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.
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.
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.
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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