Bitcoin Slides 5.5% as Market Cap Dips Toward $2.66 Trillion

Bitcoin drops 5.5% to around $78,600 as liquidations surge and macro tensions weigh on prices, pushing the market cap toward $2.66 trillion.

Rich by Coin

2026-02-01

Bitcoin (BTCUSD) crashed by 5.5% in the past 24 hours to the $78.6k range as a result of significant positions liquidation triggered by extreme fear and geopolitical uncertainty. Price plunged below $84k – $94 range reported in November. The crypto market has been largely volatile with significant high-volume selloffs across top cryptocurrencies. Reflecting negative sentiment, Bitcoin, Ethereum, BNB, XRP, Solana, Tron, and Dogecoin, among others, are down, with extended weekly losses.

The World’s largest digital asset closed below its 365-day moving average of $80K for the first time since April 2025, falling from $126k in the fourth quarter of 2025. BTC underperforms the broader crypto market, which has lost 5.6% in 24 hours due to sell pressures witnessed in top digital assets on Sunday. Global market cap shrank to $.7 trillion at the press time, representing a 5.6% that reflects a mix of macro risks, leverage unwinding, and bearish technical signals. Over $2.58 billion in crypto positions were liquidated in 24h, including $772 million from Bitcoin longs.

The action was driven by cascading margin calls after BTC breached $80K, a key psychological level. Extreme leverage amplified downside momentum, and technical signals indicate that the world’s largest digital asset could slip further. Hence, traders rushed to exit positions, triggering stop-loss orders and creating a feedback loop. Escalating US-Iran tensions over Greenland and the Fed’s pause on rate cuts fueled risk-off sentiment.

Bitcoin’s correlation with equities increased sharply, and its dominance saw capital rotation away from altcoins. Investors rotated into Treasuries and cash, with BTC’s volatility deterring short-term buyers – with trading data showing BlackRock’s $1.2 billion ETF outflow on Jan 30 added institutional selling pressure. Bitcoin’s drop stems from a trifecta of deleveraging, macro anxiety, and breached technical supports.

While oversold conditions suggest a bounce, the absence of whale buying and ETF outflows tilts near-term risks downward. BTCUSD Falls to $88k as Transatlantic Stokes ETF Outflow.