Crypto Bloodbath: Bitcoin & Ethereum Plunge 6%+ as Market Reels – CeFi Takes Brutal Hit | Feb 05, 2026 LIVE

The digital asset market just got a brutal reality check. A broad sell-off slashed over 6% from total market capitalization, sending major cryptocurrencies tumbling and exposing critical fault lines.

Giants Stumble

Bitcoin and Ethereum led the decline, shedding value as panic spread. The move wiped out recent gains and pushed prices back to levels that have traders scrambling to reassess support zones.

Centralized Finance in the Crosshairs

The pain wasn't distributed evenly. The centralized finance (CeFi) sector—exchanges, lending platforms, and custodial services—absorbed the heaviest blows. It's a stark reminder that when leverage unwinds, the most interconnected parts of the system feel the deepest cuts. Nothing like watching paper fortunes evaporate to test the 'diamond hands' narrative.

While the short-term charts are painted red, veterans see this as another volatility spike in a long-term ascent. The market's plumbing just got a stress test—and for some over-leveraged players, it's a lesson delivered with the subtlety of a sledgehammer. After all, what's a crypto cycle without a few margin calls to separate the believers from the tourists?