Bitcoin (BTC) Slides Below $80000 as Liquidations Trigger Early Recovery

Bitcoin (BTC) recently experienced one of the largest liquidations in the market’s history, with $2.55 billion in positions being closed after the price dropped to below $80,000. Despite this, there have been early signs of recovery, driven by increased interest in BTC ETFs.

At the time of writing on February 3, 2026, Bitcoin (BTC) is trading at $78,021, with a 24-hour trading volume of $71.57 billion and a market capitalization of $1.56 trillion. Over the last 24 hours, BTC has increased by 0.27% according to CoinMarketCap.

Source: CoinMarketCap

Bitcoin Drops Amid Macro Pressures

The decline has been attributed to lower-than-expected earnings from the Mag7 companies, which are the biggest technology companies, concerns over Kevin Warsh as the next Federal Reserve chairman, and the decline in precious metals.

Wintermute, a prominent crypto trading company, stated that this sell-off event caused the 10th-largest liquidation event in crypto history. Market experts have pointed out that this liquidation was mainly concentrated in leveraged positions, which shows how sensitive BTC is to macroeconomic events.

Source: X

Despite the short-term market turbulence, the long-term prospects for Bitcoin are favorable, with the market structure remaining strong, interest in BTC from institutions steady, and analysts pointing out that the fall is due to short-term macroeconomic issues.

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Bitcoin Rebounds Amid ETF Inflows

Meanwhile, crypto analyst Ted pointed out that Bitcoin is showing early signs of a rebound, which may be a reason for optimism for investors. He also pointed out that there are latest inflows into ETFs, which show that the market is supporting BTC and has confidence in it.

Source: X

Looking ahead, it will be important for BTC to reclaim the $80,000 level as it seeks a run towards the $84,000 to $85,000 level, as this area has a CME gap that tends to be a level that seeks correction. The next moves for BTC will be important as it seeks a potential run towards a new upward trend.

The volatility in Bitcoin’s prices currently is a reflection of the sensitivity of the BTC market to macroeconomic factors. However, a strong infrastructure, along with institutional support and investor interest, indicates a probable improvement in the future.

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