Bitcoin (BTC) has plummeted below the critical $65,000 support level on February 6, 2026, marking its worst day since the FTX collapse. With over $2 trillion wiped from total crypto market cap, investors are asking: what happened to the “Digital Gold” promise?
Why is the Bitcoin Price Dropping Today?
- The “Warsh Shock”: President Trump’s nomination of Kevin Warsh to succeed Jerome Powell as Fed Chair has rattled risk assets. Warsh’s history of “hawkish” leanings suggests a tighter monetary regime and a smaller Fed balance sheet, which historically drains liquidity from the crypto market.+1
- $2.5 Billion in Liquidations: As the BTC price broke the psychological $70,000 barrier earlier this week, a “waterfall” of liquidations hit the exchanges. In the last 24 hours alone, $2.5 billion in long positions were forcibly closed, creating massive downward pressure.
- The Tech-AI Contagion: Crypto is no longer trading in a vacuum. Massive sell-offs in US Big Tech—fueled by concerns over AI investment returns—have caused institutional investors to pull nearly $6 billion out of spot Bitcoin ETFs since November.
Bitcoin Price Today: Key Levels to Watch
Currently, BTC/USD is trading near $64,480. For US investors, the next “line in the sand” is $60,000.
Resistance: $67,000 (Former support, now a ceiling)
Support: $60,000 (Major psychological floor)
Sedha Patel is a personal finance strategist with over 5 years of experience analyzing consumer banking trends, liquidity management, and wealth preservation. With a professional background in accounting and corporate finance, Sedha specializes in translating macro monetary policy into practical money moves for everyday savers. When not dissecting market data, Sedha researches fixed-income allocation models and tax-advantaged investing strategies.