Bitcoin experienced a notable downturn on Tuesday, February 3, 2026, briefly dropping to a low of $72,945. This decline occurred amidst a broader sell-off in the US stock markets, raising concerns among investors.
The cryptocurrency had struggled to maintain support above the $80,000 level, ultimately leading to the dip. This represents a 14% loss in the past week and nearly a 16% drop since the start of the year. The current price of Bitcoin is $73,762, which is a 0.59% decrease in the past 24 hours.
Analysts are attributing the market's rocky price action to investor sentiment surrounding the nomination of Kevin Warsh as U.S. Federal Reserve chairman. The broader cryptocurrency market mirrored Bitcoin's decline, with Ethereum (ETH) falling to $2,120 and Solana (SOL) dropping below $97.
Despite the recent slump, one analyst suggests that the current BTC price action is not "abnormal". However, Bitwise Chief Investment Officer Matt Hougan stated that the market has been in "crypto winter" since January 2025.
The market capitalization of Bitcoin is currently $1.47 trillion. Trading volume for Bitcoin in the last 24 hours is $53.69 billion, representing a 41.20% decrease from the previous day, signaling a recent fall in market activity.
Further analysis of Bitcoin's price action reveals that it has been under selling pressure, recently reaching a demand zone around $74,000. This area coincides with a major weekly swing low, reinforcing its importance as a key defensive level for buyers. A decisive bearish breakdown could trigger another wave of sell-side expansion, sweeping additional long positions.
However, from a short-term perspective, analysts suggest the possibility of consolidation followed by a bullish retracement toward the lower boundary of the previously broken wedge, around the $90,000 region. Until a clear breakout occurs, price action is expected to remain confined within the $73,000–$89,000 range, with the next directional move hinging on how the market reacts at these key levels.
Notably, U.S. spot Bitcoin ETFs experienced nearly $1 billion in outflows in a single session last week, marking the largest daily redemption since November 2025. Bitcoin ETFs recorded approximately $1.49 billion in net outflows during the final week of January, marking it the third-worst month on record for the products.
Despite the volatility and recent downturn, some analysts view the current situation as a leverage shakeout rather than the start of a bear market. Bitcoin's 2-year rolling MVRV z-score has fallen to the lowest level on record, which historically signals "fire-sale valuations". Bitcoin's price action confirms this deep undervaluation, with the asset plunging into historically low levels on the Bitcoin Rainbow Chart.
Hyperscale Data reported its bitcoin treasury totaled approximately $44.3 million as of February 1. Bitcoin has exhibited a pattern of volatility, with significant rallies followed by crashes throughout its history. The cryptocurrency reached its highest price on October 5, 2025, amounting to $126,272.