Bitcoin falls below $70,000: a 45% drop from its peak, panic selling triggers "forced deleverage".

On February 5th, the price of Bitcoin fell below the key psychological level of $70,000, briefly dropping to $69,271, hitting a new low since November 2024. This fluctuation was mainly driven by three factors: marginal demand almost disappearing, intense volatility in the tech stock market this week, and significant turbulence in the precious metals market. This decline not only signifies a nearly 20% drop in Bitcoin since the beginning of the year, but also triggered a massive process of "forced deleveraging" during trading hours. It is worth noting that although gold and silver have fallen from their recent highs - which had prompted speculators to move funds from digital assets to precious metals - the downward trend in Bitcoin continues to accelerate. Compared to the high point set in October of last year, the price of Bitcoin has fallen by about 45%, and at the same time, large institutional investors such as exchange-traded funds (ETFs) and digital asset bonds have chosen to withdraw from the market. LMAX Group market strategist Joel Kruger said, "The past 24 hours have been quite heavy in the cryptocurrency market, with Bitcoin being a major factor dragging down overall market sentiment." "However, many typical signs of panic selling have now appeared: daily technical indicators are severely oversold, fear and greed indexes have dropped to extreme lows, and Bitcoin has fallen by about 45% from its peak in October." Analysts from the cryptocurrency research company Glassnode stated that trading volume remains low, the futures market is in a "forced deleveraging phase," and fund inflows have dried up - creating a demand vacuum, and "continuing selling pressure" is forcing investors to exit at a loss.