Bitcoin Tumbles Below $71,000 as AI Stock Sell-Off Rocks Global Markets

The cryptocurrency market was hit hard on Thursday, February 5, following a global sell-off in tech stocks. Bitcoin, still reeling from last week’s volatility, crashed below the key psychological level of $71,000, mirroring panic on traditional trading floors.

The cause is a mass exodus from risky assets. Fears that the artificial intelligence investment boom has peaked and that company valuations are overstretched triggered a chain reaction from Nasdaq to Asian and crypto exchanges. Details in our analysis.

Shocking Numbers: Bitcoin Plummets 7.5% in a Day

According to industry analysts, during the Asian trading session on Thursday, Bitcoin crashed by 7.5%, falling below $71,000 and hitting a local low around $70,700. At the current exchange rate, this amounts to approximately €59,900* or £60,400* per BTC. A partial rebound later only slightly mitigated the losses.

This drop mirrored events in equity markets. The MSCI Asia Pacific Information Technology Index fell for the fifth time in six sessions. South Korea’s Kospi was hit particularly hard, losing about 4% due to a sell-off in stocks of AI-themed companies.

The AI Revolution Begins to Eat Its Own

The trigger for the global sell-off, as often happens, came from the US. Disappointing financial reports and forecasts from giants like Alphabet, Qualcomm, and Arm led investors to doubt the narrative of endless growth. Concerns that AI investments have peaked faster than expected and that company profits are lagging behind inflated valuations sparked a massive capital outflow from the sector.

When tech stocks fall—historically the “riskiest” segment of the equity market—investors start taking profits and reducing exposure across all high-volatility assets. Bitcoin, despite all the “digital gold” narratives, behaves precisely like a typical high-beta, risk-on asset in such moments.

Fragile Sentiment, Not a Trend Reversal

Analysts point to the nature of the movements. Bitcoin’s weekly volatility, where it fell to $73,000, then bounced to $76,000, only to crash harder now, indicates fragile, speculative market sentiment rather than a fundamental trend reversal.

“Bitcoin’s latest drop, alongside sharp declines in silver and gold, underscores its behavior as a high-beta risk asset amid thin liquidity and rising macroeconomic uncertainty,”

— noted in market summaries.

Pressure on the crypto market was intensified by a storm in the commodities market: silver plummeted 17% in a day, gold fell more than 3%. This triggered cascading liquidations of tokenized metal products on crypto platforms, adding to the negative sentiment.

Investor Takeaways: What’s Happening?

The current situation is a stark lesson on the increased correlation between the crypto market and traditional finance, especially during stress periods. Bitcoin in 2026 is no longer a niche digital asset but part of the global risk-on/risk-off matrix.

Short-term prospects will depend on whether the panic in the tech sector subsides. If reports from other AI giants continue to disappoint, pressure on cryptocurrencies may persist. Investors should prepare for continued high volatility and monitor liquidity closely. For international investors, this highlights the importance of understanding Bitcoin’s evolving role within broader, interconnected financial markets, not just as a standalone speculative bet.

* Approximate conversions as of 05.02.2026: $70,700 ≈ €59,900 (1 USD ≈ 0.846 EUR), ≈ £60,400 (calculated). Exchange rates may vary.