Crypto Market Rebounds After Bitcoin Tumbles to 2024 Low
Crypto markets rebound in early February 2026 after a selloff that sent Bitcoin to its lowest level since October 2024 and triggered over $2.6 billion in liquidations.
In early February 2026, the cryptocurrency market experienced one of its sharpest selloffs in months before staging a rebound.
The Selloff
Bitcoin tumbled to its lowest level since October 2024, with prices approaching $60,000. The Fear & Greed Index dropped to 5—a level not seen during the 2018 bear market or the 2022 crypto winter—reflecting extreme oversold conditions. Over $2.6 billion in leveraged positions were liquidated as prices cascaded. Ethereum, XRP, and other major altcoins slid over 5% as the market "drowned in red."
Drivers
The downturn was driven primarily by weakness in tech stocks, especially AI-related software, which saw a relentless decline. Macro concerns also weighed on sentiment, with traders bracing for Federal Reserve minutes and PCE inflation data. The correlation between crypto and risk assets was on full display.
Rebound
By February 6, crypto markets had rebounded from the lows. The recovery offered relief to holders and suggested that some buyers were willing to step in at lower levels. The episode underscored the volatility of the asset class and the importance of risk management during drawdowns.
