The crypto market added $100 billion in the last 24 hours, led by a 4% jump in Bitcoin price as macro and geopolitical conditions improve.
By Bhushan Akolkar
Editor Hamza Tariq
Updated
3 mins read
After the liquidity-driven crypto market crash over the Feb. 1 weekend, the market is showing signs of recovery.
Bitcoin BTC $77 747 24h volatility: 0.9% Market cap: $1.55 T Vol. 24h: $54.07 B price is up 4% today, trading around $78,456, while top altcoins, led by Ethereum ETH $2 279 24h volatility: 3.0% Market cap: $275.11 B Vol. 24h: $31.19 B , have gained 4-5% each.
The rally comes as the US-India trade deal moves forward and geopolitical tensions ease, with the US and Iran scheduled to hold discussions on Feb. 6.
On Feb. 2, the cryptocurrency market came under severe selling pressure with Bitcoin crashing to $75,000.
However, the market has bounced back, adding over $100 billion to its overall market cap in the last 24 hours.
According to Coinglass data, total liquidations reached $324 million in the last 24 hours, with $231 million coming from short positions. It will be interesting to see if this rally can sustain momentum moving forward.
The macro outlook looks positive as the US and India ease long-standing trade tensions. Both countries have agreed to a trade deal that reduces tariffs on India from 50% to 18%.
Geopolitical tensions between the US and Iran appear to have eased somewhat. The Washington Post reports that White House special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi are expected to meet in Istanbul on Feb. 6.
The talks aim to ease tensions, prevent a potential U.S. military strike, and revive the nuclear agreement that stalled last June.
Turkey, Qatar, Egypt, and other Middle Eastern countries will mediate the diplomatic efforts.
On Monday, Feb. 2, White House officials met with crypto companies and banking representatives to try to break the deadlock over a crypto market structure bill.
After crashing all the way to $75,000, Bitcoin price is showing a relief recovery and is currently trading at $78,701.
On the weekly chart, BTC has slipped below both the 20-week and 50-week moving averages, signaling weak momentum.
Analyst Bull Theory outlined two primary scenarios. In the bullish case, Bitcoin holds the April 2025 low and forms a higher low around $75,000, keeping the broader uptrend intact.
A decisive weekly close back above the 50-week MA near $100,400 would suggest momentum has reset in favor of buyers.
Bitcoin Weekly Analysis:
Is it going to $60k or $100k ?
Bitcoin is trading above the $75,000 level, which is a key weekly support level on the chart. This zone was retested recently, and how price behaves here will decide the next major move.
On the weekly timeframe, Bitcoin… pic.twitter.com/BY2N0h16WL
— Bull Theory (@BullTheoryio) February 2, 2026
In the bearish scenario, a break below the April 2025 low would invalidate the higher-low structure.
This creates downside risk for Bitcoin, potentially pushing its price toward the $50,000-$60,000 range.
The overall crypto market direction depends on whether Bitcoin can maintain $75,000 on weekly closes.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.