This week's cryptocurrency market trends and analysis, including price movements, market sentiment, and key events affecting digital assets.

This week (Tokyo time ** ****2026/2/2 (Monday) – 2/6 (Friday)**, as of press time) the overall crypto market is a very typical “risk asset de-leverage” week: early-week small rebound → mid-week continued weakness → ** **2/5 a concentrated sell-off → ** **2/6 a technical rebound, but the weekly still clearly closes lower.

1) Mainstream Coins This Week: 16%–22% Decline Within the Week, More Extreme Volatility Range

Below, using ** **2/2 prices compared to ** **2/6 prices for “Week-to-Date (WTD)” statistics, along with the maximum drawdown from “high to low” within the week (roughly measuring volatility by daily high/low).

Data source: Investing.com historical data (from 01/06/2026 to 02/06/2026, rows 2/2–2/6).

Two intuitive conclusions:

• BTC/ETH are not “resilient”: YTD decline approaching or exceeding -16% to -18%, with even larger intra-week high-low volatility (BTC around -24%).
• Altcoins have higher beta: SOL, XRP intra-week high-low drawdowns reach -30% to -36%, indicating this week mainly involved “margin squeezing/risk exposure trimming,” with high-beta assets more passively accelerating downward.

2) Breakdown of This Week’s Rhythm: 2/5 as “Main Drop Day,” 2/6 as “Recovery Day”

2/2 (Monday): Mainstream coins generally saw small rebounds (BTC +2.27%, ETH +3.36%, SOL +3.76%, etc.), more like short-term correction after last weekend’s big volatility.

2/3–2/4 (Tuesday–Wednesday): Continued weakness, increased volatility (BTC down -3.81%, -3.42; ETH down -4.79%, -3.85).

2/5 (Thursday) — “Sell-off Day”: The core market features ** **synchronous large drops + increased volume + breakdown

• BTC single-day ** ****-14.05%, ETH ** ****-14.94%, SOL ** ****-15.06%, XRP even ** ****-19.68%. ([
• Multiple media link this decline to “broader risk asset sell-off + leveraged positions forced liquidation,” mentioning BTC breaking below ** **$65,000 (some reports emphasize this is the first time since 2024 returning to that range).
• Simultaneously, Bitcoin-related ETFs and crypto stocks also plummeted sharply (e.g., reports mention IBIT and others experiencing significant pullbacks and outflows).

2/6 (Friday) — “Rebound/Recovery Day”:

• According to historical data, BTC/ETH/SOL/BNB all rebounded that day (e.g., BTC +4.90%, ETH +5.32%, XRP +12.16%).
• But the rebound was accompanied by “** lower lows**”: BTC briefly dipped near ** **$60k during the day before bouncing back above 60k, fitting the “sharp drop followed by short-term hedge/short covering” pattern.

3) Why Did It Drop So Hard This Week: 4 Main Drivers

A. “Macro interest rate/liquidity expectations” Impacted risk appetite

Market reports link this risk asset pressure to “changes in policy expectations brought by the new Federal Reserve Chair candidate (Kevin Warsh)” — a hawkish interpretation that raises concerns about tightening liquidity, suppressing high-volatility assets (cryptos often viewed as high-beta risk assets). ([

B. Stronger linkage with tech stocks/AI sector, risk assets retreat together

Multiple reports mention this decline correlates with tech stock sell-offs and AI sector worries; crypto’s movement resembles “high-beta tech risk assets.”

C. De-leverage chain reaction: forced liquidation of leveraged positions amplifies volatility

Financial media directly cite “forced liquidation/ margin calls of leveraged crypto positions” as a key factor driving the decline.
Signs of “forced liquidation waves” appeared early in the week (around 1/31), with reports of huge losses by individual traders and forced liquidations approaching ** **$2.6B in volume, making the market more prone to “panic—sell-off—liquidity drain” cycles.

D. Institutional sentiment weakening: spot Bitcoin ETF outflows / increased volatility

• Some media mention that during ** **11/2025–1/2026, spot Bitcoin ETF saw total outflows of about ** **$5.7B (indicating shrinking institutional marginal demand).
• This week, reports also highlight IBIT and similar products experiencing sharp declines and net outflows during the drop days (typical “emotion-driven” selling).

4) Structural Signal: Sentiment Reaches “Extreme Fear,” But Not Necessarily Bottom

According to sentiment indicators, Alternative.me’s ** **Crypto Fear & Greed Index shows:

• Now: Extreme Fear 9
• Last week: Extreme Fear 16
• Last month: Fear 42

This indicates a sharp deterioration in sentiment over just one week, with the market in a “de-leveraging + panic pricing” phase. But note: Extreme Fear is more a sign of “big volatility” rather than an automatic bottom. During de-leverage cycles, rebounds are often “liquidity rebounds/short covering,” and if macro risks and capital outflows persist, the market may test lows again after a bounce.

5) Next Week’s 3 Key “Validation Points”

Not making predictions, just offering three “validation logic” observation frameworks:

1. Can BTC reclaim and hold key psychological/technical levels?
   Both $70k and $65k are repeatedly mentioned as critical levels (breaking below could trigger algorithmic/risk-control sell-offs).

2. Do ETF and “institutional channels” show signs of stabilization?
   Continue monitoring net inflows/outflows of ETFs, as this impacts whether “someone will buy the dip” during declines.

3. Has de-leverage ended: are forced liquidations significantly cooling, volatility converging?
   End of de-leverage often shows as: reduced forced liquidation volume, converging prices, and sustained rebounds rather than quick “one-day” recoveries.