New York, February 4, 2026, 13:36 EST — Regular session
- Bitcoin (BTC) dipped roughly 0.9%, slipping to about $73,400 following an earlier low of $72,279
- On Feb. 3, U.S. spot bitcoin ETF flows shifted to net outflows, reversing the inflows seen just one day before
- Shares of Coinbase and Strategy, both tied to crypto, dropped roughly 8% in U.S. trading
Bitcoin (BTC) slipped roughly 0.9% on Wednesday, dropping to about $73,400 following an intraday low near $72,279.
This slide is significant now that crypto is back in sync with U.S. liquidity. When rate forecasts shift abruptly, leveraged bets come under pressure fast, and bitcoin usually takes the hit first.
Risk appetite showed signs of unevenness across broader markets. U.S. stocks closed mixed, with investors grappling with a selloff in software and cloud stocks fueled by concerns that rapidly evolving AI could disrupt traditional business models. (Reuters)
Senate Banking Committee Democrats in Washington have called on chair Tim Scott to postpone the nomination process for Kevin Warsh, President Donald Trump’s choice to head the Federal Reserve. Their request stems from ongoing Justice Department probes into current Chair Jerome Powell and Governor Lisa Cook. The White House pushed back, defending Warsh’s credentials and pressing Democrats to drop the issue. (Reuters)
The bond market is wrestling with how a Fed under Warsh could affect longer-term yields and the “yield curve” — that difference between short- and long-term rates. Eric Kuby, chief investment officer at North Star Investment Management, told Reuters the key result of shrinking the balance sheet would be a yield curve that slopes upward more normally. (Reuters)
Crypto investors have been closely tracking demand for U.S. spot bitcoin exchange-traded funds (ETFs), which hold actual bitcoin and trade like stocks. According to data from Farside Investors, total net flows were positive on Feb. 2 but reversed sharply to a net outflow of around $272 million on Feb. 3. (Farside)
Leverage remains a significant concern. Bitcoin investors have recently seen around $2.56 billion wiped out through liquidations — forced position closures when margin calls aren’t met — according to CoinGlass data cited by Reuters. Adam McCarthy, an analyst at Kaiko, noted that “people [are] taking a step back,” while Jim Ferraioli of Charles Schwab highlighted external shocks, including a “deterioration of the AI trade,” as key downside risks. Bitcoin still trades well below its October peak topping $126,000. (Reuters)
Elsewhere in crypto, ether gained roughly 0.6%, hovering near $2,147. XRP, on the other hand, dropped almost 2% to about $1.51. Shares tied to crypto followed suit, with Coinbase tumbling around 8% and Strategy sliding close to the same margin.
The next move doesn’t have to be down. If ETF flows shift or rates stabilize, buyers could return. Yet, another wave of selling would probably ramp up the volatility.
Traders are adjusting to a reshuffled U.S. data calendar following a short government shutdown. The Bureau of Labor Statistics confirmed the January employment report will come out Wednesday, Feb. 11. January’s CPI is scheduled for Friday, Feb. 13, and the postponed JOLTS report is now set for Thursday. (Reuters)
