Bitcoin Slides Below $80,000 as Leverage Unwinds and Macro Headwinds Slam Crypto Bulls

Bitcoin’s gravity-defying run finally hit a wall this weekend. The world’s largest digital asset, which had been flirting with the $85,000 level just days ago, now finds itself staring up from below $80,000. If you’re looking for a culprit, take your pick: a brutal leverage flush, macro crosswinds, and the kind of market-wide risk-off that makes even Michael Saylor’s Twitter feed sound nervous.

The carnage was swift. As of 16:30 UTC on February 1, 2026, $BTC had breached the psychological $80,000 support, with spot prints as low as $78,000 on major venues, according to CoinIdol and CoinTelegraph. The broader crypto complex followed suit. Ethereum tumbled below $2,500, and BitMine, one of the largest ETH whales, is now nursing a cool $6 billion in unrealized losses. It’s not just a crypto story—this drawdown is happening as risk assets everywhere are feeling the squeeze from a liquidity vacuum.

What’s driving the pain? Start with leverage. NewsBTC and CryptoSlate both point to a cascade of forced liquidations as overleveraged longs got steamrolled. The ‘instant gratification’ crowd, as CoinDesk snarked, found out what happens when the casino closes the table. Michael Saylor, never one to miss a dip tweet, posted ‘more orange’ as if to will the market higher. That’s conviction or performance art, depending on your view.

But this isn’t just a crypto idiosyncrasy. Treasury issuance is draining liquidity from the system, as Seeking Alpha notes, with the Treasury General Account sucking $64.3 billion out of the market. Risk assets everywhere are feeling it, from equities to precious metals (silver’s AGQ ETF got absolutely obliterated, down 65% in a single session). The macro is hostile and the algos are not your friends.

If you’re hunting for a bottom, some analysts are calling the $75,000–$80,000 zone the ‘final major dip’ of the cycle. PlanC, quoted by Crypto.News, says there’s ‘a decent chance this will be the deepest pullback.’ Maybe. But there’s a cottage industry of chartists who’ve called every $10,000 drop the bottom since $40,000. The market doesn’t care about your Fibonacci lines.

The bigger picture is that crypto is now fully embedded in the global risk complex. When liquidity dries up, crypto gets hit first and hardest. The old narrative of ‘digital gold’ is looking threadbare as both gold and Bitcoin sold off in tandem. The correlation with equities, especially tech, is back in focus. And with the Fed still holding the line on rates, there’s no cavalry coming from the central bank.

Strykr Watch

Technically, $BTC is in no man’s land. The $80,000 level was major psychological support, and losing it opens the door to a test of $75,000, which PlanC and other analysts are eyeing as a potential cycle low. Below that, the next real support is in the $68,000–$70,000 range, where spot buyers stepped in during the last major flush. Resistance is now stacked at $82,000 and again at $85,000. The 50-day moving average is rolling over, and RSI has dipped into the high 30s, signaling oversold but not capitulation.

Volumes have spiked, but not to the kind of panic levels seen in previous major bottoms. Funding rates have reset, with the perpetuals market flipping negative for the first time in months. That’s a sign that the leverage has been wrung out, but it’s not a guarantee of a V-shaped recovery. Watch for spot inflows and stablecoin issuance—if those don’t pick up, the bounce will be weak.

On-chain, the story is mixed. Exchange balances are ticking up, suggesting some holders are looking for exits, but long-term HODLers are still sitting tight. BitMine’s massive unrealized loss on ETH is a reminder that even the whales can get caught leaning the wrong way.

The risk is that this turns into a full-blown sentiment rout. If $75,000 fails, the next stop could be $68,000 or lower. But if the market can reclaim $82,000 and hold above the 50-day, the pain trade is higher.

The bear case is simple: macro liquidity is contracting, and crypto is still the wild west of risk. Treasury issuance is draining cash, equities are wobbly, and there’s no sign of a Fed pivot. If the algos smell blood, another leg down is entirely possible. A break below $75,000 would invalidate the cycle low thesis and could trigger a cascade to $68,000 or even $60,000.

But there are opportunities here for traders with iron stomachs. The flush has cleared out the tourists and the leverage junkies. If you’re looking to buy the dip, scaling in between $75,000 and $78,000 with a tight stop below $74,000 could offer asymmetric upside. A reclaim of $82,000 would target $88,000 and, if the macro gods smile, a run back to $95,000. For the more cautious, waiting for a confirmed higher low and spot inflows is the play.

Strykr Take

This is not the time for heroics, but it’s also not the time to panic sell into the abyss. The leverage flush was brutal, but the structure of the market is healthier now than it was at $85,000. If you believe in the cycle thesis, this is where you start building a position—not all at once, but methodically. The risk is real, but so is the reward. Strykr Pulse 42/100. Threat Level 4/5.