Bitcoin is coming off a brutal week. The world’s biggest cryptocurrency fell below $80,000 for the first time since April 2025, wiping out billions in value.
As of Monday morning, Bitcoin was trading around $77,925, slightly recovering after dropping as low as $74,876 over the weekend. The crash has been severe: in just seven days, Bitcoin has lost about 12% of its value, erasing more than $200 billion from the market.
Why Is Bitcoin crashing?
This is not just a crypto problem. It is a global market problem. Analysts say the drop happened because investors are scared of risk.
- Tech Stocks: U.S. stocks fell on Friday, led by a 10% drop in Microsoft shares.
- Precious Metals: Silver crashed 30% on Friday, its worst day since 1980. Gold also fell.
- Fed Fears: Investors are worried about Kevin Warsh, the new pick for Federal Reserve Chair, and what his policies might mean for money markets.
Because Bitcoin often moves in the same direction as the stock market, the bad news in tech and metals pulled crypto down with it.
The $2 Billion Wipeout
The drop was made worse by “liquidations.” This happens when traders who bet with borrowed money are forced to sell automatically when the price drops too low. According to data from Coinglass, more than $2 billion in Bitcoin bets (long and short positions) have been liquidated since Thursday. On Saturday alone, liquidations hit $2.56 billion—the 10th biggest single-day loss in crypto history.
How Low Can It Go?
Experts are divided on what happens next.
- Optimistic View: Yuya Hasegawa from Bitbank believes a “short-term bottom” is near, likely around $70,000.
- Pessimistic View: John Blank from Zacks warns that Bitcoin could fall much further. He predicts it could hit $40,000 this year.
“We can get there very quickly,” Blank told CNBC. A drop to $40,000 would mean Bitcoin has lost about 70% of its value from its record high of $126,000 in October—a pattern seen in previous “crypto winters.”
SOURCES
- CNBC (Market Report Feb 2, 2026)
- Coinglass (Liquidation Data)
- CoinShares (Fund Flow Report)
DISCLAIMER This content is for informational purposes only and is not financial advice. Consult a professional before making decisions.