BTCcryptoBearish (-73%)

Bitcoin Plummets: Price Drops 40% Amid Macro Concerns & ETF Outflows

Based on 10 source articlesFebruary 4, 2026Quality: 91%

BTC Price Chart

Bitcoin experienced a significant and rapid price decline this week, falling to as low as $73,000 – a 15-month low and its lowest price since late 2024. This represents a 40% drop from its October 2025 peak, erasing gains fueled by earlier optimism surrounding regulatory approvals and potential interest rate cuts. The sell-off was triggered by a combination of factors including a hawkish shift in Federal Reserve expectations, escalating geopolitical tensions, and substantial liquidations exceeding $2.5 billion. Notably, the nomination of a potentially hawkish Fed Chair candidate contributed to the downturn. Spot Bitcoin ETFs have experienced outflows, signaling cooling institutional interest, while crypto-related stocks also suffered losses. Experts like Michael Burry and Nouriel Roubini have issued dire warnings, predicting further declines and even a potential 'crypto apocalypse'. However, some signs of buying emerged amidst the downturn, suggesting potential support levels around $73,000-$74,500. Despite this, analysts caution against assuming a bottom and highlight the need for sustained buying pressure.

Key Points

  • 1Bitcoin's price has fallen by 40% since its October peak, reaching a 15-month low.
  • 2Hawkish Fed expectations, geopolitical tensions, and ETF outflows are key drivers of the decline.
  • 3Prominent analysts predict further downside, with some warning of a 'death spiral' or 'crypto apocalypse'.

Market Impact

The Bitcoin price decline has triggered widespread liquidations and negatively impacted crypto-related stocks, signaling a broader risk-off sentiment in the digital asset market. The shift in perception from a hedge to a risk asset raises concerns about its long-term viability.