Continuing the downturn from late January, the cryptocurrency market plunged further on February 3, 2026, with Bitcoin hitting $72,800—its lowest since before the 2024 U.S. election—and Ethereum dropping sharply. The sell-off, fueled by broader stock weakness and liquidity concerns, eased slightly after the U.S. House passed a funding bill to end the partial government shutdown. Experts caution of more declines but spot stabilization signals.
The crypto market resumed its slide on February 3, 2026, after a brief recovery spurred by President Donald Trump's pro-digital asset remarks. This followed the sharp January 31 crash amid geopolitical tensions and the partial government shutdown's onset. Total market cap dropped ~4% to $2.6 trillion, with the Fear & Greed Index at 17 signaling extreme fear.
Bitcoin (59% dominance) led losses, dipping to $72,800—weakest since pre-Trump's 2024 win—before stabilizing at $74,800-$75,000 (down 4.5-5% daily, 11-16% weekly), still 40% below its $126,080 October 2025 peak. Ethereum tumbled 7% daily to ~$2,181 (22-26% weekly), far from its $4,946 high. XRP and Solana also fell, Solana below $100.
Declines accelerated with U.S. stock opens, diverging from S&P 500/gold but tracking tech (Shopify, Adobe, Salesforce -7-12%) and private equity (Blackstone, KKR -6-10%). A January 23 BlackRock private debt fund markdown (19%) fueled liquidity worries.
Relief came as the House narrowly passed (217-214) a funding package, averting deeper shutdown impacts. Over $55 million in longs liquidated quickly. Analysis varied: Kraken's Matt Howells-Barby flags $54,000 risk if $77k-$79k fails; Galaxy's Alex Thorn eyes $56k-$58k. Bitwise's Matt Hougan calls it a 'crypto winter' like 2022, nearing end; Kaiko's Laurens Fraussen sees milder 6-9 months with regs; CryptoQuant notes steady reserves.
Focus remains on Fed cues, ETF flows, and $2.59 trillion cap as key support.
