On February 6, 2026 (Reuters), Bitcoin briefly tested the key psychological support level of $60,000, touching an intraday low of $60,008.52 its weakest level in 16 months before rebounding in a highly volatile session. The move came as a broad global sell-off in technology stocks deepened, triggering a wider retreat from risk assets across markets.

Key numbers from the session

• Bitcoin (BTC): swung sharply between gains and losses, bottoming at $60,008.52 before rising 1.64% to $64,153.24.

• Reuters noted this was Bitcoin’s weakest level since October 2024.

• Weekly/YTD performance: Bitcoin was on track for -16% for the week and -27% year-to-date (YTD).

• Ether (ETH): fell to $1,751.94 (a 10-month low) early in the session, then recovered to $1,891.27 (+2.4%).

• Weekly/YTD performance: Ether was headed for -17% for the week and -36% YTD.

• Total crypto market: CoinGecko data cited by Reuters showed global crypto market value has lost roughly $2 trillion since peaking at $4.379 trillion in early October more than $1 trillion of which was erased in the last month alone.

Chris Weston, Head of Research at Pepperstone, described the backdrop as a rapid unwind: large, crowded positions are being cleared out very quickly, a dynamic that often amplifies volatility when leverage is being forced out of the system.

Why did Bitcoin slide so hard toward $60,000?

Risk-off pressure spreading from tech into crypto

Reuters framed the sell-off as part of a broader “risk-off” rotation: as the rout in global tech stocks widened, investors moved away from higher-risk exposures including cryptocurrencies.

Market stress was evident across Asia as well:

• MSCI Asia-Pacific ex-Japan fell about 1%, according to Reuters.

• South Korea’s KOSPI dropped as much as 5%, triggering a temporary trading halt.

A notable pressure point was U.S. software:

• The S&P 500 Software & Services index fell 4.6%, and Reuters reported the sector has shed roughly $1 trillion in market capitalization since January 28 a sell-off some traders dubbed “software-mageddon.”

Because Bitcoin often trades like a high-beta companion to the tech complex, a wave of de-risking in equities can quickly spill into crypto especially when positioning is crowded.

Leverage unwind and cascading liquidation risk

When price swings accelerate, leveraged positions can be forced out rapidly. Reuters highlighted that Bitcoin’s price action flipped repeatedly between gains and losses after tagging $60,008.52, consistent with a market environment where participants are de-leveraging and liquidity conditions are more fragile.

Institutional flows: U.S. spot Bitcoin ETFs see meaningful outflows

Another datapoint weighing on sentiment: Deutsche Bank analysts (cited by Reuters) reported that U.S. spot Bitcoin ETFs saw more than $3 billion in outflows in January, following outflows of roughly $2 billion in December and $7 billion in November.

In practice, sustained outflows can reduce the market’s “institutional bid,” leaving prices more vulnerable to short-term shocks particularly during risk-off phases.

What does $60,000 represent in this narrative?

From a market psychology standpoint, $60,000 is both a round-number level and a widely watched support zone. Reuters described Bitcoin as having “tested key $60,000 support” after dipping to $60,008.52.

Joshua Chu, co-chair of the Hong Kong Web3 Association (as cited by Reuters), argued that Bitcoin falling toward $60,000 does not mean crypto is “dying.” Instead, it reflects the cost of treating Bitcoin as a one-way trade without robust risk controls similar to sharp corrections seen even in so-called safe havens when leverage and narratives run ahead of reality.

(This article is a professional summary and analysis based on publicly reported information (including Reuters) and is not investment advice. Crypto markets can move sharply in short periods; risk management matters.)

Source: Reuters