According to Bitwise's latest Weekly Crypto Market Compass, Bitcoin's price slump driven by heavy crypto ETP outflows and widespread futures liquidations has pushed key valuation metrics into rarely seen discount territory. The report notes that BTC briefly dropped to about $74,700, with nearly 78% of invested capital estimated to be underwater, while sentiment and positioning indicators suggest an increasingly contrarian setup for the broader crypto market.

In a Feb. 1 analysis, CryptoQuant CEO Ki Young Ju argued that Bitcoin’s recent decline is driven by persistent selling pressure and a lack of new capital, as signaled by a flat Realized Cap and weakening liquidity. He said a full-cycle style 70% crash would likely require MicroStrategy to shift from aggressive accumulation to substantial selling, while other on-chain data from CryptoQuant contributors show stablecoin market growth has reversed since December and exchange inflows have faded. At press time, BTC was trading at $78,280 amid what Ki expects could become a broad sideways consolidation phase rather than an immediate capitulation.

On Monday, Tether released MiningOS, an open-source and modular Bitcoin mining operating system designed for users ranging from home miners to large institutions. The software, first outlined in plans from June last year, aims to simplify and scale mining while reducing reliance on costly proprietary vendors.

Over the last two weeks, US spot bitcoin ETFs saw nearly $3 billion in redemptions, according to Coinglass, as BTC fell from about $84,000 to $74,600 over the weekend into Monday. With combined ETF assets near $113 billion and holdings around 1.28 million BTC, the average cost basis is roughly $87,830, leaving many positions below water.

Bitcoin’s correction intensified as leverage reset and Open Interest declined sharply. More than $5 billion was liquidated in four days, with price sliding to about $77,700 and weekly liquidations near $1.6 billion; a rebound toward $80,000 could trigger around $1 billion in short liquidations.

Bitcoin ended Sunday's weekly session at $76,931, closing below its 100‑week simple moving average near $87,500. Drawing on prior cycles, analysts note such breaks have historically lasted 182 to 532 days, while heavy spot volume between $85,000 and $95,000 and a jump in USDT dominance suggest resistance could delay a move toward $100,000 for six months or more.

Based on hourly BTC/USD data from Kraken, Bitcoin slid below $78,000 to a $74,543 low and is now attempting to rebuild above $77,000–$78,000. The price remains under $80,000 and the 100‑hour simple moving average, with immediate resistance at $79,200 and $80,000. Failure to clear $79,200 could refocus support at $78,000 and $77,000.

On February 3, 2026, Bitcoin market sentiment slid into extreme fear, with the Fear & Greed Index at 14. The article cites a 13% decline over 30 days, a weekend dip to $74,500 followed by a rebound to $78,500, and about $2.2 billion in 24‑hour liquidations, while traders watch $69,000 downside and resistance near $80,600 and $91,350.