What Happened in the Market: Leverage Couldn't Hold On After Falling Below $76,000
On Monday (February 2), the price of Bitcoin accelerated its downward movement due to selling pressure, briefly falling below the $76,000 mark, with a daily drop of about 6%, hitting the lowest range in nearly 10 months.
Simultaneously amplifying with the price is the chain reaction on the leverage front: statistics show that the crypto market experienced large-scale liquidations in the past 24 hours, involving over 160,000 people and totaling approximately $506 million.
Trigger Factors: Stronger Dollar and Policy Expectation Changes, Cooling Down of Risk Assets Together
Recent statements by Trump regarding communication with Iran, combined with his announcement to nominate Kevin Warsh as the Federal Reserve Chairman, strengthened bullish sentiment on the dollar and significantly cooled the expectations of "dollar weakening" trades.
Under this macro pricing shift, high-volatility assets often come under pressure first— the expansion of liquidations in the crypto market is a typical byproduct of such "risk repricing."
Clues from the Funding Side: Insufficient Incremental Funds, Realized Market Cap Trending Sideways
CryptoQuant founder Ki Young Ju stated on social media that Bitcoin's decline is more due to continuous selling pressure, while there is a "lack of new funds entering"; he mentioned that the recent trend of the realized market cap (Realized Cap) is sideways, implying weak inflow of incremental funds.
Monthly Performance: Near 11% Drop in January, Extending the Consecutive Decline Record
From a monthly perspective, Bitcoin fell nearly 11% in January, marking the fourth consecutive month of decline, extending the consecutive decline record to the longest period since 2018.
