Key Points
- Bitcoin fell sharply amid market fear, liquidations, and ETF outflows.
- Binance actions and institutional behavior continue to support Bitcoin.
The crypto market experienced heightened volatility on February 2, with Bitcoin falling to levels last seen in April 2025.
The total crypto market cap declined over 2% in 24 hours, standing near $2.6 trillion during the downturn.
Market sentiment weakened further as the CMC Crypto Fear and Greed Index dropped into the Extreme Fear zone, falling from 18 to 15.
Despite the broader decline, Binance released announcements emphasizing continued support for Bitcoin.
Market pressure and recent price movements
At the time of reporting, Bitcoin traded above $77,000 after briefly dipping near $74,000 earlier in the day.
The asset declined more than 1% over 24 hours, extending losses that began after its peak above $90,000 on January 28.
Bitcoin closed January down over 10%, marking its first negative January performance since 2022 based on CoinGlass data.
Historically, January losses for Bitcoin have occurred infrequently, with the steepest decline exceeding 33% in 2015.
The downturn coincided with four straight days of outflows from U.S.-listed Bitcoin ETFs totaling roughly $1.5 billion.
BlackRock’s IBIT recorded its largest single-day outflow on January 30, surpassing $528 million.
Broader market stress was amplified by heavy crypto liquidations, which exceeded $828 million in 24 hours.
Ethereum led liquidation volumes with over $312 million, followed by Bitcoin at more than $274 million.
Over a four-day span, total crypto liquidations surpassed $5 billion, representing the largest wave since October.
Additional macro uncertainty, including geopolitical tensions and partial U.S. government shutdown concerns, contributed to risk aversion across markets.
Ongoing support and stabilizing factors
Analysts characterized the recent decline as a deleveraging event influenced by negative sentiment and broader macro liquidity pressures.
Expectations remain focused on reduced liquidation volumes, renewed ETF inflows, and improved sentiment as potential stabilizing signals.
Corporate accumulation trends continued as Strategy signaled further Bitcoin purchases despite recent price declines.
Binance confirmed progress in converting its $1 billion SAFU fund into Bitcoin reserves, completing an initial $100 million conversion.
The exchange plans to continue converting the remaining SAFU funds into Bitcoin throughout February.
Short-term price expectations suggest Bitcoin may fluctuate between $70,000 and $80,000, while Ethereum may trade between $1,800 and $2,600 amid thin liquidity conditions.
