Bitcoin Crash: Why Prices Plunged to 72K

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In the chilly theatre of the markets, Bitcoin has slipped from its pedestal, briefly tiptoeing below the $73,000 mark-the sort of numerical misstep one would expect from a fashionable folly rather than a sober asset. The fall to roughly $73,000 last Tuesday marks the first relishing dip since the long-forgotten November 2024 chapter.

Summary

  • Bitcoin flirted with a ten-month nadir at $72,884 on Wednesday.
  • A torrent of liquidations dragged the price below familiar supports, like a row of dominoes with particularly unsporting luck.
  • Institutional appetite for Bitcoin has cooled to a drily polite, almost aristocratic indifference.

As crypto.news records, Bitcoin touched about $72,884 during the session-a level not seen since the immediate aftermath of the 2024 US presidential election. While it has regained a touch of vanity, it remains roughly 40% shy of its October 2025 all-time snarl of $126,080.

Bitcoin’s downward arc continues through the week, aided by a trifecta of hawkish macro shifts, geopolitical wrangles, and the merciless sweep of leveraged liquidations.

A hawkish pivot collides with the world’s trade tempers

The bellwether has largely been swayed by a broader risk-off mood in the crypto salon after the nomination of Kevin Warsh as the next head of the Federal Reserve. Warsh is whispered of as a hawk who may prefer tighter policy and higher rates for longer, nudging investors to stash capital away from such risky amusements as crypto.

Escalating tensions between the U.S. and Iran have also nudged investors toward traditional safe havens like gold and silver, which have surged while Bitcoin has conspicuously failed to replicate the glint of a digital gold hedge.

Investors are also wary of escalating trade-war tensions as President Trump continues to target global trading partners, weeks after a brief pause on some fronts. This week, tariffs on South Korea could be raised to 25% and Canada could face 50% duties over aircraft and China-related disputes.

Such trade-war fatigue has forced investors to withdraw from Bitcoin and the crypto market in general as they await calmer macro signals before venturing back in.

Cascading liquidations and a cooling period for institutions

Over the past week, Bitcoin has slipped beneath a slate of psychological support levels, dampening investor confidence. The drop below $75,000 triggered a cascade of forced selling across the crypto market from highly leveraged traders.

Over $525 million in leveraged long positions were wiped out in the last 24 hours, with Bitcoin accounting for about $214 million of that total.

Meanwhile, spot Bitcoin ETFs-once a steadfast ally in riding Bitcoin’s rally-have failed to drum up demand as institutional players retreat amid uncertainty. SoSoValue data shows these products shedding over $6 billion in the past three months.

Imminent labor data

Investors await the release of key U.S. data that could cue the Fed’s next move on interest rates.

This week, non-farm payrolls and the unemployment rate, due Friday, will be the most scrutinised indicators for the broader markets. A softer labor report is typically seen as a bullish spark for crypto, since it heightens the odds of monetary easing.

Additionally, the Initial Jobless Claims data-due a day earlier-will provide fresh insights into the health of the workforce. Fewer claims usually bolster the U.S. dollar, which can cast a chilly shadow over crypto prices.

Is Bitcoin price at risk of more losses?

When pressed on how far Bitcoin might fall, Kadan Stadelmann, CTO of Komodo Platform, warned that a dip to around $20,000 should not be dismissed, particularly if panic endures and macro uncertainty lingers.

However, he stressed that such a bottom, if reached, would likely prove transient, given that long-term fundamentals and institutional interest persist.

“There is the argument that the steep price declines of past bear markets are unlikely to repeat themselves due to institutional involvement, which would place Bitcoin’s bottom closer to $60,000,” Stadelmann told crypto.news.

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2026-02-04 12:16