Bitcoin Crashes Below $73,000 as 'Long' Traders Suffer Losses

Crypto portfolios take a hit as Bitcoin, Ethereum, and XRP plummet amid technical breakdown and regulatory uncertainty.

Published on Feb. 4, 2026

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Bitcoin briefly crashed below $73,000 on Tuesday, hitting $72,900—its lowest point since November 2024—before recovering to around $75,658. This 6% intraday nosedive wiped out another chunk of what's already been a brutal year, with Bitcoin now down 16% year-to-date. Altcoins like Ethereum and XRP have also been decimated, dropping 25% and 17% respectively over the past week as a perfect storm of geopolitical jitters, economic data disruptions, and regulatory uncertainty have investors fleeing riskier assets.

Why it matters

The crypto market's sharp downturn highlights the volatility and vulnerability of the digital asset space, with Bitcoin's technical breakdown and the broader altcoin selloff wiping billions from investor portfolios. This raises questions about the long-term stability and mainstream adoption of cryptocurrencies, especially as regulatory uncertainty continues to loom.

The details

Funding rates on Binance entered an 'extreme zone,' signaling traders are piling into short positions faster than people abandoning Twitter for BlueSky. Key resistance now sits at $74,000, while support hovers somewhere between $69,000 and $72,800—levels that feel as reliable as a crypto influencer's price predictions. Volatility is spiking after a year of relative calm, as the market appears to have decided boring was overrated.

  • Bitcoin briefly crashed below $73,000 on Tuesday, February 4, 2026.
  • Bitcoin hit a low of $72,900 on February 4, 2026, its lowest point since November 2024.

The players

Bitcoin

The world's first and most well-known cryptocurrency, which has seen a sharp decline in value recently.

Ethereum

The second-largest cryptocurrency, which has dropped 25% in the past week.

XRP

A cryptocurrency that has declined 17% in the past week.

Rob Hadick

An analyst at Dragonfly Capital who argues the Bitcoin pullback 'doesn't appear driven by any single factor' and points to strong fundamentals from stablecoins and tokenized assets.

Alex Thorn

An analyst at Galaxy Digital who warns Bitcoin 'may continue to drift lower' toward the 200-week moving average near $58,000, a 20% drop from current levels.

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What they’re saying

“The technical picture looks about as appetizing as gas station sushi. Funding rates on Binance entered what analysts call an 'extreme zone,' signaling traders are piling into short positions faster than people abandoning Twitter for BlueSky.”

— Annemarije de Boer, Technology journalist (gadgetreview.com)

“Bitcoin 'may continue to drift lower' toward the 200-week moving average near $58,000. That's a 20% drop from current levels—the kind of distance that separates hopeful hodlers from actual capitulation.”

— Alex Thorn, Analyst, Galaxy Digital (gadgetreview.com)

What’s next

Experts are divided on whether this is the bottom for Bitcoin or the beginning of a deeper correction. Investors will be closely watching to see if Bitcoin can hold support levels around $69,000-$72,800, or if it continues drifting lower toward the 200-week moving average near $58,000.

The takeaway

The crypto market's sharp downturn highlights the ongoing volatility and vulnerability of digital assets, with billions wiped from investor portfolios. This raises questions about the long-term stability and mainstream adoption of cryptocurrencies, especially as regulatory uncertainty continues to loom.