Bitcoin extended its losses into Monday morning Asia time, briefly dipping below $75,000 before recovering slightly — marking its lowest levels since April 2025 and capping a brutal weekend that saw the crypto market hemorrhage value.
As of publication time, Bitcoin is trading at $75,500, down 3.97% over 24 hours and approximately 13% over the past seven days. The total crypto market capitalization stands at $2.54 trillion, having shed 4.62% in the past day alone, per Coinmarketcap data.
Ethereum is faring worse, trading at $2,230 — down 8.92% in 24 hours and over 22% on the week. Solana sits just below the psychologically significant $100 mark at $99.85, down 5.15%.
Historic Liquidation Cascade
The scale of the damage has been extraordinary. According to data from Coinglass, approximately $2.5 billion in leveraged long positions were liquidated on Saturday alone, surpassing even the liquidation events during the FTX collapse ($1.6 billion) and the COVID crash ($1.2 billion).
One trader lost $220 million on a single ETH position on Hyperliquid.
Adding to market anxiety, Bitcoin's dipping below Strategy's average entry point of approximately $76,037 puts Michael Saylor's 500,000+ BTC stack temporarily underwater.
While CoinDesk debunked fears of forced selling – noting none of Saylor's coins are pledged as collateral – there is a more fundamental concern: if Strategy can no longer raise cheap capital to buy Bitcoin, the market loses a key source of demand.
More Orange. pic.twitter.com/b5iYIMARJX
— Michael Saylor (@saylor) February 1, 2026
Saylor has since signaled he will "buy the dip," but sentiment has shifted. Traders are now rushing to buy downside protection, with demand for puts at $75,000 and below surging in the options market.
The Fear & Greed Index has plummeted to 14, indicating "Extreme Fear" — a level not seen since the depths of previous bear markets.
Three-Headed Monster
Analysts pointed to a confluence of factors driving the selloff, including geopolitical shock, the dollar rally, and leverage unwind.
Reports of potential military escalation between the U.S. and Iran over the weekend sent risk appetite into freefall. Bitcoin, as a 24/7 market, served as "the world's ATM," being sold to cover losses and seek safety in traditional havens.
The "store of value" trade also came under siege across all asset classes. Gold crashed 9% on Friday to below $4,600 (having peaked above $5,600 just days earlier), while silver suffered a historic 26% plunge. Analysts suggest Kevin Warsh's nomination to lead the Federal Reserve ignited a massive dollar rally, making dollar-priced assets too expensive for international buyers.
The geopolitical shock hit a market already bruised by thin liquidity. Forced liquidations created a "domino effect" – selling begat lower prices, which triggered more liquidations. Nearly 200,000 traders had positions liquidated on Saturday.
Whales Accumulating, Retail Fleeing
Glassnode data reveals a stark divergence in investor behavior. Small holders (less than 10 BTC) have been persistently selling for over a month, capitulating amid the 35%+ decline from October's $126,000 all-time high.
Meanwhile, "mega-whales" holding 1,000+ BTC have been quietly accumulating — absorbing coins that panicked retail traders are dumping. However, their buying hasn't been sufficient to arrest the decline.
The question on every investor's mind: is this the bottom?
The answer depends on who you ask. The whale accumulation pattern suggests large players view current prices as attractive. Historical precedent shows crypto recoveries can be swift — Bitcoin doubled within a year of the 2022 bottom.
However, analysts caution the structural damage may take time to heal. Eric Crown, a closely followed crypto analyst, warned the market "may face months of further downside."
