Bitcoin’s price movement got worse after the weekend, and by Monday morning it hit a new low for several months. The price was just above $74,000. This shows how quickly the market changed after a rough Saturday.
Altcoins, the other popular cryptocurrencies besides Bitcoin, also fell a lot. Ethereum, or ETH, has been one of the big losers recently. The privacy-focused coin Monero, or XMR, also dropped a lot in the last 24 hours.
Bitcoin Falls, Then Rebounds
About a week ago, last Wednesday, Bitcoin tried to push above the $90,000 mark. People hoped the price would break through this level. There were two big reasons the market did not hold that move. First, there was a decision by the U.S. Federal Reserve about interest rates. Second, tensions in the Middle East were rising. Both things can affect how much investors want to pay for Bitcoin.
The price then fell. On Thursday it dropped to around $81,000. On Friday there was a small bounce back to about $84,000. But by Saturday afternoon the price fell sharply again. This second drop pushed Bitcoin below $76,000 for the first time since April of the previous year. In this move, more than $2.5 billion worth of positions were liquidated. The term “liquidations” means traders’ positions were closed at a loss when the price moved quickly against them. It often happens when there is a sudden price drop and many traders are using borrowed money (leverage).
Sunday tried to recover, but the rally didn’t last. By Monday morning the price was around $74,400. In just a few days, Bitcoin had fallen by more than $15,000 from its high earlier in the week. Since then, Bitcoin has bounced back a little. It is trading a bit under $78,000 as traders brace for what could be another volatile week. The total market capitalization of all cryptocurrencies together sits near $1.550 trillion, and Bitcoin’s market dominance—how much of the total crypto market value Bitcoin controls—stands at about 57.5% on the data provider CoinGecko (CG).
Visual reference: BTCUSDU Feb 2. Source: TradingView
Other Coins Lose Ground
Ethereum (ETH) was hit hard in the same period. It stayed above $3,000 last Wednesday but fell to around $2,100 on the latest moves. It recovered a bit to about $2,300, but it is still down for the day by around 5.5%.
Monero (XMR) is another notable loser, with the price down toward $400 in the last 24 hours.
The list of coins in the red is long. Other major names like XRP, BNB, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Bitcoin Cash (BC), Chainlink (LINK), and Stellar (XLM) were also down on the day. In a separate note, the Pi Network’s token hit a new all-time low a few hours ago. But not all coins declined. My token, MYX, rose by about 13.5%, with another token called M rising by around 10%.
The broader market has also cooled. The total value of all cryptocurrencies combined fell by about $300 billion since Saturday, and by about $500 billion since last Wednesday. The current total market cap is around $2.650 trillion.
These changes come as traders weigh the factors that influence prices, including economic policy, global events, and the overall mood of the market. Market watchers say volatility could continue in the near term, with quick moves possible in both directions depending on new information and investor sentiment.
What This Means for Investors
For people who own Bitcoin and other cryptocurrencies, the recent moves show that prices can swing a lot in short periods. A sharp drop can happen quickly, and a bounce back can take some time. It is important to understand that price swings are normal in this market. Investors often use different strategies to deal with risk, such as setting limits on how much they will invest or how much they are willing to lose if prices move down.
People who are new to crypto should learn a few basic ideas. One is that the market is connected: when Bitcoin moves, many other coins move too, but not always in the same way or by the same amount. Another idea is that the market tends to react to big news or events.
Glossary (Simple Explanations)
Below are short explanations of some common crypto words. Each term includes a link to a longer, official explanation on Wikipedia if you want to learn more.
- Bitcoin — A digital money system that lets people send money to each other directly without banks. It uses a public record called a blockchain to keep track of all transactions. Learn more about Bitcoin.
- Ethereum — A public computer network that lets people build programs called smart contracts and apps on top of it. These apps run without a central administrator. Learn more about Ethereum.
- Monero — A cryptocurrency that focuses on privacy, meaning it tries to hide who sent money and how much was sent. Learn more about Monero.
- XRP — A digital asset used by the Ripple network, designed to make international money transfers fast and cheap. Learn more about XRP.
- Chainlink — A network that brings real-world data to smart contracts on the blockchain, helping them run with up-to-date information. Learn more about Chainlink.
Source notes: The price moves and data in this article come from market data providers such as TradingView and QuantifyCrypto. For example, references like “BTCUSDU Feb 2. Source: TradingView” and “Cryptocurrency Market Overview Daily Feb 2. Source: QuantifyCrypto” are used to summarize what traders and analysts are seeing in real time.
This market update was reported by CryptoPotato. It helps readers understand what happened in the crypto market over the past few days and what might happen next based on current trends.
If you want to learn more, you can check the latest price charts and market summaries from reliable financial sites and the cryptocurrency exchanges where these coins are traded.