On Sunday, February 1, Bitcoin plunged to $78,726 — a 6.4% drop on the day and an 11.7% decline over the week. Ethereum followed suit, falling to $2,444 with a similar weekly loss. This bloody weekend marks one of the worst recent performances for the two leading cryptocurrencies. Trading volumes spiked, signaling panic or forced liquidations from leveraged traders. The macroeconomic backdrop remains the primary driver of this sell-off. Fears of a potential U.S. recession, combined with disappointing economic data, pushed investors to flee volatile assets. Bitcoin, often touted as a safe haven, is currently tracking the downtrend in tech stocks. The loss of the $80,000 threshold is a strong signal, as it had been a major psychological support level for months. This day highlights the fragility of the crypto market in the face of external shocks. For short-term holders, the pain is real, with significant unrealized losses. However, institutional investors may view this dip as an opportunity to accumulate at lower prices. The key question is whether the market will find a floor before traditional markets reopen on Monday.
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