$BTC Bitcoin (BTC) has taken a significant hit, sliding below the critical $75,000 mark as of February 2, 2026. The current price is hovering around $77,825.01, showing a bearish trend that has caught many traders off guard. If you are wondering why your portfolio is in the red, here is a deep dive into the factors driving this crash.
The Primary Reasons for the Dump
Macroeconomic Shifts & Fed Chair Nomination:
The most significant "spark" for this decline is the nomination of Kevin Warsh as the next Federal Reserve Chair by President Trump. Warsh is known for favoring a tighter monetary policy and a smaller Fed balance sheet. Investors fear that under his leadership, liquidity in the financial system will dry up, making speculative assets like Bitcoin less attractive.
ETF Outflows:
The institutional conviction that drove BTC to new highs last year seems to be fading. In January 2026 alone, US spot Bitcoin ETFs saw over $1.6 billion in net outflows. This "institutional risk reduction" suggests that big players are moving their money into safer havens or AI-linked stocks.
Liquidation Cascades:
Over the low-liquidity weekend, more than $2 billion in crypto positions were liquidated. When prices start to dip, "long" positions are forced to sell, creating a domino effect that pushes the price even lower.
Global Market Rout:
It’s not just Bitcoin. We are seeing a "meltdown" in the metals space, with gold and silver prices crashing from record highs. As global markets turn defensive, investors are fleeing to cash, leaving digital assets vulnerable.
Technical Analysis: What the Chart Says
Looking at the 4-hour chart provided by Tajamal:
Price Action: BTC is trading well below its 20, 50, and 100 EMA lines, which is a clear bearish signal.
Support & Resistance: The immediate resistance is now at $80,000–$82,000. On the downside, if the current support at $74,853 fails, we could see a retest of the $72,000–$70,000 range.
RSI: The Relative Strength Index is trending downwards, indicating that sellers are still in control of the momentum.
Final Thoughts for Traders
The current sentiment is "Extreme Fear" (18/100). While some might see this as a "buy the dip" opportunity, experts warn that 2026 may be a year of choppy consolidation rather than new all-time highs.
Recommendation: Avoid high-leverage trades in this volatile environment. Wait for a clear reversal or a successful retest of the $70k support before making heavy moves.
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BTC73,256.66-6.82%