crypto lovers Royal

The cryptocurrency market is currently experiencing a severe downturn as of early February 2026, driven by a convergence of macroeconomic shifts, geopolitical instability, and massive liquidations. Bitcoin (BTC) has fallen to nine-month lows, dropping below the critical $80,000 psychological support level on February 1, 2026.
Key Reasons for the Current Drop
Geopolitical Tensions: Markets have shifted into a "risk-off" mode following reports of an explosion at Iran's Bandar Abbas port and renewed threats of military strikes in the Middle East. Investors are fleeing volatile assets like crypto in favour of traditional safe-havens like gold.U.S. Political & Economic Uncertainty: A brief U.S. government shutdown and a hawkish stance from the Federal Reserve have dampened investor sentiment. Following the first policy meeting of 2026, the Fed held interest rates steady at 3.50%–3.75%, signaling that rate cuts are unlikely until late in the year.Massive Liquidations: Thin weekend liquidity exacerbated price swings, triggering a cascade of forced liquidations. Over $2.5 billion in crypto positions were wiped out in 24 hours, with a single trader losing over $220 million on an Ethereum position.Institutional Outflows: U.S. spot Bitcoin ETFs have seen significant selling pressure, recording $817.9 million in outflows in a single day, the largest of the year.Regulatory Stalling: Frustration has grown over the delay of the Clarity Act, a landmark crypto market structure bill in the U.S. Senate, which has faced a lack of bipartisan support.
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Disclaimers:Info and knowledge sharing.Not a financial advice.
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