Cold Wave Hits Crypto Market, $100 Billion Market Cap Crashes Overnight, Winter Waits for Spring Tide
A sudden cold wave sweeps through the cryptocurrency market, leading to the most severe crash of 2026. BTC loses the $75,500 mark, hitting a new low since April 2025, down by 30% from last October's peak. ETH plunges to $2,250, and altcoins are in despair. 430,000 traders face liquidation, with $2.6 billion in funds evaporating, and a single day sees a $100 billion market cap vanish. Amid the wails of zeroed-out accounts, panic selling sweeps the market, leaving only devastation in what was once a hot trading scene. This crash didn't happen overnight; it is as the saying goes, 'When the rivers flow east to the sea, when will they return west?' Five major factors resonate and overlap, causing this liquidity collapse crisis. The Fed's hawkish stance suddenly emerges, and the expectation of Waller's appointment shatters the dovish fantasy. High interest rates and strict regulations freeze market funds; the aftereffects of the flash crash on 1011 linger, severely injuring market makers, with market liquidity as thin as a cicada's wing. The geopolitical black swan of the US-Iran situation strikes, completely collapsing the narrative of cryptocurrency as a 'digital safe haven,' with funds rushing into the US dollar and treasury bonds. Bitcoin ETFs shift from being boosters to reverse pulls, institutional funds accelerate their withdrawal, and under the reassessed opportunity costs, the crypto market loses support again. The epic crash of precious metals triggers a cross-market chain reaction, completely breaching the confidence barrier.
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Reasons for the crypto market crash on February 1, will Bitcoin reach 50,000? When will the market rebound?
In the early hours of February 1, the crypto market once again faced an epic collapse. Bitcoin and Ethereum saw daily declines of nearly 15%, while altcoins almost entirely collapsed, leaving the market in despair. It is worth noting that after Bitcoin fell out of the top ten most valuable assets globally, its ranking further dropped to 14th place, suffering another blow in terms of sentiment.
The main reasons for yesterday's sharp decline can be summarized as follows: 1. Ongoing geopolitical tensions Risk appetite rapidly decreased, causing high-volatility risk assets like Bitcoin to be avoided first. 2. Uncertainty regarding the new Federal Reserve chair nominee
#加密市场回调 Cryptocurrency Market Crashed Last Night! Bitcoin Falls Below $76,000, Ethereum Plunges Below $2,250: Three Heartbreaking Reasons Point to the Core Issue
Last night, the cryptocurrency market experienced another shocking crash. Bitcoin fell below the $76,000 mark, and Ethereum plummeted to $2,250. The market was in an uproar, and the three underlying reasons are all heartbreaking, directly exposing the core pain points of the cryptocurrency market!
First, the immediate trigger: Trump's nomination of a hawkish Federal Reserve Chairman sparked a liquidity panic. Trump's decision to appoint a hawkish figure as the new Fed Chairman instantly sent shockwaves through the market! Hawks are known for their emphasis on tightening monetary policy, and the market was convinced that future liquidity would continue to tighten. Panic first spread from the US stock market, and the cryptocurrency market, as a high-risk asset, was the first to bear the brunt, experiencing a sharp decline.
Second, the fundamental reason: Bitcoin's "digital gold" persona has completely collapsed, turning it into a puppet of macroeconomic policy. Once touted as "digital gold," it has long lost its safe-haven appeal. Instead, it's highly correlated with the performance of US stocks, especially tech stocks, becoming a risk asset entirely controlled by macroeconomic policies. It doesn't follow gold's safe-haven appeal and crashes when the dollar fluctuates; the so-called risk-resistant myth has been completely shattered, and the story of "digital gold" can no longer be told.
Thirdly, a fatal accelerator: high leverage fueled the fire, creating a vicious cycle of stampede-like crashes. Before the crash, leverage ratios in the cryptocurrency market had already soared to high levels. The entire market was like a room filled with flammable materials, ready to explode at the slightest disturbance. Once prices dipped, it immediately triggered a chain reaction of liquidations, creating a stampede-like negative feedback loop of "decline-liquidation-sell-further decline," amplifying the drop and making the collapse even more severe and devastating.
The current sideways stabilization in the cryptocurrency market is most likely just a brief respite before the storm. When the decentralized halo that the cryptocurrency world was so proud of completely disappeared, its true nature was exposed: a purely speculative market that was held hostage by high leverage and manipulated by global capital, and was extremely fragile!
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On February 1st, the London gold spot price fell below $5000, reaching a low of $4680/ounce, with a maximum intraday decline of over 10%, closing at $4884.36/ounce, a drop of 10.18%; London silver also plummeted, with a decline of nearly 20%. Domestic gold T+D is reported at 1070 yuan/gram, with a drop of 9.47%.
Core Reasons for the Plunge
• Hawkish expectations from the Federal Reserve: Officials have signaled that inflation has not met targets and do not support interest rate cuts for now, leading to a stronger dollar and increased opportunity cost of holding non-yielding gold.
• High leverage liquidation: Previous excessive gains have concentrated long leverage, and falling prices triggered stop-losses and forced liquidations, creating a cycle of "decline - liquidation - accelerated decline."
• Overbought technical indicators and profit-taking: RSI has been in the overbought range for a long time, with high-level profit-taking concentrated in escape, and algorithmic trading amplifying volatility.
• Insufficient liquidity: Particularly severe for silver, with a small scale and high open contracts, a small number of sell orders can trigger a price collapse.
Market Impact and Operational Suggestions
• Over $2.5 billion in liquidations across the network within 24 hours, mainstream cryptocurrencies have broadly declined $恭喜发财#恭喜发财 #Dogecoin
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24-hour surge of 226.30%, price skyrocketing from 0.09U to 0.389U, trading volume exceeding 5.8 billion! Bollinger Bands opening upwards, bullish momentum fully charged, short-term peak at 0.48U followed by high-level fluctuations. Market sentiment is euphoric, sell orders accounting for 64.99%, caution is advised for chasing highs, a pullback is an opportunity!🔥 $ETH #Crypto market pullback