The crypto market, including tokens on Binance, saw sharp declines in early February 2026 (around Feb 1–5), with Bitcoin dropping below $80,000 (briefly to ~$72,000–$76,000 levels), Ethereum falling ~9–24% in sessions, BNB down over 8–15% to around $712–$770, and altcoins experiencing widespread bloodbaths. The total market cap lost over $100 billion in single days, with extreme fear sentiment and billions in liquidations (e.g., $2.5–2.56 billion in 24 hours, mostly longs).
No evidence supports a full "collapse of all tokens" exclusively on Binance or platform failure this week. Instead, it's a market-wide correction continuing from the October 2025 "10/10" flash crash ($19 billion liquidated), where thin liquidity and high leverage amplified volatility.
Key contributing factors:
- Macro pressures: Trump's Fed chair nomination (Kevin Warsh) sparked re-pricing of higher-for-longer rates, stronger dollar, and risk-off moves. Tech earnings disappointments, precious metals sell-offs, and geopolitical tensions (e.g., US-Iran, tariffs) shifted funds away from crypto, undermining its "digital gold" narrative.
- Leverage unwind & liquidations: Over-leveraged longs cascaded; thin weekend liquidity exaggerated drops. Post-October, order books remain weak, making small sells devastating.
- Lingering October FUD: Blame on Binance (e.g., USDe yield campaign causing depegs, alleged glitches, or API issues) persists, fueling distrust, outflows, and boycotts despite denials from CZ and data showing reserves stable.
- Institutional/ETF outflows: Continuous Bitcoin ETF net outflows eroded confidence.
- Binance-specific noise: Brief withdrawal pauses (technical, quickly fixed) and account closure FUD (some coordinated) added panic, but on-chain data shows inflows/net stability, not mass exodus.
Overall, macro risk-off + structural fragility from prior events drove the dip, not a Binance-only collapse. Sentiment is fragile, but no systemic insolvency signs exist.