The crypto market is under pressure today as over $1.6 billion in long positions are liquidated. Bitcoin tumbles below $83,000 while Ethereum slides to $2,800. Regulatory momentum builds in the U.S. Senate.

🔻 Market Overview: Crypto Dips Below $3 Trillion After 5.8% Daily Drop

The global cryptocurrency market cap has dropped 5.8% in the past 24 hours, falling under the $3 trillion mark to approximately $2.89 trillion (source). A staggering 97 of the top 100 cryptocurrencies are trading in the red.

Despite the downturn, trading activity remains elevated with $207 billion in total daily volume, suggesting increased volatility and investor repositioning.

💥 $1.68B in Liquidations Amid Market Sell-Off

According to Coinglass data, the crypto markets witnessed a large-scale liquidation event:

• $1.681 billion in total positions liquidated
• $1.574 billion were long positions
• Over 270,000 traders affected globally
• Largest single liquidation: $80.6 million on Binance (BTC/USDT)

This points to aggressive overleveraged trading ahead of key macro and regulatory developments.

📉 Bitcoin & Ethereum Price Action

Bitcoin (BTC) dropped to $83,000, a significant correction from recent highs, while Ethereum (ETH) declined to $2,800. Analysts suggest that technical weakness and increasing regulatory uncertainties are driving the sell-off.

🏛️ U.S. Senate Advances Crypto Market Structure Bill

On a more constructive note, the U.S. Senate Agriculture Committee has advanced its version of the long-awaited CLARITY Act. This step brings the comprehensive crypto regulation bill closer to a Senate floor vote — a pivotal moment for the U.S. digital asset landscape.

Key Highlights:

• Focuses on clear definitions between commodities and securities
• Empowers the CFTC to regulate select crypto assets
• Could reduce uncertainty for institutional investors

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🔍 Altcoins to Watch Amid Market Volatility

Despite bearish momentum, some altcoins are showing promising setups heading into the weekend, according to BeInCrypto. Traders are watching assets at key technical levels to identify potential bounce zones or breakout opportunities.

Additionally, 3 altcoins are positioned to hit new all-time highs in February, thanks to improving on-chain metrics and strong community narratives. Check out those picks here.

🚨 What Should Investors Do Now?

• Reduce leverage: The market is punishing overleveraged positions.
• Monitor U.S. legislative progress: The CLARITY Act could reshape the regulatory playing field.
• Track altcoin narratives: Capital rotation is favoring assets with strong fundamentals.

Need real-time alerts and portfolio tools? Join our Pro Crypto Insights platform to stay ahead of the curve.

📅 The Week Ahead

• Feb 1: U.S. non-farm payrolls data – could impact risk assets
• Feb 2: Weekly crypto ETF flows report
• Ongoing: Progress of CLARITY Act in Senate

Volatility remains the name of the game. Stay sharp and manage your risk wisely.

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