Analysts blamed a decline in metal prices and a general “risk-off” sentiment in international markets for Bitcoin’s early February 2 decline to a roughly 15% low.
Bitcoin Falls Below $75,000: Market Overview
The biggest cryptocurrency in the world dropped to $74,964, down around 5% over the previous day and 14.55% over the course of a week. Over $2 billion in holdings were liquidated over the period due to the fall, which caused volatility throughout the cryptocurrency market.
“With Bitcoin falling below $76,000 and Ethereum close to $2,200 as over $2 billion in positions were liquidated amid low-liquidity weekend trading, the cryptocurrency market continued its severe downturn this week. $1.6 billion in net withdrawals from US spot Bitcoin ETFs in January contributed to the sell-off, indicating a decrease in institutional risk, according to Riya Sehgal, a research analyst at Delta Exchange.
Technical Analysis and Support Levels
Technically, ETH is under selling pressure below $2,500, which might lead to a retest of $2,000; BTC is still below its major barrier at $80K–$82K, with downside targets close to $72K–$70K. Until macro stability returns and ETF inflows start, crypto markets are likely to stay defensive. Before a long-term recovery can start, traders anticipate turbulent consolidation or more declines, according to Sehgal.
In the last day, Ethereum fell 10.28 percent, XRP 6.94 percent, Solana 6.20 percent, Dogecoin 3.59 percent, Cardano 5.48 percent, BNB 5.12 percent, and Tron 1.17 percent. In contrast, USDC and Tether saw increases of 0.02 and 0.03 percent, respectively.
Top Gainers and Losers
The research team at CoinDCX states that “MYX Finance and Decred are the biggest gainers amid the negative clouds, with 16.21% and 11.48% leaps, followed by World Liberty Financial and Canton with more than 5.7% climbs each.” Additionally, Monero drops by more than 10.61%, Kaspa and Ethereum by more than 6%, and Bitget Token, Nexo, Chainlink, and Mantle by more than 4% each.
This is the movement of the cryptocurrency price as of 10:47 a.m. IST on February 2.
Macroeconomic and Geopolitical Impacts
Macroeconomic and geopolitical issues exacerbated the slump, according to cryptocurrency specialists. The choice of Kevin Warsh, a considered hawk who is anticipated to support tighter monetary policy, as the next chair of the Federal Reserve by US President Trump caused a negative reaction in the markets. The action sparked sell-offs of riskier assets, including cryptocurrency, and an increase in the value of the US dollar.
Concurrently, there was a wider flight to safety due to geopolitical tensions, reports of an explosion at Iran’s Bandar Abbas port, and worries about a potential escalation between the US and Iran, which further burdened digital assets. The return of Bitcoin to the mid-range of $70,000 indicates a distinct change in the market’s stance.
Investor Guidance Amid Volatility
Crypto markets will probably continue to be volatile in the near future since gold is drawing larger inflows and macro uncertainty is still affecting mood. Investors should avoid chasing short-term swings, focus on staggered accumulation near important support zones around $74,000 to $76,000, and prioritise portfolio balance rather than leverage,” said Avinash Shekhar, Co-Founder & CEO, Pi42.
Nischal Shetty, the founder of WazirX, claims that for the last 24 hours, cryptocurrency markets have mostly followed the general attitude on global risk.
Integration with Global Financial Markets
What’s becoming increasingly evident is how intimately crypto is now interwoven into global financial markets. The same reasons, including liquidity circumstances, interest rate expectations, and current geopolitical developments, are driving short-term price swings.
Additionally, market activity indicates a more comprehensive review of capital allocation. Participants are shifting their positions and awaiting more clarity due to conflicting signals from the world’s economies. Due to this, there have been no significant directional changes in the prices of the main cryptocurrency assets.
The past 24 hours demonstrate that, in the case of Bitcoin in particular, broader risk sentiment continues to be the dominant factor influencing price behavior. Movements in Bitcoin look increasingly responsive to macro headlines and swings in global market mood, rather than crypto-specific developments.”
🚀 Bitcoin & Crypto Market Highlights
- Bitcoin Price: $74,964
- Ethereum Price: $2,200
- Total Liquidated Positions: $2 billion+
- US Spot Bitcoin ETF Outflows: $1.6 billion in January
- Market Sentiment: Risk-off, macro uncertainty & low liquidity
💡 Investor Tips Amid Market Volatility
- Focus: Staggered accumulation near support zones ($74K–$76K)
- Strategy: Avoid chasing short-term swings
- Portfolio: Prioritize balance over leverage
- Outlook: Expect continued volatility and consolidation
- Macro Watch: Keep track of geopolitical and financial developments
Frequently Asked Questions
1. What caused Bitcoin to go below $75,000?
Global risk aversion, institutional withdrawals from Bitcoin ETFs, macroeconomic uncertainties, geopolitical tensions, and low weekend liquidity all contributed to Bitcoin’s decline.
2. How are other cryptocurrencies affected?
The majority of significant altcoins, such as Ethereum, XRP, Solana, and Cardano, all saw drops. USDC and Tether are examples of stablecoins. Some smaller coins, however, witnessed advances amid selective buying.
3. Is the market projected to recover soon?
Until macro stability comes and ETF inflows start up again, analysts predict that the market will continue to be erratic. Before a long-term rebound, Bitcoin might settle between $74,000 and $76,000.
4. Should investors panic or sell now?
Experts advise avoiding chasing short-term changes. Investors should prioritize portfolio balance over leveraged holdings and concentrate on staggered accumulation close to support zones.
5. How is Bitcoin tied to global financial markets?
Instead of only crypto-specific events, the price of bitcoin is becoming more and more influenced by geopolitical happenings, interest rate predictions, and global risk sentiment.
Conclusion
Bitcoin’s slide below $75,000 demonstrates how interwoven cryptocurrencies have become with global financial markets. Macroeconomic uncertainty, institutional outflows, geopolitical concerns, and poor liquidity all contributed to the notable short-term volatility.
Experts advise careful, balanced investment plans over panic selling, even though the market may face more consolidation. Investors who concentrate on long-term accumulation and important support zones will probably be better able to handle the current market volatility.
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency investments are highly volatile and involve risk. Readers should conduct their own research and consult a licensed financial advisor before making any investment decisions.
