Bitcoin faced a sharp correction in the final week of January and early February 2026, with prices sliding below the $77,000 mark to their lowest level since April 2025.
The world’s largest cryptocurrency fell between 10% and 13% in a single week, reversing gains from its October 2025 peak and wiping out more than $800 billion in market value.
The sell-off was driven by a combination of macroeconomic and market-specific factors. Investor sentiment weakened after the nomination of Kevin Warsh to succeed Jerome Powell as US Federal Reserve chair, triggering concerns over future interest rate policy and strengthening the US dollar. At the same time, nearly $1.5 billion was withdrawn from US-listed Bitcoin exchange-traded funds (ETFs), signalling reduced institutional appetite.
Heightened volatility also led to forced liquidations, with more than $2 billion in leveraged Bitcoin positions wiped out during the week.
Analysts noted that thin weekend liquidity further amplified the decline, allowing prices to fall more sharply than usual. Bitcoin’s downturn also coincided with a broader “risk-off” move in global markets, including declines in major technology stocks.
Bitcoin briefly touched lows near $74,876 on some exchanges before attempting to stabilise in the $77,000–$78,000 range. The weakness extended across the crypto market, with Ethereum plunging as much as 18–20% over the week, while other major tokens such as Solana and XRP also recorded steep losses.
