Majority of Altcoins Plummeted by More than 10%, Why did the Crypto Market Crash Today (2/6/26)?

Jakarta, Pintu News – The crypto market experienced another big hit when the prices of Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) plummeted sharply in a single trading day. The drop brought the prices of major crypto assets to their lowest levels in months.

The global cryptocurrency market capitalization shrank to around US$2.3 trillion or equivalent to IDR38,561.8 trillion (exchange rate US$1 = IDR16,766). The sell-off occurred almost evenly, signaling a very fragile market sentiment.

Heaviest Pressure Comes from Bitcoin

Bitcoin (BTC) fell below US$69,000, breaking the psychologically important level that was previously the peak of the 2021 cycle. In total, BTC has now corrected about 45% from its record high near US$126,000.

In the last four months alone, the price of Bitcoin has fallen by more than US$56,000, representing one of the fastest corrections in this cycle. The break of the old support area has further depressed short-term market confidence.

From a technical perspective, Bitcoin’s failure to defend the zone changed the market structure to bearish. The US$80,000 level now serves as a strong resistance that is difficult to break again. Many analysts think the market is entering a reset phase after the previous long rally. The short-term focus is now on the US$66,000 support area as the next direction determinant.

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Institutional Selling and Mass Liquidation

Unlike the previous mild correction, this time the pressure was dominated by institutional action. On-chain data shows large flows of Bitcoin into exchanges as well as continuous outflows from spot Bitcoin ETFs in the United States.

This increases the supply of BTC in the market and amplifies selling pressure. Many of these large fund movements occur when market liquidity is thin, so the impact is more extreme.

The rapid price drop triggered massive liquidations in the crypto derivatives market. Within 24 hours, more than US$1.3 billion in leveraged positions were forcibly liquidated. The majority came from long positions, particularly on Bitcoin. This wave of liquidation accelerated the price collapse and pushed market sentiment into the “extreme fear” zone.

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Ethereum and XRP dragged down by sell-offs

Ethereum (ETH) has also been hit hard, dropping more than 25% in a week and falling below US$2,000. This is the lowest level of ETH since mid-2025. Ripple (XRP) also recorded a double-digit decline, as investors reduced exposure to high-risk assets. As is the historical pattern, altcoins fall deeper than Bitcoin when the market enters a risk-off phase.

This pressure is compounded by the growing correlation between crypto and global financial markets. The absence of a single major negative news story led analysts to assess this decline as a liquidity-based correction and portfolio repositioning.

If Bitcoin fails to hold at the immediate support, further pressure to the US$62,000-US$60,000 area remains open. Under these conditions, the crypto market is still very sensitive to sentiment and macro data.

Conclusion

Today’s plunge in Bitcoin, Ethereum, and XRP prices was triggered by a combination of institutional selling, leveraged liquidation, and deteriorating market sentiment. While this correction may seem extreme, it reflects the highly reactive nature of the cryptocurrency market to changes in liquidity. The short-term direction now depends on Bitcoin’s ability to defend important support areas. For investors, this phase reiterates the importance of risk management amidst the high volatility of the crypto market.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinpedia. Why are Bitcoin, Ethereum and XRP Prices Crashing Hard Today? Accessed February 6, 2026
• Featured Image: Generated by AI