Hey folks, let's break it down: Why the Crypto Market Crashed So Hard (And Keeps Bleeding) 😵💫📉
As of Feb 1, 2026 (BTC hovering ~$78K-79K per Yahoo Finance, CoinMarketCap, CoinDesk—down sharply from recent highs), the market's taken a brutal hit with billions liquidated ($1.7B+ cascades in recent 24h windows) and total cap shedding big chunks.
Fresh from sources like CoinDesk, Yahoo Finance, BeInCrypto, CryptoTicker, Reuters, Forbes (Jan 29-Feb 1 updates):
The crash isn't one thing—it's a nasty pile-up:
Trump's Fed pick shock — Kevin Warsh (hawkish, favors tighter policy/smaller balance sheet) as next chair nominee spooked risk assets hard. Outgoing Powell's no-quick-cuts stance + this shift fueled outflows and dollar strength, hurting crypto big time.
Tariff & trade war fears — Renewed threats (10-25% on Europe over Greenland drama, Canada/EU allies) sparked global uncertainty. Investors fled to gold (hitting records) while crypto decoupled painfully as ultra-risky play.
Geopolitical fire — Iran tensions (Bandar Abbas port explosions, US strike/retaliation fears), brief US gov shutdown added fuel, pushing risk-off mode in thin liquidity.
Leverage & ETF pain — Massive spot BTC ETF outflows ($800M+ days), long liquidations ($650M-$2B waves), spot selling by long-term holders breaking supports (e.g., below $84K-85K levels) accelerated the drop—not the starter, but the amplifier.
Broader macro rot — Stocks/tech tanked too; crypto, being leveraged & volatile, got hit worst. No circuit breakers = faster cascades.
It's post-2025 highs digestion + macro storm. Some call it bear start (eyes on $70K-75K BTC), others a sharp correction.
Wild times, huh? What's your view—are we bottoming soon, or more pain ahead? Drop questions below—happy to unpack more! Thanks for reading, hang in there! 💪🚀