The crypto market has also collapsed! In the past 24 hours, market capitalization has evaporated by approximately $111 billion, with over 400,000 traders liquidated!

Hello everyone, on the first day of February, the market once again took a hit. After gold and silver, cryptocurrencies also collapsed.

In the early hours of February 1st, Bitcoin fell below the $80,000 mark, deepening the decline of the entire crypto asset market. Other tokens experienced even larger drops: the second-largest digital asset, Ethereum, declined by over 10%, and Solana dropped more than 11%.

According to CoinGecko data, the total market capitalization of the crypto market evaporated by approximately $111 billion in the past 24 hours. Market tracking agency Coinglass data shows that over 400,000 investors were liquidated during the same period, with about $2.5 billion in long and short positions wiped out, mainly concentrated in Bitcoin and Ethereum.

In the past few weeks, Bitcoin has shown almost no response to some market changes that should have been positive for its price. Throughout most of January, as investor concerns over the Trump administration’s policy risks increased and the US dollar weakened, this change did not effectively boost crypto market sentiment.

Similarly, the historic surge in gold prices did not lead to a noticeable rally in Bitcoin; after the epic crash of gold and silver on Friday, Bitcoin also failed to attract capital inflows. Meanwhile, the delayed implementation of new market structure regulations in the US crypto industry has also weakened investor interest in digital assets.

The lack of sustained buying pressure has led the outside world to once again question Bitcoin’s role in asset allocation. It was once marketed as an asset that could both follow trends and hedge against “currency devaluation,” but now both functions seem to be underperforming: spot ETF fund flows continue to outflow; geopolitical risks have not stimulated demand; traditional safe-haven funds still prefer precious metals and cash.

Bitcoin’s price may also be affected by escalating tensions between Israel and Iran. One analyst said, “Currently, these price levels show that retail investor interest has become extremely low.” He added that trading volume might remain subdued “for another one or two quarters.”

(Source: China Fund News)