The cryptocurrency market has crashed yet again, with Bitcoin (BTC) falling to below $75,000 earlier today, Feb. 2, 2026. According to CoinGlass data, the crypto market faced about $724.8 million worth of liquidations in the last 24 hours. The crypto sector has been struggling to generate steam since October 2025. The latest crash could be a signal that we are officially in a crypto winter. However, despite the falling prices, let’s discuss why the market is crashing and look at a few reasons why you should keep calm, and not let the crash scare you.
Why Is The Market Down?
The latest crypto market crash could be due to a host of reasons. Firstly, President Trump has chosen Kevin Warsh to become the next Federal Reserve Chair. While Warsh seems pro-cryptocurrency now, he has previously spoken against the industry. Many feel he may be taking a pro-crypto stance to get the Fed Chair job, which he so dearly wanted.
President Trump also sued the Internal Revenue Service (IRS) and the US Treasury for $10 billion for leaking his tax returns. The development may have further hurt investor sentiment, deepening the cryptocurrency market crash.
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Other reasons include macroeconomic worries and geopolitical tensions which has led to a substantial rise in investor worry. Investors are staying away from risky assets, such as cryptocurrencies, preferring safe havens such as silver and gold. Both metals have hit record highs since the crypto market dip.
Why The Cryptocurrency Market Crash Should Not Worry You
While the massive price corrections are worrying, one should remember that the cryptocurrency market works in cycles. Bitcoin’s (BTC) price fell to the $15,000 level during the 2022 market crash. However, BTC climbed to new all-time highs within just two years.
In fact, the market crash could be an excellent opportunity for investors to buy cryptocurrency assets for cheap. People who bought BTC when it fell to $15,000 in 2022 are still enjoying big gains.
The cryptocurrency market will most likely recover when the global economy settled down and geopolitical tensions cool off. However, chances are high that BTC and the larger crypto market will rebound from their current predicament.