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The crypto market has seen a sharp sell-off, with total market value falling to $2.52 trillion, down by 6% in the last 24 hours. Bitcoin, the pioneer cryptocurrency, dropped heavily from $89,200 to a low of $74,561.
Other major coins like ETH, XRP, SOL, BNB, and ADA also faced strong losses of around 8% to 15%.
Now the big question remains: Will the crypto market recover this week, or will prices fall even further?
Why Bitcoin and Crypto Prices Fell
Today, Bitcoin price slipped about 2.2%, falling to nearly $76,600, a level last seen in November 2024
The biggest reason behind the market drop is growing uncertainty around global interest rates. Market sentiment turned negative after President Donald Trump nominated Kevin Warsh as a possible Federal Reserve chair, which raised fears that interest rates could stay higher for longer.
Adding more pressure, India’s Union Budget 2026 kept crypto tax rules the same. No new taxes were added, but strict rules stayed in place. This left many crypto investors disappointed.
Key U.S. Economic Data To Impact the Crypto Market
Several major U.S. economic events this week could influence crypto prices. On February 5, the latest Initial Jobless Claims data will be released. Analysts expect claims to rise slightly to 212,000 from last week’s figure of 209,000.
If the number comes higher than expected, it may signal weakness in the U.S. job market. This could increase hopes that the Federal Reserve might slow down rate hikes, which is usually positive for Bitcoin and crypto prices.
Further, on February 6, the U.S. unemployment rate and the monthly employment report will be announced. The unemployment rate is forecasted to rise to 4.5%, compared to 4.4% in December 2025.
If economic data shows continued weakness, markets may price in future rate cuts, which could help crypto recover.
Bitcoin Price Outlook
Following this major event, Crypto trader Captain Faibik highlights that Bitcoin is losing a key long-term support level, the weekly EMA100, for the first time in over 840 days. This is seen as a warning sign on higher timeframes.
For now, all eyes are on the $68,000–$70,000 zone, which acted as strong resistance throughout 2024 and may now serve as critical support.
As of now, Bitcoin price is trading around $76,453, reflecting a drop of 2.2% seen in the last 24 hours.