Cryptocurrency markets fell as global equities and precious metals sold off, while bitcoin liquidations exacerbated downside moves.

The bitcoin price has plummeted under the closely-watched $80,000 per bitcoin level, sparking fears that a full-blown bitcoin and crypto crash could be looming.

Michael Burry warned that a Bitcoin drop below $70,000 could unlock “sickening scenarios,” including forced selling and firm failures. Burry argued large corporate Bitcoin holders

Bitcoin fell below $73,000 on Tuesday as investors sold the asset to hedge against heightened geopolitical and economic uncertainties.

The price of bitcoin fell about 10% over the past week.

Michael Burry warns Bitcoin breakdown could trigger cascading market risks.

Fears have been swirling for years that the era of U.S. dollar reserve currency status could be coming to an end, with the turmoil triggered by U.S. president Donald Trump’s global trade tariffs and the rise of China as a economic challenger to the U.S. stoking those fears.

Marginally good news and big bitcoin purchases have yet to move the cryptocurrency in a meaningfully positive direction.

Bitcoin ETF flow dispersion widened on Feb. 3 as IBIT took inflows while FBTC and ARKB drove a $272.0 million combined outflow.

The Bitcoin price attracts attention from analysts and traders who watch its moves on crypto exchanges. Researchers usually point to a few factors that move the coin’s price through different cycles. The key drivers include supply limits, market demand, macroeconomics, and market behaviors.

Bitcoin (BTC) price recovers slightly, trading above $76,000 at the time of writing on Wednesday, after reaching levels not seen since early November 2024 the previous day.