Bitcoin Falls to $72,000 Intraday Low, Market Cap Down $500B Since Mid‑January Peak

Bitcoin fell below $73,000 for the second straight day, extending a volatile week in which it lost nearly 18% of its value and erased about $500 billion from its market cap since mid‑January.

Bitcoin Erases Gains as Liquidations Mount

For the second consecutive day, bitcoin slid below the $73,000 threshold, extending a volatile week that has seen the cryptocurrency lose nearly 18% of its value. Mirroring the previous session, the digital asset plunged from a high of $76,300 to $72,000 by 12:40 p.m. EST—a 3% intraday drop. This performance continues to track the tech-heavy Nasdaq, which was down 2.36% at the time of writing.

This latest decline pushed bitcoin’s market capitalization down to $1.45 trillion. Since hitting a year-to-date high of $97,500 on Jan. 15, the asset has erased approximately $500 billion in value. Meanwhile, the Feb. 4 crash triggered a wave of liquidations, wiping out $125 million in long positions within just four hours. Over the last 24 hours, total leveraged liquidations exceeded $830 million, with bullish “long” bets bearing the brunt of the losses.

Notably, the downward move coincided with $272 million in outflows from spot bitcoin exchange-traded funds. Sentiment also remained bearish despite news that the U.S. Senate plans to discuss the CLARITY Act, a bill aimed at establishing a comprehensive regulatory framework for the crypto market. Additionally, the U.S. House’s successful vote to end the partial government shutdown late on Feb. 3 failed to provide the “risk-on” boost many investors expected.

$BTC/USD 1-hour chart via Bitstamp on Feb. 4, 2026. Bitcoin hit an intraday low of $72,000 at 12:40 p.m. EST on Wednesday.

AI Sector Rout Drags Down Tech Indices

According to reports, the broader market malaise was driven largely by the artificial intelligence (AI) factor.” Major semiconductor and AI-related stocks faced a reality check, led by Advanced Micro Devices (AMD), which plummeted over 16% following conservative guidance. This sell-off weighed heavily on the Nasdaq, with Nvidia (down 4%), Broadcom (down 7%) and Intel (down 3.5%) all deep in the red. While the S&P 500 and Dow Jones Industrial Average also traded lower, their losses were contained to under 1%.

Meanwhile, bitcoin’s persistent correlation with the Nasdaq—and its deepening divergence from traditional safe-haven assets like gold—has reignited a debate over the asset’s digital gold narrative. This decoupling from the precious metals rally suggests that $BTC is currently behaving more like a high-beta tech play than a store of value. Furthermore, the market is beginning to question the waning influence of Strategy. Since pivoting its approach to financing bitcoin acquisitions, the firm’s near-weekly purchases have failed to provide the spark that sustained its previous rallies.

This diminishing impact has prompted critics and high-profile observers to call for a tactical shift. Jim Cramer, the prominent TV personality and bitcoin investor, took to X to urge Strategy Chairman Michael Saylor to reconsider his aggressive funding strategy.

“Memo to Michael Saylor: we think that $73,802 is the line in the sand for bitcoin,” Cramer posted. “Time to do another zero-coupon convert and stop this decline. Strategy’s earnings depend upon it and what will you talk about when you report Thursday? Let’s get this done!”

Read more: XRP Derivatives Paint a Cautious Picture as Price Stalls Under $1.65

While bitcoin is currently trading below the average cost basis of Strategy’s 713,502 $BTC treasury, analysts remain divided on the firm’s stability. A growing consensus suggests that even a prolonged downturn will not push the company to the brink in the short term. Optimists point to the company’s substantial cash reserves as a sufficient bulwark, capable of insulating the firm’s balance sheet from the current bout of extreme volatility.

FAQ ❓

• Why did bitcoin drop below $73K again? It tracked Nasdaq’s tech sell‑off and broader market weakness.
• How much value has bitcoin lost in 2026? $BTC erased about $500B since its Jan. 15 peak of $97,500.
• What triggered the latest liquidations? Over $830M in leveraged bets were wiped out in 24 hours.
• Is Strategy at risk from the downturn? Analysts say its large cash reserves buffer short‑term volatility.