Bitcoin ETFs Bleed $817M as BTC Plunges 15% in 24 Hours

Bitcoin (BTC) experienced its most significant 24-hour decline in recent memory, dropping 15.47% to $62,909.86 on February 5, 2026. Over the past month, the price has fallen by 21.43%, and in a year, BTC has lost nearly 29.42% of its value. The sell-off has been driven by a combination of heavy outflows from Bitcoin spot ETFs, heightened liquidations across leveraged positions, and broader macroeconomic pressures affecting risk assets.

ETF Outflows Signal Waning Institutional Demand

US spot Bitcoin ETFs continued their recent trend of net outflows, recording a withdrawal of $544.94 million on February 5 alone. This followed $272 million in redemptions the previous day, bringing the two-day outflow total to $816.96 million. The outflows were led by major institutional players, including BlackRock’s IBIT, which saw $373.44 million exit the fund, and Fidelity’s FBTC, with $86.44 million in redemptions. Grayscale’s GBTC also lost $41.77 million.

This represents a reversal from earlier in the week, when spot BTC ETFs had recorded a $562 million net inflow on Monday. The cumulative net inflows since the ETFs' launch in 2024 now stand at $54.8 billion, down from a peak of $62.9 billion in October 2025. Analysts note that the decline in institutional demand has reduced the stabilizing effect these products once provided during market corrections.

Liquidations Intensify as BTC Falls Below $70K

As institutional flows turned negative, retail and leveraged traders faced significant margin calls. Bitcoin broke below the critical $70,000 level for the first time since October 2024, reaching as low as $69,060 during the session. This triggered a wave of liquidations, with long positions being closed at a rapid pace. According to on-chain analytics, the liquidation volume surged on February 5, contributing to the continued downward momentum.

Bitcoin’s price is now trading at its lowest level since late 2024, with the 24-hour loss of 8.7% and the seven-day loss of nearly 21%. From a longer-term perspective, the price has fallen by 45% from its all-time high of $126,198 set in October 2025.

Market Correlations and Broader Risk-Off Sentiment

Bitcoin’s decline has mirrored a broader risk-off sentiment across financial markets. The Nasdaq and S&P 500 have both struggled amid weak economic indicators, including disappointing employment data and a sharp decline in tech stocks. The performance of Bitcoin ETFs, coupled with the drop in equity indices, reflects a shift in investor behavior toward defensive assets and cash.

Additionally, Bitcoin’s traditional correlations with equities have weakened, with its 30-day correlation with the Nasdaq slipping to approximately 15%—a sharp decline from the 50%+ levels seen during the October 2025 sell-off. Gold has outperformed Bitcoin this year, adding to the narrative that institutional investors are favoring traditional safe-haven assets over digital ones.

Bearish Technical Indicators Suggest Further Downside

Technically, Bitcoin appears to be in a deep correction phase. The RSI on the daily chart has dropped to 21, signaling extreme oversold conditions, while the MACD indicator remains in a bearish crossover with rising red histogram bars. On the daily chart, BTC has confirmed a bearish inverse cup and handle pattern, a formation historically associated with sustained downside.

Key support levels have been broken, including the $70,000 psychological level and the 200-week exponential moving average. If the price continues to fall, the next major support is projected around $65,520, followed by $60,000. Analysts warn that the current bearish momentum is unlikely to reverse in the short term, with many calling for continued downside risk.

Whale Activity Reflects Bearish Sentiment

On-chain data also reveals bearish positioning among large holders. A notable whale, known for its "Long-Term BTC Short" strategy, has reduced its short position from 499.91 BTC to 68.33 BTC, while maintaining a floating profit of $2.734 million. The whale has also placed buy-the-dip limit orders at $64,967 and $59,138, with the latter order reduced from 200 BTC to 100 BTC, indicating a cautious approach to potential further declines.

Outlook: Bearish Momentum Likely to Continue

With Bitcoin ETF outflows persisting, institutional buying pressure waning, and technical indicators suggesting extended downside, the market remains heavily bearish. Analysts project further price declines in the near term, with some suggesting Bitcoin could test the $65,000 level or even fall toward the $60,000 range. Until macroeconomic conditions improve and institutional demand returns, Bitcoin is expected to remain in a deep consolidation phase.