Why Crypto Market Crashed Today: Bitcoin Hits $73K Low Amid Massive Liquidations

If you’re wondering , you’re not alone. On February 4, the crypto world saw a big drop. The total market lost almost $115 billion in value from its recent high. Bitcoin fell toward $72,900, pulling down other coins too. The market cap dropped to $2.45 trillion before a small bounce back to $2.56 trillion.

This sharp move shows how fast things can change in crypto. Selling spread across major tokens. Even strong ones like Hyperliquid’s HYPE token dropped nearly 12%. Let’s break down what happened, why it happened, and what might come next.

Market Overview: A Sudden Risk-Off Shift

The crypto market cap faced heavy selling in the last 24 hours. It slipped below the key $2.50 trillion level. This erased $114.75 billion from highs. Global markets turned risk-off, with traditional stocks pulling back too.

Bitcoin led the fall. When it dipped under $73,000 overnight, pressure built up. Thin trading hours made the drop worse. Buyers tried to step in near $2.45 trillion, but the rebound looks like short-covering, not new buying.

• Total liquidations: Over $704 million in 24 hours.
• Biggest hit: Long positions (bets on price up).
• Main coins affected: Bitcoin and Ethereum.

For now, resistance is at $2.66 trillion. A bigger one is at $2.82 trillion. The dream level is $3 trillion to bring back confidence.

Bitcoin’s Big Role in the Crash

was the spark. BTC dropped to its lowest in months at $72,900. This triggered over $260 million in Bitcoin long liquidations.

What are liquidations? In simple terms, traders use leverage (borrowed money) to bet big. If price moves against them, exchanges close positions automatically. This causes more selling.

Stop-loss orders kicked in too. As BTC broke short-term support, the cascade grew. Now, BTC trades around $76,660 after a bounce.

Key Bitcoin Levels to Watch

Until BTC clears $84,660, upside stays weak. Leverage must cool first.

Altcoins Feel the Pain: HYPE’s Sharp Drop

Not just Bitcoin. Altcoins dropped hard too. Hyperliquid (HYPE) fell 12% in 24 hours. But it’s still up 25% in the past month after an 87% rally from January 21 to February 3.

This looks like a breather, not a full reversal. Traders took profits after the big run. Momentum tools like RSI moved with price, showing healthy consolidation.

HYPE Technical Outlook

• Hold $32: Keeps structure intact.
• Dip to $28: Still okay for consolidation.
• Break $28: Risk to $23, bearish shift.
• Reclaim $34: Upside restart.

Other alts faced similar pressure from rising leverage stress and weak risk appetite.

Why the Selling? Key Triggers Explained

Several factors piled up:

1. Macro Uncertainty and Traditional Markets

Stock indices pulled back. This spilled into crypto. Investors got cautious amid global uncertainty.

2. Leverage Stress Builds

High leverage means big swings. $704 million wiped out shows overextended longs.

3. Smart Money Turns Bearish

Top trader 0x152e opened $71 million in shorts on ETH and SOL. This signals whales betting down.

4. Ethereum Ecosystem Warning

Vitalik Buterin warned Layer 2 networks. Active users fell nearly 50%. Ethereum main chain gains back users. No boost for ETH price yet.

5. XRP News Fails to Lift

XRPL activated Permissioned Domains with 91% validator support. This helps institutions. But XRP price stayed weak, no quick win.

Technical Picture: Vulnerable but Not Broken

The market shows fragility. TOTAL cap needs spot inflows, not just shorts covering. Until leverage drops, macro risks like interest rates or stocks can push lower.

RSI on many charts isn’t oversold yet. More room down if pressure continues.

What to Watch Next: Recovery or More Pain?

Short-term:

• BTC hold above $72,900.
• Liquidations under $500M daily.
• Spot buying returns.

Bull case: Break $2.66T cap, BTC over $84K. Leads to $3T push.

Bear case: New lows under $2.45T. More deleveraging.

Stay cautious. Crypto loves volatility. Use this dip to average down if you’re long-term bullish.

FAQs: Answering

Is this the end of the bull run?

No signs yet. Just a correction after highs.

Will Bitcoin recover soon?

Possible bounce to $79K. Needs volume.

What caused the liquidations?

High leverage + BTC break of support.

Should I buy the dip?

Do your research. Risk management key.

The crypto market teaches patience. Today’s crash is a reminder. Watch levels and news closely.