SINGAPORE, Feb 4, 2026, 03:26 SGT
- Bitcoin hovered around $74,600 in early Asian trading, slipping roughly 4.8% for the day
- CoinGlass data revealed that roughly $2.56 billion in bitcoin positions got liquidated over the past few days
- Analysts highlighted risk-off sentiment and thin liquidity, while some traders braced for further declines
Bitcoin dipped to roughly $74,600 in early Asian trading Wednesday, deepening a steep crypto sell-off that forced many out of leveraged positions. Data from CoinGlass revealed $2.56 billion worth of bitcoin positions wiped out in the past few days. Adam McCarthy of Kaiko noted that “people [are] taking a step back while they have to reassess their risk frameworks.” Reuters
This shift matters because crypto now acts as a fast indicator of risk appetite. When investors retreat across markets, digital assets often get hit first, with leverage amplifying price swings sharply.
That leverage becomes clear in “liquidations” — when positions are forcibly closed because losses exceed margin requirements. With thin liquidity over the weekend, a typical downturn can spiral into a full-blown cascade.
Cryptocurrencies took a hit in recent days, following a wider “risk-off” mood that also dragged down stocks and precious metals. The shakeup came after Microsoft’s earnings raised fresh skepticism about the “AI trade” — bets linked to AI spending — and President Donald Trump announced he’ll nominate former Fed governor Kevin Warsh as Fed chair. “The biggest risk to prices at these levels have been outside forces,” noted Jim Ferraioli, director of crypto research and strategy at Charles Schwab’s Schwab Center for Financial Research. Reuters
Bearish technical chatter is resurfacing. On Binance Square, “bull_club” noted bitcoin slipped below a critical $80,000 support level. They warned that if previous bear-market trends hold, prices could fall under $50,000, referencing calls from analysts like CryptoQuant and Rekt Capital. Binance
Ethereum and XRP have shown some modest bounce-backs following recent dips, mirroring the volatility seen in other major tokens. Shares of crypto-related firms like Coinbase and Robinhood also fluctuated alongside these shifts.
The slump is intensifying calls that a more serious sell-off is in motion. Clem Chambers noted in a Feb. 2 Forbes Digital Assets column that after pinpointing a bitcoin peak in 2024, he had anticipated a crash for some time.
Crypto markets remain highly volatile, often bouncing back sharply after sharp declines. Prices might steady if liquidity returns and macro headlines ease. But a new shock or more forced selling could drive the market down further.
