Bitcoin staged a modest recovery on Friday, February 6, 2026, after slipping to a 16-month low, as a sharp global selloff in technology stocks triggered a broad retreat from risky assets. Reported by NDTV.
The volatility followed renewed pressure on markets after the launch of a new AI model, which unsettled investor sentiment across asset classes.
The world’s largest cryptocurrency, Bitcoin, tested the key $60,000 level earlier in the session after falling as much as 5% to $60,008.52. It later rebounded, rising 3.3% to trade around $65,198.20, recovering part of its intraday losses.
Despite the bounce, bitcoin remains close to its weakest level since October 2024, just weeks before Donald Trump won the US presidential election after signalling support for cryptocurrencies during his campaign.
Other digital assets also saw sharp swings. Ether rose 4% to $1,919.37 after earlier sliding to a near 10-month low of $1,751.94.
According to data from CoinGecko, the global cryptocurrency market has lost nearly $2 trillion in value since peaking at $4.379 trillion in early October. More than $1 trillion of that decline occurred in the past month alone.
Bitcoin is now on track to fall about 15% for the week, extending its year-to-date losses to roughly 26%. Ether is headed for a weekly drop of around 16%, with losses nearing 36% so far this year.
Market sentiment has been weighed down by selling across commodities and equities. Gold and silver have also turned volatile amid leveraged trades and speculative flows, while bitcoin has continued to move in tandem with technology stocks, a trend that strengthened during the AI-driven rally.
Cryptocurrencies have struggled for months following a sharp downturn last October that pushed bitcoin down from record highs.
Analysts at Deutsche Bank noted that US spot bitcoin ETFs recorded outflows of more than $3 billion in January, after seeing withdrawals of about $2 billion in December and $7 billion in November, underscoring waning investor appetite.
Commenting on the recent selloff, CoinSwitch said markets were facing a broad liquidity squeeze rather than stress limited to a single asset class.
“With ETF demand slowing and spot absorption limited, Bitcoin may test $60K-$62K support, with downside risk toward $56K in a deeper risk-off scenario,” CoinSwitch said.
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