Why did the bitcoin price drop so sharply this weekend?

A stronger dollar, geopolitical worries, and thin liquidity set the stage. Heavy leverage then triggered about $2.5bn in long liquidations, pushing price through support and widening gaps. Once stops fired, order books thinned and the slide accelerated. This mix explains the speed and depth of the move.

What levels matter most for BTC right now?

Near term, traders watch $75,600 support, $80,000 as a psychological pivot, and $84,100 as intraday resistance. Above, the 50‑day average near $89,800 is key. Below, a failure at $75,600 risks a retest of the 1‑year low around $74,420. Liquidity around these levels can shift quickly.

How should UK investors think about risk after the drop?

Use smaller sizes, clear stop losses, and avoid stacking leverage into volatility. Consider staged entries and profit targets. Keep cash buffers for flexibility and review counterparty risk. If using CFDs or futures, account for fees and overnight financing. A written plan helps reduce emotional trading during fast moves.

Is this the start of a new crypto winter?

It is too soon to say. Some metrics show stress clearing as leveraged positions reset, while larger holders accumulate cautiously. If price reclaims moving averages and holds above support, sentiment can improve. If supports fail and volatility expands, a deeper drawdown is possible. Trade the levels, not the label.

Global Market Insights

BTCUSD Today: $800B Wiped Out, $2.5B Longs Purged — February 3

ByHuzaifa Zahoor February 3, 2026February 3, 2026

The bitcoin price stays below $80,000 after a violent weekend slide that erased about $800bn in crypto value and triggered roughly $2.5bn in forced long liquidations. For UK investors, the pair BTCUSD reflects a sharp risk reset as dollar strength and geopolitics squeeze sentiment. Spot trades near $78,600 with volatility still high. We explain what moved the market, today’s key levels, and practical tactics to handle a fast tape without taking outsized risk.