Bitcoin (BTC) slid below $75,000 on February 2, its lowest level since April 2025, as a broad sell-off rippled across crypto, commodities, and equities. Natural gas prices fell 15.5%, while silver and gold dropped 8% and 5.5%, respectively, erasing trillions in combined market value.
US Nasdaq futures declined 1.8%, and South Korea’s KOSPI halted trading after a 5% drop, highlighting the widespread nature of the market stress. Analysts noted that excessive leverage in thinly liquid markets created cascading liquidations rather than any single macro or geopolitical trigger.
Bitcoin and Crypto Market Impact
Ethereum dropped 10.5%, and the total crypto market capitalization declined by approximately $700 billion in two weeks. Despite these losses, Bitcoin’s decline
was less severe than Ethereum’s, though its benchmark role amplified market sentiment pressures. The asset has lost roughly 40% from its October 2025 all-time high of $126,000 and closed January with a fourth consecutive monthly decline, a streak last observed during the 2018 bear market. Volatility has intensified, with intraday ranges fluctuating between $74,500 and $79,000.
Institutional and Liquidity Context
The sell-off extended beyond crypto into traditional safe-haven assets, reflecting investor preference for cash amid economic uncertainty. Corporate insider selling ratios in US-listed firms reached 4.8 in January, the highest since early 2021, suggesting executives were securing gains ahead of broader downturns. Market watchers interpret the cross-asset retrenchment as a liquidity-driven adjustment, with participants reallocating capital in response to perceived overvaluation and macroeconomic headwinds.
