CoinDesk Podcast Network Bitcoin Plunges to $78K Amid Extreme Fear | CoinDesk Daily
Feb 2, 2026
Bitcoin plunged toward $78,000 amid a massive market drawdown and hundreds of billions wiped from crypto valuations. Discussion covers geopolitical tensions and a $2.5 billion liquidation cascade as possible catalysts. Big players stepped in with large purchases and protection funds to stabilize prices. A Wall Street Journal report about a large UAE-Trump-linked transaction and political fallout is also highlighted.
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Market Move Driven By Multiple Catalysts
- Bitcoin plunged from its October peak and erased about $800 billion in market value in a short span.
- The tumble tied to geopolitical tensions, a $2.5 billion liquidation cascade, and safe-haven weakness like gold and silver.
Big Wallets Step In To Stabilize Market
- Large players pledged funds to stabilize the market: Justin Sun offered up to $100 million and Binance tapped a $1 billion protection fund.
- These moves aim to provide liquidity and put a floor under prices during panic selling.
MicroStrategy Stuck Then Bought More
- MicroStrategy briefly saw its strategy go underwater when Bitcoin fell below its average purchase cost near $76,037.
- The company still bought 855 Bitcoin last week and holds over $2 billion in cash, signaling continued conviction.