Cryptocurrency markets saw renewed volatility on February 4, with Bitcoin briefly falling to $72,000 and Ethereum posting a sharp weekly decline.
Cryptocurrency markets came under fresh pressure on February 4, with major tokens extending recent losses before staging a partial recovery. Bitcoin briefly fell to $72,000, while Ethereum was down roughly 25% over the past week, underscoring persistent volatility across digital assets.
The move reflects a fragile risk environment, where macroeconomic uncertainty, leverage unwinds, and cautious investor sentiment continue to weigh on crypto prices.
A volatile trading session
Bitcoin’s intraday drop to $72,000 marked one of its sharpest pullbacks in recent weeks before buyers stepped in, helping the token recover some ground. Ethereum, meanwhile, has struggled to regain momentum after a steep multi-day selloff that erased a significant portion of its recent gains.
Other altcoins followed a similar pattern, with broad declines across major tokens before modest rebounds later in the session.
Liquidations and leverage
Market data indicated elevated liquidation activity, particularly among leveraged traders. Sudden price moves triggered forced selling, amplifying volatility across exchanges.
High leverage has remained a defining feature of recent crypto market cycles, often magnifying both rallies and corrections.
Macro and sentiment pressures
Analysts point to a mix of factors driving the latest downturn:
- Tighter global financial conditions
- Reduced risk appetite across speculative assets
- Ongoing regulatory uncertainty in key markets
While institutional participation in crypto remains higher than in previous cycles, sentiment has grown more cautious amid repeated sharp drawdowns.
What investors are watching
Market participants are now focused on whether Bitcoin can hold key support levels and whether Ethereum stabilises after its steep weekly decline.
For now, the latest move reinforces a familiar reality of crypto markets: volatility remains a feature, not a bug.
