FTX Collapse Fallout Continues to Haunt Crypto Markets as Bitcoin Loses Critical Support
The cryptocurrency market is experiencing significant turbulence in early 2026, with Bitcoin failing to maintain its previous all-time high as support, triggering a widespread downturn. As of February 6, 2026, Bitcoin has slid below the $68,640 level, reflecting ongoing market fragility despite some favorable economic indicators. The shadow of the FTX collapse continues to loom over the digital asset space, demonstrating how past exchange failures can have prolonged effects on market psychology and price action. Market analysts note that Bitcoin's inability to hold its all-time high represents a critical technical failure that has triggered cascading selling pressure across the cryptocurrency ecosystem. This decline occurs against a backdrop of broader economic anxieties, even as weaker-than-expected JOLTS data might typically favor risk assets like cryptocurrencies. The labor market vulnerabilities revealed by this data have failed to offset pressure from concurrent equity market declines, suggesting that cryptocurrency markets remain tightly coupled with traditional financial sentiment despite their decentralized nature. The FTX collapse fallout continues to influence market dynamics, with investors showing heightened sensitivity to exchange-related risks and regulatory uncertainties. This event has fundamentally altered how market participants assess counterparty risk and exchange credibility, creating a more cautious trading environment. The amplified selling pressure on altcoins, particularly noticeable in assets like X, indicates that investors are favoring liquidity and established assets during periods of uncertainty, potentially accelerating the 'flight to quality' phenomenon within the crypto space. This market behavior underscores the maturation of cryptocurrency markets, where fundamental factors including exchange stability, regulatory clarity, and macroeconomic conditions increasingly drive price movements alongside technical indicators. The persistence of FTX-related anxieties nearly three years after the exchange's collapse highlights the long memory of cryptocurrency markets and the importance of robust infrastructure for sustainable growth. As the market navigates these challenges, the relationship between traditional economic indicators and cryptocurrency performance continues to evolve, offering both risks and opportunities for informed investors in this dynamic financial landscape.
Bitcoin Fails to Hold All-Time High as Market Reacts to FTX Collapse Fallout
Bitcoin's inability to sustain its previous all-time high as support has triggered a market-wide downturn, with the cryptocurrency sliding below $68,640. The decline mirrors broader economic anxieties, despite weaker-than-expected JOLTS data that might typically favor risk assets. Labor market vulnerabilities failed to offset pressure from equity market declines.
Altcoins face amplified selling pressure, with XRP testing $1.33 and SOL losing critical support at $88. ethereum struggles to reclaim $1,800 as the market digests the implications of Bitcoin's breakdown. Technical levels suggest $66,165 as Bitcoin's next potential support, followed by the October 2024 rally origin near $62,700.
Bitcoin Rebounds 13% to $68,000 Following Sharpest Single-Day Drop Since FTX Collapse
Bitcoin staged a dramatic recovery, surging 13% to $68,000 after suffering its steepest single-day decline since the FTX collapse. The cryptocurrency plummeted 14% on February 5, marking its worst performance since November 9, 2022, when it dropped 14.4% amid FTX's unraveling.
The rebound represents Bitcoin's largest single-day bullish candlestick in ten months, underscoring the asset's notorious volatility. Market participants now watch whether this recovery signals renewed bullish momentum or merely a dead-cat bounce after yesterday's liquidation cascade.
