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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
02/03/2025

Crypto Market in Freefall: Bitcoin Hits $91K, Ethereum Drops 18% — Is the Bull Run Over?

On February 3rd, the crypto market suffered another sharp selloff, rattling investors across the board. Bitcoin (BTC) fell to a low of $91,231, while Ethereum (ETH) cratered more than 18% to $2,125. Altcoins were swept up in the same wave of selling, with most losing over 20% of their value. According to data from Coinglass, total liquidations hit $2.15 billion over the past 24 hours, with long positions accounting for $1.83 billion of that. At the same time, Ethereum gas fees spiked above 700 Gwei, signaling severe network congestion driven by the mass liquidation activity.

Crypto Market in Freefall: Bitcoin Hits $91K, Ethereum Drops 18% — Is the Bull Run Over?

On February 3rd, the crypto market suffered another sharp selloff, rattling investors across the board. Bitcoin (BTC) fell to a low of $91,231, while Ethereum (ETH) cratered more than 18% to $2,125. Altcoins were swept up in the same wave of selling, with most losing over 20% of their value.

According to data from Coinglass, total liquidations hit $2.15 billion over the past 24 hours, with long positions accounting for $1.83 billion of that. At the same time, Ethereum gas fees spiked above 700 Gwei, signaling severe network congestion driven by the mass liquidation activity.

Has the Market Bottomed? What the Experts Are Saying

Amid the panic, analysts and investment funds have weighed in with differing takes on where the market goes from here.

1. Andrew Kang: "ETH May Be Oversold — Could Bounce Back to $2,700"

Mechanism Capital co-founder Andrew Kang believes that ETH is currently oversold and could soon recover to $2,700. That said, he cautioned that any recovery may not last and that traders should wait for confirmation signals before acting.

2. TraderS: "If BTC Can Push to $120K, Altcoins Still Have a Shot"

Trader TraderS argues that the market may have reached a short-term bottom. He believes that if BTC can continue its climb toward the $120K–$130K range, altcoins could stage a strong recovery.

3. Matrixport: "The Market Will Recover Soon"

Daniel Yan, co-founder of Matrixport, attributes the market's negative reaction mainly to panic sentiment in Asia, compounded by thin liquidity and selling pressure from CTA funds. He argues that the actual economic impact of U.S. tariff policies is minimal, and that the market will stabilize quickly.

4. Hartmann Capital: "This Could Be a Short-Term Capitulation Event"

Felix Hartmann, founder of Hartmann Capital, suggests this sharp decline may simply be a short-term capitulation before the market finds its footing again. He believes many investors were forced into selling, which could have caused a temporary price dislocation.

5. 0xSun: "Trump Meme Coins Broke the Market's Momentum"

Trader 0xSun points to the explosion of meme coins tied to former President Trump as a key factor that damaged market sentiment. He argues that the Trump (TRUMP) meme coin had already become a bubble, and that the Melania meme coin launched by First Lady Melania Trump was the trigger that sent the market into freefall.

Does the Market Still Have a Path to Recovery?

Despite the heavy selling pressure, many experts remain cautiously optimistic that this is just a sharp correction within a longer-term bull trend.

  • If BTC holds above $90K and ETH holds above $2,000, a recovery could materialize in the coming weeks.
  • Macro factors like the Fed's interest rate decisions and the Trump administration's fiscal policies will continue to weigh heavily on the market.
  • Investor sentiment is highly volatile right now, but if a positive catalyst brings fresh capital back in, the market could recover quickly.

With opinion split across the board, investors would be wise to stay cautious and manage risk carefully to avoid getting caught in the next wave of volatility. Is this crash just a shakeout, or a sign that the bull market is truly over? Only time will tell.