Bitcoin Dips Below $75K And Hits New 2026 Low
On Sunday, February 1, Bitcoin prices fell below $75,000, marking their lowest level since April 2025, as a confluence of factors contributed to the downturn. The leading cryptocurrency experienced a decline, reaching approximately $74,500, as reported. Currently, it has plummeted over 40% from its peak of more than $126,000, according to further data. When inquired about the reasons behind this recent decline, analysts pointed to a variety of contributing factors. “Bitcoin’s drop was macro-driven,” stated analyst Joe DiPasquale, adding that “a broad risk-off backdrop hit high-beta assets, and BTC can still trade like a levered proxy for liquidity conditions.” DiPasquale stated “Three macro variables mattered most: real yields moved up, the dollar firmed, and broader risk appetite deteriorated.” He noted “Once it lost key technical levels, the move accelerated as derivatives liquidations and stop-loss selling kicked in. In thin weekend liquidity, that kind of forced unwind can turn a normal drawdown into an air pocket.” Multiple market analysts highlighted that low liquidity and significant leverage utilization are driving more severe losses.
Marc P. Bernegger aligned himself with this perspective. “Over-leveraged positions were wiped out, with billions in liquidations (e.g., topping $5B in some reports),” he stated in an emailed commentary. “Thin weekend liquidity exaggerated moves, turning a correction into a cascade as stops triggered and sellers dominated.” The market expert underscored the impact of investor interest, or the absence of it, on exchange-traded funds. “Spot Bitcoin ETFs experienced notable outflows, indicating a decline in institutional confidence,” stated Bernegger. “The ETF bid that bolstered prices in 2025 has disappeared, intensifying selling pressure.” Erikka Arone provided an alternative perspective on the factors behind bitcoin’s downturn over the weekend. “The decline has been driven by several key factors,” she stated in an email, highlighting that a “Broad market sell-off – Bitcoin’s fall coincided with drops in global equities and precious metals like gold and silver.” Arone stated “This reflects a general risk-off sentiment across markets.” Next, she emphasized the influence of speculation regarding the U.S. central bank, stating, “Federal Reserve uncertainty – Investors turned bearish after news about new US Federal Reserve leadership appointments, raising fears that monetary policy could remain tighter for longer.” Analyst stated “High interest rates typically hurt riskier assets like crypto.”
In addition to that, she highlighted the effects of substantial liquidations and ETF outflows, echoing the sentiments of various other market analysts who provided their insights. Beyond that, Arone emphasized the attitude of investors, noting that “Market sentiment has turned extremely bearish.” As of now, the Alternative. The Fear & Greed Index stood at 17, indicating a state of extreme fear in the market. The measure ranges from zero to 100, where zero indicates extreme fear and 100 signifies extreme greed.
Looking ahead, Gabriel Selby provided insights on the potential future of the world’s most valuable digital currency. “Looking ahead, expect a ‘debasement theme’ rotation, out of overcrowded precious metals and back into Bitcoin, as real yields compress, providing a powerful tailwind for relatively discounted risk assets like crypto,” he stated in an email. “Now that April lows have been taken out, Bitcoin is at a clear inflection point: aggressive, high-volume bidding is needed to commence a new bullish market structure sequence and shift momentum higher,” added Selby. “Failure to maintain levels above the April lows continues to pose downside risks toward long liquidation clusters beneath $70,000, yet the current setup indicates that Bitcoin’s high timeframe bottom may be established if buyers step in with conviction.”
