- Bitcoin price plunged to $60,000, its biggest single-day fall since the FTX crash.
- Prices rose to above $66,000 as analysts forecast a potential dead cat bounce.
- Market sentiment remains in extreme fear.
Bitcoin fell sharply on Friday, crashing to lows of $60,000, which ignited widespread selling before swiftly staging a dramatic recovery to around $67,100.
The volatile swing has sent the cryptocurrency market sentiment into extreme fear, with top altcoins, including Ethereum, XRP, and Solana, hitting critical support levels below $1,900, $1.40, and $80, respectively.
But after experiencing one of its most severe single-day plunges in history, can bulls sustain the flip?
Bitcoin sees biggest 24-hour dip since FTX crash
As noted, Bitcoin plummeted more than $10,000 in a matter of hours on Thursday, briefly dipping to lows near $60,000.
While Bitcoin has since recovered some ground and stabilised near $67,000 at the time of writing, the broader market remains under pressure following the cryptocurrency’s sharpest one-day decline since the collapse of FTX in November 2022.
Unlike previous sell-offs triggered by clear catalysts such as regulatory actions or exchange failures, the latest downturn appears to have been driven largely by technical factors.
Analysts have pointed to a wave of liquidations and forced unwinding of highly leveraged positions, as traders who had positioned for continued gains were caught off guard by the sudden reversal in momentum.
Crypto analyst and investor Lark Davis shared the following on X:
There’s discussion that Bitcoin’s dump is part of a bigger domino effect.
People borrowed money to buy Bitcoin, gold, and silver. When prices dropped, lenders said “give us more money NOW or we’ll sell your stuff.”
The problem: People didn’t have cash, so they sold their OTHER…
— Lark Davis (@LarkDavis) February 6, 2026
Data from Coinglass showed that more than $2.6 billion worth of cryptocurrency pos