SINGAPORE, Feb 2, 2026, 14:28 (SGT)
- After a weekend selloff in crypto, Bitcoin dropped to a new low in Asia.
- A steep plunge in gold and silver sparked margin adjustments, prompting widespread forced selling.
- Traders are focused on U.S. Fed leadership and liquidity following Trump’s appointment of Kevin Warsh.
Bitcoin dropped to a 10-month low in Asia on Monday, slipping as much as 2.5% to $74,541 and staying under $76,000 by midday. This puts it close to its lowest point since Donald Trump’s return to office, after an almost 11% plunge in January that extended losses for a fourth consecutive month.
The crypto slump mirrors a sharp selloff in precious metals, prompting exchanges to tighten trading rules amid wild price swings. CME Group hiked margin requirements—the cash needed to hold futures positions. Tim Waterer at KCM Trade pointed to “forced liquidations and margin increases” triggering a “cascading effect.” Reuters
Margins are crucial since leveraged traders feel the impact immediately. If an exchange raises them, traders scramble to either inject more cash or trim positions quickly. That rush can ripple through other markets.
The sell-off sped up over the weekend when Trump picked Kevin Warsh to succeed Jerome Powell as Fed chair, boosting the dollar and shifting focus back to liquidity concerns. Brian Jacobsen from Annex Wealth Management pointed to the Fed’s “bloated balance sheet combined with heavy-handed bank regulation” as factors inflating bubbles in assets like crypto and metals. Reuters
Altcoins tracked bitcoin’s drop. Ether, the Ethereum network’s token, fell roughly 11% to near $2,382. Solana tumbled about 13%, hitting around $101.9, as traders weighed volatile commodity moves and the Fed chair’s announcement.
The sell-off spilled into Sunday, with Bitcoin sliding to $76,979 by Sunday afternoon. That marked a 12.69% drop over four straight days, Barron’s reported, calling it the largest single-day percentage fall since early March 2025.
By Monday, the sell-off had clearly spread beyond crypto. Silver plunged up to 14.2% and gold dropped as much as 7.5% during Asian trading. Ether also slid over 5% at one point, Reuters reported. Christopher Forbes from CMC Markets described the scene as “risk off and de-leveraging.” Reuters
The road ahead is anything but smooth. Should forced selling persist once the new margin rules kick in, bitcoin might slip further—even without a new crypto trigger. A steadier metals market and a calmer dollar, though, could shift sentiment fast.
