Bitcoin’s drop below $75,000 highlights the impact of leverage, liquidations and global macro pressures on crypto markets, with investors in Dubai and beyond turning cautious.
 |
| From Wall Street to Dubai, Bitcoin’s longest losing streak in years reflects fading momentum, leveraged losses and a tougher global environment for risk assets. Image: CH |
Fintech Desk — February 2, 2026:
Bitcoin’s slide below the $75,000 threshold has reignited debate over whether the latest downturn marks a temporary correction or a deeper shift in market dynamics. Trading at its weakest level since April 2025, the world’s largest cryptocurrency is now almost 40 per cent below last year’s peak, underscoring how quickly sentiment can reverse in markets driven by leverage and liquidity.
The immediate catalyst for the decline has been technical. As Bitcoin broke through key support levels, algorithmic selling, stop-loss orders and margin calls accelerated losses. In just 24 hours, more than $700 million worth of crypto positions were liquidated, with roughly three-quarters of those losses coming from long trades. Ethereum alone accounted for nearly $270 million, highlighting how speculative exposure extends across the broader digital asset market.
But the selloff cannot be viewed in isolation from global macroeconomic trends. Stronger US economic data has revived expectations that interest rates could remain higher for longer, pushing bond yields upward and strengthening the dollar. That environment is typically hostile to high-volatility, non-yielding assets such as cryptocurrencies. As equity markets remain fragile and geopolitical uncertainty persists, investors have shown a renewed preference for traditional safe havens, draining liquidity from digital tokens.
In the UAE, where Dubai has positioned itself as a regional hub for virtual assets, the downturn has prompted a shift in investor behaviour. Local platforms report rising conversions into stablecoins and greater use of hedging strategies as residents seek to manage risk amid sharp price swings. At the same time, some long-term investors are selectively accumulating assets, viewing the pullback as an opportunity anchored in expectations of continued institutional adoption and clearer regional regulation.
Market opinion remains sharply divided. Bearish strategists warn that sustained selling pressure could drag Bitcoin toward the psychologically important $70,000 level, particularly if global risk sentiment deteriorates further. Others argue the move represents a cyclical “leverage flush” rather than a structural breakdown, noting that forced liquidations often exaggerate downside momentum before markets stabilise.
What is clear is that Bitcoin’s performance continues to mirror global liquidity conditions. As a high-beta asset, it remains especially sensitive to shifts in interest rate expectations and investor appetite for risk. With momentum indicators still negative and liquidation-driven volatility rippling through the market, traders expect choppy conditions in the near term. Any rebound toward $80,000 is likely to face strong resistance unless broader financial conditions turn more supportive.
For investors in Dubai and around the world, the episode reinforces a familiar lesson from previous crypto cycles: conviction alone is rarely enough. In markets where leverage amplifies both gains and losses, disciplined risk management remains as critical as belief in the long-term promise of digital assets.