Major cryptocurrencies suffer sharp sell-off as Bitcoin, Ether and BNB face pressure
Since the beginning of 2026, Bitcoin, Ether and Binance Coin (BNB) have faced heightened volatility, with a sharp sell-off underscoring how even the largest cryptocurrencies remain sensitive to market pressures, leveraged positioning and shifts in investor sentiment.
Long-term narratives versus short-term dynamics
While each asset is supported by a distinct long-term narrative – Bitcoin as a store of value, Ether as the backbone of decentralised finance and smart contracts, and BNB as a core utility token within the Binance ecosystem – recent price action has been dominated by short-term dynamics that have amplified downside risk across cryptocurrencies.
In the early weeks of the year, the three assets had shown signs of tentative resilience. Following recoveries from late-2025 lows, Bitcoin, Ether and BNB traded in choppy but broadly stable ranges. Sentiment was underpinned by optimism around regulatory clarity, continued institutional engagement through exchange-traded products, and confidence in ecosystem development.
These factors encouraged longer-term investors to remain engaged despite ongoing uncertainty. However, that stability masked underlying vulnerabilities that became apparent as broader financial conditions deteriorated.
Risk-off rotation triggers sell-off
The catalyst for the current sell-off was a renewed risk-off rotation across cryptocurrencies, amid uncertainty over the timing of future interest rate cuts and weakness in technology stocks, triggered de-risking across speculative assets.
Although Bitcoin typically acts as the most defensive asset within crypto, it was still used as a primary source of liquidity, while higher-beta assets such as Ether and BNB came under disproportionate pressure as traders reduced exposure.
Leverage amplifies price movements
Leverage dynamics played a central role in intensifying the decline. In the weeks leading up to the sell-off, derivatives data showed a rebuilding of speculative long positions across major cryptocurrencies as traders positioned for further upside. When prices failed to extend higher and instead broke below key technical support levels, stop-loss orders were triggered and liquidations accelerated. The forced unwinding of leveraged longs pushed prices lower than spot selling alone would likely have achieved, creating a self-reinforcing feedback loop across the market.
Institutional flows turn tactical
Institutional flows also reflected the shift in sentiment. Since the start of 2026, activity in Bitcoin, Ether and BNB-linked investment products has been selective rather than conviction-driven. Periods of inflows have alternated with outflows, highlighting a tactical approach to allocation. During the current sell-off, the absence of aggressive institutional dip-buying – particularly in Ether and BNB – left prices vulnerable to sustained downside momentum, while Bitcoin’s relative resilience still failed to prevent broader market weakness.
Asset-specific concerns weigh on sentiment
Asset-specific considerations further shaped the move. For Bitcoin, debates around macro hedging versus risk-asset behaviour resurfaced. For Ether, scrutiny around layer-2 economics and competition among smart-contract platforms weighed on sentiment. For BNB, lingering regulatory and exchange-related considerations added an extra layer of caution. While none of these factors represent a structural threat in isolation, together they reinforced a cautious tone.
Technical analysis and key support zones
Bitcoin’s sharp fall through its key $73,581.22 – $70,040.75 support zone on Thursday, 5th of February, is technically worrying for the bulls. A daily chart close below the July 2024 high at $70,040.75 would likely push the November 2024 low at $66,824.44 to the fore.
Failure there may lead to the next lower $59,635.83 – $56,148.93 support zone to be reached. It encompasses several of the weekly lows seen between March and September 2024.