🌐 Global Market Capitalization: The market has experienced a severe sell-off, with approximately $111 billion evaporating in a single day. Bitcoin has been surpassed by companies like Tesla and Saudi Aramco in the global asset market capitalization rankings, falling to 14th place.
📶 Market Sentiment: The market is in a state of extreme panic and confusion. Investor interest is "extremely low," and trading volume may continue to be sluggish in the next one to two quarters. Bitcoin's asset attributes are facing a serious "identity crisis."
💸 Funds and Liquidations
In the past 24 hours, the market crash triggered a catastrophic wave of leveraged liquidations, setting a recent record.
Total liquidation amount: Total liquidation amount across the network is between $2.2 billion and $2.566 billion.
Liquidation count: Over 400,000 investors globally have been liquidated, the vast majority of whom were long positions.
Major coins: Ethereum liquidated approximately $961 million, Bitcoin liquidated approximately $679 million, SOL liquidated $168 million. The largest single liquidation occurred in the ETH-USD trading pair on Hyperliquid exchange, worth over $220 million.
Whale losses: Numerous well-known whales, including 'Maji Brother' Huang Licheng, have seen their positions completely liquidated, suffering heavy losses.
🔥 Today's focus
Bitcoin loses key defense line, monthly performance dismal: Bitcoin price plummeted, breaking below $80,000 for the first time since April 2025, hitting a low of around $75,687. The entire month of January saw a Bitcoin return rate of -10.17%, marking the fifth worst start to a year since 2013.
The market's 'identity crisis' has intensified, with both safe-haven and risk attributes failing: This crash highlights Bitcoin's positioning dilemma. Previously, it did not follow gold's rise, and now, as precious metals crash, it is declining simultaneously. Analysts generally believe that the market increasingly views cryptocurrencies as purely risk assets, seriously questioning its narrative as 'digital gold.'
Macro policy as the trigger, liquidity fears looming: U.S. President Trump nominated former board member Kevin Walsh as the next Federal Reserve chairman, which is the core macro event triggering market sell-offs. The market fears that he may implement tighter monetary policies, leading to a stronger dollar and draining liquidity from the cryptocurrency market.
Exhausted buying, weak market structure: The market, lacking buying pressure and with thin weekend liquidity, saw small sell-offs trigger a chain of liquidations. Continuous net outflows from the U.S. spot Bitcoin ETF also confirm the decline in institutional interest.
📊 Performance of mainstream coins
Mainstream cryptocurrencies have not escaped the sell-off:
Bitcoin: Price around $78,500-$79,000, 24-hour decline of 6.6%-7%.
Ethereum: Price once reached $2,256, with a 24-hour decline exceeding 9%-11%. Its January return rate was -17.52%, marking the third worst since 2017.
Solana: 24-hour decline exceeding 11%.
BNB, Dogecoin, etc.: Generally severe declines, most exceeding 8%-10%.
🌟 Sectors and hot projects
Market completely collapsed: This round of decline is an indiscriminate sell-off, with no sector spared and no prominent hotspots.
Chain risk emerging: Data shows that a large research institution holds 650,000 Ethereum positions with significant unrealized losses, and if the market remains sluggish, it may face liquidation risks.
🌍 Macro and regulatory dynamics
Geopolitical tensions: Explosions at key ports in Iran, ongoing tensions between the U.S. and Iran, have heightened global market risk aversion and uncertainty.
Regulatory expectations disappointed: The regulatory strength of the U.S. cryptocurrency market structure bill exceeded industry expectations, and the SEC clarified that tokenized stocks will be regulated with the same intensity as regular stocks, undermining market expectations for a 'light regulatory' environment.
🐌 Market insights
On February 1, the cryptocurrency market experienced a complete collapse of confidence under multiple impacts of macro policy shifts, liquidity panic, and its own 'identity crisis.' Bitcoin broke below key psychological and technical support levels, marking not only a decline in price but also indicating that its narrative as 'digital gold' or 'inflation hedge' is basically ineffective at this stage.
The core contradiction in the current market has shifted from seeking catalysts for a rise to redefining the essential attributes of assets. In the context where traditional safe-haven assets (gold) and risk assets (tech stocks) have clear narratives and capital support, cryptocurrencies find themselves in an awkward middle ground, lacking reasons for sustained capital inflows.
In the short term, the market has entered a clear downtrend, with sentiment dominating everything. Technically, there is no obvious support for Bitcoin below, and attention should be paid to the previous low around $75,000. The market's stabilization requires not only the exhaustion of panic selling but also a strong new narrative to rebuild confidence. In the absence of clear catalysts, the market may need a longer time to consolidate at low levels to digest floating positions and reconstruct position structures.