Bitcoin Price Trends: Bitcoin Recovers from 16-Month Low Amid Tech Selloff
Bitcoin Price Today: Bitcoin is on track for a 15% loss this week, bringing its total decline for the year to 26%. On Friday, February 6, 2026, the world’s leading cryptocurrency bounced back after hitting a 16-month low and testing the critical $60,000 support level.
Market Volatility and the “Tech Rout”
The recent drop was triggered by a global selloff in technology stocks. This “tech rout” was fueled by investor concerns following the release of Anthropic’s latest AI model, which sparked fears of disruption in the software sector. While some assets showed early signs of recovery, most stayed volatile throughout the session.
Key highlights from today’s market:
- Bitcoin (BTC): Rose 3.3% to $65,198.20, recovering from an earlier intraday low of $60,008.52.
- Ether (ETH): Climbed 4% to $1,919.37, after nearly touching a 10-month low of $1,751.94 earlier in the day.
Historical Context and Political Impact
Despite today’s slight recovery, Bitcoin remains at its lowest price levels since October 2024. This marks a significant reversal from the “Trump Rally” seen after the U.S. presidential election, where prices surged on hopes of pro-crypto policies.
Global Crypto Market Outlook
The broader cryptocurrency market has faced a difficult period. According to CoinGecko data:
- The total crypto market value has dropped by $2 trillion since its peak of $4.379 trillion in early October.
- More than $1 trillion was wiped out in the last month alone.
Year-to-Date Performance: | Asset | Weekly Change | Yearly Change | | :— | :— | :— | | Bitcoin | -15% | -26% | | Ether | -16% | -36% |
Why Prices Are Falling
Several factors are weighing on the market:
- ETF Outflows: Analysts from Deutsche Bank report that U.S. spot Bitcoin ETFs saw over $3 billion in withdrawals in January, following heavy outflows in late 2025.
- Monetary Policy: The recent nomination of Kevin Warsh as the next Federal Reserve Chair has raised concerns about tighter liquidity, which often hurts speculative assets like crypto.
- Risk-Off Sentiment: Investors are moving away from risky assets due to geopolitical tensions and high capital spending in the AI sector.
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