Bitcoin briefly dropped to $73,000 on Tuesday, marking its lowest level since November 2024, before rebounding to just over $76,000. The asset has lost 14 percent in the past week and 18 percent over the past month, with its market capitalization falling to $1.525 trillion and dominance over altcoins declining to 57.3 percent.
The cryptocurrency experienced a rollercoaster week, moving from a challenge of the $90,000 resistance ahead of the FOMC meeting to sharp declines after the Fed announced no rate cuts. Escalating tensions in the Middle East contributed to further drops, including dips to $81,000 on Thursday and under $75,000 on Saturday. Recovery attempts to $79,000 on Monday were rejected, leading to the latest 15-month low.
Altcoins have followed Bitcoin’s volatility, but some have been hit harder. Solana fell below $100 after a 7 percent daily drop, while Ethereum declined from over $3,000 to $2,100 before bouncing to $2,280. BNB dropped to $760, and high-flyer HYPE retraced 11 percent to $33. CC and ZEC are also deep in the red, though XMR has gained among the larger caps.
The total crypto market capitalization fell by more than $70 billion in a single day, reaching $2.65 trillion, reflecting the heightened volatility and broad market weakness.
A leading crypto analyst has outlined several factors behind Bitcoin’s recent struggles while also pointing to potential long-term support. Post Fiat founder Alex Good, also known as ‘goodalexander,’ shared the analysis on February 3, 2026, as social sentiment around digital assets hit its lowest point in months and Bitcoin traded near nine-month lows.
Factors Driving the Downturn
Good identified eight main reasons for the current slump. The primary factor is the failure of major blockchain adoption narratives to deliver sustained value. Examples include Arbitrum’s brief surge after a Robinhood announcement, later overshadowed by the broker’s own in-house solution, and Nasdaq’s preference for private blockchains instead of public networks for trading.
Low fee capture on major layer-one protocols has also undermined confidence. Solana’s daily fees, for instance, dropped to around $1 million from previous peaks above $24 million during the “Trump coin” craze. Other factors include macroeconomic attention on equities, gold, and AI, which has diverted focus from crypto. Bitcoin has also acted as a “Trump proxy,” performing based on pro-crypto policy expectations that have not fully materialized.
Structural pressures add to the downside. Widening discounts on digital asset trusts may incentivize activist investors to sell underlying tokens, creating additional selling pressure. Social sentiment data from Santiment shows strong retail fear following Bitcoin’s 16 percent drop over the past week, marking the lowest levels since November 2025. CoinShares reports $1.7 billion in weekly outflows from digital asset products, including $1.32 billion from Bitcoin alone. Since October 2025, the sector has lost $73 billion in assets under management.
Factors That Could Support Bitcoin
Despite the sell-off, Good highlighted several potential long-term support factors. A more fragmented global order, rising debt, and the risk of wealth taxes could renew interest in fixed-supply assets. He also suggested that AI could increase unemployment rather than create jobs, which may pressure central banks to ease policy—a historically positive factor for scarce assets.
Other analysts share a cautiously optimistic view. Global Macro Investor founder Raoul Pal explained that Bitcoin’s recent decline reflects a U.S. liquidity drain from fiscal issues and government shutdowns rather than a structural market failure. Future liquidity easing could improve conditions, even if short-term momentum remains weak.
Market watchers like Daan Crypto Trades note that Bitcoin’s ability to hold the mid-$70,000 range is critical. A sustained move above $80,000 could stabilize markets, while another dip could further test investor confidence.
Despite strong inflows into XRP ETFs, Ripple’s price fell below $1.55 before recovering slightly, highlighting ongoing volatility in the crypto market. Investor behavior has diverged across crypto ETFs, with Bitcoin funds continuing to see net outflows while XRP products outperformed their peers. Heightened geopolitical tensions, market uncertainty, and the partial reopening of the US government have influenced trading patterns and investor sentiment.
Data from SoSoValue shows that spot Bitcoin ETFs have struggled over the past several weeks. February 2 was a rare exception, with $560 million entering the funds, but the previous business week saw $1.4 billion withdrawn. February 3 was another difficult day, with $272 million in outflows. For the first time in 18 months, BTC ETF investors’ holdings have fallen below the average cost basis of accumulated Bitcoin, reflecting the prolonged bearish pressure.
By contrast, ETFs tracking other large-cap altcoins performed better. Spot Ethereum ETFs attracted $14.06 million in net inflows, while SOL funds gained $1.24 million. XRP products led the market, with $19.46 million flowing into the funds, more than all other crypto ETFs combined. This was the largest daily inflow for Ripple ETFs since January 5, when $46.10 million entered. Cumulative net inflows into XRP ETFs now total $1.20 billion, slightly below the $1.26 billion peak recorded before the January 29 market crash.
Ripple’s price remained highly volatile during the trading day. Bitcoin fell to a yearly low of $73,000 before rebounding above $76,000, while XRP dropped to $1.53, surged to $1.63, and settled at $1.60. The token is down nearly 17 percent over the past week and 25 percent over the past month. Since reaching a high of $2.40 on January 6, XRP has struggled to maintain momentum, failing to establish a sustainable recovery despite strong ETF inflows and growing interest from institutional investors.
The performance of XRP ETFs demonstrates that investor demand for the token can remain robust even when spot prices face significant pressure. Analysts suggest that while ETF inflows can provide short-term support, the broader market and macroeconomic uncertainties will continue to influence XRP’s price trajectory in the near term.
Flare, the decentralized finance blockchain network, has introduced the first modular lending markets for XRP, bringing permissionless lending to the cryptocurrency. The deployment comes through a partnership with the modular lending protocol Morpho, while the Mystic platform will act as the front-end interface for these new markets.
Modular Lending Markets for XRP
Modular lending separates traditional all-in-one crypto lending pools into independent and customizable components. This allows users to create markets with specific oracle feeds and risk parameters instead of relying on a single pool for all assets. The design improves efficiency and security, which is particularly important in the volatile crypto environment.
The launch represents a major step for Flare’s XRP DeFi initiative, transforming XRP from a largely dormant asset into a source of yield and a composable strategy. Flare has previously expanded DeFi for XRP through initiatives like Spectra for yield tokenization, Hyperliquid for spot trading, Firelight for staking, and FXRP, its version of XRP, which unlocks on-chain yield opportunities.
Expanding the XRPFi Ecosystem
With Morpho and Mystic, FXRP holders can now deposit assets into curated yield-bearing vaults. Users can borrow supported assets using FXRP, Flare (FLR), or USDT0 as collateral and integrate lending positions into structured strategies that combine staking, lending, and borrowing within a single ecosystem.
Flare explained that each market supports a single collateral and loan asset, with parameters such as loan-to-value ratios defined at creation. Markets can be launched without permission, while curated vaults allocate capital across selected markets based on risk and yield objectives. While Mystic is currently the primary interface, Flare plans to add additional access points, including the Morpho main application, in the future.
Bitcoin dropped to around $73,000 in late trading on Tuesday, its lowest level since November 2024. The decline broke the April 2025 support level of approximately $74,500, confirming that the asset is deep in bear market territory. Swissblock reported that negative momentum remains extreme following the October 10 flash crash. Bitcoin has now fallen 25 percent in less than three weeks and is down 40 percent from its all-time high.
Analyst ‘Bull Theory’ noted that Bitcoin has lost more than $53,000 in the past 120 days, suggesting either extreme market manipulation or major underlying issues within the crypto sector. The drop coincided with renewed geopolitical tensions as Iran seeks a new format for nuclear talks with the United States.
Short-Term Holders Contribute to Selling Pressure
CryptoQuant analyst ‘Darkfost’ highlighted that short-term holders have been selling aggressively over the past few days. More than 40,000 BTC were moved to exchanges at a loss in the last day, contributing to downward pressure. Santiment reported that wallets holding between 10 and 10,000 BTC, which control over two-thirds of all Bitcoin, have sold 50,181 BTC in the past two weeks.
Despite this, Binance shows no signs of stress. CryptoQuant noted that exchange reserves remain near 659,000 BTC, netflows are normal, and movements represent only 0.6 percent, far from the -12 percent panic withdrawals seen after FTX collapsed. Analyst ‘Sykodelic’ suggested that the drop below $74,000 could set the stage for the next major upward move, describing it as a potential bear trap designed to push weak hands out of the market.
Total Market Capitalization Hits Nine-Month Low
By early Wednesday trading in Asia, Bitcoin had recovered slightly to $76,500, making the dip below long-term support brief. The broader crypto market, however, remains under pressure. Total market capitalization has fallen to a nine-month low of $2.64 trillion. Ethereum dropped to $2,120 before a minor rebound, and most altcoins have returned to crypto winter lows with minimal recovery.
BitRiver, Russia’s biggest Bitcoin mining company, is facing bankruptcy amid mounting financial and legal troubles. Its parent company, Fox Group of Companies, has been placed under court observation as debts and unpaid obligations accumulate.
One key dispute involves Infrastructure of Siberia, which is seeking more than $9 million after BitRiver failed to deliver mining equipment despite receiving a large advance payment. A court ruled in favor of the energy firm.
Operational and Energy Challenges
Government restrictions have forced several of BitRiver’s mining sites to shut down. Centers in Irkutsk and Buryatia remain offline, while a 40 MW facility in Ingushetia was closed for violating local regulations. Rising unpaid electricity bills have led energy suppliers to file claims worth hundreds of millions of rubles, further limiting the company’s operations.
Leadership issues have compounded the crisis. Founder and CEO Igor Runets was placed under house arrest over multiple tax evasion charges, with authorities claiming he attempted to conceal company assets. Runets and his legal team deny these allegations.
Sector Pressures and Global Impact
International pressures have also hurt BitRiver. US sanctions and the withdrawal of foreign partners, including Japanese firms like SBI, have reduced access to global markets and supply channels. At its peak, BitRiver managed over 175,000 rigs across 15 centers and generated $129 million in revenue last year, highlighting the rapid scale of its decline.
Despite BitRiver’s collapse, Russia’s crypto mining industry continues to grow. Grid-connected mining capacity increased 33 percent in 2025 to 4 GW, showing strong domestic demand. Analysts suggest that while BitRiver’s bankruptcy highlights the risks of operating in restrictive regions, Russia remains a significant player in global Bitcoin mining.
Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, stated that the cryptocurrency market has been in a prolonged “crypto winter” since January 2025, though signs suggest the downturn may be closer to ending than beginning.
Positive Developments Are Not Reflecting in Prices
In a recent post titled “The Depths of Crypto Winter,” Hougan explained that despite ongoing progress in adoption, regulation, and institutional involvement, the market remains in a severe bear phase. Bitcoin has fallen nearly 39 percent from its October 2025 all-time high, Ethereum is down 53 percent, and many other digital assets have declined even more. He emphasized that this is not a short-term correction but a deep and extended bear market similar to those of 2018 and 2022, driven by excessive leverage and profit-taking by long-term holders.
Hougan noted that developments such as the appointment of a pro-Bitcoin Federal Reserve chair, increased institutional hiring in crypto, and growing adoption by traditional financial firms have had little impact on investor sentiment. He added that “good news doesn’t matter in the depths of winter” and that market recoveries often occur gradually through exhaustion and normalization of sentiment rather than sudden enthusiasm.
Institutional Support Masked True Losses
Institutional flows, including ETFs and Digital Asset Treasuries, helped soften the decline for some large-cap assets. According to Bitwise data, Bitcoin, Ethereum, and XRP only fell between 10 and 20 percent due to this support, while retail-focused tokens such as Solana, Litecoin, Chainlink, Cardano, Avalanche, Sui, and Polkadot suffered losses ranging from 37 to 75 percent. Hougan noted that ETFs and DATs bought over 744,000 Bitcoin, roughly $75 billion in support, which prevented a potential 60 percent decline for BTC since January 2025.
He concluded that several factors indicate the current crypto winter may soon end. Hougan expressed optimism, saying, “I think we’re going to come roaring back sooner rather than later. Heck, it’s been winter since January 2025. Spring is surely coming soon.”
Bitcoin’s Global Position Has Weakened
The market downturn is also reflected in Bitcoin’s standing among global assets. As of February 2, Bitcoin has fallen out of the top ten by market capitalization and now ranks 13th globally. Its market cap has dropped to around $1.56 trillion from roughly $2.35 trillion in July 2025, when it ranked sixth after rallying past $119,000.
Bitcoin has struggled to recover above $78,000 following heavy losses over the past weekend, with bears regaining control and pushing the price down. Galaxy Digital research head Alex Thorn warned that recent on-chain data and market trends indicate further downside risk for BTC. Weak momentum, macroeconomic uncertainty, and a lack of clear catalysts suggest continued pressure rather than relief.
Downtrend Strengthens
Thorn highlighted Bitcoin’s sharp late-January sell-off, when the price fell 15 percent between January 28 and 31 and accelerated into the weekend. On Saturday alone, the roughly 10 percent drop triggered one of the largest liquidation events on record, wiping out over $2 billion in long positions across futures exchanges.
During this period, BTC touched $75,644 on Coinbase and fell about 10 percent below the average cost basis of US spot Bitcoin ETFs, estimated at $84,000. The price briefly dipped below Strategy’s reported average cost of $76,037 and approached its one-year low of $74,420 set during April 2025.
Thorn noted that 46 percent of Bitcoin’s circulating supply is underwater, meaning those coins last moved at higher prices. January also marked four consecutive red monthly candles for BTC for the first time since 2018. Historically, except for 2017, Bitcoin has not experienced a roughly 40 percent drawdown from an all-time high without extending toward a 50 percent decline within three months. Based on the current cycle, this suggests potential prices around $63,000.
The research also pointed to a large gap in on-chain ownership between $82,000 and $70,000, indicating limited demand in that range and increasing the likelihood of further declines. Current analysis places Bitcoin’s realized price near $56,000 and the 200-week moving average around $58,000, levels that remain relevant as long as spot prices stay above them.
Thorn added that whale accumulation is limited, long-term holder selling has eased only slightly, and clear market catalysts are hard to identify. Bitcoin has underperformed compared to safe-haven assets like gold and silver amid heightened macro and geopolitical uncertainty. While the passage of the CLARITY Act could act as a positive external factor, its likelihood has diminished, and any benefits may favor altcoins more than Bitcoin.
These factors suggest that Bitcoin could drift toward the lower $70,000 range and possibly test the 200-week moving average and realized price in the high $50,000 area in the coming weeks. Historically, these levels have represented cycle bottoms and strong long-term entry points.
BTC Bottom Could Fall Further
Crypto analyst Doctor Profit recently lowered his expectations for Bitcoin’s cycle bottom following the price decline. He now projects a bottom between $54,000 and $44,000, down from his previous estimate of $50,000 to $60,000, citing the loss of key technical support levels.
Bitcoin declined further in the past few hours, sliding from around $78,000 to roughly $74,780 after several sharp red candles. The move triggered about $20 million in liquidations across major derivatives exchanges, with long positions accounting for most of the losses.
Within the last hour alone, Bitcoin dropped approximately 1.7 percent. Most altcoins mirrored the decline, with Ethereum down 2 percent, XRP falling 1.56 percent, Solana losing 1.5 percent, and Cardano sliding 2.6 percent.
The sudden market drop coincides with reports that Iran is seeking to alter the format of nuclear discussions with the United States. Several Middle Eastern nations including Egypt, Qatar, Saudi Arabia, and Oman had been working to facilitate talks between Iran and the US in Istanbul this Friday. Iran is now said to be pushing for direct bilateral talks instead.
This potential shift could undermine diplomatic efforts and raise the risk of a US military response as tensions increase alongside former President Trump’s military buildup in the Gulf region, according to the report.
Bitcoin continues to move in contrast to traditional safe haven assets such as gold, which has not shown negative reaction to the news. Instead, gold has risen about 3.5 percent over the past 24 hours, while Bitcoin is down nearly 5 percent over the same period, highlighting the depth of the current bear market.
Bitcoin advocate Pierre Rochard reignited long standing divisions within the crypto space after dismissing altcoins as irrelevant and arguing that United States policy should prioritize Bitcoin alone.
His remarks came as Bitcoin slipped below $75,000 during a broad market sell off driven by macroeconomic pressure and regulatory uncertainty in Washington.
Maximalist Rhetoric During Market Turmoil
In a February 3 post on X, Rochard used blunt language to reject the value of all non Bitcoin crypto assets. He said he did not want to hear from supporters of altcoins and claimed these assets have done nothing more than benefit from Bitcoin’s success, adding that they should be thankful for whatever outcomes occur.
His comments surfaced during a period of sharp market weakness. Bitcoin has fallen nearly 11 percent over the past week, wiping out recent corporate paper gains across the sector.
On February 2, Strategy, the largest corporate holder of Bitcoin, announced the purchase of 855 BTC for $75.3 million. However, as prices declined, the firm’s unrealized gains dropped from nearly $8 billion last week to below $3 billion. Since late January, the broader crypto market has shed an estimated $500 billion in value.
Rochard also outlined a plan he believes could reignite a Bitcoin bull market. His proposal centers on three government actions including creating a strategic Bitcoin reserve, making Bitcoin tax exempt, and allowing the Federal Reserve to accumulate Bitcoin.
The comments triggered debate online. One user noted that many now want Bitcoin treated like real money when tax advantages are involved. Rochard responded by saying Bitcoin is not a foreign currency and should be exempt from taxation.
Policy Focus Differs in Washington
Rochard’s policy vision contrasts with Washington’s current priorities. On February 2, representatives from major crypto companies and traditional banks met at the White House to discuss stablecoin yield regulations, a key issue holding back progress on the CLARITY Act in the Senate.
Reacting to coverage of the meeting, Rochard argued that attention should be on Bitcoin tax exemption and establishing a strategic Bitcoin reserve rather than debating stablecoin yields, which he described as a major distraction.
The broader market backdrop remains difficult. A wide ranging sell off has affected equities, commodities, and crypto alike. Gold and silver have seen sharp declines, while Bitcoin has slipped out of the top ten global assets by market capitalization and now ranks twelfth. These conditions suggest that volatility remains a major hurdle for Rochard’s bullish policy proposals to gain traction.
