Bitcoin remains under pressure, hovers just above $71,000

• Bitcoin dropped 6.68% in 24 hours, nearing its weakest level since late 2024.
• Crypto prices fell due to global macro signals and liquidity concerns.
• Market stress and strong dollar impact crypto sentiment and momentum

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Bitcoin extended its decline on February 5, entering one of its weakest stretches since late 2024. The world’s largest cryptocurrency was trading at $71,296 at 9.04 am, down 6.68 percent over the past 24 hours and nearly 18.81 percent over the week, as investors stayed cautious despite the US government ending its partial shutdown.

“The current volatility reflects broader macro sensitivity rather than any crypto-specific weakness. Geopolitical tensions between the US and Iran are also keeping risk appetite in check, though ongoing dialogue offers scope for sentiment to improve. A reclaim of the $75,000 zone would signal renewed strength, while $71,000 remains a key support," said Akshat Siddhant, Lead quant analyst, Mudrex.

According to CoinSwitch Markets Desk, "As price slipped below the $73K–$74K support zone, it entered an area of dense long leverage, triggering forced liquidations and accelerating downside momentum, effectively pulling BTC toward the $72K liquidity pocket. Unless BTC reclaims $75K, near-term risk stays skewed to further downside or volatile consolidation."

Other cryptocurrencies traded lower too. Ethereum was down 7.28 percent, tether 0.05 percent, solana 8.12 percent, BNB 8.42 percent, XRP 9.17 percent, Tron 1.73 percent, Dogecoin 4.91 percent. USDC gained 0.01 percent in the past 24 hours.

Here's how the prices of top-10 cryptocurrencies have moved on February 5, as of 9:04 am IST.

Why is bitcoin falling?

According to Piyush Walke, Derivatives Research Analyst, Delta Exchange, cryptocurrencies continue to face sustained pressure, reflecting ongoing cross-asset stress. Currency movements and interest-rate differentials are increasingly shaping market behaviour, influencing leverage conditions, stablecoin flows, and overall sentiment. While the initial phase of the sell-off was driven by crypto-specific liquidations, the pressure seen on Wednesday reflects broader cross-asset stress.

Here's what's happening in the crypto market, according to Nischal Shetty, Founder, WazirX.

• Over the last 24 hours, the crypto market has been reacting closely to global macro signals. Inflation data and central bank news have influenced liquidity expectations, which have flowed directly into risk assets, including crypto. We are seeing heightened sensitivity across bitcoin, ethereum, and broader altcoins as markets reassess near-term monetary conditions.

• Equity market volatility has also contributed to short-term pressure in crypto prices. The correlation between traditional risk assets and digital assets remains elevated, reflecting deeper institutional participation through ETFs and derivatives. As a result, movements in global markets are being transmitted into crypto much faster than before.

• Dollar strength and tighter liquidity expectations have led to cautious positioning and reduced short-term momentum. On-chain activity remains stable, but price action is being driven primarily by macro sentiment rather than ecosystem-centric updates.

• Ethereum’s price is moving more in response to global macro sentiment than ethereum-specific developments. Tighter liquidity expectations and risk-off positioning have limited short-term upside. Price action remains correlated with broader markets, and volatility is driven by macro cues rather than on-chain fundamentals.