February 5, 2026 – The cryptocurrency market is experiencing a significant correction, with Bitcoin (BTC) falling below $75,000 for the first time since April 2025, erasing gains from the post-election rally following Donald Trump’s 2024 victory. The world’s leading cryptocurrency has plummeted nearly 40% from its all-time high of over $126,000 in October 2025, pulling the total market capitalization down to approximately $2.65 trillion, a 2.9% drop in the past 24 hours. Other major assets like Ethereum (ETH) have also suffered, with ETH declining 7.2% to $2,225. Analysts attribute the downturn to a combination of macroeconomic pressures, geopolitical risks, and institutional outflows, but emphasize that such corrections are part of Bitcoin’s historical pattern of resilience.

Key Reasons Behind the Current Dip

The recent weakness in the crypto market stems from several interconnected factors, reflecting broader economic uncertainty:

1. **Geopolitical and Economic Instability**: Rising tensions and economic concerns have triggered a risk-off shift across global markets. Experts note that the downturn coincides with declines in tech equities, gold, and silver, which have served as safe-haven alternatives amid volatility. President Trump’s nomination of Kevin Warsh as Federal Reserve chair has introduced a “hawkish shock,” raising fears of tighter monetary policy and reduced interest rate cuts, which has amplified the sell-off.

2. **Massive Liquidations and ETF Outflows**: Over $2 billion in Bitcoin long and short positions were liquidated since Thursday, exacerbating the drop. US spot Bitcoin ETFs saw outflows of $509.7 million, while Ethereum ETFs lost $252.87 million, signaling reduced institutional appetite. This has led to a “death spiral” warning from some analysts, with typical ETF buyers now underwater.

3. **Broader Market Sentiment**: The correction is viewed as “expected” by some, with Elliott Wave analysis suggesting no major rebound until Q2 2026. Profit-taking after a prolonged rally, combined with soft tech earnings and a hawkish Fed outlook, has fueled the risk-off environment. Market sentiment has plunged into the “extreme fear” zone, reversing post-election optimism.

Bitcoin has endured similar crashes of 70% or more in the past decade, often recovering to new highs. However, the current dip extends a trend of volatility, with 91 of the top 100 coins declining recently.

### Reasons to Learn About Crypto Amid the Dip

Despite the market’s short-term weakness, this dip presents an ideal time to educate yourself on cryptocurrency. Volatility is inherent to crypto, but understanding the fundamentals can turn uncertainty into opportunity. For beginners, especially those over 45 considering retirement or legacy planning, learning now helps:

– **Navigate Dips with Confidence**: Corrections like this one are normal, but education teaches long-term holding strategies and diversification, reducing fear-driven decisions. As analysts note, Bitcoin’s history of rebounds makes it a potential buy during lows.

– **Build Financial Resilience**: With traditional markets also volatile (e.g., tech stocks declining), crypto offers an alternative asset class for hedging inflation or diversifying portfolios. However, knowledge of risks like ETF outflows and geopolitical factors is crucial to avoid losses.

– **Prepare for Future Growth**: Predictions like Bitcoin hitting $100,000 in 2026 highlight potential upside from clearer regulations and deeper interest rate cuts. Learning basics now positions you to capitalize on rebounds.

Courses like those from Simply Learn Crypto are tailored for beginners over 45, emphasizing plain-English explanations without jargon. Starting with a free first lesson on Bitcoin basics can provide the clarity needed to make informed choices, while a taster voucher offers a preview of live workshops with hands-on guidance.

For those ready to dive in, the February 23–25 Moraira workshop in Spain promises practical sessions on safety and diversification, with only 10 spots available at an early-bird price of €449.

In volatile times, education is the best defense.

Visit simplylearncrypto.com for your free lesson and start building confidence today.