TL;DR:

The Fear & Greed Index craters to 17 points, reflecting a state of widespread panic.
Key figures like Gracy Chen and Michael Burry point to critical support levels at 50k.
Bitcoin ETFs record massive capital outflows, exceeding $1.3 billion so far this year.

The crypto market is going through its most critical moment since the start of 2026. After reaching all-time highs, selling pressure suggests an imminent retreat of the Bitcoin price at $50,000, a level that analysts see as increasingly possible due to the current bearish cycle.

In just one week, the pioneer cryptocurrency retraced 15%, wiping out a large portion of the gains accumulated following recent political events. This action spiked levels of fear, uncertainty, and doubt (FUD) to levels not seen since late 2025.

Due to the high volatility, even Changpeng Zhao expressed his short-term distrust. Meanwhile, Gracy Chen, CEO of Bitget, warns that an additional 40% drop is possible if the current support is not reclaimed.

Record ETF Outflows and Industry Tensions

Institutional instruments have also been hit by the uncertainty. Bitcoin ETF assets under management fell below $100 billion, marking a sharp contrast to the peaks recorded in October.

Funds from Fidelity and ARK Invest led the capital outflows, while BlackRock was the only major player to maintain positive flows. This divergence highlights the fragility of sentiment among professional and retail investors alike.

Furthermore, figures such as Cathie Wood and Star Xu pointed to technical issues and cascading liquidations as triggers for the current damage. Despite these claims, the market continues to search for a solid floor to stop the disaster.

In summary, Bitcoin is now struggling to stay above $74,000, but the lack of immediate organic use complicates the recovery. Consequently, risk management has become the number one priority for traders ahead of the next weekly close.

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Filed under: News - @ February 4, 2026 7:20 pm