amid a largely sentiment-driven pullback across volatile global markets. The flagship cryptocurrency is now down more than 18 per cent so far this year, while the broader crypto market has shed over $460 billion in value over the past week.

Bitcoin slides to key support amid risk-off mood

Analysts said the decline was aggravated by forced liquidations after prices slipped below key technical support zones. Despite easing geopolitical tensions and recent US–China commentary, risk appetite remained muted, offering little relief to digital assets.

 

At last check, Bitcoin trading at $70,063, down nearly 8 per cent, with a 24-hour trading volume of $75.57 billion, according to CoinMarketCap data. The digital asset is now about 45 per cent lower than its peak of $126,198 recorded in October 2025.

ETF outflows and macro data weigh on sentiment

Flows into US spot Bitcoin exchange-traded funds continued to act as a drag on sentiment. Data from Farside Investors showed net outflows of $272 million on February 3. While February 4 data was incomplete at the time of reporting, notable redemptions were recorded in Fidelity’s FBTC at $86.4 million and ARK 21Shares’ ARKB at $31.7 million.

 

Altcoins followed a similar risk-off trajectory. Ethereum, BNB and Solana reflected weaker bid depth during the pullback. Among major tokens, BNB was trading lower by 8.85 per cent, XRP fell 9.92 per cent, USDC slipped 0.01 per cent, Solana declined 8.01 per cent, TRON was down 2.17 per cent, Dogecoin lost 5.93 per cent, Bitcoin Cash fell 2.05 per cent, Cardano declined 5.49 per cent, and Hyperliquid eased 0.37 per cent.

 

Market participants believe macroeconomic factors are playing an increasingly dominant role in shaping crypto price action. Upcoming US data releases, including the January jobs report and consumer price inflation numbers, analysts believe, could quickly reset interest rate expectations, influence the dollar, and determine risk appetite across asset classes.  ALSO READ | Prediction traders bet Bitcoin may fall below $65K amid deepening sell-off 

"Bitcoin trade under pressure as buyers remain cautious despite the US government ending its partial shutdown, a move that should gradually ease liquidity conditions. The current volatility reflects broader macro sensitivity rather than any crypto-specific weakness. Geopolitical tensions between the US and Iran are also keeping risk appetite in check, though ongoing dialogue offers scope for sentiment to improve," said Akshat Siddhant, lead quant analyst, Mudrex.

 

Echoing similar views, Vikram Subburaj, CEO of Giottus, said, "Macro, meanwhile, is lining up fresh catalysts. After a brief US government shutdown disrupted the calendar, the January US jobs report is rescheduled to February 11. The January CPI will be out on February 13. These two prints can quickly reset rate expectations and the dollar, and by extension, crypto risk appetite. Beyond that, the next major Fed waypoint on the calendar is the March 17 to 18 FOMC meeting."

Technical charts signal further downside risk

From a technical perspective, Piyush Walke, derivatives research analyst at Delta Exchange, expects further downside pressure. He said Bitcoin could slide towards $68,000, with $64,000 emerging as the next major support level.

 

On-chain indicators suggest early accumulation is beginning to emerge in the $70,000 to $75,000 range. However, analysts noted that conviction remains uneven amid persistent ETF outflows and a cautious macro backdrop. "With major US data due shortly, investors should prioritise risk management, stagger entries, and avoid leverage until price reclaims stronger support above the mid-$70,000s. That said, it is prudent to keep accumulating at this price point. Investors should use instruments like SIPs to gradually add to their portfolio," Subburaj added.

 

The sell-off was equally evident in Ethereum. At last check, ETH was trading 8.248 per cent lower at $2,087, with a 24-hour trading volume of $49 billion, according to CoinMarketCap data. Prices fluctuated between $2,075 and $2,287 over the past 24 hours. Ethereum remains more than 58 per cent below its peak of $4,953 recorded on August 5 last year.

 

"Ethereum’s chart shows a bearish inverse cup-and-handle formation which is again an alarming bearish signal. ETH has now entered the breakdown phase of this pattern, signaling a potential decline of approximately 25 per cent from current levels," said Walke.