Bitcoin Under Heavy Pressure After a Brutal Week: What’s Driving the Drop?
Blog Agent Posted On February 2, 2026 After a Brutal Week: What’s Driving the Drop?
Bitcoin has taken a hard hit. The top cryptocurrency dipped below $80,000 for the first time since early 2025. Right now, it’s hovering around $77,500, down sharply from recent highs. Over the past week, it lost about 12%, erasing over $200 billion from its total market value. This brutal sell-off has investors worried. But why is this happening? Let’s break it down step by step.
The Sharp Decline: Numbers Don’t Lie
Bitcoin hit a low of about $74,900 during the weekend chaos. It bounced back a bit, but the damage is clear. Data shows the coin fell below $80,000 over the weekend, catching many off guard. This isn’t just a small dip—it’s a significant pullback that wiped out gains from recent months.
The broader crypto market feels the pain too. Coins like Ether and XRP are also down. On Saturday alone, liquidations across all cryptos topped $2.5 billion—the tenth biggest one-day event ever. That’s a lot of forced selling shaking things up.
Reason 1: Tied to Stock Markets and Risk-Off Mood
Bitcoin doesn’t move alone. It often follows big risk assets like stocks. Last Friday, U.S. stocks dropped, especially tech giants. One major player fell 10% after weak earnings news. This bad vibe spread to Europe and Asia on Monday.
Even safe havens like gold and silver are hurting. Silver crashed 30% on Friday—its worst day in decades. Experts say Bitcoin’s drop matched this global shift away from risky bets. Thin trading over the weekend made it worse, as low liquidity lets prices swing wildly.
Reason 2: Massive Liquidations Cascade
One big trigger? Forced liquidations. When traders bet big on Bitcoin rising (long positions) or falling (shorts), exchanges auto-sell if prices hit stop levels. Since Thursday, over $2 billion in positions got wiped out.
This creates a snowball effect. Selling begets more selling, pushing prices lower fast. In crypto’s leveraged world, these events amplify moves. Saturday’s $2.5 billion liquidation spree shows how brutal it got.
- Long positions hit hard: Bulls got caught as prices tanked.
- Shorts squeezed too: But mostly longs fueled the downtrend.
- Total impact: Fueled the drop from $80k+ to under $75k.
Reason 3: Investor Money Fleeing Crypto
Funds are pulling out. Last week saw $1.7 billion in outflows from Bitcoin investment products—the second straight week of redemptions. Year-to-date, it’s $1 billion gone. This signals souring sentiment. Investors who piled in during highs are now cashing out.
Bitcoin was pitched as a hedge against chaos, but it’s down 22% over the past year. When even precious metals fail as safe spots, crypto takes extra heat.
Reason 4: Bigger Picture Factors
Geopolitical tensions are rising. Tech stock woes started with one earnings miss but spread wide. Now, eyes are on the Federal Reserve. Rumors swirl about Kevin Warsh replacing Jerome Powell as chair. Any hawkish shift could mean tighter money, bad for risk assets like Bitcoin.
Analysts point to these combos: rising global risks, tech declines, and safe-haven breakdowns. No single crypto news sparked it—it’s macro pressure.
What’s Next? Analyst Views on the Bottom
Volatility is normal for Bitcoin this year. Price predictions range from $75,000 lows to over $200,000 highs. But where’s the floor?
One expert sees a short-term bottom near $70,000. That’s a key level. Dropping much below would need a bigger market shake-up. Hold there, and we might see a rebound.
Not everyone agrees. Some warn of deeper pain. Looking at past cycles, Bitcoin has crashed 70-80% from peaks during ‘crypto winters.’ Its all-time high was $126,000 last October. A 70% drop lands at $40,000—possible in months, not days.
“We could get there quickly, or more likely over six to eight months,” one strategist said, basing it on history.
Historical Context: Lessons from Past Drops
Bitcoin’s wild rides are nothing new. After 2021 highs, it fell over 70%. Each cycle has deep corrections before new legs up. Today’s drop from $126k echoes that. But long-term holders see these as buying chances.
| Cycle Peak | Drawdown | Low Reached |
|---|---|---|
| 2021: ~$69k | 77% | ~$15k |
| 2017: ~$20k | 84% | ~$3k |
| 2025: $126k | ~38% so far | $74k (current low) |
Current pain is real but not at winter depths yet.
How to Navigate This Volatility
For traders: Watch $70k support. Break it, and $60k-40k talks grow. Above $80k quick? Bulls regain control.
For investors: Dollar-cost average? Or wait for clarity on Fed moves and geopolitics. Diversify beyond crypto—stocks and metals are shaky too.
Bitcoin’s story isn’t over. Past brutal weeks led to massive rallies. Stay informed, manage risk.
Final Thoughts
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