The cryptocurrency market extended its selloff on Feb 4, with Bitcoin and Ethereum under pressure as investors retreated from risk assets amid heightened global uncertainty.
Almost US$470 billion has been wiped off the total crypto market capitalisation in less than a week, Bloomberg reported.
Meanwhile, according to CoinGecko data, total market value has fallen by US$467.6 billion since Jan 29, as a downturn led by Bitcoin gathered pace.
Bitcoin tumbled to its lowest level since US President Donald Trump won re-election in early November 2024, marking a sharp reversal after optimism over a more crypto-friendly US administration.
The world’s largest cryptocurrency hit an intraday low of US$72,877 before recovering some ground in Asian trading on Feb 4, last changing hands at around US$76,200 at 10am Singapore time. Bitcoin is now down 13% year to date and has shed about 39% from its Oct 6 peak above US$126,000.
Ethereum mirrored the broader weakness, sliding to around US$2,270 after swinging between US$2,115 and US$2,351 during the session, reflecting fragile sentiment across digital assets.
The crypto slump followed a volatile week across global markets, which also saw sharp moves in gold and silver. While precious metals attracted buyers after recent losses, cryptocurrencies failed to find similar support.
Bitcoin and US equities declined in tandem as rising tensions between the US and Iran pushed investors towards traditional safe-haven assets.
Bitcoin’s sharp drop has also reignited debate over its status as “digital gold”. Critics argue that the cryptocurrency has once again failed to behave as a hedge during periods of geopolitical stress.
With volatility still elevated, market participants remain cautious as cryptocurrencies struggle to regain investor confidence.
