NEW YORK, Feb 4, 2026, 17:05 (EST) — Trading after hours.
- Bitcoin dropped roughly 4.9%, dipping to near $72,400 in late U.S. trading; ether declined about 7%.
- Leveraged positions continued to unwind as CoinGlass reported $2.56 billion in bitcoin liquidations over the past few days.
- Traders are eyeing next week’s rescheduled U.S. jobs and inflation reports for hints on rates and risk appetite.
Bitcoin dipped on Wednesday, prolonging a volatile run for the top cryptocurrency and pulling crypto-linked stocks down alongside it. By late U.S. trading, it had fallen 4.9% to $72,413, hitting an intraday low close to $72,140 earlier in the session.
This matters now since crypto is back to trading like a leveraged risk asset. Bitcoin tends to follow swings in rates, tech stocks, and the dollar — and those drops can come fast.
The market now hinges on the next headline as much as on any chart level. Traders are trimming their positions instead of building them up, even when prices bounce.
Data from CoinGlass revealed bitcoin investors have liquidated $2.56 billion in the past few days, indicating that leverage is still being cleaned out. Liquidations occur when an exchange forces a trader to close a borrowed position after losses hit margin limits. “People [are] taking a step back,” Kaiko analyst Adam McCarthy told Reuters, as they rethink their risk approaches. At the same time, Charles Schwab’s Jim Ferraioli warned that “outside forces” have been pushing prices. (Reuters)
Global shares slipped as U.S. tech stocks came under pressure following Anthropic’s new plug-in launch, which unsettled parts of the AI trade. Meanwhile, U.S. jobs and services data kept rate expectations cautious; traders aren’t pricing in a Federal Reserve cut before June, Reuters reported. Bitcoin was headed for its sixth drop in seven sessions during afternoon trading. Per Stirling’s Robert Phipps said markets have been “called into question” within just days. (Reuters)
Uncertainty around policy is weighing on the sector. A White House meeting intended to resolve a months-long deadlock between banks and crypto companies on market-structure legislation ended without a deal, Reuters reported, with stablecoin rewards proving a major hurdle. White House spokesman Kush Desai said the administration “continues to engage” to push its agenda forward. (Reuters)
In Washington, the Fed chair succession has taken a complicated turn. Senate Banking Committee chair Tim Scott expressed that he doesn’t believe Fed Chair Jerome Powell committed any crime. Yet, Republican Senator Thom Tillis plans to block nominations while the Justice Department investigates Powell — a move that could delay President Donald Trump’s pick, former Fed governor Kevin Warsh. (Reuters)
Crypto-linked stocks followed the slide. Coinbase slipped roughly 6% in late trading, while Strategy, a major corporate bitcoin holder, dropped around 3%, according to pricing data.
The slide isn’t a simple downhill slope, and that’s the danger. Thin liquidity can push prices sharply both ways. A swift bounce might hit short sellers hard, just as a new drop could spark more forced selling.
After the shutdown scrambled the schedule, traders now face a clearer set of dates. The U.S. Bureau of Labor Statistics confirmed January’s employment report will drop Wednesday, Feb. 11. The January CPI report follows on Friday, Feb. 13, and the December JOLTS data is set for Thursday, Feb. 5. (Reuters)
