Bitcoin fell to its lowest level in ten months on Monday, February 2, sliding to around $74,541 during Asian trading. The decline represents a 2.5% daily drop and reflects growing instability across global financial markets.
The downturn comes amid a combination of factors, including a stronger US dollar, falling gold prices, and cautious investor sentiment across risk assets.
Bitcoin Records Fourth Consecutive Monthly Decline
According to market data, January marked the fourth straight month of losses for Bitcoin, making it the longest losing streak since 2018. After reaching an all-time high of over $126,000 last year, the world’s largest cryptocurrency has now lost nearly 40% of its value.
As a result, current price levels stand as the lowest since April 2025, raising concerns about long-term market confidence.
Meanwhile, other major cryptocurrencies also posted losses. Ethereum dropped 4%, while Solana declined by 1.6%, confirming a broader bearish trend across the digital asset sector.
Strong Dollar and Fed Appointment Weigh on Crypto
Market analysts link the latest downturn to the appointment of Kevin Warsh as the new Chairman of the US Federal Reserve by former President Donald Trump. The decision boosted the US dollar, which typically pressures Bitcoin and other cryptocurrencies.
Caroline Mauron, co-founder of Orbit Markets, warned that further declines could damage investor trust:
“A move below the 2021 peak near $70,000 would represent a serious blow to long-term confidence in Bitcoin.”
Nearly $590 Million in Long Positions Liquidated
Over the past 24 hours, the crypto market saw almost $590 million in bullish positions liquidated, highlighting the scale of panic among short-term traders.
According to Damien Loh, Chief Investment Officer at Ericsenz Capital, the negative sentiment may continue:
“In the short term, market sentiment remains bearish. Cryptocurrency is moving in line with broader asset markets rather than acting independently. I expect Bitcoin to trade between $70,000 and $74,000 on the downside, and around $90,000 on the upside.”
Bitcoin Mirrors Broader Market Trends
As of Monday morning, Bitcoin remained below $76,000, while precious metals also experienced a pullback. This confirms that cryptocurrencies currently behave more like traditional financial assets, closely following macroeconomic trends.
Earlier reports noted that gold reached a record high of nearly $5,600 per ounce on January 29, driven by geopolitical tensions between the US and Iran, persistent inflation, and economic uncertainty. However, recent profit-taking has pushed gold prices lower, adding pressure to alternative assets like Bitcoin.
What Comes Next for Bitcoin?
Although short-term risks remain elevated, long-term investors continue to monitor key support levels around $70,000. A decisive break below that zone could trigger deeper corrections, while stabilization above current levels may restore cautious optimism.
Ultimately, Bitcoin’s near-term trajectory will depend heavily on US monetary policy, global economic conditions, and investor appetite for risk.
