Bitcoin Tests $73,000, Erasing Gains Since Trump’s Election Night Win
By Daniel Kuhn | February 3, 2026
Bitcoin has recently fallen below the $74,000 mark, marking a significant decline that erases the gains achieved since President Donald Trump’s surprise election victory in November 2024. The flagship cryptocurrency is currently trading around $73,000, returning to price levels last seen weeks before the 2024 U.S. presidential election.
Price Decline Reflects Market Uncertainty
Bitcoin’s recent downturn has seen the token drop approximately 30% over the past month, falling from a recent high near $108,000. This decline has brought the price back to levels experienced ahead of Trump’s election night, which had originally been viewed as a bullish catalyst for the crypto market due to Trump’s supportive stance on the sector during his campaign.
After lingering mid-$80,000s through early 2025, Bitcoin soared to an all-time high of $126,080 on October 6, 2025, according to data from The Block. However, since reaching this peak, Bitcoin has steadily lost value alongside many other cryptocurrencies.
Market Sentiment and Supply Metrics Signal Ongoing Pressure
Sean Rose, an account manager at blockchain analytics firm Glassnode, highlighted that 44% of the total Bitcoin supply is now “underwater,” meaning these holders bought at higher prices and currently face unrealized losses. The proportion of Bitcoin supply in profit dropped sharply from 78% to 56% in the last month. Rose emphasized that major investors who purchased near all-time highs are now holding at a loss, raising questions about their conviction and potential to sell amidst ongoing market stress.
Over $122 million in crypto long positions and $26 million in shorts were liquidated in the last hour alone, according to data from Coinglass—contributing to a total of $663 million liquidated in the past 24 hours. This level of liquidation underscores intense volatility and possible forced selling across markets.
Technical Indicators Hint at Further Downside
Bitcoin’s Relative Strength Index (RSI), a momentum indicator measuring the speed and magnitude of recent price changes, is currently near 30—considered the oversold threshold. This situation mirrors conditions found near the 2022 crypto bear market bottom, which preceded an additional 20% price drop. Should a similar pattern unfold, Bitcoin’s price could slide toward $60,000 in the near term.
Broader Market Weakness Amid Macroeconomic Concerns
The crypto selloff is part of a wider market downturn fueled by macroeconomic uncertainty, including concerns over a potential U.S. government shutdown. Equity markets also stumbled, with the Nasdaq Composite dropping 2.2% on Tuesday.
Other major cryptocurrencies experienced significant losses alongside Bitcoin:
- Ethereum (ETH) fell over 9% below $2,200.
- Solana (SOL) dropped more than 7% to under $100.
- XRP declined 6.6% to approximately $1.52.
- Canton (CTN) was the largest top-25 token loser, down over 10% to $0.17. Crypto-related stocks also underperformed, with Coinbase shares down over 6% and the Grayscale Bitcoin Trust (GBTC) falling more than 8%. Terawulf was an exception, buoyed by news of acquisitions in AI infrastructure.
ETF Inflows and Market Rotation Offer Some Bright Spots
Despite the broad declines, Monday saw positive developments in crypto exchange-traded funds (ETFs), with spot Bitcoin ETFs attracting $561.9 million in net inflows and reversing recent outflows. Analysts noted a rotation of investor interest from large-cap assets like Bitcoin and Ethereum toward smaller-cap altcoins, as evidenced by ongoing inflows into Solana and XRP-linked ETFs.
Derivatives markets have also seen a purge of leveraged positions, particularly in Ether, where a single liquidation reached nearly $220 million, interpreted by analysts as a necessary correction before stabilizing prices.
Notably, Hyperliquid’s HYPE token is among the few top 20 cryptocurrencies to gain Tuesday, rising approximately 1.56%.
Looking Ahead
The crypto market’s recent volatility reflects a combination of investor sentiment shifts, macroeconomic headwinds, and technical pressures. The coming weeks will test the resilience of investors holding Bitcoin at or near recent highs and may determine whether prices stabilize or decline further.
For now, market participants remain cautious as Bitcoin revisits pre-election price territory and broader conditions weigh heavily on the digital asset ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice.