Bitcoin lost more than 15% of its value in a week: reasons for the price drop
4 February 09:33
Bitcoin lost more than 15% of its value in a week, falling to early November 2024 levels.
This was reported by Bloomberg, according to "Komersant Ukrainian".
According to journalists, the crypto market is currently experiencing its worst times since US President Donald Trump returned to the White House.
On Tuesday, February 3, the world’s leading cryptocurrency fell 7% to $72,877, its lowest level since November 6, 2024. Thus, all the optimism that prevailed after the US elections has virtually evaporated.
And if we recall October 6, 2025, when Bitcoin stormed the $126,000 mark, the fall looks catastrophic. Indeed, since its historic high in October last year, the asset has lost about 40% of its value.
According to Bohan Jiang, senior derivatives trader at FalconX, the sharp decline was caused by the mass liquidation of positions by traders who were hoping for a quick market recovery and betting on Bitcoin rising above $80,000.
“Many positions were liquidated, which put additional pressure on prices,” he said.
Reasons for the decline
Geopolitical and market risks also influenced the situation. As tensions between the US and Iran escalate, investors have begun to buy real gold and silver en masse instead of cryptocurrency.
In addition, Donald Trump’s statements about new tariffs (import taxes) have made investors nervous. The principle at work here is that when there is instability in the global economy, people try to get out of “risky” assets, and cryptocurrency is the first candidate for sale at such times.
Additional pressure is being exerted by the S&P 500 index retreating from record highs and rising oil prices due to global tensions.
Investors and traders are closely watching Trump’s next moves and global economic indicators, as even small changes in US policy can cause sharp fluctuations in the crypto market. Currently, the overall decline for the current year is already almost 14%.
As a reminder, the Trump family earned $1.4 billion from cryptocurrency last year.
At the same time, the family’s total wealth remains roughly the same: the increase in income from cryptocurrencies partially offset losses in other areas of business, in particular the decline in the market value of Trump Media & Technology Group, the parent company of the social network Truth Social.
Incidentally, it is virtually impossible to predict the future dynamics of Bitcoin, as cryptocurrencies have no real economic basis, unlike national currencies.
