Bitcoin dipped below $74,000 on February 3, 2026, trading around $73,000, erasing gains since President Donald Trump’s November 2024 election victory, per The Block. The cryptocurrency, which hit an all-time high of $126,080 on October 6, 2025, has lost 30% in the past month, per TradingView. Glassnode data shows 44% of the supply is now “underwater,” with supply in profit dropping to 56% from 78%, indicating pressure from recent buyers, per. Liquidations exceeded $663M in 24 hours, with $122M in longs wiped out in one hour, Coinglass.
Ethereum fell over 9% to below $2,200, Solana dropped 7% to under $100, and XRP declined 6.6% to $1.52, per The Block’s data. Canton led losses among top 25 tokens, down 10% to $0.17. Crypto stocks mirrored the slump: Coinbase down 6%, Strategy over 8%. Terawulf bucked the trend on AI infrastructure news. Despite $561.9M in spot Bitcoin ETF inflows on Monday, reversing two weeks of outflows, sentiment remains cautious amid U.S. government shutdown fears and macroeconomic uncertainty.
Bitcoin’s Relative Strength Index (RSI) hovers near 30, an oversold level last seen at the 2022 bear-market bottom, when BTC fell another 20%, per TradingView. A similar move today could target $60,000. Derivatives amplified losses, with a $220M Ether liquidation highlighting leverage flush, Bitfinex. Analysts note weak hands selling, testing the conviction of top buyers near the ATH, Glassnode’s Sean Rose. Bitcoin last traded below $74,000 pre-Trump election, underscoring the reversal from post-victory euphoria.
Despite the downturn, spot Bitcoin ETFs posted strong Monday inflows, with Solana and XRP-linked ETPs attracting capital amid rotation from large-caps, per Bitfinex. Fed Chair Jerome Powell’s upcoming speech and FOMC minutes could sway sentiment, with 85% odds of a September rate cut, per CME FedWatch. Investors should watch the $75,000 support and ETF flows on SoSoValue. Dollar-cost averaging into BTC with stop-losses below $70,000, or diversifying into USDC, hedges risks, per Techopedia. Follow @TheBlock__ on X for updates. The correction may flush leverage, setting up a rebound if macro conditions improve.
