The cryptocurrency market faces turbulent waters this week, with a dramatic 6% drop in total market capitalization, now valued at $2.52 trillion globally. Bitcoin, the flagship cryptocurrency, has seen a steep decline, falling from $89,200 to $74,561 amid growing concerns over interest rates and economic downturns.
Bitcoin Plummets Amid Global Economic Uncertainty
Bitcoin’s recent crash has shaken investor confidence. After briefly stabilizing around $76,600 (a level last seen in November 2024), the cryptocurrency struggles to find strong support. This sharp drop of 2.2% in just 24 hours is attributed to renewed fears of prolonged high-interest rates globally.
Contributing to these challenges, the nomination of Kevin Warsh as a potential Federal Reserve Chair has raised concerns about aggressive monetary policies. Crypto prices also took a hit after India’s Union Budget 2026 announced no changes to its strict crypto tax laws, leaving investors discouraged.
Upcoming U.S. Economic Data: A Make-or-Break Moment?
All eyes are on the U.S. job data scheduled for release this week, with market movements hinging on these updates. The Initial Jobless Claims set for February 5 are expected to rise slightly to 212,000 from 209,000 last week. Should jobless claims exceed expectations, it could indicate a weakening labor market, potentially easing concerns over future Federal Reserve interest rate hikes.
Additionally, February 6 will see the release of the U.S. unemployment rate and employment report, forecasting an unemployment uptick to 4.5% (up from 4.4% in December 2025). Weak economic data may bolster hopes for future rate cuts, potentially boosting Bitcoin and other cryptocurrencies.
Bitcoin’s Critical Support Levels in Question
Experienced crypto trader Captain Faibik warns that Bitcoin has lost the weekly EMA100 support level for the first time in over 840 days. According to Faibik, “$BTC bulls are losing the weekly EMA100 support after 840 days. Not a healthy sign on the higher timeframe.” This drop highlights Bitcoin’s vulnerability and underscores the importance of the $68,000-$70,000 support zone, which served as key resistance throughout 2024 and could now prove to be a make-or-break level for the cryptocurrency.
Currently, Bitcoin sits precariously at $76,453, signaling market caution as global uncertainties persist. Investors are advised to tread carefully and monitor updates on the U.S. economic reports closely.
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Stay informed, stay secure, and make educated decisions as the cryptocurrency market continues to evolve.
