Cryptocurrency market plummeted February 5, taking Bitcoin below $62,000 while wiping out the big wins following the U.S. election. The dramatic dive, nearly 15 percent, led to panic spreading across digital asset markets.
Market Rout and Liquidations
Within 60 minutes, more than $355 million worth of positions had been liquidated, bringing up the volatility and fragility of the sector to unprecedented heights. Ethereum slid 17 percent, Solana dived 23 percent and the crypto market as a whole lost an incredible $350 billion — sending the global market cap down below 2.5 trillion dollars.
Miners and ETF Activity
Bitcoin miners were under increasing pressure, with operational costs rumored to be between $87,000–$96,000 — well above the spot price. There was also record trading volume, over $10 billion, of BlackRock’s Bitcoin ETF as the investors and the market turmoil mount.
Industry Reactions
The Binance founder Changpeng Zhao (CZ) responded to that crash with a quip: “Poor again,” referring back to the cyclical nature that characterised crypto downturns and recoveries. Analysts, though, attributed broader macroeconomic pressures, including tightening liquidity and global market uncertainty, as potential causes of further declines.
Outlook
Although Bitcoin has suffered similar crashes before, the size of the rout has triggered a renewed debate on sustainability, regulation, and investor sentiment. But with miners in decline, ETFs rising sharply and altcoins bleeding, the crypto market will face a crucial test of resilience in the coming weeks.
