CRYPTO PRICES TODAY (FEB. 2): BTC DROPS BELOW $75K; XRP, LINK, AND XMR EXTEND LOSSES

Crypto prices today remain under pressure as Bitcoin and major altcoins continue to fall, weighed down by forced liquidations, weak market liquidity, and fragile investor sentiment.

The total cryptocurrency market capitalization dropped 2.8% to around $2.6 trillion. Bitcoin was trading near $75,501 at the time of writing, down 5.2% over the past 24 hours. Losses were sharper among altcoins, with XRP falling 4.5% to $1.59, Chainlink declining 5.5% to $9.48, and Monero sliding 12% to $405.

Liquidations surge as volatility increases

Market activity picked up as prices declined. Data from CoinGlass showed that liquidations jumped 79% over the past 24 hours to about $520 million. Total open interest also rose 4% to $108 billion.

This suggests many traders continued using leverage despite deteriorating conditions, leaving positions exposed once prices moved lower.

Sentiment across the market remains weak. The Crypto Fear & Greed Index stood at 14, firmly in “extreme fear” territory. Momentum indicators also remain subdued, with the average relative strength index near 35, signaling that buyers are still cautious.

Liquidity issues and leverage drive the sell-off

In a January 31 post on X, analysts at The Kobeissi Letter said market structure, not a single news event, drove the recent decline.

“Why is Bitcoin below $79,000? It’s entirely a liquidity situation,” the firm said, pointing to three major liquidation waves totaling roughly $1.3 billion within 12 hours. In a market with inconsistent depth, heavy leverage amplified price swings as orders were cleared rapidly.

The firm said trader sentiment is shifting quickly, with optimism often giving way to sudden fear and sharper price swings.

Macro- and geopolitical factors add pressure

External factors have added to the weakness. Hawkish signals from the U.S. Federal Reserve and a stronger dollar have reduced appetite for risk assets. Bitcoin has increasingly been trading like a high-risk tech asset rather than a traditional hedge.

Geopolitical concerns, including tensions surrounding U.S.–Iran relations, have further dampened confidence. At the same time, uncertainty over U.S. crypto regulation continues to weigh on markets, as key legislation related to market structure and stablecoins remains stalled.

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Analysts are divided on how deep the correction could go

Short-term conditions remain fragile as traders prepare for increased volatility ahead of upcoming U.S. economic data releases, including inflation and employment reports. Bitcoin has slipped below several medium-term support levels, leading some analysts to warn that the market could be entering a more bearish phase.

Bearish analysts point to technical weakness, including stretched conditions below lower Bollinger Bands and fading long-term indicators. Some expect further downside toward the mid-$70,000 range or lower if selling pressure continues, arguing that full capitulation may not yet have occurred.

Others see signs that a rebound could still develop. Oversold conditions resemble past setups that preceded short-term recoveries, and February has historically been a strong month for Bitcoin. Some analysts say a move back above $80,000 could improve sentiment if ETF outflows slow and macro conditions stabilize.

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XWIN Research Japan, a contributor to CryptoQuant, described the current phase as a mild, range-bound correction rather than the start of a full bear market. Its apparent demand indicator showed a net outflow of around 19,000 BTC in late January, pointing to soft demand and increased supply pressure.

The firm added that current conditions remain far less severe than in previous bear markets. Most of the selling appears driven by profit-taking rather than panic, with no clear signs yet of widespread capitulation among long-term holders.