Bitcoin Price Today February 2, 2026: BTC Price Tumbles to 9-Month Low Below USD 78,000 Mark Amid Fed Uncertainty and Geopolitical Tensions
Bitcoin plummeted to a nine-month low, trading at USD 77,767.33 as of early Monday. The decline follows US Fed leadership changes and higher-than-expected inflation data, fueling fears of tighter liquidity. With bearish sentiment rising in the options market and geopolitical tensions mounting, the cryptocurrency faces significant downward pressure across global markets.
Mumbai, February 2: The cryptocurrency market faced a sharp downturn on Monday as Bitcoin plunged to its lowest level in nine months, breaking critical support levels. The world's largest digital asset fell below the USD 80,000 threshold, reflecting a broader retreat in risk assets globally.
As of 7:01 AM IST, Bitcoin was trading at USD 77,767.33, representing a significant decline from its previous weekly highs. The slump has triggered a wave of liquidations and shifted market sentiment toward "extreme fear," as investors react to a combination of macroeconomic shifts and escalating geopolitical tensions. Bitcoin Price Today, January 31, 2026: BTC Price Recovers Slightly After Slump, Trading Near USD 84,000 Mark.
Bitcoin Price (BTC Price) Falls Down to USD 76,000 Mark
Bitcoin: Fed Leadership and Inflation Concerns
The primary catalyst for the recent sell-off appears to be the nomination of Kevin Warsh as the new Federal Reserve Chair. Investors are increasingly concerned that the transition may signal a more hawkish monetary policy, focusing on a smaller Fed balance sheet and tighter liquidity conditions in the US financial system.
These concerns were further amplified by recent US inflation data, which came in higher than analysts had anticipated. The prospect of "sticky" inflation has led traders to push back expectations for further interest rate cuts in 2026, strengthening the USD and putting pressure on non-yielding or speculative assets like cryptocurrencies.
Bitcoin Bearish Shift in Derivatives Market
Market analysts have noted a dramatic shift in the options market, where bearish positioning has surged. Put options at the USD 75,000 level have gained parity with the previously dominant USD 100,000 call bets, suggesting that traders are hedging against further downside risk rather than betting on an immediate recovery.
The breakdown below the USD 81,000 support level is viewed by technical analysts as a significant bearish signal. While Bitcoin led the decline, the broader altcoin market also suffered, with Ethereum and other major tokens posting losses between 6% and 11% over the weekend.
Geopolitical Risks Weigh on Sentiment
Beyond monetary policy, rising geopolitical frictions in the Middle East have prompted a "risk-off" environment. The uncertainty surrounding regional conflicts has led to a flight from volatile assets, with even commodities like gold and silver witnessing sharp corrections alongside the crypto market. Bitcoin Price Today, January 30, 2026: BTC Price Slumps Further, Now Trading at USD 82,134.
Despite the current volatility, some long-term observers suggest that the market is entering a consolidation phase. They believe that if Bitcoin can establish a firm floor near current levels, it may set the stage for a recovery later in the year, though immediate resistance near the USD 85,000 and USD 90,000 marks remains high.
(The above story first appeared on LatestLY on Feb 02, 2026 07:08 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).