February 4, 2026
Finance

Bitcoin Drops to Lowest Level in Over a Year Amid Widespread Cryptocurrency Sell-Off

Major Digital Assets Including Ethereum, XRP, and Dogecoin Face Declines as Market Fear Dominates

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Summary

Bitcoin has declined to a 15-month low as the cryptocurrency market remains engulfed in extreme fear, driving down prices across major digital currencies such as Ethereum, XRP, and Dogecoin. Liquidations have surged, reflecting heightened market volatility and trader distress, while analysts offer varying outlooks on potential support and resistance levels for Bitcoin’s price.

Key Points

Bitcoin has declined to a 15-month low amid sustained extreme fear in the cryptocurrency market.
A total of 145,087 traders were liquidated in 24 hours, resulting in $631.75 million in liquidations, highlighting increased volatility.
Analysts provide mixed views on Bitcoin’s immediate price outlook, pinpointing key support and resistance levels between roughly $28,000 and $84,000.
Regulatory leaders and industry figures continue to comment on the evolving crypto market structure and regulatory challenges.

Bitcoin recently slid to levels not seen in 15 months as the prevailing market sentiment remained deeply entrenched in what analysts characterize as "Extreme Fear." This negative atmosphere has exerted downward pressure not only on Bitcoin but also on other major cryptocurrencies including Ethereum, XRP, Dogecoin, and Solana.

According to Coinglass data, a significant sell-off has led to the liquidation of 145,087 traders within a 24-hour period, amounting to $631.75 million in liquidations. This surge in forced sell positions highlights the acute stress across the crypto trading community amid continued price declines.

Within this turbulent 24-hour timeframe, select tokens experienced gains, notably Midnight, Morpho, and LayerZero. However, such advances are overshadowed by the overall downward momentum felt across primary cryptocurrencies. Market responders noted that cryptocurrency trading platforms and related stocks have seen marked impacts; for example, Robinhood stock dropped 10%, pressured by Bitcoin’s recent retracement.

Key liquidations reflect the scale of recent market movements, with Bitcoin and Ethereum alone accounting for approximately $704 million in liquidated positions across just one day. Meanwhile, there is focused attention on the $70,000 level for Bitcoin, with some market participants, such as Polymarket, indicating it as a pivotal point that could either hold or break as prices fluctuate.

In regulatory and industry developments, Commodity Futures Trading Commission Chairman Michael Selig commented that the crypto market’s structural framework is on track to become a global "gold standard," underscoring evolving oversight aims. Meanwhile, contrasting perspectives emerge among market experts on recent large-scale losses; for instance, Tom Lee addressed a $6.6 billion loss in Ethereum holdings as an inherent characteristic of market dynamics rather than a flaw.

Tether’s CEO, Paolo Ardoino, issued statements clarifying misconceptions around a reported $20 billion fundraise, also pointing to potential regulatory risks facing stablecoin issuers and the broader cryptosphere.

From a technical trading perspective, analyst Michael van de Poppe noted that Bitcoin is currently trying to establish a "higher low," a technical formation that could support price recovery into the $82,000 to $84,000 range if current supports hold firm. Should these levels fail, he warns that Bitcoin's price might retest the $69,700 zone, coincidentally lining up with its 2021 all-time high.

Van de Poppe advises traders to seek selective long-entry opportunities rather than aggressive short selling, suggesting a cautious but optimistic outlook at present.

On the other hand, crypto chart analyst Ali Martinez presents a more cautious view, emphasizing that Bitcoin’s loss of the $77,086 threshold would significantly heighten downside risks, potentially leading prices toward strong support levels near $60,176 and in more extreme scenarios approaching $47,824.

Adding a broader cyclical context, CryptoCon observed that Bitcoin’s present decline matches the magnitude of the 2022 bear market drawdown, which was approximately 42%. If the current cycle were to mirror previous patterns precisely, Bitcoin’s price could plunge as low as $28,000. However, CryptoCon advises that historical cycles in crypto markets seldom repeat in identical fashion, underscoring the uncertainty inherent in projecting future price moves based solely on past behavior.

At the time of writing, market data reflects the following prices and percentage changes: Bitcoin is trading around $73,260, down 3.17%; Dogecoin at $0.1047, down 1.11%; Ethereum near $2,162, down 3.06%; Shiba Inu at $0.000007, down 0.15%; Solana around $93.03, decreasing 4.80%; and XRP at $1.53, down 2.73%. These figures reinforce the prevailing bearish sentiment across diverse tokens.

Overall, the cryptocurrency landscape is currently characterized by heightened volatility, substantial liquidations, and a cautious stance among traders and investors. Market watchers continue to monitor key technical levels that may signal potential rebounds or further declines amid a global regulatory environment that remains in flux.

Risks
  • Failure of Bitcoin to hold current technical support zones could lead to significant price declines toward $60,176 or even lower to $47,824 and potentially $28,000.
  • Market conditions remain highly volatile, reflected in over $700 million of combined Bitcoin and Ethereum liquidations in 24 hours.
  • There are regulatory uncertainties flagged by industry executives, including potential risks to stablecoins and wider market frameworks.
  • Technical analysis suggests that loss of key price levels increases downside risk and could intensify selling pressure.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - negative ETH - negative XRP - negative DOGE - negative SOL - negative
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