1st February 2026 – (New York) Bitcoin tumbled sharply in early Saturday trading in New York, sinking beneath the $80,000 threshold to levels last seen in April 2025 and extending a decline that has wiped more than 30% from its peak. At midday, the world’s largest cryptocurrency fell as much as 7.1% to about $78,159, as fragile liquidity and scant buying interest amplified the move. The sell-off rippled across digital assets, with Ether sliding more than 10% and Solana losing over 11%, underscoring the market’s intensifying risk aversion.
The downturn erased roughly $111 billion from the total value of crypto assets over 24 hours, according to CoinGecko figures. Recent macro cues that once buoyed Bitcoin have failed to stir demand. A softening US dollar for much of January offered little support, while the token barely reacted to gold’s record-breaking rally — and attracted no visible haven flows after bullion and silver abruptly reversed on Friday. Persistent outflows from spot Bitcoin ETFs, coupled with muted geopolitical hedging demand, have sharpened doubts over the asset’s place in diversified portfolios.
Once touted as both a momentum trade and a shield against monetary debasement, Bitcoin is struggling to play either role. Market strategists note the asset remains in search of a coherent valuation framework, with pricing increasingly swayed by shifting narratives rather than consistent fundamentals. Analysts have also highlighted that its correlation with traditional safe havens such as gold is unstable, swinging between positive and negative depending on the prevailing macro story.
Sentiment has been further tested by political developments. Traders pointed to the nomination of Kevin Warsh as Federal Reserve chair — seen as dollar-supportive and market-calming — as one factor that diminished the appeal of alternatives such as gold, silver and Bitcoin. Some industry voices argue that Bitcoin’s perceived alignment with the current US administration has become a liability, with prior optimism over crypto-friendly policies giving way to caution amid tariff threats and geopolitical tensions.
As prices hover around $78,000, the market’s focus has shifted from technical support levels to the broader question of identity. If Bitcoin is neither reliably counter-cyclical nor a dependable hedge, investors may continue to gravitate towards metals and cash for safety until a clearer narrative, and sustained inflows, return.
