Bitcoin fell to $75,700—lowest since April—wiping $111B in crypto value. Gold dropped 9% and silver crashed 32% in synchronized safe-haven collapse.

Bitcoin Crashes Below $76K as Gold, Silver Erase $7T in Gains

Crypto markets extended their brutal pullback on Monday, February 2nd, as Bitcoin slipped below the $76,000 psychological level earlier in the session before stabilizing near $76,800. The move caps a disastrous week that saw Bitcoin drop 11%, wipe approximately $111 billion from the total cryptocurrency market capitalization, and trigger $1.6 billion in forced liquidations across 335,000 traders globally.

Bitcoin's Saturday low of $75,700 represents its weakest level since April 2025, when President Trump's "Liberation Day" tariff announcements against China and Mexico sent risk assets tumbling. From October's all-time high near $126,000, Bitcoin is now down roughly 40%—placing it below the $76,037 average cost basis at which Strategy (formerly MicroStrategy), the world's largest corporate Bitcoin holder, has accumulated its 712,647 BTC treasury. This means Strategy's holdings are underwater for the first time since the company began its aggressive accumulation strategy.

Major altcoins mirrored Bitcoin's weakness with double-digit percentage declines. Ethereum fell 12% to $2,395, XRP dropped 11% to $1.56, Solana declined 11% to $103, and BNB slipped 8%. The total crypto market cap contracted to approximately $2.58 trillion—far below the $3+ trillion peaks reached during late 2025's rally and down over 6% in just 24 hours during the worst of Saturday's selling pressure.

What makes this selloff particularly notable is the simultaneous collapse in traditional safe-haven assets that many investors expected would benefit from crypto's weakness. Gold experienced its steepest single-day decline in over 40 years, plunging approximately 9% on Thursday after reaching an all-time high of $5,595 per ounce. Silver's crash was even more dramatic—falling between 25% and 32% depending on the market, marking its worst performance since 1983. Combined, the precious metals wipeout erased an estimated $7 trillion in market value.

The synchronized decline across crypto, gold, and silver dismantles the narrative that capital simply rotates between asset classes during periods of uncertainty. Instead, the coordinated selloff suggests forced liquidation, margin calls, and genuine panic selling as leveraged traders exit all positions simultaneously regardless of asset type. When everything falls together, it indicates leverage unwinding rather than strategic reallocation.

Several factors converged to trigger the multi-asset crash. Gold and silver had reached extreme overbought conditions after months of relentless gains driven by geopolitical tensions, dollar weakness, and central bank buying. Technical indicators showed positioning at historically stretched levels, with momentum indicators flipping from extreme overbought to oversold within days—a classic sign of bubble-like behavior rather than healthy appreciation.

The immediate catalyst for precious metals' reversal appears to have been speculation around President Trump's choice for Federal Reserve chair to replace Jerome Powell, whose term ends in May 2026. Reports suggested Kevin Warsh—viewed as more hawkish and dollar-supportive than alternatives—was the front-runner. The prospect of a Fed chair committed to maintaining higher rates for longer strengthened the dollar index, which typically moves inversely to gold and silver prices.

As precious metals collapsed, margin calls rippled through commodity markets, forcing traders to liquidate other holdings—including Bitcoin and crypto—to meet collateral requirements. The phenomenon, known as contagion or cross-market liquidation cascades, occurs when leveraged positions in one asset class trigger forced selling in seemingly unrelated markets as firms scramble to raise cash and reduce overall risk exposure.

For Bitcoin specifically, the breakdown below $76,000 carries technical significance. This level not only marks Strategy's cost basis but also sits near critical Fibonacci retracement levels from the 2024-2025 rally. Immediate support now sits at $74,000-$75,000—the April 2025 lows where buyers previously stepped in during tariff-driven selling. If that zone breaks, attention shifts to the 200-week exponential moving average between $57,000-$68,000, a long-term trend separator Bitcoin hasn't tested since early 2023.

On-chain data paints a concerning picture. CryptoQuant CEO Ki Young Ju noted that Bitcoin's Realized Cap—a measure of the aggregate cost basis of all coins weighted by when they last moved—has flatlined, indicating no fresh capital entering the market. "When market cap falls without new buyers, it's not a bull market," Ju wrote, adding that early holders are sitting on large unrealized gains thanks to ETF and Strategy-driven rallies and are now taking profits.

Institutional flows confirm the capital exodus. Spot Bitcoin and Ethereum ETFs have recorded cumulative outflows approaching $1.5 billion over recent weeks, with no signs of reversal despite lower prices. The absence of "buying the dip" behavior from institutional allocators suggests conviction has eroded significantly, particularly after many entered positions at higher prices and are now facing losses.

The broader macro environment offers little support. The Federal Reserve held rates steady and signaled limited appetite for near-term cuts, geopolitical tensions remain elevated across multiple theaters, and equity markets are digesting weak earnings reports that question AI investment returns. In this context, risk assets like Bitcoin face continued pressure absent a clear catalyst for reversal.

Whether Bitcoin has found a local bottom near $75,700 or continues lower toward $74,000 or even $68,000 depends on several variables: whether precious metals stabilize or continue falling (dragging crypto lower through correlation), whether Fed chair speculation resolves in a way that supports risk assets, whether institutional ETF flows reverse from outflows to inflows, and whether leverage has been sufficiently flushed from the system to allow organic buying to resume.

For now, the message from markets is clear: when fear deepens and liquidation pressure dominates, no asset class is safe—not crypto, not gold, not silver. The synchronized selloff represents a crisis of confidence across alternative assets, leaving investors with few places to hide beyond cash and short-term Treasuries as volatility spikes and correlations approach one.