Crypto Markets Bleed Amid Tech Stock Selloff

Crypto markets continued to plunge on Wednesday as disappointing tech earnings and a fragile political truce in Washington triggered a global sell-off.

Bitcoin (BTC) fell 6% over the past 24 hours to trade around $73,600, bringing its seven-day losses to 19%. Ethereum (ETH) slid more than 6% on the day to about $2,134.

“Bitcoin fell below $80,000 for the first time since April 2025, setting off more than $2 billion in forced liquidations as leveraged positions were automatically unwound,” Ryan Kirkley, co-founder and CEO of Global Settlement (GSX), said in comments shared with The Defiant. “Thin weekend liquidity accelerated the move, but the pressure did not originate in crypto alone.”

He explained that U.S. equities sold off sharply last Friday, led by tech stocks, and that risk-off sentiment spread to European and Asian markets early this week.

“Precious metals extended losses as well, with gold and silver both under pressure following remarks from President Trump and Federal Reserve Chair Jerome Powell,” he added. “Taken together, this development reflected broad macro stress rather than a breakdown specific to crypto markets.”

Among other major tokens, BNB fell around 5.2% to $731, while XRP declined roughly 4.4% to $1.54. Solana (SOL) was among the weakest large-cap performers, dropping more than 9% on the day to trade near $92, and down nearly 27% over the past week.

The total cryptocurrency market capitalization dropped to approximately $2.57 trillion, down about 3.7% over the past 24 hours. Trading activity over the past 24 hours totaled $194 billion.

Top Gainers and Losers

A few tokens bucked the trend: WhiteBIT Coin rose 4.7% over the past 24 hours to $53.13, Cosmos Hub gained nearly 2% to trade around $2.02, and Hyperliquid added about 1.5% to $34.38.

On the downside, Binance Staked SOL (BNSOL) dropped 8.4%, Jito Staked SOL (JITOSOL) slid 8.8%, and Rain (RAIN) slipped 9%.

Liquidations and ETF Flows

Total liquidations reached $814 million over the past 24 hours, with long positions accounting for about $636 million of that total, according to data from CoinGlass.

Ethereum recorded the largest liquidations at approximately $312 million, followed by Bitcoin at around $306 million. Solana recorded liquidations of around $65 million. More than 178,000 traders were liquidated during this period.

In the ETF space, spot Bitcoin ETFs recorded $272 million in net outflows on Feb. 3. By contrast, spot Ethereum ETFs posted $14.1 million in net inflows on the day. Meanwhile, spot XRP ETFs saw $19.5 million in net inflows, while SOL ETFs recorded net inflows of $1.24 million, per SoSoValue data.

Macro and Political Drivers

The crypto market’s volatility continues as tech stocks stumble and Washington faces new political tensions. Earlier today, AMD issued a disappointing forecast that fell short of investor expectations for AI-driven growth. This has been part of a broader pattern with AI and tech stocks lately.

Elsewhere, the House passed a $1.2 trillion spending package in a 217-214 vote to end a partial government shutdown that began over the weekend. The move will fund most agencies through September, the Washington Post reported.

Meanwhile, the Department of Homeland Security will be funded through Feb. 13 to give both parties 10 days to debate new rules for ICE. These talks were sparked by the recent death of Alex Pretti in Minnesota.