Forced liquidations trigger a chain reaction as Bitcoin prices swing like a roller coaster.

(New York, Feb 3)
During U.S. trading hours on Monday, Bitcoin rebounded from its Asian-session lows, briefly climbing to US$79,207—about 6.1% above the intraday low of US$74,674.

The recovery followed a sharp weekend sell-off amid thin liquidity, which saw Bitcoin break below the US$76,000 level and extend losses to around 40% from its April 2025 record high, before slipping under US$75,000. As of 10:30 a.m. Malaysian time, Bitcoin was trading at US$78,738.81, up marginally by 0.08%.

Analysts said the decline was not driven by structural issues within the crypto market, but rather reflected a broader shift toward risk aversion across global markets. Data show Bitcoin has fallen roughly 12% over the past seven days, wiping out more than US$200 billion in market value.

Nexo analyst Dessislava Ianeva noted that the pullback was amplified by low weekend liquidity rather than any crypto-specific fundamental shock.

Bitcoin’s correlation with risk assets also played a role. U.S. equities fell last Friday, led by a sharp drop in Microsoft after disappointing earnings, dragging sentiment across European and Asian markets.

The downturn was further exacerbated by forced liquidations. Since Jan 29, more than US$2 billion worth of long and short positions have been liquidated, creating cascading pressure on prices. Investors are also weighing the potential impact of leadership changes at the Federal Reserve.

Looking ahead, opinions remain divided. Some analysts see US$70,000 as a key short-term support level, while others warn Bitcoin could fall as low as US$40,000 under more severe market conditions.