BTC, ETH, BNB Drag Cryptocurrency Market Cap to $2.8trn
Sustained sell pressure in top cryptocurrencies dragged the market cap of all digital assets down to $2.8 trillion, according to data from trading platforms.
The market entered the red trade zone following significant ETF outflows, driven by macro sentiment overpowering a positive catalyst with Binance’s $1 billion BTC purchase plan.
Bitcoin (BTCUSD) has bled out value, Ethereum (ETHYUSD) is under pressure from sell-side actors in the crypto market, BNBUSD is trading in red, and other altcoins are struggling.
The crypto market is down 1.82% to $2.80 trillion in 24h, primarily driven by a macro-driven selloff. It shows a strong correlation with the S&P 500 and with Gold, indicating a rates-sensitive, broad-based move across asset classes.
The market dropped in lockstep with equities and gold, with 24-hour correlations of 70% to the S&P 500 and 74% to Gold. This points to a unified, macro-driven move, likely tied to shifting expectations around interest rates or liquidity.
Crypto is not moving in isolation; it’s acting as a high-beta risk asset amid broader financial market stress. The market looks forward to February 4–5 FOMC meeting minutes and any signals on the pace of the Fed’s balance sheet runoff (QT).
U.S. spot Bitcoin ETFs saw $654 million in net outflows on January 30, led by BlackRock. Concurrently, $457.52 milion in BTC was liquidated in 24h, mostly long positions, indicating forced selling from over-leveraged traders.
This suggests weakening institutional demand while speculative leverage was purged, amplifying the downward pressure. Traders are now hoping for a reversal to net inflows in ETF data, which would signal renewed institutional buying interest.
The immediate focus is on whether the market holds the $2.8 trillion support level. A sustained break below could target the yearly low of $2.42 trillion, according to an analyst. Trump Rates U.S. Dollar Great Amid Declining Value
