LONDON, Feb 2, 2026, 06:25 GMT
- Bitcoin slips roughly 4% to about $75,400; ether plunges close to 10%
- Warsh’s nomination boosts the dollar and shakes up risk assets, crypto among them
- Analysts point to slender liquidity and highlight a critical support level around $73,000
Bitcoin dropped roughly 4% to $75,441 on Monday, continuing a weekend decline that pushed the top cryptocurrency back to prices not seen since mid-2025. Ether plunged close to 10%, hitting $2,191.05.
The selloff isn’t confined to crypto. Warsh’s nomination as the next U.S. central bank chief has lifted the dollar and hammered precious metals, deepening the market’s “risk-off” stance. (Reuters)
Thin liquidity has exaggerated the price swings. “Bitcoin is behaving less like a political trade and more like a high-liquidity risk asset,” said Sam North, a market analyst at eToro, highlighting how gold continues to attract most of the safe-haven demand. (The National)
Price action reflects that shift. Bitcoin slipped 6.53% to $78,719.63 Saturday afternoon New York time, after hitting $81,104 on Friday—its lowest since Nov. 21. Brian Jacobsen of Annex Wealth Management pointed to “liquidity trapped on Wall Street” fueling bubbles and predicted more selling ahead. (Reuters)
Market sentiment remains cautious. A Yahoo Finance report, referencing 10X Research, points out that Bitcoin is approaching a $73,000 “support” level — a price zone where buyers usually appear — but notes that flows indicate sentiment has shifted, with “the broader downtrend remains intact.” According to 10X Research, cryptocurrencies have lost about $1.7 trillion in value, roughly 39% off last year’s peak. (Yahoo Finance)
Bitcoin’s reputation as “digital gold” is facing fresh skepticism. Ilan Solot from Marex Solutions described it as “an asset in search of a valuation model,” according to the Financial Times. Meanwhile, Pramol Dhawan of Pimco stated the digital-gold story has “vanished.” (Financial Times)
The squeeze isn’t limited to crypto. Gold and silver plunged further after CME Group hiked margin requirements on metal futures, pushing leveraged traders to either post extra collateral or unload positions. Tim Waterer, chief trade analyst at KCM Trade, described the forced liquidations and margin hikes as triggering “a cascading effect.” (Reuters)
Over the weekend, The Telegraph reported that Bitcoin’s recent drop wiped out all the gains it made during the Trump administration, citing the former president’s policies as a driver of geopolitical uncertainty. (The Telegraph)
Sharp rebounds remain a real threat in a market that trades nonstop and can gap on thin volume, especially after rapid, liquidation-fueled drops. If prices break clearly below recent lows, the likelihood of another wave of forced selling rises, not bargain hunting.
Traders remain focused on the familiar drivers behind the selloff: the dollar, U.S. interest rate trends, and liquidity conditions. They’re also keeping an eye on whether forced selling from leveraged positions elsewhere continues to pressure markets.
