Bitcoin fell below $72,000 on February 4, 2026, marking its lowest level since November 2024 and dragging the total cryptocurrency market value down to $2.54 trillion, a 3% decline in 24 hours. Ethereum and XRP also slumped sharply, with the Fear and Greed Index hitting extreme fear levels around 14. The crash coincided with a stock market selloff and geopolitical tensions.
The cryptocurrency market experienced significant turmoil on February 4, 2026, as Bitcoin led a broad selloff, slipping below key support at $75,000 and briefly dipping under $72,000—its lowest since early November 2024. This erased gains from the post-Trump election rally, with Bitcoin trading around $73,000 after a more than 3% drop in 24 hours and nearly 19% over the past week. The total market capitalization fell to about $2.54 trillion, down over 3% in the period, according to CoinGecko data. Bitcoin's dominance, accounting for nearly 60% of the market, amplified the impact, triggering over $240 million in Bitcoin liquidations and contributing to total liquidations surging 192% to $794 million, affecting 174,000 traders. Ethereum positions alone saw $307 million liquidated.
Ethereum underperformed, declining nearly 4% in 24 hours and 28% over the week, hovering near $2,000–$2,300 support amid negative sentiment, persistent short positioning, and negative funding rates on derivatives. XRP fell nearly 20% weekly, trading near $1.55, as altcoins like Solana (down 7%) struggled with fading risk appetite. The Fear and Greed Index dropped to 14, signaling extreme fear, a level that has historically preceded rebounds but also deeper declines.
The crypto downturn mirrored weakness in traditional markets, with strong correlations to U.S. indices like the S&P 500 and Nasdaq 100, where tech stocks such as AMD and Palantir dropped over 10%. Analysts noted rising macroeconomic uncertainty around interest rates and capital flows. Geopolitical concerns added pressure, including fears of U.S. action against Iran under President Trump, boosting safe-havens like gold above $5,000 while crude oil neared $70.
Crypto-related stocks tumbled: Strategy Inc. sank over 5% to multi-month lows, Coinbase fell more than 7% to $169, and miners like Hut 8 and Core Scientific dropped 8–9%. Aurelie Barthere of Nansen observed, “It feels like the correlation between crypto and US equities is turning positive again as they sell off simultaneously.” Bitcoin miners pivoting to AI faced further hits, with IREN down 17%.
Digital asset treasury firms reported over $19 billion in unrealized losses, all underwater. Canaccord analyst Joseph Vafi slashed his Strategy price target to $185 from $474, citing Bitcoin's 'identity crisis' as a risk asset amid volatility. Citi's Alex Saunders warned of persistent downside as Bitcoin tests $70,000–$82,000 levels, with ETF flows key to the next move. Markets eye whether Bitcoin holds $72,000–$74,000 for a potential rebound.
