Introduction: A Rough Day for Crypto

The in a big way. The total market cap has dropped by $266 billion in just 24 hours. It now sits at $2.19 trillion. Bitcoin, the top crypto, fell 11.6% to around $64,500. This is the biggest single-day drop for Bitcoin this year. Smaller tokens like STABLE have also crashed hard, down 23%.

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

The because of risk aversion. Investors are pulling back amid high volatility. Big holders like MicroStrategy face paper losses. Exchange cuts like Gemini’s add fear.

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 due to liquidations, Bitcoin weakness, and bad news from firms. Watch key levels closely. A hold could spark recovery. Stay informed and trade smart.

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity’s role is to inform the cryptocurrency and blockchain community about what’s going on in this space. Please do your own due diligence before making any investment. Blockmanity won’t be responsible for any loss of funds.

The post Why the Crypto Market is Down Today: Bitcoin Crashes 11% and $266B Wiped Out appeared first on Blockmanity.

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Filed under: Altcoins - @ February 6, 2026 8:32 pm