The price of Bitcoin plunged sharply on Monday, briefly sliding to a nine-month low near $74,546, as a wave of forced liquidations and a sudden reversal in precious metals sent shockwaves through global markets.
The selloff underscores how fragile sentiment has become, with leverage, macro pressure, and vanishing demand combining to push Bitcoin to its weakest levels since last spring.
Bitcoin hits April lows after losing key support
Bitcoin fell 5.7% intraday before stabilizing near $76,473 at the time of writing. The move marks Bitcoin’s lowest price since April 2025.
The broader downtrend began late last week after BTC lost the $90,000 psychological support. Since then, the asset has dropped roughly 17%, extending total losses to nearly 40% from its cycle peak earlier this year.
Liquidation cascade drives forced selling
The primary driver behind today’s drop is a fresh surge in leverage liquidations. Data from CoinGlass shows that nearly $798 million in crypto positions were liquidated on Feb. 2 alone.
The majority of the wipeout came from bullish leveraged bets, with Bitcoin accounting for more than $200 million in long liquidations. These forced closures intensified selling pressure as exchanges automatically exited losing positions.
The current move builds on an already fragile setup. Over the weekend, more than $2.4 billion in long positions were liquidated across crypto markets, creating a fear-driven environment that continues to push traders to the sidelines.
Precious metals crash adds fuel to the selloff
Bitcoin’s decline was compounded by a sharp reversal in precious metals. A sudden drop in gold and silver prices forced traders to raise liquidity, prompting additional selling in Bitcoin and other risk assets to cover losses elsewhere.
This cross-market stress amplified downside momentum, reinforcing the broader risk-off move.
Fed leadership fears weigh on risk appetite
Investor sentiment also took a hit following U.S. President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair.
Warsh is widely seen as more hawkish, with a strong preference for tighter monetary policy and balance-sheet reduction. Markets fear his appointment could mark a decisive end to the easy-liquidity environment that has historically supported speculative assets like Bitcoin.
F outflows highlight lack of buyers
Unlike previous dips, this selloff has been marked by a notable absence of dip buyers. Institutional demand has cooled sharply, with spot Bitcoin ETFs recording over $1.6 billion in net outflows throughout January.
The lack of ETF inflows has removed a major source of structural demand that helped support prices through late 2025, leaving Bitcoin more exposed to downside shocks.
Technical damage deepens bearish momentum
From a technical perspective, Bitcoin has lost multiple key support levels over the past week most recently $80,000, a major psychological floor.
When round-number supports fail on high volume, traders often interpret the move as confirmation that bearish forces are in control. That perception frequently triggers panic selling, stop-loss cascades, and additional liquidations, reinforcing downside momentum.
Bottom line
Bitcoin’s crash today is not the result of a single catalyst, but rather a perfect storm of leverage unwinds, collapsing precious metals, tightening liquidity fears, and evaporating institutional demand.
Until liquidation pressure fades and buyers regain confidence, Bitcoin is likely to remain volatile, with sentiment skewed decisively toward caution rather than opportunistic buying.
