$BTC is undergoing a sharp bearish correction, dropping nearly 7% in 24 hours to trade around $78,566. The downturn follows the nomination of Kevin Warsh as Federal Reserve Chair, which has fueled investor fears of a hawkish pivot and tighter monetary liquidity. This macro shift triggered a "risk-off" contagion across asset classes, leading to a massive $1.6 billion liquidation in leveraged crypto positions. Technical support at $85,000 and the psychological $80,000 barrier have both been breached, signaling a significant short-term trend reversal. Market sentiment has plummeted into "Extreme Fear" (18/100), a sharp contrast to the bullish resurgence seen in early January. Analysts are now eyeing the $75,000 level as the next crucial floor, while the market awaits further clarity on global regulatory updates and the 2026 budget impacts. Despite the high volatility, the current 12% monthly dip is being monitored by long-term institutional investors as a potential accumulation zone.
The following candlestick chart illustrates the price action of Bitcoin over the last 30 days, highlighting the steep decline from January highs to the current February 1st levels.
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BTC
63,237.71
-4.61%