Bitcoin dropped to $72,900, its lowest point since November 2024, when Trump was elected, before rebounding over 5% to $76,800. Ethereum fell to $2,110 and then recovered to $2,340.

This sharp V-shaped decline resulted in over $740 million in liquidations within the last 24 hours, primarily affecting long positions.

US-Iran Tensions Escalate
- The US military confirmed it shot down an Iranian Shahed-139 drone for aggressively approaching the USS Abraham Lincoln aircraft carrier in the Arabian Sea. This incident occurred while both sides were attempting to arrange nuclear negotiations.
- According to Axios, US-Iran talks are scheduled for February 6, but Tehran has requested a change of venue to Oman, and the US must withdraw its warships before negotiations can proceed.

US Government Reopens
- President Trump signed a budget bill, ending a partial government shutdown that began on January 31.
- Funding is secured for most federal government operations through the end of the fiscal year (September 30, 2026), including a temporary two-week extension for the Department of Homeland Security to continue immigration policy negotiations.