#CryptoBloodbath2026

The crypto market is like a hurricane today! Bitcoin has slipped below the psychological $80,000 barrier and is now trying to catch its breath in the $78,000–$79,000 range, while Ethereum has taken a much harder hit: down around 9–10% to about $2,400. The total market cap has evaporated hundreds of billions of dollars in the last 24 hours, with liquidations in leveraged positions exceeding $1.6 billion. Here's the hottest, most talked-about topic on February 1, 2026:
The Three Main Triggers Behind the Big Drop
Fed Uncertainty and New Chair Speculation
Former Fed Governor Kevin Warsh's nomination by Trump for Fed Chair has sparked panic in the markets. Investors fear that "if Warsh takes over, interest rates will stay high longer, liquidity will tighten," prompting a flight from risky assets (especially crypto). Bitcoin and altcoins have dominoed downward on this news.
Massive Outflows from ETFs
Bitcoin and Ethereum spot ETFs have seen around $1.8 billion in net outflows in recent days. Institutional money flow has reversed—accumulations have turned into realized sales and panic exits. This has been one of the strongest mechanical drivers pulling prices lower.
Geopolitical Tensions + Liquidity Trap
Tensions in the Middle East, a strengthening dollar, and low-weekend-volume markets have let leverage hunters accelerate the sell-off. Suddenly, $800 million to $1 billion in long positions got wiped out, triggering chain-reaction liquidations that dragged the market even deeper.
How Does the Market Feel Right Now?
Bear trap or the start of a new bear market? Analysts are split. Some warn, "If $78,000–$77,000 support breaks, we could see a free-fall toward $70,000," while others say, "This is just liquidation cleansing—dip buyers will step in, and we could quickly recover above $80,000."
On the Ethereum side, Tom Lee's famous "Ethereum super cycle" thesis has taken a serious blow. Many analysts now expect an additional $3 billion in selling pressure on ETH.
While some altcoins like XRP and ZKsync are showing relative resilience, the overall atmosphere reeks of fear and blood.