Bitcoin Price Slump Wipes Over $460 Billion Off the Crypto Market

In Focus

• Bitcoin price has plunged 40% since October 2025
• The price slump follows a volatile week in the global markets
• Retail participation in the crypto market remains low

The crypto market lost close to half a trillion in less than a week after a selloff persisted. The selloff, which was led by Bitcoin, saw the cryptocurrency market valuation drop by $467.6 billion since January 29, 2026. According to Yahoo Finance, the news of the Bitcoin slump shows that the digital asset hit its lowest on February 3, 2025, since President Donald Trump’s re-election in November 2024.

Bitcoin Price Crashed Despite Trump’s Support

President Trump’s administration has been more friendly to the crypto industry. But even with a pro-crypto administration and growing institutional adoption, Bitcoin has dropped about 40% since reaching a record high in October 2025.

The latest Bitcoin-led crypto rout follows a series of selloffs on October 10, 2025 that erased $19 billion off the crypto market.

“Although there has been some rebound since the start of Wednesday, the sequence of lower local highs and lows indicates that selling on the rise prevails in the markets,” FxPro Chief Market Analyst Alex Kuptsikevich noted as per Yahoo Finance.

Bitcoin had regained ground on January 28, 2026, when it traded at about $75,900 after hitting a 15-month low of $72,877. The decline intensified on January 30, 2026 as speculation over the next U.S. Federal Reserve chair unsettled investor confidence.

Bitcoin’s Digital Gold’ Capacity Questioned

Bitcoin fell as tensions between the U.S. and Iran pushed investors into seeking safe assets. The crypto rout, which erased close to $500 billion, comes after global markets experienced a volatile week. The market volatility also caused sharp swings in silver and gold. But the precious metal market still attracted buyers, while investors kept off the digital assets market.

“A lot of the traders were trying to buy the dip, betting on a rebound above $80,000. As Bitcoin drifts lower, a lot of those positions have been liquidated putting pressure on prices,” Senior derivatives trader at FalconX Bohan Jiang noted as cited by Yahoo Finance.

The latest crypto plunge has raised doubts about Bitcoin’s ability to serve as a form of digital gold. This is because the cryptocurrency has not been a safe haven for investors in times of geopolitical uncertainty.

Earlier this week, investor Michael Burry warned that the digital currency has been positioned as a speculative asset, yet it had not established itself as a hedge like precious metals. Last year, a crypto selloff caused Bitcoin prices to fall below the $86,000 mark.

Investors Remain Cautious Amid Economic Challenges

Investor concerns remain high amidst AI bubble fears and economic headwinds. Although some institutional crypto investors have held firm, retail participation in the digital asset market has reduced with long-term Bitcoin holders liquidating billions.

“Bitcoin still trades like a high-beta risk asset, not digital gold. That doesn’t mean the thesis is dead, it means it’s not there yet,” Cryptocurrency trader Morten Christensen noted.