NEW YORK, Feb 4, 2026, 14:26 EST
- Bitcoin dropped up to 5.4%, hitting $72,047—its lowest level since November 2024
- CoinGecko data showed the total crypto market value has dropped roughly $467.6 billion since Jan. 29
- Recent days saw $2.56 billion worth of bitcoin positions liquidated, according to CoinGlass data
Bitcoin dropped up to 5.4%, sliding to $72,047 on Wednesday—the weakest since roughly 15 months ago—amid a wider selloff in cryptocurrencies. The Nasdaq 100 also dipped over 2%, dragged down by rate-sensitive shares.
The decline unfolds amid a broad pullback from risk assets, with global equities falling and the dollar gaining ground as traders grapple with U.S. interest rate prospects and ongoing geopolitical concerns. Oil prices rose, driven by sustained tensions between the U.S. and Iran.
Bitcoin’s “digital gold” narrative is facing fresh skepticism after it struggled to maintain steady demand in a week when investors sought safe havens. “Asia morning sentiment is cautious and defensive,” said BTC Markets analyst Rachael Lucas, noting that dips below $73,000 have driven sentiment into “extreme fear.” The Economic Times
A surge of forced selling has intensified price swings. According to CoinGlass, $2.56 billion in bitcoin positions were liquidated over the past few days — liquidations occur when leveraged bets are automatically closed as losses exceed the collateral posted. Kaiko analyst Adam McCarthy said investors are “taking a step back” to reassess risk. Meanwhile, Charles Schwab’s Jim Ferraioli highlighted external shocks, including a blow to the so-called AI trade — bets linked to artificial intelligence stocks. Reuters
Derivatives markets are showing warning signs. Open interest—the number of outstanding futures contracts—dropped sharply over the weekend. At the same time, funding rates on perpetual futures turned negative, indicating traders are shifting toward bearish bets. “Crypto sentiment is hitting rock bottom,” said Augustine Fan, partner at options platform SignalPlus. The National
Losses widened among key tokens as the selloff intensified. Ether and Solana both took steep hits in the past 24 hours, while liquidations across the broader market surpassed $650 million, according to Decrypt.
Crypto-related stocks are slipping alongside bitcoin, with investors using them to gauge its moves. Coinbase and bitcoin-treasury company Strategy have both dropped by at least 15% in the past five trading days, according to Investopedia.
U.S. stocks slid further, weighed down by skepticism around software firms. Investors flagged fresh AI developments as a fresh risk to profit margins and pricing strength.
The bigger concern is what unfolds if the sell-off persists and major holders start feeling trapped. Business Insider highlighted $76,000 — the average purchase price for bitcoin held by Strategy — as a critical level traders have their eyes on. Meanwhile, Zacks Investment Research chief strategist John Blank warned that bitcoin could drop as low as $40,000.
Policy uncertainty is adding pressure. A White House meeting meant to resolve deadlock between banks and crypto companies over stablecoin rewards — these tokens are usually tied to the dollar — wrapped up with no deal. That leaves a key U.S. market-structure bill stalled.
Traders are keeping an eye on whether the liquidation pressure will ease and if the stock selloff will stabilize. Crypto markets never sleep, and the next shock often hits when liquidity is at its lowest.
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