February 2 News, the cryptocurrency market experienced accelerated selling pressure, with Bitcoin briefly dropping to $74,550, hitting a nearly 10-month low. Ethereum, XRP, and Dogecoin also weakened simultaneously, with major assets all declining across the board. The Fear and Greed Index fell to 14, entering the “Extreme Fear” zone. The total market capitalization of digital assets retreated to approximately $2.53 trillion, evaporating over $510 billion in the short term.
Risk assets generally came under pressure. US stock index futures declined, with tech-heavy indices opening lower; precious metals also weakened, with gold falling over 8% in three trading days. Multiple signals combined to heighten risk-averse sentiment among investors.
Bitcoin retraced about 5%–6 on the day—main factors include US fiscal uncertainty, geopolitical tensions, escalating tariff disputes, and tightening liquidity expectations. Previously, news of Trump nominating Kevin Warsh as Federal Reserve Chair was interpreted by the market as a hawkish signal, suggesting a potential slowdown in future rate cuts, putting pressure on risk assets.
Derivatives markets experienced a “liquidation cascade.” In the past 24 hours, approximately $800 million in positions were forcibly liquidated across the market, with over 200,000 traders exiting, the majority of whom were long positions. The concentrated stop-losses in a short period further amplified the downward movement.
From a technical perspective, Peter Brandt lowered Bitcoin’s target range to around $54,000; Rekt Capital pointed out that after the monthly chart broke below a key structure, the trend remains weak. Ali Martinez indicated that Ethereum’s key support levels are at $2,250 and $2,100, while for XRP, attention is on $1.38 and $1.02.
Capital flows are also under pressure. Spot Bitcoin and Ethereum-related products continue to see outflows, combined with a tightening macro environment, leading to a clear lack of confidence in a short-term rebound. Some institutions and large addresses have begun to buy back in batches, but overall, deleveraging remains dominant.
The current trend shows that BTC, ETH, XRP, and DOGE are still in a high-volatility phase. If key supports are broken, the market may test lower levels. Investors should pay attention to liquidity changes and policy signals that could trigger chain reactions.
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