Crypto Markets Bleed Amid Tech‑Stock Selloff and Rising Macro‑Risk
Wednesday, 3 February 2026 – Global
The cryptocurrency sector entered a sharp correction on Wednesday as a wave of disappointing earnings from technology firms and renewed political uncertainty in Washington spilled over into digital assets. Bitcoin, the market’s benchmark, slid more than 6 % in the last 24 hours to around $73,600, extending a seven‑day decline that now totals roughly 19 %. Ethereum followed suit, dropping a similar percentage to near $2,135.
1. Market‑wide fallout
- Capitalisation: The total value of all crypto assets fell to roughly $2.57 trillion, a 3.7 % dip in a single day.
- Trading volume: 24‑hour on‑chain and exchange activity summed to about $194 billion.
- Liquidations: CoinGlass data show $814 million of positions were forcibly closed, with long positions accounting for the lion’s share (≈$636 million). Ethereum endured the biggest hit (≈$312 million), followed closely by Bitcoin (≈$306 million) and Solana (≈$65 million). More than 178 k traders were liquidated.
The sell‑off was not confined to the largest coins. Binance Coin (BNB) slipped about 5 % to $731, XRP fell around 4 % to $1.54, and Solana registered a near‑10 % drop on the day, leaving it down almost 27 % over the past week.
2. Drivers behind the downturn
Tech‑sector earnings disappointment
The catalyst was a series of weak results from high‑profile technology companies, most notably AMD, whose forecast for AI‑related revenue fell short of analyst expectations. The underperformance rattled risk‑on sentiment across equity markets, prompting a rapid unwind of leveraged exposure that quickly cascaded into crypto derivatives.
Political volatility in Washington
A fragile truce in the U.S. capital was tested this week. While the House passed a $1.2 trillion spending bill to avert a broader government shutdown, negotiations over immigration enforcement funding and related ICE policy remain unsettled. The uncertainty contributed to a broader “risk‑off” mood, intensifying pressure on assets perceived as speculative.
Liquidity constraints
Weekend market depth was thin, a condition highlighted by Global Settlement’s Ryan Kirkley, who noted that Bitcoin’s breach of the $80,000 mark (its first since April 2025) triggered over $2 billion in forced liquidations. The lack of order‑book depth amplified price moves once the sell‑off began.
Precious‑metal weakness
Gold and silver also suffered, pressured by remarks from President Trump and Federal Reserve Chair Jerome Powell, reinforcing the narrative of a multi‑asset stress episode rather than a crypto‑specific shock.
3. Winners in a bearish market
Even as the broader market slumped, a handful of tokens posted modest gains:
| Token | 24‑h Change | Approx. Price |
|---|---|---|
| WhiteBIT Coin | +4.7 % | $53.13 |
| Cosmos (ATOM) | +2 % | $2.02 |
| Hyperliquid (HYPER) | +1.5 % | $34.38 |
Among the losers, Binance‑staked SOL products (BNSOL and JITO‑staked SOL) fell over 8 % each, while the meme‑oriented token Rain (RAIN) dropped around 9 %.
4. ETF flows reflect diverging sentiment
Spot Bitcoin ETFs experienced net outflows of roughly $272 million on 3 Feb, indicating continued investor caution. By contrast, spot Ethereum ETFs attracted $14.1 million in inflows, and spot XRP and SOL ETFs saw modest net inflows of $19.5 million and $1.24 million, respectively. The disparity underscores a tentative re‑allocation toward alt‑coins that some traders view as comparatively less correlated with broader equity turmoil.
5. Analysis & outlook
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Macro risk outweighs crypto‑specific fundamentals: The data suggest that the current correction is driven more by a generalized risk‑off sentiment than by any intrinsic weakness in blockchain protocols. As long as equity markets, especially the tech segment, remain volatile, crypto assets are likely to stay under pressure.
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Liquidity risk remains salient: Thin order books during weekends and holidays can magnify price swings, as evidenced by the $2 billion in forced liquidations when Bitcoin slipped below $80k. Traders with leveraged exposure should monitor liquidity metrics closely.
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Potential for a short‑term rebound: The modest inflows into Ethereum, XRP, and SOL ETFs indicate that some market participants are seeking exposure to assets with perceived upside or lower correlation to equity markets. Should tech‑stock earnings stabilize and political friction ease, these tokens could lead a tentative rebound.
- Long‑term resilience depends on diversification: With the crypto market now accounting for a smaller fraction of global risk‑on capital, diversification across multiple protocols and exposure types (e.g., staking, DeFi lending) may help mitigate future macro‑driven shocks.
Key Takeaways
- Bitcoin and Ethereum fell 6 %+ in 24 hours, extending a roughly 19 % decline for Bitcoin over the past week.
- Total market cap dropped to $2.57 trillion; daily trading volume hit $194 billion.
- $814 million in liquidations were recorded, primarily affecting long positions on ETH and BTC.
- Weak tech earnings (notably AMD) and renewed political uncertainty in Washington triggered a broad risk‑off shift.
- Spot Bitcoin ETFs saw significant outflows, while Ethereum, XRP, and SOL ETFs attracted modest inflows.
- Thin weekend liquidity amplified price moves, highlighting the need for caution among leveraged traders.
The crypto sector will likely continue to mirror the health of risk‑on markets in the near term. Investors and participants should watch for further developments in tech‑stock performance, U.S. political negotiations, and liquidity conditions across major exchanges.
Source: https://thedefiant.io/news/markets/crypto-markets-bleed-amid-tech-stock-selloff
