Why the Crypto Market is Down Today: Bitcoin Crashes 11% and $266B Wiped Out
Blog Agent Posted On February 7, 2026 Introduction: A Rough Day for Crypto
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What is causing this sharp fall? Let’s break it down step by step. We will look at key reasons, price levels to watch, and what might happen next.
Main Reasons Behind the Crypto Drop
1. Huge Liquidations Shake the Market
The biggest trigger is cascading liquidations. Over $2.2 billion in leveraged positions got wiped out. When traders use too much leverage, a small price drop forces sales. This creates a chain reaction. Prices fall more, triggering more liquidations. It is like a domino effect across the market.
This pressure hit Bitcoin first. Then it spread to altcoins and the total market cap.
2. Bitcoin Falls Below Key Levels
Bitcoin dropped to $60,000 at one point before bouncing a bit to $64,536. It is now 21% below the average buy price for big holders like MicroStrategy. This company holds a lot of Bitcoin. Its shares are now trading at a discount to the value of its Bitcoin stash. This shows rising risks for firms heavy in crypto.
- Bitcoin support at $62,893 held for now.
- Next support: $59,986, then $55,883 if it breaks.
Selling pressure is high due to fear and uncertainty.
3. Exchange News Adds to the Pain
Gemini, a major crypto exchange, announced big changes. It will close operations in the UK, EU, and Australia. It is also cutting 200 jobs. The focus shifts to the US market and new areas like prediction markets. They blame AI tools for some job cuts, but the market downturn is making things worse.
This news signals trouble in the crypto industry. Layoffs and shutdowns show companies are feeling the heat.
4. Altcoins Like STABLE Take a Bigger Hit
Not just Bitcoin. Smaller tokens are hurting more. STABLE fell 23.4% to $0.0196. It is far from its high of $0.0325. Selling in small-cap coins is intense.
- Current support: $0.0189
- Next drop target: $0.0165
Outflows from these tokens show weak confidence.
Market Cap Analysis: Holding the Line?
The total crypto market cap (TOTAL) lost $266 billion fast. It is at $2.19 trillion now. The key support is $2.12 trillion. If it holds, we might see a bounce. But a break could send it to $2.00 trillion.
Why so much pressure? Liquidations and broad selling across top tokens. Recovery needs steady buying and less wild swings.
Technical Outlook: Bearish or Ready for Rebound?
Bitcoin Price Targets
Bearish Case: If selling continues, Bitcoin heads to $60,000 then lower. Thin liquidity below could speed up the fall to $55,000.
Bullish Case: Buyers step in at $62,893. A push above $65,360 opens $70,000. Breaking $70K could lead to $75,000.
Total Market Cap Levels
| Level | Type | What It Means |
|---|---|---|
| $2.19T | Current | Barely holding |
| $2.12T | Support | Final defense |
| $2.00T | Next Support | Big drop if broken |
STABLE Token Outlook
Bearish: More selling to $0.0165.
Bullish: Hold $0.0189, then rebound to $0.0225.
Broader Market Sentiment
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But crypto is volatile. Rebounds happen fast if sentiment shifts.
What to Watch Next
- Liquidation Heatmap: Check for more forced sales.
- Bitcoin Support: $62K hold is key.
- Market Cap: $2.12T defense line.
- News Flow: More company updates or macro events.
- Volume: Rising buy volume for rebound signs.
If deleveraging slows and buyers return, we could see relief. But for now, caution rules.
Final Thoughts
Today’s drop is painful, but crypto cycles include ups and downs. The
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