Bitcoin price plunges amid market selloff as investors retreat from risk assets. The decline accelerated on Thursday as volatility spread across commodities, equities, and digital assets.
The world’s largest cryptocurrency fell sharply during the session. Weak sentiment followed renewed selling pressure in technology stocks and growing instability in precious metals markets.
Bitcoin dropped to an intraday low of $63,295.74. This marked its weakest level since October 2024, just before the U.S. presidential election.
At one point, Bitcoin was down more than 12 per cent on the day. The move placed it on track for its largest single-day decline since November 2022.
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Liquidations surge as losses deepen
Heavy selling triggered widespread liquidations across the crypto market. Data from CoinGlass showed that roughly $1 billion in Bitcoin positions were liquidated within 24 hours.
These forced sell-offs added momentum to the decline. Traders faced rising volatility as prices broke through key support levels.
‼️BREAKING: Bitcoin PLUNGES $9,343 in a single day!
The biggest daily fall since FTX collapsed in November, 2022, more than 3 years ago. pic.twitter.com/cgocGmfYUq
— Bitcoin Archive (@BitcoinArchive) February 5, 2026The broader crypto market also suffered steep losses. CoinGecko data showed the market has lost about $2 trillion since peaking in early October.
Around $800 billion of that value disappeared in the past month alone. The scale of the losses reflects a sharp shift in investor confidence. Bitcoin has already fallen 17 per cent this week. Losses for the year now stand at roughly 28 per cent.
Ether also faced heavy pressure. The second-largest cryptocurrency dropped more than 13 per cent on Thursday and fell 19 per cent over the week. Year-to-date losses for Ether have reached nearly 38 per cent.
Crypto sentiment weakened alongside declines in other markets. Gold and silver became more volatile due to leveraged trading and speculative flows. Silver fell as much as 18 percent during the session. These sharp moves added to investor caution across asset classes.
In equities, U.S. stocks also slid. The S&P fell to a seven-week low, while the Nasdaq dropped to its lowest level in over two months. Pressure on artificial intelligence stocks added to the downturn.
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Analysts also pointed to political developments as a factor behind the selloff. President Donald Trump’s choice of Kevin Warsh as his preferred candidate for Federal Reserve chair unsettled markets.
Investors fear that Warsh could take a hawkish stance. Expectations that he may shrink the Fed’s balance sheet have raised concerns for risk assets.
Cryptocurrencies have often benefited from loose monetary conditions. Large Fed balance sheets and ample liquidity have historically supported speculative assets.
A shift toward tighter conditions could remove that support. This expectation has added to uncertainty and fueled the latest wave of selling.
