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Sunday, February 1, 2026 – The cryptocurrency market is reeling today as Bitcoin (BTC) experienced a sharp decline, falling below the critical $80,000 mark. This downturn, part of a broader selloff affecting various digital assets, has sent shockwaves through the crypto community, with significant implications for investors and the future of the market. This article provides an in-depth analysis of the situation, including the latest market reactions, expert opinions, and potential future scenarios.
The drop came amid thin liquidity and limited buying interest, deepening a drawdown that has erased more than 30% from the world’s largest cryptocurrency. Bitcoin fell as much as 10% to $75,709.88 during New York afternoon trading hours, while other tokens posted steeper losses. Ether, the second-largest digital asset, shed as much as 17%, and Solana at one point dropped over 17%. The selloff knocked about $111 billion off the crypto market’s total value in the past 24 hours, according to CoinGecko data.
Detailed Timeline of Events
The downturn began on Saturday, February 1st, with Bitcoin’s price tumbling below $80,000, reaching the lowest levels since April 2025. At 1:00 AM Beijing time on February 1, 2026, Bitcoin briefly fell below $76,000, breaking below Strategy’s cost line for the first time in nearly two and a half years. This also marked the first drop below the $80,000 mark since April 12, 2025, bringing it perilously close to the low of approximately $74,500 set on April 7, 2025.
Market Impact
The immediate impact on the market was significant. According to CoinAnk data, within 24 hours, the total liquidation volume of cryptocurrency futures contracts across all exchanges neared $2.2 billion, with over 335,000 investors wiped out, marking the highest single-day liquidation volume since “10.11”. Among these, Ethereum accounted for approximately $961 million in liquidations, Bitcoin for $679 million, and SOL for $168 million.
Major cryptocurrencies experienced substantial losses. Bitcoin was down by 6.53 per cent at US$78,719.63 at 1748 GMT on Saturday. Ether also fell 11.76 per cent to US$2,387.77 on Saturday afternoon. Other altcoins also suffered, with Solana dropping over 17%.
Key Event Details
| Date | Involved Parties | Market Impact | Status |
|---|---|---|---|
| February 1, 2026 | Bitcoin, Ethereum, Solana, and other cryptocurrencies | Bitcoin down 6.63%, Ether down 17%, $2.2 billion in liquidations | Ongoing selloff |
Expert Reactions
The market’s sharp decline has prompted varied reactions from industry experts. Trader Eugene Ng Ah Sio expressed concerns, stating, “It seems this time we are the ones being ‘harvested,’ so I’m pulling back”. He noted that the recent market downturn had shaken even the most steadfast bulls, leading to widespread frustration and capitulation. Ng Ah Sio highlighted that many are predicting lower prices, yet he believes the risk-reward ratio for going long is favorable, with a clear stop-loss set below $80,000.
In contrast, some “mega-whales” are reportedly accumulating Bitcoin at these discounted prices, betting on a monumental rebound. This divergence in sentiment raises a critical question: Are we on the cusp of a historic buying opportunity, or is this the prelude to a deeper crash?
Behind the Scenes: Analysis and Significance
Several factors are contributing to the current market downturn. Thin liquidity and limited buying interest have deepened the selloff. Delay in new US market-structure regulations for the crypto sector has also undermined appetite for digital assets. The dollar gained after former Federal Reserve Governor Kevin Warsh was selected as the next Fed chair, which some investors and traders are concerned might tighten up on cash in the financial system.
The high liquidation volumes and the sharp decline in Bitcoin’s price reflect a loss of confidence among investors. The situation is exacerbated by geopolitical tension, macroeconomic uncertainty, and risk-off sentiment among investors. The market’s reaction underscores the volatile nature of cryptocurrencies and the sensitivity to regulatory developments and macroeconomic factors.
What’s Next?
Investors should anticipate continued volatility in the coming days. Technical analysis suggests potential support levels around $75,000, but a break below this level could trigger further declines. Investors should consider diversifying across assets, setting clear entry and exit points, and leveraging data-driven tools.
The upcoming weeks will be crucial in determining the market’s direction. The long-term outlook for Bitcoin and the broader crypto market remains uncertain, but strategic positioning and informed decision-making could be key to navigating the turbulent waters. You can also consider exploring articles like Which Meme Coins Can Reach 1 Dollar in 2025? to diversify your investment portfolio. For more insights, visit Next Bitcoins.
