Bitcoin price weakness has returned to the spotlight after a sharp wave of selling pressure pushed BTC toward lows not seen since 2024.
Fresh data from exchanges, ETFs, and macro analysts now paints a clearer picture of what sits behind the latest drop. The story feels less like a random swing and more like a chain reaction across liquidity, institutions, and sentiment.
Crypto analyst Tracer, known online as DeFiTracer, pointed to massive BTC sell activity across major venues. Binance offloaded 23,152 BTC. Coinbase moved 6,859 BTC. Kraken released 19,181 BTC. Additional whale entities sold thousands more coins within a short window. Combined liquidations crossed $3.5B in only two hours.
Such concentrated distribution can weaken order books quickly. Bitcoin price often reacts sharply when several large liquidity sources unload at the same time. Tracer framed the event as aggressive market pressure that overwhelmed short term demand. Rapid sell waves tend to amplify volatility and push BTC lower before buyers regain control.
🚨 BREAKING:
— ᴛʀᴀᴄᴇʀ (@DeFiTracer) February 4, 2026
HERE'S WHY THE CRYPTO MARKET IS DUMPING RIGHT NOW:
BINANCE SOLD 23,152 BTC
COINBASE SOLD 6,859 BTC
KRAKEN SOLD 19,181 BTC
WHALES SOLD 9,763 BTC
WINTRUMTE SOLD 4,977 BTC
HUGE EXCHANGES AND FUNDS LIQUIDATED OVER $3.5B WORTH OF $BTC IN THE LAST 2 HOURS
THIS IS PURE… pic.twitter.com/ahK0jtawWl
Bitcoin ETF Outflows And Macro Fear Are Weakening Institutional Demand
Data shared by BSCN shows Bitcoin spot ETFs recorded $544.94M in net outflows on Feb. 4. That withdrawal arrived as BTC slipped below $71,000 after a brief move near $73,000. Institutional flows often guide broader market confidence. Sustained outflows usually signal caution among large allocators.
Macro uncertainty adds another layer of pressure. Risk assets across global markets have faced renewed stress tied to monetary policy and liquidity conditions. Bitcoin frequently mirrors that environment because institutional capital now plays a central role in BTC price stability. Reduced inflows remove a key support zone that helped sustain earlier rallies.
Investment Firm Stifel Warns Bitcoin Could Revisit $38,000 Level
Research cited by Coin Bureau highlights a bearish projection from investment company Stifel. Historical cycle analysis suggests Bitcoin could retrace toward $38,000 under tighter Federal Reserve policy, slower regulatory progress, shrinking liquidity, and persistent ETF withdrawals. Sentiment indicators already sit near extreme fear territory, which shows fading enthusiasm across both institutional desks and retail participants.
🚨BITCOIN COULD FALL TO 38K
— Coin Bureau (@coinbureau) February 4, 2026
Investment company Stifel says Bitcoin could fall to $38,000 based on past cycles, citing tighter Fed policy, slowing U.S. crypto regulation, shrinking liquidity, and heavy ETF outflows.
Sentiment has sunk into “extreme fear,” showing waning… pic.twitter.com/91ZB92kPSq
Cycle driven pullbacks have appeared before in Bitcoin history. Deep corrections often arrive during liquidity contractions or policy tightening phases. Stifel’s scenario does not guarantee a fall to $38,000. The forecast outlines a risk path if current pressures continue without relief.
Read Also: Ripple’s Hyperliquid Move Could Change How Wall Street Trades Crypto
Bitcoin remains highly sensitive to capital flows, macro signals, and large holder behavior. Tracer’s exchange data, BSCN’s ETF figures, and Stifel’s cycle model all describe different parts of the same puzzle. Market direction now depends on whether selling pressure fades or expands in the weeks ahead.
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