Seeking Alpha
February 6, 2026 1:10 PM UTC

Bitcoin Breaks Below $70,000 As Sell-Off Continues

Summary Bitcoin has fallen below the psychological $70,000 level for the first time in nearly two months, losing around 10% over the past week. The primary driver has been record outflows from spot Bitcoin ETFs: investors have withdrawn between $2.3 and $2.8 billion in recent weeks, marking the largest selling streak since the launch of ETFs in the United States. Additional pressure came from Strategy’s first Bitcoin sale in nearly four years. Although the transaction involved only 32 BTC (approximately $2.5 million) and has virtually no impact on the company’s balance sheet, the significance lies in the signal rather than the size. By Anton Kharitonov Early June has become one of the most challenging periods for Bitcoin ( BTC-USD ) in 2026. The cryptocurrency has fallen below the psychological $70,000 level for the first time in nearly two months, losing around 10% over the past week. The primary driver has been record outflows from spot Bitcoin ETFs: investors have withdrawn between $2.3 and $2.8 billion in recent weeks, marking the largest selling streak since the launch of ETFs in the United States. Institutional demand, which had been the main growth driver in recent quarters, has noticeably weakened. Strategy’s unexpected move adds to negative sentiment Additional pressure came from Strategy’s ( MSTR ) first Bitcoin sale in nearly four years. Although the transaction involved only 32 BTC (approximately $2.5 million) and has virtually no impact on the company’s balance sheet, the significance lies in the signal rather than the size. For many investors, Strategy symbolized a “buy and hold at any cost” approach. The market has now seen that even the largest corporate holders may use their reserves to address financial needs. Geopolitics and high Fed rates increase pressure External factors are also weighing on the market. Rising tensions in the Middle East, increasing oil prices, and expectations that the Federal Reserve will maintain high interest rates are reducing the appeal of risk assets. Investors are shifting capital away from cryptocurrencies into safer instruments. As a result, Bitcoin is showing weaker performance even compared to the U.S. stock market, which remains near all-time highs. Key level - $68,000-70,000 zone From a technical perspective, the market has reached a critical support area. Analysts note that a sustained move below $70,000 could open the path toward the $68,000–65,000 range. As previously discussed in " Bitcoin extends decline amid largest ETF outflows of 2026 ", a return to a bullish scenario would require a quick recovery above $73,000–74,000 along with renewed ETF inflows. Until that happens, the short-term trend remains bearish, and investors continue to closely monitor institutional flows and macroeconomic risks. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.