Why did the bitcoin price drop so sharply today?

Flows into spot ETFs slowed, gold drew safe-haven demand, and derivatives saw waves of long liquidations. Together, those factors reduced spot buying and forced selling into a thin market. Without steady inflows, rebounds often fade, and the tape stays volatile until leverage resets and depth returns.

Are bitcoin ETF flows still supportive?

Recently, bitcoin ETF flows softened, with lighter net inflows and some outflows. That removes a key buyer that helped hold up the bitcoin price earlier. Sustained net creations would be a positive signal. Until then, rallies may remain fragile, and execution quality matters more than bold sizing.

What are long liquidations, and why do they matter?

Long liquidations occur when leveraged long positions are forced closed as collateral value falls. Exchanges sell those positions at market, adding sell pressure. In clusters, this pushes the bitcoin price lower quickly, widens spreads, and increases volatility until leverage resets and natural buyers step back in.

How should investors in Germany approach this pullback?

Focus on euro risk per position, avoid margin, and use limit orders. Consider scaling into strength rather than catching every dip. Review total trading costs on your chosen venue and keep allocations modest. Wait for steadier ETF flows, slowing liquidations, and clear higher lows before increasing exposure.

Global Market Insights

BTCUSD Today, February 06: Halved From Peak as ETFs Fade, Leverage Flush

ByHuzaifa Zahoor February 6, 2026February 6, 2026

The bitcoin price slumped on 6 February, sliding toward the mid‑$60,000s and roughly halving from its October peak. The move reflects softer spot demand, fading bitcoin ETF flows, and a sharp leverage flush that hit futures markets. Gold’s safe‑haven bid adds pressure as risk assets wobble. For investors in Germany, euro pricing on local venues can shift quickly during such moves. We outline what is driving the drop, the signals to watch, and practical steps to manage risk in a volatile tape.