Bitcoin Sinks Below $75,000 On Monday As Selloff Snowballs

2026-02-02 04:44:24

(MENAFN- Khaleej Times) Bitcoin's slide deepened on Monday, pushing the world's largest cryptocurrency below the $75,000 mark and extending one of its longest losing streaks in years, as fading momentum, heavy liquidations and tightening global financial conditions weighed on digital assets.

Bitcoin was trading around $74,684 in Asian hours, according to CoinMarketCap, its weakest level since April 2025. From its peak last year, the token has now fallen nearly 40 per cent, erasing a large portion of the speculative gains accumulated during the previous rally. January alone saw prices retreat about 11 per cent, marking the fourth consecutive monthly decline and the longest sustained downturn since the post-2017 crypto crash.

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The selloff has not been confined to Bitcoin. Ethereum, the second-largest cryptocurrency, dropped below the key $2,200 level, intensifying losses across the broader digital asset market and reinforcing a risk-off tone among traders.

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In the UAE, where Dubai has positioned itself as a regional hub for virtual assets, the downturn has prompted a more cautious stance among retail investors. Local trading platforms report a surge in hedging activity and stablecoin conversions as investors seek to preserve capital amid sharp price swings. Some long-term holders, however, are using the pullback to gradually accumulate positions, betting that institutional adoption and regulatory clarity in the region will provide longer-term support.

Market participants say Bitcoin's plunge below $75,000 marks another reminder of crypto's boom-and-bust nature. In Dubai's fast-growing digital asset ecosystem, the latest selloff is reinforcing a familiar lesson for investors: rapid gains can evaporate just as quickly, and in a market driven by leverage and sentiment, discipline matters as much as conviction.

They argue that the latest slump reflects a combination of technical weakness and macro pressure. Bitcoin has fallen more than 11 per cent over the past week alone, breaking below key support levels and triggering algorithmic selling. Technical indicators point to further stress, with momentum gauges showing deeply oversold conditions and bearish trend signals that remain firmly intact.

Market strategists remain divided on what comes next. Some warn that Bitcoin could test the psychologically important $70,000 level if selling pressure persists, especially if global risk sentiment deteriorates further. Others argue that the current move resembles a cyclical correction rather than a structural breakdown.

“Bitcoin remains a high-beta asset tied closely to global liquidity conditions,” said a UAE-based digital asset analyst.“Short-term pain is driven by leverage and sentiment, but structurally the market still benefits from growing institutional participation, spot ETF inflows over the longer term and expanding use cases in payments and tokenisation.”

The decline has been amplified by forced unwinding of leveraged positions. Data from derivatives trackers shows more than $700 million worth of crypto positions were liquidated in the past 24 hours, with roughly 77 per cent of those losses coming from long trades. The heavy skew toward bullish bets highlights how overcrowded positioning left the market vulnerable once prices began to slide. Ethereum alone accounted for nearly $270 million in liquidations, underscoring the scale of speculative exposure across major tokens.

Traders say the liquidation wave has reinforced downside momentum.“Once Bitcoin slipped below $80,000, stop-loss orders and margin calls accelerated the move,” said a Dubai-based crypto portfolio manager.“This is a classic leverage flush. Until speculative positioning resets, volatility is likely to stay elevated.”

Macro conditions have also turned less supportive. Stronger economic data from the United States has revived concerns that interest rates could remain higher for longer, pressuring risk assets globally. Rising bond yields and a firmer dollar tend to reduce appetite for non-yielding and highly volatile assets such as cryptocurrencies. At the same time, geopolitical uncertainty and fragile equity markets have pushed some investors back toward traditional safe havens, draining liquidity from digital tokens.

With momentum indicators firmly negative and liquidation-driven volatility still rippling through the market, traders expect choppy conditions to persist in the coming sessions. Any recovery toward the $80,000 level is likely to face stiff resistance unless broader risk appetite improves.