New York, February 4, 2026, 10:05 EST — Regular session
Bitcoin slipped almost 4% on Wednesday, dropping toward the $74,000 mark once U.S. markets opened. The cryptocurrency hovered around $74,389, down 3.95%, after fluctuating between $72,971 and $78,070. Ether also dipped roughly 4%, settling near $2,169. Crypto-related stocks remained under pressure.
The focus remains on the rate outlook and Washington politics following President Donald Trump’s choice of former Fed governor Kevin Warsh to replace Jerome Powell in mid-May. Senate Democrats are pushing to stall Warsh’s confirmation, fueling more uncertainty about the Fed’s future moves. 1
Markets also took in a weaker-than-expected U.S. jobs figure. ADP reported private employers added just 22,000 jobs in January, falling short of forecasts. The official jobs report is still delayed following a brief U.S. government shutdown, leaving traders without new labor-market data. 2
Bitcoin took a tumble Tuesday, briefly dipping below $73,000 to prices not seen since late 2024. It then pulled back, climbing toward $76,000 as U.S. markets closed, according to Investopedia. 3
Flows into U.S. spot bitcoin ETFs have been volatile, undermining the typical “institutional bid” story. On Feb. 2, these ETFs saw $561.8 million in net inflows, only to reverse course with $272.0 million in net outflows the next day, data from Farside Investors show. These numbers track net share creations and redemptions within the funds. 4
The ETFs mirrored the softer mood on Wednesday. The iShares Bitcoin Trust ETF slipped roughly 2.3%, with Fidelity’s Wise Origin Bitcoin Fund and the Bitwise Bitcoin ETF both down close to 2.3% in early U.S. trading.
Crypto-exposed stocks followed suit. Coinbase dropped 3.5%, Strategy slid 3.3%, and miners Marathon Digital and Riot Platforms tumbled 3.6% and 5.7%, respectively.
CF Benchmarks warned that appointing Warsh introduces “leadership risk” amid an already shaky macro environment. The firm also pointed out that stalled crypto legislation is keeping liquidity tight, particularly in higher-beta tokens. 5
Some strategists cautioned against overinterpreting one day of ETF inflows. “Aggregate ETF flows are not buying the dip,” Jamie Coutts, chief crypto analyst at Real Vision, said in a CryptoSlate commentary, pointing out that certain ETF creations might represent hedged trades instead of genuine demand. 6
Market analysts are setting a firm floor on the downside. Akshat Siddhant of Mudrex noted that a government funding deal might “trigger a relief rally,” but flagged $70,000 as a key level traders are eyeing. Meanwhile, Giottus CEO Vikram Subburaj pointed out that “macro signals continued to dictate risk appetite.” 7
Investors are shifting focus to the upcoming inflation data, which remains a key factor in crypto’s recent volatility. The Bureau of Labor Statistics will release January’s CPI on Feb. 11. Then, on Feb. 18, the Fed is set to publish minutes from its Jan. 27–28 meeting. 8
