Bitcoin Slumps Below $73,000 as ETF Outflows and Tech Sector Volatility Shake Markets

On Wednesday, February 4, 2026, the cryptocurrency market witnessed a significant downturn as Bitcoin (BTC) plummeted below the $73,000 threshold. This decline mirrored a broader correction across global equity markets, particularly within the technology sector. The downward momentum followed a failed attempt on February 3 to maintain a retest level of $79,500, which analysts viewed as a critical signal for the subsequent price drop. Throughout the early months of 2026, digital assets have shown an intensified sensitivity to macroeconomic indicators, with a specific focus on United States labor market data.

A primary driver of this selling pressure has been the consistent net outflows from spot Bitcoin ETFs. Over the course of the preceding twelve trading days, total capital withdrawals exceeded $2.9 billion. Since January 16, this has resulted in an average daily exit of approximately $243 million. This institutional retreat occurred as Bitcoin struggled to recover from its rejection at the $98,000 resistance level reached on January 14, 2026, marking a 26% depreciation over a three-week span. Professional traders have increasingly turned to hedging strategies, causing the 30-day delta skew to surge to 13% on Wednesday—well above the 6% neutral threshold—signaling a market dominated by cautionary sentiment.

The turbulence in the crypto space was closely linked to a broader retreat in high-growth technology stocks. The Nasdaq Composite Index fell by 1.51%, closing at 22,905 points as investors reassessed their exposure to tech. A notable catalyst for this shift was Advanced Micro Devices (AMD), whose shares plummeted 17.31% to close at $200.19 on February 4. Despite surpassing expectations for its fourth-quarter 2025 earnings, AMD issued a conservative sales forecast for the first quarter of 2026. This outlook prompted a re-evaluation of the artificial intelligence growth narrative and intensified fears regarding competition with Nvidia.

Macroeconomic headwinds further complicated the market environment. The preliminary ADP National Employment Report for January 2026 revealed that private sector hiring was significantly weaker than anticipated, with only 22,000 jobs added against a forecast of 46,000. This followed a modest gain of 37,000 jobs in December 2025. Dr. Nela Richardson, the chief economist at ADP, highlighted a stark deceleration in the labor market, noting that private sector job creation fell to 398,000 in 2025, compared to 771,000 in 2024. Additionally, the manufacturing sector continued its contraction, shedding 8,000 positions in January, a trend that has persisted since March 2024.

The resulting market volatility triggered a massive wave of liquidations, with approximately $3.25 billion in leveraged long Bitcoin futures contracts being wiped out. This event drew comparisons to the historic $19 billion liquidation crisis that occurred on October 10, 2025. Amidst the chaos, various rumors circulated, including a purported $9 billion Bitcoin sale by a Galaxy Digital client. However, Alex Thorne, the head of research at Galaxy, moved to publicly debunk these claims on Tuesday. Despite the immediate bearish pressure, some industry experts maintain a positive long-term outlook. Haseeb Qureshi of Dragonfly has previously suggested that Bitcoin remains on track to potentially exceed $150,000 by the conclusion of 2026.