Bitcoin Under $79,000: Fear Index Hits 2026 High

The crypto market is going through a zone of major turbulence. This Saturday, February 1st, 2026, Bitcoin broke through the symbolic $79,000 threshold, triggering a wave of panic on social media and massive liquidations. Analysis of a dark weekend for cryptocurrencies.

Bitcoin at $78,500: Back to November 2024 Levels

Within a few hours on Saturday, Bitcoin lost more than 6% of its value, falling below the psychological $80,000 barrier to hit a low of $78,479. This is its lowest level since November 21, 2024.

Altcoins weren’t spared either. Ethereum plunged 9% to $2,445, while Solana dropped nearly 10% to settle at $105. The total crypto market cap fell below $3 trillion.

Fear Index at Peak: Panic Spreads Across Social Media

According to Santiment, an on-chain analytics firm, negative sentiment around Bitcoin has reached its highest level of 2026. The ratio between positive and negative comments on social media has shifted massively toward pessimism.

This level of fear hadn’t been seen since November 21st. Historically, these peaks of pessimism often correspond to capitulation phases — the moment when the last panicked sellers exit the market, exhausting selling pressure.

« When the crowd leans too much in one direction, the market can run out of marginal sellers, » explains Santiment. « Traders posting apocalyptic predictions today could well become tomorrow’s FOMO buyers. »

The Four Triggers of This Dark Weekend

1. The Historic Silver Crash

Friday marked the worst day for silver since March 1980. The precious metal crashed 28%, falling from $118 to $83 per ounce. Gold followed with a drop of over 10%. This rout in traditional safe-haven assets created a global liquidity shock that spread to crypto markets.

2. Kevin Warsh Nominated to the Fed

Kevin Warsh’s nomination to replace Jerome Powell as Federal Reserve Chair strengthened the US dollar. A strong dollar traditionally reduces Bitcoin’s appeal as an alternative currency. Investors anticipate monetary policy that will remain restrictive.

3. Geopolitical Tensions in the Middle East

Reports of an explosion at the port of Bandar Abbas in Iran — a strategic infrastructure controlling about 20% of global maritime oil traffic — heightened risk aversion. Investors fled volatile assets in favor of defensive positions.

4. Weekend Liquidity

Order books are traditionally thinner on weekends, which amplifies price movements. Moderate selling volume can cause significant drops in the absence of institutional buyers.

$1.72 Billion in Liquidations: Bloodbath for Leveraged Traders

CoinGlass data reveals the scale of the carnage: $1.72 billion in positions were liquidated within 24 hours, impacting 274,442 traders. Long positions (betting on price increases) represent $1.6 billion of this total.

Bitcoin alone generated $786 million in liquidations, followed by Ethereum with $422 million. This cascade of forced liquidations amplified selling pressure, creating a snowball effect typical of leveraged markets.

Bitcoin ETFs in Negative Territory

Aggravating factor: flows into US Bitcoin spot ETFs have turned negative this week. The absence of institutional buyers to absorb selling pressure left the market without a safety net.

Derivatives markets continue to deleverage, with declining open interest confirming that traders are closing positions rather than maintaining them.

What to Watch Now?

The $80,000 – $82,000 zone is now the key level to watch. If Bitcoin manages to stabilize there and attract new buyers, the current panic peak could mark a local bottom.

However, a break below $78,000 would open the path to lower supports, potentially around $72,000 – $75,000. The next 48 hours will be decisive in establishing the short-term direction.

For long-term investors, Santiment reminds us of a market principle: « The moments when the crowd is most negative often correspond to the best buying opportunities — even if exact timing remains impossible to predict. »

📚 Glossary

• Fear Index: indicator measuring the level of fear or greed in the crypto market, based on volatility, volumes, and social sentiment.
• Liquidation: forced closing of a leveraged position when losses reach a critical threshold.
• Capitulation: phase where panicked investors sell massively, often near a market bottom.
• Open Interest: total value of open derivative contracts on an asset.
• Spot ETF: exchange-traded fund that directly holds the underlying asset (here, actual Bitcoin).

❓ Frequently Asked Questions About the Bitcoin Crash

Why is Bitcoin crashing so much right now?

Bitcoin’s drop results from a combination of factors: historic silver crash (-28%), nomination of a new Fed chair strengthening the dollar, geopolitical tensions in the Middle East, and cascading liquidations in derivatives markets. These elements created a global liquidity shock affecting all risk assets.

What is the Fear Index in crypto?

The Fear & Greed Index measures overall crypto market sentiment. It analyzes volatility, trading volumes, social media activity, and other metrics to produce a score from 0 (extreme fear) to 100 (extreme greed). High fear levels often indicate historic buying opportunities.

Could Bitcoin drop below $70,000?

Technically, if the $78,000 – $80,000 support breaks, the next support levels are around $72,000 – $75,000. However, extreme panic peaks like the current one historically precede rebounds. Crypto cycle dynamics suggest these moments of maximum pessimism often offer favorable entry points for the long term.

Should I sell my Bitcoin now?

Selling in panic is generally the worst decision. Historical data shows investors who sell during fear peaks often achieve the worst performance. A Dollar Cost Averaging (DCA) investment strategy smooths these fluctuations and profits from dips rather than suffering them.

What impact does Kevin Warsh’s nomination have on Bitcoin?

Kevin Warsh, chosen by Trump to lead the Fed, is perceived as favoring maintaining strict monetary policy. This strengthened the dollar, which traditionally reduces Bitcoin’s appeal as an alternative store of value. However, in the long term, central bank policy remains favorable to scarce assets like Bitcoin against inflation.

📰 Sources

• CoinDesk – Bitcoin fear sentiment hits 2026 high
• CNBC – Bitcoin dips below $79,000
• CoinGlass – Liquidation data
• Santiment – Social sentiment analysis

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