Global financial markets faced significant downward pressure on Monday, February 2, 2026, as a sharp decline in Bitcoin prices triggered a broader liquidation across multiple asset classes. The primary cryptocurrency fell to its lowest valuation in ten months, a move that analysts suggest has dampened investor sentiment and impacted equities and commodities markets worldwide.
Bitcoin Plunge Triggers Interconnected Market Downturn
The volatility began with a sharp correction in Bitcoin, which reached levels not seen since the second quarter of the previous year. According to reporting from BitcoinWorld, this price action ignited a wave of selling pressure that rapidly extended beyond the digital asset sector. The downturn was characterized by its interconnected nature, as the drop in cryptocurrency valuations appeared to correlate with a retreat in U.S. stock futures and major commodities.
Market observers noted that the speed of the decline contributed to a heightened sense of risk aversion. While the cryptocurrency market is often viewed as independent of traditional finance, the scale of this particular sell-off suggests a tightening of liquidity that affected various investment vehicles. The report indicates that the pressure on Bitcoin acted as a catalyst, leading to a synchronized decline in global financial instruments during the Tuesday trading session.
Bitcoin Reaches 10-Month Low Near $74,500
Specific price data highlights the severity of the correction. Bitcoin reached a 10-month low of $74,541, according to data monitored during the Singapore midday trading session. As reported by Tech in Asia, the asset struggled to maintain support levels, remaining consistently below the $76,000 threshold throughout the period.
This price point represents a significant technical breakdown for the cryptocurrency. For much of the preceding months, Bitcoin had maintained a higher trading range, but the breach of previous support levels has led to a re-evaluation of short-term price targets. The 10-month low serves as a benchmark for the current bearish trend, reflecting a shift in market dynamics that has persisted into early February 2026.
Market Sentiment Reaches ‘Extreme Fear’ as Capitalization Shrinks
The impact of the sell-off is further evidenced by the Crypto Fear and Greed Index, which plummeted to a rating of 18. This numerical value categorizes market sentiment as “Extreme Fear,” a level typically associated with high-volume liquidations and a lack of buyer confidence. Invezz reports that the total market capitalization for all cryptocurrencies dropped by 4.4% within a 24-hour window, falling to approximately $2.55 trillion.
The decline was not limited to Bitcoin. Major altcoins also experienced significant losses, with Ethereum, Monero, and River identified as some of the top laggards during the crash. The broad-based nature of the decline indicates that the selling pressure was systemic across the digital asset ecosystem rather than isolated to a single protocol or token. The drop to $75,000 and subsequently lower has forced many leveraged positions into liquidation, further accelerating the downward momentum.
Impact on Altcoins and Market Structure
The 4.4% contraction in total market cap represents a loss of billions of dollars in paper wealth in a single day. Ethereum, the second-largest cryptocurrency by market cap, followed Bitcoin’s lead, contributing to the overall market instability. The “Extreme Fear” reading of 18 on the sentiment index is one of the lowest recorded in recent months, suggesting that retail and institutional participants alike are adopting a cautious or defensive stance.
While some market participants monitor these levels for potential entry points, the current data reflects a market dominated by sellers. The decline in tokens like Monero and River suggests that even assets with different use cases—such as privacy-focused coins or newer ecosystem tokens—are not immune to the broader macroeconomic pressures currently affecting the sector.
Summary of Market Trends
The current market environment is defined by high volatility and a notable shift in investor behavior. The drop in Bitcoin to a 10-month low has served as a bellwether for a larger financial retreat. With the Fear and Greed Index at 18 and a 4.4% reduction in total market capitalization, the immediate outlook remains focused on whether Bitcoin can establish a new floor or if the selling pressure in stocks and commodities will continue to weigh on digital assets.
As of the latest reports, details regarding the specific fundamental triggers for this synchronized sell-off are still emerging. However, the technical breach of the $75,000 level remains a focal point for traders globally. Financial analysts continue to monitor the correlation between U.S. stock futures and crypto prices to determine if this is a temporary liquidity event or a longer-term shift in the global investment landscape.
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