The crypto market opened February under pressure as a renewed risk-off mood swept across global assets. Bitcoin slipped back into the high-$70,000 range, while Ethereum fell sharply toward the low-$2,000s, reflecting a familiar pattern in which leverage unwinds quickly when sentiment turns cautious.
The sell-off mirrors broader market anxiety rather than any single crypto-specific shock. Traders have been reassessing exposure amid concerns about tighter financial conditions, shifting expectations around US monetary policy, and fading appetite for speculative bets. In those moments, digital assets — which trade around the clock and are heavily influenced by derivatives positioning — tend to move fast and decisively.
Market snapshot (US, Feb 1): Bitcoin trades near $78,164, down about 5.5%, while Ethereum sits around $2,376, lower by nearly 10% on the day.
Bitcoin daily range
Low: $76,686 | High: $82,762
Ethereum daily range
Low: $2,289 | High: $2,630
According to Reuters, the latest leg lower follows rising sensitivity to interest rates and liquidity conditions, with investors trimming exposure to assets perceived as higher risk. Bitcoin’s drop below the $80,000 level earlier this week acted as a technical trigger, accelerating selling across derivatives markets.
How today’s sell-off unfolded
Bitcoin often serves as the market’s primary source of liquidity during stressful periods, making it the first asset sold when traders reduce risk. Ethereum typically experiences even sharper swings, reflecting its central role in decentralized finance activity and its higher sensitivity to speculative positioning.
The size of today’s intraday ranges highlights how quickly sentiment shifted. Bitcoin swung more than $6,000 between session highs and lows, while Ethereum’s range exceeded $300. Such volatility is characteristic of markets attempting to find equilibrium after a rush of forced selling.
Relative drawdown comparison
Bitcoin
Ethereum
For US investors, the focus now shifts to whether volatility begins to compress — often a signal that forced liquidations are easing. Until that happens, price action can remain unstable, with short-lived rebounds followed by renewed selling pressure.
Bitcoin’s ability to stabilize above the high-$70,000 area and Ethereum’s resilience near the low-$2,000s are emerging as near-term reference points. How the market behaves around these levels may determine whether today’s decline proves to be a temporary reset — or the start of a deeper pullback.
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Updated: Feb 1, 2026 (US markets)
