Updated: February 6, 2026 at 10:30 ET
Bitcoin is falling today after a sharp sell-off in global tech stocks triggered forced liquidations across the crypto market, pushing prices below $65,000 for the first time since late 2024. The drop has erased gains made during the post-election “Trump rally” as investor sentiment toward digital assets continues to weaken.
Market context: The move comes during a broader sell-off in global equities, with investors reassessing risk exposure amid volatility in technology stocks and digital assets.
- Bitcoin fell more than 12% on Thursday, dropping below $65,000
- The sell-off erased gains from the post-election Trump rally
- Forced liquidations and a tech stock slump accelerated losses
The world’s largest cryptocurrency has now lost more than a quarter of its value this year, underscoring how quickly optimism has faded despite earlier expectations of a more crypto-friendly political environment in the United States.
Why Is Bitcoin Falling Today?
Bitcoin’s decline today is being driven by a combination of market, sentiment, and structural factors rather than a single headline event.
- Tech stock sell-off: A broad decline in technology shares has triggered a risk-off move across financial markets, dragging down crypto prices alongside equities.
- Forced liquidations: Traders using leverage were forced to sell Bitcoin to meet margin calls, accelerating the price drop.
- Fading Trump rally optimism: Enthusiasm around pro-crypto political promises has waned as concrete legislative progress stalls.
- Shift toward safe-haven assets: Investors have increasingly rotated into gold and silver, reducing demand for risk assets like cryptocurrencies.
- Weak market sentiment: Analysts note a lack of buyers willing to step in aggressively at current price levels.
Bitcoin Falls Below $65,000 — What Happened
Bitcoin dropped more than 12% in a single session, falling to just under $65,000 and briefly touching levels not seen since November 2024. The move wiped out the remaining gains from the rally that followed Donald Trump’s re-election as U.S. president.
Earlier optimism had pushed Bitcoin to record highs above $125,000 last year, fueled by expectations of lighter regulation and stronger institutional adoption. Since then, prices have steadily retreated as macroeconomic pressures and shifting investor priorities took hold.
How the Tech Stock Sell-Off Is Hitting Crypto
Although Bitcoin is often described as an alternative asset, it has increasingly traded in line with high-risk technology stocks during periods of market stress.
Concerns over the impact of artificial intelligence on corporate earnings and broader equity valuations have sparked a sell-off in tech shares. That risk aversion has spilled into crypto markets, where investors tend to reduce exposure during periods of heightened volatility.
In the short term, Bitcoin continues to behave less like digital gold and more like a speculative asset tied to overall market sentiment.
Liquidations Are Making the Drop Worse
One of the key reasons Bitcoin’s fall has been so sharp is the role of leveraged trading.
Many traders borrow funds to amplify potential gains. When prices move sharply against them, exchanges automatically liquidate positions to cover losses. This forced selling adds additional downward pressure, creating a self-reinforcing cycle.
Analysts say these liquidations have contributed significantly to the speed and scale of the current decline.
Is the Trump Crypto Rally Over?
Bitcoin surged following Trump’s election victory after he pledged to make the United States the “crypto capital of the world” and roll back regulatory crackdowns.
While some crypto-friendly legislation passed and enforcement actions eased, momentum has slowed in recent months. As delays mount and policy details remain unclear, traders have become less willing to price in long-term political support.
Markets are now focusing less on promises and more on tangible economic and regulatory developments.
What This Means for Investors Right Now
For short-term traders, Bitcoin’s recent move highlights the risks of volatility and leverage in uncertain market conditions.
Longer-term investors, however, are watching broader trends such as institutional adoption, regulatory clarity, and macroeconomic policy rather than day-to-day price swings.
Market participants broadly agree that sentiment remains fragile, with prices likely to stay sensitive to developments in equities and global financial markets.
What Happens Next for Bitcoin?
The next move for Bitcoin will depend largely on how broader markets behave in the coming weeks.
Stabilization in tech stocks could help ease selling pressure, while further equity declines may push Bitcoin lower. Traders are also watching whether prices hold above key psychological levels near $60,000.
Until confidence returns, analysts expect volatility to remain elevated.
Frequently Asked Questions
Is Bitcoin crashing?
Bitcoin is experiencing a sharp correction, but analysts generally describe the move as a market sell-off rather than a systemic collapse.
Could Bitcoin fall below $60,000?
Some traders believe Bitcoin could test lower levels if selling pressure continues, particularly if equity markets weaken further.
Why is crypto down when Trump supports it?
Political support alone does not drive prices. Markets are reacting to sentiment, liquidity, and macroeconomic conditions rather than long-term policy expectations.
Is this a buying opportunity?
That depends on individual risk tolerance and investment strategy. Short-term volatility remains high, while long-term investors focus on fundamentals.