Weekly Crypto Market Update – 2 February 2026 (Week Ending 1 Feb 2026)

Weekly crypto market update showing liquidity stress and risk-off conditions

This weekly crypto market update gives you a clear, actionable breakdown of what moved crypto markets in the past 7 days — with weekend context and what’s happening now, without the noise.

1) Market Snapshot (Past 7 Days)

Live Bitcoin price context (now): BTC is trading around the $77K area today after a volatile weekend, following a sharp risk-off move that pushed prices to multi-month lows. (Price reference: Investing.com)

Bitcoin (BTC): The weekend saw BTC break below $80K in thin liquidity, with reports of a low near the $74.5K area before stabilizing. Volatility was amplified by deleveraging and liquidation cascades.

Ethereum (ETH): ETH underperformed during the selloff, with reports pointing to levels near the $2.2K zone during peak liquidation pressure — a typical outcome when leverage unwinds and risk appetite collapses.

Frame for the week: Risk-off deleveraging + macro shock = forced repricing. This wasn’t “one story.” It was a stack: thinner weekend liquidity, liquidation cascades, cross-asset stress, and policy uncertainty.

SPI takeaway: Weeks like this punish speed and leverage. The edge is survival: protect downside, avoid emotional entries, and wait for liquidity + flow signals to stabilize.

2) Top 10 Crypto Stories That Mattered (Past 7 Days)

i. Bitcoin Hits Multi-Month Lows After Weekend Selloff

What happened: BTC slid hard over the weekend, printing lows around the mid-$70Ks before attempting to stabilize.

Why it matters: Weekend liquidity gaps can exaggerate moves. When key levels break, volatility and liquidation risk spike.

Most impacted assets: BTC, market beta

ii. Liquidations Surge as Leverage Unwinds

What happened: Reports flagged roughly $2B+ in liquidations within 24 hours during the worst of the move.

Why it matters: Liquidations are mechanical selling. They can extend downside beyond what spot demand would normally justify.

Most impacted assets: BTC, ETH, high-beta alts

iii. ETH Leads Liquidation Pain During the Flush

What happened: ETH saw heavy liquidation pressure and sharp downside moves near the $2.2K area during peak volatility.

Why it matters: ETH often absorbs leverage across DeFi + derivatives, so it can drop harder when risk-off hits.

Most impacted assets: ETH, DeFi blue chips, L2 ecosystem tokens

iv. Macro Shock: Cross-Asset Selloff After Precious Metals Meltdown

What happened: Global markets sold off as sharp moves in precious metals spilled into broader risk assets.

Why it matters: Crypto is still treated like a risk asset in stress regimes. Cross-asset deleveraging drags it down.

Most impacted assets: BTC, ETH, risk-on assets broadly

v. Policy Uncertainty Adds Pressure to Risk Appetite

What happened: Markets reacted to headlines around U.S. policy and Fed-direction uncertainty.

Why it matters: When “higher for longer” expectations rise, liquidity tightens and speculative assets reprice lower.

Most impacted assets: BTC, ETH, growth/risk assets

vi. ETF Flows: Signs of Institutional Caution

What happened: Reporting highlighted meaningful spot Bitcoin ETF outflows (including January net outflow figures) alongside weaker appetite.

Why it matters: ETFs are a key demand bridge. Persistent outflows weaken support and make rebounds fragile.

Most impacted assets: BTC, ETF narrative

vii. CME Futures Structure Becomes a Talking Point

What happened: Traders focused on futures structure (including CME gap discussion) as price snapped lower.

Why it matters: In fast markets, futures positioning and gaps can influence short-term mean-reversion behavior.

Most impacted assets: BTC

viii. Strategy / Corporate BTC Exposure Back in Focus

What happened: Corporate BTC proxies (and Strategy-related coverage) moved sharply as BTC sank.

Why it matters: When BTC drops quickly, equity proxies can amplify downside due to sentiment + leverage + expectations.

Most impacted assets: BTC, crypto-related equities

ix. Retail Sentiment Shifts Toward Fear

What happened: Market commentary emphasized capitulation risk and fear-driven selling behavior.

Why it matters: Fear can create opportunity later — but only after volatility compresses and flows stabilize.

Most impacted assets: Broad market

x. Exchanges and Liquidity Conditions Under the Microscope

What happened: Coverage noted pressure on crypto trading activity and how sharp drops can reduce participation.

Why it matters: Reduced participation = thinner liquidity = more violent moves on both sides.

Most impacted assets: Altcoins, illiquid pairs

Join the Weekly SPI Newsletter

Practical insights. Real opportunities. Zero fluff.

3) What SPI Readers Should Do This Week (Simple Action Plan)

For DeFi activity (especially yield), follow the SPI risk process first: DeFi Safety Checklist (SPI) .

4) Sources (Light, Credible References)

Nothing here is financial advice. This is educational market intelligence to help you think clearly and act safely.

Leave a Reply

Your email address will not be published. Required fields are marked *