Bitcoin falls below $75K as leveraged selling pushes Bitcoin, XRP, LINK and XMR lower
Crypto markets opened Feb. 2 under pressure as Bitcoin slid below $75,000 and major altcoins posted deeper losses. Total crypto market cap fell about 2.8% to roughly $2.6 trillion. At press time Bitcoin traded near $75,501 (down ~5.2% 24h); XRP fell ~4.5% to $1.59; Chainlink dropped ~5.5% to $9.48; Monero tumbled ~12% to $405. Liquidations spiked — CoinGlass reported 24-hour liquidations rose 79% to $520 million while open interest increased ~4% to $108 billion, signalling sustained use of leverage. Market breadth and sentiment are weak: Crypto Fear & Greed Index sat at 14 (extreme fear) and average RSI was ~35. Analysts attribute the sell-off mainly to thin liquidity and leveraged liquidation waves rather than a single news event; external pressure came from hawkish Fed signals, a stronger US dollar and geopolitical uncertainty. Analysts are divided on whether this is a deeper correction or a range-bound pullback: some warn of further downside toward the mid-$70Ks if selling continues, while others note oversold conditions and historical seasonality that could favour short-term rebounds if ETF flows and macro conditions stabilise. Key trading takeaways: elevated liquidation risk, fragile liquidity, heightened volatility, and mixed analyst views — traders should use tighter risk controls, watch open interest and ETF flows, and monitor macro data (US jobs and inflation) that may trigger further moves.
Bearish
The article describes a leveraged-driven sell-off amid thin liquidity, spiking liquidations ($520M in 24h) and rising open interest — conditions that typically amplify downward moves. Sentiment indicators (Fear & Greed Index at 14; RSI ~35) point to extreme fear and weak momentum, which favors further downside or choppy price action in the short term. External macro pressures (hawkish Fed cues, stronger USD) and geopolitical uncertainty add to risk-off dynamics. Historically, large liquidation waves and poor liquidity have led to extended drawdowns or sharp intraday gaps (e.g., prior CME gaps and liquidation cascades). However, the presence of oversold metrics and slower ETF inflows leaves open the possibility of short-term rebounds if selling exhausts and macro data improves. For traders this means increased probability of further short-term downside and volatility: manage position sizing, use tighter stops, monitor open interest and liquidation metrics, and watch ETF flow and US economic releases for potential catalysts.