In the last 24 hours, Bitcoin(BTC) has lost 5.5% to $73,10, as forced liquidations and lackluster demand drive prices lower. At press time, the total crypto market capitalization was down 4.4% to $2.35 (t)trillion. Almost every top 100 altcoin was in the red.

Solana(SOL) fell momentarily below $90, a level last seen in 2024, and was trading at $91, down 7.6%. Uniswap fell 3% to $3.78, while Pump.fun lost 6% to $0.002271.

Alternative’s Fear and Greed Index dropped two points to 12, keeping it in the acute fear area. The average relative strength index for the market was 40, indicating weak short-term momentum. Furthermore, total open interest declined 4% to $106 billion, indicating further deleveraging.

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Crypto prices fall as liquidations increase

Forced liquidations of leveraged futures and perpetual contracts contributed significantly to the selling pressure. Traders with heavily leveraged long holdings received margin calls, prompting exchanges to automatically close those positions. This increased the selling and resulted to cascading losses.

According to CoinGlass statistics, long positions represented for $520 million of the $650 million in total liquidations, up 22% from the previous day. Since late January 2026, cumulative liquidations have totaled around $7 billion, adding to a $500 billion decline in market value during the same period.

Open interest is presently at multi-month lows in various markets, indicating that over-leveraged positions are being liquidated.

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Other pressures come from risk-averse conduct in financial markets. Crypto has tracked falls in technology stocks, namely those tied to artificial intelligence (AI). The Federal Reserve’s hawkish signals, particularly forecasts of increased interest rates for an extended period of time, have limited liquidity and made speculative assets less attractive.

Institutional flows have reduced as well. Spot Bitcoin exchange-traded funds have experienced outflows in recent weeks, while negative Coinbase premiums and selling by significant holdings have contributed to the pressure.

Analysts share their short-term outlook

The short-term outlook for cryptocurrency is cautious. BTC has broken support between $75,000-$78,000, and many analysts see $70,000 as the next test level. If the price falls below that, it might move to $65,000-$68,000 if selling picks up.

On the upside, a hold over $72,000-$74,000 may allow for a relief rally to $82,000-$88,000 by late February. Liquidity is limited, and market fluctuations may be large if macroeconomic news or Fed updates influence sentiment. Polymarket odds currently indicate an 82% possibility of Bitcoin falling below $70,000. Citi analysts cautioned that slowing spot ETF inflows and regulatory uncertainty could push Bitcoin to that price. According to Citi research on February 4, the average entry price for spot ETF investors is $81,600. Bitcoin(BTC), unlike gold, which has risen in response to geopolitical concerns, is more dependent on liquidity and risk tolerance. According to Citi, delays in the United States’ CLARITY cryptocurrency bill, as well as the Federal Reserve’s diminishing liquidity, are placing downward pressure on prices.

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Disclaimer

This content is for informational purposes only and not financial advice. Crypto markets are risky, so always do your own research and invest only what you can afford to lose.