Crypto Capitulation Deepens as Prices Slide to Multi-Year Lows

A wave of forced liquidations, ETF outflows, and collapsing miner economics pushed crypto sentiment to its darkest levels since 2022 as markets hunt for a bottom.

Crypto markets extended last week’s selloff into a full-blown capitulation, with sentiment hitting levels last seen during the 2022 collapse. As of 5:50 am ET, bitcoin was trading near $65,900, after briefly plunging toward $60,000, while ether fell to $1,920 and solana slid to $81. 

The Crypto Fear & Greed Index dropped to 9 out of 100, its lowest reading since the Terra meltdown.

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The damage has been broad and mechanical. Over the past 24 hours alone, roughly $2.6 billion in leveraged positions were liquidated, the majority tied to long bets. Bitcoin also slipped below its 200-week exponential moving average, a level historically breached only during deep bear markets. From its October peak near $126,000, BTC is now down close to 50%.

ETF flows reflect the stress. U.S. spot bitcoin ETFs posted $434 million in net outflows on Feb. 5, led by $175 million exiting BlackRock’s IBIT, even as the fund saw a record $10 billion in daily trading volume. Ether ETFs lost another $81 million, while solana ETFs bucked the trend with modest inflows.

Trading activity has surged amid the chaos. Perpetual DEXs recorded over $70 billion in daily volume, the second-highest day on record, trailing only the October 10 flash crash. 

Meanwhile, the total crypto market cap has fallen to roughly $2.3 trillion, with more than $1 trillion erased since mid-January.

Pressure is also mounting beneath the surface. Bitcoin mining profitability has collapsed, with hash price falling to a record low near $0.03 per terahash, squeezing miners already facing higher power costs. 

Together, the data paints a picture of forced selling, thin liquidity, and a market still searching for a durable floor.