The leading cryptocurrency has fallen below $80,000 for the first time since April 2025. The drop triggered forced liquidations amounting to $2.55 billion, analysts at Wintermute noted.
— Wintermute (@wintermute_t) February 3, 2026
Experts described this event as the tenth largest liquidation volume in the industry’s history. The main sell-offs occurred over a low-liquidity weekend. The market reacted with a delay, “digesting the accumulated negative sentiment from the week.”
Experts identified three reasons that triggered the bearish scenario:
- Weak reports from tech giants. The results of the ‘Magnificent Seven’, especially Microsoft, disappointed investors. This cast doubt on the sustainability of the narrative surrounding artificial intelligence.
- The nomination of Kevin Warsh. The nomination of the financier to head the Federal Reserve was initially perceived by the market as a signal for tight monetary policy.
- Precious metals crash. The fall in gold and silver triggered a wave of margin calls that also affected digital assets.
Wintermute acknowledged the onset of a bear market. Cryptocurrencies are showing worse performance compared to traditional assets.
However, the current crisis differs from previous cycles. It is driven by macroeconomic trends and natural deleveraging, rather than the bankruptcy of major players like FTX or Terra. The market infrastructure has become stronger, and institutional interest has not disappeared but shifted to a wait-and-see mode.
Bitcoin is in a “price discovery” phase. Analysts suggested a market recovery in the second half of 2026, when the future policy of the Federal Reserve becomes clearer.
Earlier in January, Bitwise analysts stated that the fourth quarter of 2025 marked the end of the bear cycle.