The first cryptocurrency has fallen below $80,000 for the first time since April 2025. This drop was triggered by forced liquidations totaling $2.55 billion, according to analysts at Wintermute.
— Wintermute (@wintermute_t) February 3, 2026
Experts noted that this event marked the tenth-largest liquidation volume in the industry's history. Major sell-offs occurred over the weekend when liquidity was low. The market reacted slowly to the news, "digesting the accumulated negativity from the week."
Analysts highlighted three reasons that triggered this bearish scenario:
- Weak reports from tech giants. The results from the "Magnificent Seven" companies, particularly Microsoft, disappointed investors, casting doubt on the resilience of the narrative surrounding artificial intelligence.
- Kevin Warsh's nomination. The nomination of the financier to head the Federal Reserve was initially perceived by the market as a signal for a tighter monetary policy.
- Plunge in precious metals. The decline in gold and silver prices triggered a wave of margin calls that also affected digital assets.
Wintermute confirmed the onset of a bear market, with cryptocurrencies showing worse performance compared to traditional assets.
However, this current crisis differs from previous cycles. It is driven by macroeconomic trends and a natural reduction in debt load (deleveraging), rather than the bankruptcy of major players like FTX or Terra. The market infrastructure has strengthened, and institutional interest has not disappeared but has shifted to a wait-and-see mode.
Bitcoin is currently in a "price discovery" phase. Analysts anticipate a market recovery in the second half of 2026, once the Federal Reserve's future policies become clearer.
Recall that in January, analysts at Bitwise stated that the fourth quarter of 2025 marked the end of the bear cycle.