Bitcoin has plunged below $75,000 to its lowest level in 10 months, wiping out billions and rattling the crypto world. Trading at around $75K currently, that's a sharp 2.2% daily drop from $76,895, and a staggering 40% off its 2025 peak of $126,296. 

The Sharp Decline Unfolds

The slide started late last week, with BTC dipping under $80,000 amid thin weekend trading, hitting $74,420 intraday, levels not seen since April 2025. Over seven days, it's down nearly 11%, with $5 billion in leveraged positions liquidated in three days alone. Ethereum and altcoins followed suit, some shedding 6% or more, as panic selling gripped exchanges like Binance and Coinbase. This isn't isolated; the total crypto market shed over $200 billion in days. Bitcoin's dominance hovers near 55%, but fear rules: the Crypto Fear & Greed Index screams "Extreme Fear" at 14. Volume spiked to $492 million, yet sellers dominate, pushing the 50-day moving average to $89,412.

Key Triggers Behind the Plunge

President Trump's "Liberation Day" tariffs back in April 2025 set the stage, crushing risk assets and echoing now with fresh trade war jitters. Then came the Fed chair nomination of Kevin Warsh on January 31, signaling tighter policy and liquidity crunch, BTC fell 6.5% to $78,719 that day. Macro pressures piled on: stocks wobbled, with Dow Inc. volatile amid industrial slowdown fears. Overleveraged traders got wrecked, amplifying the cascade. Analysts point to fading post-election hype; Trump's pro-crypto push propelled 2025's highs, but reality bit back.​

Investor Sentiment Sours

Crypto holders are spooked. Retail wallets show outflows, institutions pause ETF buys after $50B 2025 inflows.[ from prior] Social media buzzes with "capitulation" talk; X (Twitter) trends like #BitcoinCrash dominate. Yet, 43% green days in the last 30 suggest volatility, not doom, BTC's down 3.64% monthly but holds $1.5 trillion market cap.​ Long-term bulls eye support at $70,000; a breach could test $60K. Whales accumulated quietly last month, per on-chain data.

Road to Recovery?

Bright spots glimmer. Forecasts predict a rebound: $79,338 minimum for February, averaging $91,854, potentially +20.9% ROI by month-end. Technicals show oversold RSI; historical patterns post-40% corrections (2022, 2024) led to rallies. Ethereum's Pectra upgrade and DeFi TVL stability could lift tides. Trump's "crypto capital" vision endures, stablecoins hit $4T volume yearly. Volatility is in crypto's DNA, this dip might be the buy opportunity of 2026.