Bitcoin Eyes $70,000 Test Amid Fed Balance Sheet Outlook, BTC -2%, ETH -$2,111.34

Bitcoin approached and briefly tested the $70,000 level on February 5, 2026, as the digital asset slid 3.5% in Asian trade to $70,052.38, its lowest since November 2024. Early European trade saw it down 2%. Ether fell 0.7% to $2,111.34; a drop below $2,000 would mark its first such breach since May 2025. The rapid decline followed expectations of a smaller Federal Reserve balance sheet under the upcoming chair, Kevin Warsh. Bitcoin is down 7% for the week and about 20% year-to-date; ether is off roughly 30% this year. Deutsche Bank analysts noted outflows from U.S. spot bitcoin ETFs exceeding $3 billion in January, continuing a monthly drain since October 2025, signaling waning institutional interest and growing bearish sentiment.