Bitcoin kicked off the Asia session on the back foot, sliding more than 10% toward $64,000 and capping a brutal week for crypto as selling pressure spilled across global risk assets.
The drop dragged Bitcoin to its lowest level since late 2024, wiping out much of the momentum that followed Donald Trump’s election win, when investors bet a friendlier policy stance could fuel another leg higher for digital assets.
Crypto wasn’t alone. Investors were already dumping tech stocks, and even traditional safe havens turned choppy. Volatility picked up in precious metals, as leveraged trades and fast-moving speculative flows amplified swings across markets.
Market Snapshot
Bitcoin: $64,798, down 9.2%
Ether: $1,900, down 9.7%
XRP: $1.27, down 12.4%
Total crypto market cap: $2.29 trillion, down 8.2%
ETF Outflows Add to the Pressure
The sell-off is starting to leave scars. CoinGecko data shows the global crypto market has shed about $2 trillion in value since its October peak, with roughly $800 billion wiped out in the past month alone.
Bitcoin is down around 17% on the week and 28% year-to-date, while Ether is headed for a 19% weekly drop and is down nearly 38% so far this year.
Traders are also watching the foundation of last year’s rally — ETF flows — begin to crack. Analysts at Deutsche Bank noted that U.S. spot Bitcoin ETFs saw more than $3 billion in outflows in January, following roughly $2 billion in December and $7 billion in November.
Akshat Siddhant, lead quant analyst at Mudrex, said bears remain firmly in control.
“The recent decline was driven by softer U.S. labor data and growing concerns around heavy capital spending in the AI sector, which weighed on broader risk sentiment,” Siddhant said.
“Continued ETF outflows and short-term holders moving nearly 60,000 BTC to exchanges have added to near-term selling pressure. That said, for long-term investors, this phase offers a favorable accumulation opportunity through disciplined, staggered buying.”
Where Bitcoin Might Find Its Footing
At Kraken, VP Matt Howells-Barby warned that more downside can’t be ruled out just yet.
“Price is now entering a well-defined support zone between $54,000 and $69,000,” he said. “The weekly RSI has dipped below 30 for the first time since mid-2022 — a signal that has historically preceded major bottoms forming within a three-to-six-month window.”
“In our view, a base is most likely to form in the $54,000 to $60,000 range, especially as the low-$50,000s line up with the 200-day moving average.”
Asia Turns Risk-Off as Tech Slides
The sour mood showed up quickly in Asian equities. MSCI’s Asia-Pacific index ex-Japan fell about 1%, led by a 5% drop in South Korea’s Kospi, which briefly triggered a trading halt shortly after the open. Japan’s Nikkei 225 also slipped.
U.S. stock futures pointed lower as well, after Wall Street closed sharply down overnight. Tech stocks led the losses, as investors questioned whether massive AI spending plans will translate into profits anytime soon.
Alphabet added to the unease after flagging that capital spending could climb as high as $185 billion in 2026, underscoring how aggressive — and expensive — the AI arms race is becoming.
Fresh labor data only deepened the risk-off tone. A report showed U.S. layoffs surged in January to their highest level for the month in 17 years, reinforcing fears that both growth and corporate confidence may be starting to crack.
For now, Asia is opening in full risk-off mode, with crypto once again acting as the pressure point.
