- Bitcoin has dropped to around $75,900, pulling the total crypto market cap down to $2.57 trillion.
- About $1.6 billion in crypto positions were wiped out in 24 hours, accelerating the sell-off.
- Analysts say tight US liquidity, not crypto-specific issues, is the main reason behind the crash.
The crypto market is having another rough day, with total market value sliding to $2.57 trillion, down nearly 4% in 24 hours. Bitcoin has slipped to around $75,900, putting it 13% lower for the week, while Ethereum is hovering near $2,226 after losing more than 21% in seven days. The pain isn’t limited to the big two; XRP, Solana, BNB, Dogecoin, and Cardano are all deep in the red, showing that selling pressure is spreading across the market.
Heavy Liquidations Fuel the Drop
About $1.6 billion in crypto positions were liquidated, according to data reported late Saturday. The sell-off intensified during low-liquidity trading hours, amplifying price swings as forced liquidations cascaded through the market. When U.S. futures reopened, Bitcoin printed a large CME gap of roughly $6,800 below Friday’s close.
This gap, near $77,700, is now acting as a resistance level. As long as Bitcoin stays below it, traders see room for prices to move lower, possibly toward $70,000.
Extreme Volatility Hits Bitcoin
The volatility was extreme. After US futures opened, Bitcoin dropped $1,550 in just 12 minutes, then bounced back nearly $1,900 within half an hour. During this chaos, nearly $100 million in long positions were liquidated in a single hour. Open interest across the market has fallen more than 10%, showing that leverage is being flushed out.
Crypto Isn’t Broken, Says Raoul Pal
Some investors believe crypto is “broken,” but macro investor Raoul Pal says that narrative is misleading. He points out that Bitcoin and US tech stocks (especially SaaS companies) are moving almost exactly the same way. This shows the problem is not crypto-specific.
According to Pal, the real issue is tight liquidity in the US financial system. Government cash management, recent shutdown-related moves, and a lack of fresh liquidity have drained money from risk assets. At the same time, gold has absorbed much of the available capital, leaving less money flowing into riskier assets like crypto and tech stocks.
Bitcoin and crypto are particularly vulnerable because they are long-duration assets, meaning they depend heavily on abundant liquidity. When liquidity dries up, they fall faster than safer assets.
For now, the market is in an “air pocket” — low liquidity, high fear, and violent price swings. Until liquidity returns, crypto is likely to remain volatile.
Related: Will February Bring Gains for Bitcoin? What Do Historical Trends Analysis Say
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