CryptoWire, NEW YORK: Bitcoin fell back toward $73,000 this week, giving up gains built after the November 2024 U.S. presidential election and marking one of its sharpest pullbacks since last year’s peak. The largest cryptocurrency briefly dipped below $73,000 on Tuesday, February 3, and later rebounded above $76,000 by the end of U.S. trading, after sliding to levels last seen in November 2024, according to market and crypto data services.
The move left bitcoin trading around the same range seen shortly after election night in 2024, effectively unwinding the post vote rally that helped push the token to new highs in 2025. Bitcoin had reached a record above $126,000 in early October 2025 before a prolonged decline. By early Wednesday, February 4, bitcoin was changing hands around the mid $76,000 area, down about 2.7% on the day in widely followed market pricing.
The selloff also hit shares of crypto exposed companies. U.S.-listed Coinbase and Strategy, along with Circle and Gemini, fell more than 15% over the past five trading sessions, according to market data tracked by crypto research firms. Trading volumes rose as the decline accelerated, reflecting forced position reductions in derivatives markets.
Leverage played a visible role in the slide. CoinGlass reported about $2.56 billion in bitcoin liquidations in recent days as prices dropped and margin calls closed out both bullish and bearish bets. Bitcoin also fell almost 10% over the weekend before stabilizing, a move that coincided with a broader retreat across risk assets and sharp swings in several major markets.
Liquidations and leverage reset
The downturn unfolded as markets digested shifting expectations around U.S. monetary policy leadership. President Donald Trump has nominated Kevin Warsh to lead the Federal Reserve, replacing Jerome Powell. In interest rate markets, investors have increased positioning for a steeper U.S. Treasury yield curve, while the central bank’s balance sheet remains around $6.59 trillion, based on public reporting and market summaries.
Crypto analytics firms have highlighted the depth of the drawdown. Glassnode said roughly 44% of bitcoin supply was at an unrealized loss after the recent slide, reflecting the share of coins held below their acquisition price at prevailing market levels. Separate tracking by Messari placed bitcoin’s Tuesday dip below $73,000 as a return to prices not seen since late 2024, underscoring how far the market has retraced since last year’s run.
Market levels revisit late 2024
Bitcoin’s reversal has come alongside repeated waves of derivatives stress since late 2025. In December, market reporting cited a record liquidation event totaling more than $19 billion across leveraged crypto positions during a period of heightened volatility. The latest bout of liquidations was smaller but still significant, with fast moves in a widely held asset amplifying pressure across related tokens, funds and crypto linked equities.
By Wednesday, bitcoin was holding near the mid $70,000s after bouncing from its weekly lows, with traders watching whether volatility cools after the leverage flush. The episode reinforced how quickly the cryptocurrency can move when liquidity thins and leveraged positions build up, even as bitcoin remains one of the most actively traded assets in global markets and a benchmark for broader sentiment across digital finance.