Bitcoin slips below $75,000: Key reasons behind crypto market's correction

The world’s largest cryptocurrency fell to $74,964, a decline of about 5 percent in the past 24 hours and a 14.55 percent dip in a week

• Bitcoin fell nearly 15 percent in a week amid global risk-off sentiment
• Over $2 billion in crypto positions liquidated as volatility surged
• Geopolitical tensions and US Fed chair news fueled further sell-offs

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Bitcoin slipped to a nearly 15 percent low early on February 2, which analysts attributed to a broader "risk-off" mood in global markets and a fall in metal prices.

The world’s largest cryptocurrency fell to $74,964, a decline of about 5 percent in the past 24 hours and a 14.55 percent dip in a week. The decline triggered volatility across the crypto market, with over $2 billion in positions liquidated during the period.

"The crypto market extended its sharp correction this week, with Bitcoin dropping below $76,000 and Ethereum near $2,200, as over $2 billion in positions were liquidated amid low-liquidity weekend trading. The sell-off was amplified by $1.6 billion in net outflows from the US spot Bitcoin ETFs in January, reflecting institutional risk reduction," said Riya Sehgal, Research Analyst, Delta Exchange.

Technically, BTC remains below its key resistance at $80K–$82K, with downside targets near $72K–$70K. ETH faces selling pressure below $2,500, risking a retest of $2,000. Until macro stability returns and ETF inflows resume, crypto markets are likely to remain defensive. Traders expect choppy consolidation or further downside before a sustainable recovery can begin, said Sehgal.

Ethereum was down 10.28 percent, XRP 6.94 percent, Solana 6.20 percent, Dogecoin 3.59 percent, Cardano 5.48 percent, BNB 5.12 percent, and Tron lost 1.17 percent in the past 24 hours. Whereas, Tether and USDC were up 0.03 percent and 0.02 percent, respectively.

According to CoinDCX's research team, "Amid the bearish clouds, MYX Finance and Decred lead the top gainers with 16.21% and 11.48% jumps, followed by World Liberty Financial and Canton with more than 5.7% rises each. Besides, Monero plunges by more than 10.61%, followed by Kaspa and Ethereum by more than 6%, followed by Bitget Token, Nexo, Chainlink, and Mantle by more than 4% each.

Here's how the price of cryptocurrencies moved on February 2, as of 10:47 am IST.

 Why is Bitcoin down? 

According to crypto analysts, macroeconomic and geopolitical factors deepened the decline. Markets reacted negatively to the US President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, a perceived hawk expected to favour tighter monetary policy. The move fueled a rally in the US dollar and sell-offs in risk assets, including crypto.

Simultaneously, geopolitical tensions, reports of an explosion at Iran’s Bandar Abbas port and concerns over possible US-Iran escalation triggered a broader flight to safety, further weighing on digital assets.

"Bitcoin’s move back into the mid $70,000 range reflects a clear shift in market positioning. With gold attracting stronger inflows and macro uncertainty still weighing on sentiment, crypto markets are likely to remain volatile in the near term. Investors should avoid chasing short-term moves, focus on staggered accumulation near key support zones around $74,000 to $76,000, and prioritise portfolio balance rather than leverage,” said Avinash Shekhar, Co-Founder & CEO, Pi42.

What's happening in the crypt market?

According to WazirX founder Nischal Shetty, over the past 24 hours, crypto markets have largely moved in sync with broader global risk sentiment.

• What’s becoming increasingly clear is how closely crypto is now integrated with global financial markets. The same factors, including liquidity conditions, interest rate expectations, and ongoing geopolitical developments, are influencing short-term price movements.

• Market activity also reflects a broader reassessment of capital allocation. With mixed signals from global economies, participants are adjusting their positions and waiting for clearer direction. This has led to uncertain price action, with no strong directional moves across major crypto assets.

• For Bitcoin specifically, the last 24 hours highlight that broader risk sentiment remains the primary driver of price behaviour. Movements in Bitcoin appear increasingly sensitive to macro headlines and shifts in global market mood, rather than crypto-specific developments.”