While the general Stock Market is trying to stabilize gradually, there is intense volatility in the Crypto Market that has kept investors awake.
On the morning of February 5, 2026, the world economy saw a big shock because the fall of Bitcoin cannot be stopped.
Just a few hours ago, bitcoin broke its psychological support level of $72,000 and has dropped down to the lowest level in the past year.
However, the general stock market in the US had shown some positive movement over the past few days, but the Federal Reserve's indecision is turning all the games upside down.
The main problem is that the Federal Reserve is still not giving any clear signals about reducing interest rates, which poses a significant threat to the crypto market known as a risk asset.
When the liquidity or cash flow in the market decreases, people start pulling money out of high-risk investments first, and this is exactly what is happening now.
Institutional investors believe that if the Federal Reserve does not adopt any dovish policy quickly, this bear market could become prolonged.
Regular retail investors have started panic selling after seeing the drop below $72,000, which has further increased volatility in the market.
But experienced analysts say that this could actually be a major shakeout where bitcoin is moving from weak hands to strong hands or whales.
History is a witness that whenever everyone thinks crypto is over, a significant rebound or recovery occurs in the market.
However, the current situation is a bit different because the inflation data and the state of the global economy are not very favorable.
For those who are long-term holders or HODLers, this is a test of patience, but for those who trade short-term, it is wise to stay away from the market now.
The $72,000 level was technically very important, and everyone is concerned about where the next support level will stand after it breaks.
Diversifying your portfolio and adhering to risk management has become much more crucial than before.
Now the question is, will this decline lead to $60,000 or will a new announcement from the Federal Reserve start another bull run?
What do you think, will bitcoin bounce back from here or are we about to witness an even bigger crash?
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