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What is the story about?
Nearly $500 billion has been erased from the cryptocurrency market in under a week, as a sharp selloff led by Bitcoin gathered pace.
According to data from CoinGecko, the total value of digital assets has fallen by $467.6 billion since January 29. On Tuesday, February 3, Bitcoin slid to its lowest level since US President Donald Trump secured re-election in early November 2024, leading to expectations of a more crypto-friendly policy environment.
The world’s largest cryptocurrency dropped to a 15-month low of $72,877 in US trading before paring losses in Asia on Wednesday, February 4. It was last trading at around $76,200 at 10 am in Singapore, down 13% so far this year and 39% from its October 6 peak above $126,000.
Read more: Bitcoin to reach $225,000 in 2026? Here's what experts predict
Rachael Lucas, an analyst at BTC Markets, said, “Asia morning sentiment is cautious and defensive. The mood is still risk-off, but the pace of forced selling has slowed compared with the US close.” However, she warned that “Bitcoin printing sub-$73,000 has pushed sentiment into extreme fear.”
The latest slump comes amid heightened volatility across global markets, which has also witnessed sharp price swings in gold and silver. While precious metals attracted buyers on Tuesday after recent declines, cryptocurrencies failed to find similar support. Bitcoin and US equities also dropped due to escalating tensions between the US and Iran, driving investors toward traditional safe-haven assets.
Bitcoin's failure to act as a haven during a period of elevated geopolitical risk has also increased doubts on its status as “digital gold”. Investor Michael Burry this week said Bitcoin has been exposed as a speculative asset, arguing that it has not established itself as a hedge comparable to precious metals.
Meanwhile, Michael Novogratz, chief executive officer of Galaxy Digital LP, said on an earnings call that Bitcoin has historically benefited from a “tremendous amount” of near-religious conviction among holders. “And somehow that virus or that fever broke, and you started seeing some selling,” he said.
According to data from CoinGecko, the total value of digital assets has fallen by $467.6 billion since January 29. On Tuesday, February 3, Bitcoin slid to its lowest level since US President Donald Trump secured re-election in early November 2024, leading to expectations of a more crypto-friendly policy environment.
The world’s largest cryptocurrency dropped to a 15-month low of $72,877 in US trading before paring losses in Asia on Wednesday, February 4. It was last trading at around $76,200 at 10 am in Singapore, down 13% so far this year and 39% from its October 6 peak above $126,000.
Read more: Bitcoin to reach $225,000 in 2026? Here's what experts predict
Rachael Lucas, an analyst at BTC Markets, said, “Asia morning sentiment is cautious and defensive. The mood is still risk-off, but the pace of forced selling has slowed compared with the US close.” However, she warned that “Bitcoin printing sub-$73,000 has pushed sentiment into extreme fear.”
The latest slump comes amid heightened volatility across global markets, which has also witnessed sharp price swings in gold and silver. While precious metals attracted buyers on Tuesday after recent declines, cryptocurrencies failed to find similar support. Bitcoin and US equities also dropped due to escalating tensions between the US and Iran, driving investors toward traditional safe-haven assets.
Bitcoin's failure to act as a haven during a period of elevated geopolitical risk has also increased doubts on its status as “digital gold”. Investor Michael Burry this week said Bitcoin has been exposed as a speculative asset, arguing that it has not established itself as a hedge comparable to precious metals.
Meanwhile, Michael Novogratz, chief executive officer of Galaxy Digital LP, said on an earnings call that Bitcoin has historically benefited from a “tremendous amount” of near-religious conviction among holders. “And somehow that virus or that fever broke, and you started seeing some selling,” he said.
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