Bitcoin price crash analysis shows a tough start to February 2026. BTC trades between $65,000 and $70,000 today – way down from its 2025 peak above $126,000. No single big event caused this drop. It’s a mix of bad news hitting at once.
Bitcoin Price Crash Analysis – Main Reasons
- Kevin Warsh as Next Fed Chair Kevin Warsh got nominated to replace Jerome Powell. Many see him as tough on money – a real “hawk.” People fear he’ll cut the Fed’s money supply and slow rate cuts. Crypto loves cheap money. Now, investors run to the strong US dollar instead. Dollar rallied hard lately.
- Geopolitical Tensions Eased Late 2025, Bitcoin acted like digital gold during world worries. But US-Iran talks set for Oman calmed things. The “war fear” bonus faded fast. Traders sold Bitcoin and moved to stocks or cash.
- Big Players Cutting Risk Spot Bitcoin ETFs had huge inflows in 2025. Now January 2026 brought $1.6 billion+ outflows. Institutions who bought low in 2024–2025 locked profits. Bitcoin broke key supports at $80,000 and $75,000 – charts look bearish.
- Technical Breakdown & Liquidations Daily chart showed a clear head-and-shoulders pattern. Price fell below the $86,400 neckline. This sparked panic. Early February saw nearly $2 billion in long positions liquidated. One sell led to more sells – classic waterfall.
- Retail Investors Stay Away Unlike past crashes (FTX or 2021 panic), retail isn’t rushing to sell. They just stopped buying. Volumes shrank a lot. Thin market means big moves happen easier.
Key Bitcoin Support Levels Now
| Level | Status | Why It Matters |
|---|---|---|
| $80,000 | Broken | Big psychological floor late 2025 |
| $75,000 | Broken | Key spot where institutions bought |
| $65,000 | Testing | Next line bulls must defend |
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency markets are highly volatile. Always do your own research or consult a professional before making any investment decisions.
Sources & References
- https://in.investing.com/news/cryptocurrency-news/3-reasons-why-bitcoin-is-falling-5224231#:~:text=Upgrade%20to%20InvestingPro%20for%20a,the%20next%20Federal%20Reserve%20chair.
- https://m.economictimes.com/news/international/us/why-is-bitcoin-price-down-by-28-this-year-and-will-btc-usd-crash-below-63295-cryptocurrency-fall-analysts-insights-and-market-outlook-explained-heres-what-should-investors-do-now/articleshow/127960148.cms#:~:text=Markets%20expect%20Warsh%20to%20reduce,markets%20fear%20a%20hawkish%20stance.
Yogesh Kolhe is a business and market news writer covering the share market, company earnings, and gold and silver price movements, with a strong focus on the automobile sector. A Mechanical Engineering graduate with 5 years of share market experience, he provides data-driven, reliable insights into market and industry trends.
