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Liquidations Top $1.3 Billion as BTC Plummets Below $67K, ETH Loses $2K Support

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BTCUSD Feb 5. Source TradingView


Most other altcoins like BNB and XRP have joined the ride south with massive declines of their own.

Bitcoin can’t catch a break in the past several days, marking consecutive multi-month lows, with the latest coming minutes ago at well under $67,000.

The last time the cryptocurrency traded at such low levels was in early November, just as the US presidential elections took place and the country elected the so-called ‘crypto president,’ Donald Trump.

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The past few weeks have been brutal for BTC. It challenged $90,000 just eight days ago, last Wednesday, but the rejection at that level brought unimaginable pain for the market leader and most of the altcoin followers.

Bitcoin first dumped to $81,000 last Thursday, then continued south to under $75,000 during the weekend, but the bears kept the pressure on. The past several hours have been violent as well, with BTC plunging to $66,900 (as of press time). This means that the asset has lost well over $20,000 in just over a week.

BTCUSD Feb 5. Source TradingView
BTCUSD Feb 5. Source TradingView

The altcoins have not been spared. ETH continues with its massive decline, with another 9% daily decline to under $2,000 – its lowest level since last April. BNB has plunged by 10% to $660, while XRP is down by a whopping 15% in the past 24 hours alone to $1.32.

Further losses are evident from the likes of ZEC (-19%), MORPHO (-14%), NEXO (-14%), XMR (-12%), LEO (-12%), SUI (-11%), and many others. As such, it’s no wonder that over-leveraged traders have been harmed severely.

Data from CoinGlass shows that the 24-hour liquidations have rocketed to over $1.3 billion. In the past hour alone, the wrecked positions are up to $350 million. The number of wiped out traders is close to 300,000 daily, with the single-largest position taking place on Aster, which was worth over $11 million.

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Daily Liquidations Data on CoinGlass
Daily Liquidations Data on CoinGlass: February 5
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BTC price faces sell-the-news risk after rebound

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BTC price faces sell-the-news risk after rebound

As bitcoin heads into this year’s flagship Bitcoin Conference in Las Vegas next week, traders will be watching for a familiar pattern, a potential “sell-the-news” event that has played out in previous years.

The largest cryptocurrency is trading around $75,000, recovering from a local bottom of around $60,000 in early February after collapsing more than 50% from its October all-time high.

Data from Galaxy Research and Investing.com spanning 2019 to 2025 show the price of bitcoin tends to rise in the run-up to these conferences, delivers a mixed performance during the event and declines substantially afterward.

For instance, bitcoin gained about 3% in the 24 hours before the 2024 event in Nashville (featuring then-presidential candidate Donald Trump) and roughly 10% ahead of the 2019 conference in San Francisco, suggesting positioning builds into peak attention. Price action during the conference is typically subdued as the narrative fails to deliver, and the weakest performance occurs in the days and weeks that follow.

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In the 2022 bear market, often compared to the current 2026 bear market environment, bitcoin fell just 1% during the Miami conference before sliding nearly 30% over several weeks. Similar post-conference weakness was seen in 2019, 2021 and 2023, where any momentum failed to hold.

Even in 2024, when Nashville hosted Trump to outline plans to position the U.S. as a bitcoin superpower, gains during the event were short-lived and marked a local top, just ahead of the yen carry-trade unwind in August that pushed bitcoin as low as $49,000.

Conferences tend to coincide with peaks in attention and liquidity as bullish narratives build up to the event, creating conditions for investors to unwind positions.

With sentiment still fragile and prices recovering from deep losses, the key question for 2026 is whether Bitcoin Vegas will once again act as an exit liquidity event.

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Two Different Approaches to Quantum Threats

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Two Different Approaches to Quantum Threats

The quantum divide between Bitcoin and Ethereum

Quantum computing has long been viewed as a distant, largely theoretical threat to blockchain systems. However, that perspective is now starting to change.

With major technology companies such as Google establishing timelines for post-quantum cryptography, and crypto researchers re-examining long-held assumptions, the discussion is shifting from abstract theory to concrete planning.

However, Bitcoin and Ethereum, two major blockchain networks, are addressing the quantum computing threat in different ways. Both networks depend on cryptographic systems that could, in principle, be compromised by sufficiently powerful quantum computers. However, their approaches to addressing this shared vulnerability are evolving in markedly different directions.

This divergence, often referred to as the “quantum gap,” has less to do with mathematics and more to do with how each network handles change, coordination and long-term security.

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Did you know? Quantum computers do not need to break every wallet at once. They only need access to exposed public keys, which means older Bitcoin addresses that have already transacted could theoretically be more vulnerable than unused ones.

Why quantum computing matters for blockchains

Blockchains rely heavily on public-key cryptography, particularly elliptic curve cryptography (ECC). This framework allows users to derive a public address from a private key, enabling secure transactions while keeping sensitive information protected.

If quantum computers achieve sufficient scale and capability, they could fundamentally weaken this foundation. Algorithms such as Shor’s algorithm could, in theory, allow quantum systems to compute private keys directly from public keys, thereby jeopardizing wallet ownership and overall transaction security.

The consensus among most researchers is that cryptographically relevant quantum computers are still years or even decades away. Nevertheless, blockchain platforms present a distinct challenge. They cannot be updated instantaneously. Any substantial migration requires extensive coordination, rigorous testing and broad adoption over multiple years.

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This situation highlights a key paradox: Although the threat is not pressing in the near term, preparation needs to begin well in advance.

External pressure is accelerating the debate

The discussion has moved well beyond crypto-native communities. In March 2026, Google announced a target timeline to transition its systems to post-quantum cryptography by 2029. It cautioned that quantum computers pose a significant threat to existing encryption and digital signatures.

This development is particularly relevant for blockchain systems because digital signatures play a fundamental role in verifying ownership. While encryption is vulnerable to “store-now, decrypt-later” attacks, digital signatures face a distinct risk. If compromised, they could increase the risk of unauthorized asset transfers.

As major institutions begin preparing for quantum resilience, blockchain networks face growing pressure to outline their own mitigation strategies. This is where the differences between Bitcoin and Ethereum become more apparent.

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Did you know? The term “post-quantum cryptography” does not refer to quantum technology itself. It refers to classical algorithms designed to resist quantum attacks, allowing existing computers to defend against future quantum capabilities without requiring quantum hardware.

Bitcoin’s approach: Conservative and incremental

Bitcoin’s approach to quantum risk is guided by its core philosophy: minimize changes, maintain stability and avoid introducing unnecessary complexity at the base layer.

One of the most widely discussed proposals in this context is Bitcoin Improvement Proposal 360 (BIP-360), which introduces the concept of Pay-to-Merkle-Root (P2MR). Instead of fundamentally altering Bitcoin’s cryptographic foundations, the proposal seeks to limit exposure by changing the structure of certain transaction outputs.

The objective is not to achieve full quantum resistance for Bitcoin in a single move. Rather, it aims to create a pathway for adopting more secure transaction types while preserving backward compatibility with the existing system.

This approach mirrors the broader mindset within the Bitcoin community. Discussions often reflect extended time horizons, ranging from five years to several decades. The community is focused on ensuring that any changes do not undermine Bitcoin’s core principles: decentralization and predictability.

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Nevertheless, this strategy has attracted criticism. Some argue that delaying more comprehensive measures could leave the network vulnerable if quantum advances arrive faster than expected. Others contend that making hasty changes could introduce avoidable risks into a system designed for long-term resilience.

Ethereum’s approach: Roadmap-driven and adaptive

Ethereum, by contrast, is pursuing a more proactive and structured strategy. The Ethereum ecosystem has begun formalizing a post-quantum roadmap that treats the challenge as a multi-layered system upgrade rather than a single technical adjustment.

A key element in Ethereum’s approach is “cryptographic agility,” which refers to the ability to replace core cryptographic primitives without undermining the stability of the network. This aligns with Ethereum’s broader design philosophy, which emphasizes flexibility and continuous iterative improvement.

The roadmap covers multiple layers:

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  • Execution layer: Investigating account abstraction and alternative signature schemes that can support post-quantum cryptography.

  • Consensus layer: Assessing replacements for validator signature mechanisms, including hash-based options.

  • Data layer: Modifying data availability structures to ensure security in a post-quantum setting.

Ethereum developers have positioned post-quantum security as a long-term strategic priority, with timelines extending toward the end of the decade.

In contrast to Bitcoin’s incremental proposals, Ethereum’s approach resembles a staged migration plan. The goal is not immediate rollout but gradual preparation, allowing the network to transition when the threat becomes more concrete.

Why Bitcoin and Ethereum are taking different approaches to the quantum threat

The divergent approaches of Bitcoin and Ethereum are not a coincidence. They arise from fundamental differences in architecture, governance and philosophy.

Bitcoin’s base layer design emphasizes robustness and predictability, fostering a cautious attitude toward significant upgrades. Any change must meet a high bar for consensus and, even then, is usually limited in scope.

Ethereum, by contrast, has a track record of coordinated upgrades and protocol evolution. From the shift to proof-of-stake to ongoing scaling improvements, the network has demonstrated a willingness to execute complex changes when needed.

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This distinction shapes how each network views the quantum threat. Bitcoin generally sees it as a remote risk that warrants careful, minimal intervention. Ethereum treats it as a systems-level issue that requires early planning and architectural adaptability.

In this context, the “quantum gap” is less about disagreement over the nature of the threat and more about how each ecosystem defines responsible preparation.

Did you know? Some early Bitcoin transactions reused addresses multiple times, unintentionally increasing their exposure. Modern wallet practices discourage address reuse partly because of long-term risks such as quantum attacks, even though the threat is not immediate.

An unresolved challenge for both Bitcoin and Ethereum

Despite their differing strategies, neither Bitcoin nor Ethereum has fully resolved the quantum threat.

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Bitcoin continues to examine various proposals and weigh trade-offs, yet no clear migration path has been formally adopted. Ethereum, although more advanced in its planning, still faces substantial technical and coordination hurdles before its roadmap can be fully implemented.

Several open questions remain relevant to both ecosystems:

  • How to migrate existing assets protected by vulnerable cryptography

  • How to coordinate upgrades within decentralized communities

  • How to balance backward compatibility and forward security

These difficulties underscore the complexity of the issue. Post-quantum security represents more than a technical upgrade. It is also a test of long-term adaptability, governance and coordination.

Could security posture influence market narratives?

As institutional interest in quantum risk continues to grow, differences in preparedness could eventually shape how markets assess blockchain networks.

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The reasoning is simple: A network that demonstrates greater adaptability to threats may be viewed as more resilient over the long term.

However, this idea remains largely speculative. Because quantum threats are still seen as a long-term concern, any near-term market effects are more likely to stem from narrative than from concrete technical developments.

Nevertheless, the fact that the discussion is now entering institutional research and broader public discourse suggests that it could become a more prominent consideration in the future.

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Michael Saylor Hints at Bigger Bitcoin Buys After Floating Semi-Monthly Dividends

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Michael Saylor hints at another significant Bitcoin purchase. Discover the company's latest BTC buying history and strategy.

Michael Saylor signaled on social media that Strategy is on the verge of announcing another Bitcoin purchase, posting a chart of the company’s full BTC buying history with noticeably larger circles marking recent acquisitions.

The timing matters: Strategy already executed a record single-day buy exceeding $1 billion in BTC just before the tease, and with $2.25 billion in cash reserved, the scale of what comes next is the only open question.

Simultaneously, the company, formerly MicroStrategy and now the largest corporate Bitcoin holder on the planet, floated a proposal to convert its STRC preferred stock from monthly to semi-monthly dividend payments, a structural capital markets refinement that analysts say could significantly broaden institutional demand for the instrument.

Discover: The best crypto to diversify your portfolio with

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Key Takeaways:
  • Purchase incoming: Saylor shared a chart of Strategy’s BTC buying history with larger recent circles, signaling acceleration – another buy announcement is imminent.
  • Dividend proposal: Strategy is floating semi-monthly payments for its STRC preferred stock, with shareholder voting closing June 8, 2026; first record date June 30, first payment July 15.
  • STRC mechanics: Annualized yield stays fixed at 11.5%; switching to twice-monthly payments targets halved ex-dividend drawdowns, tighter liquidity patterns, and better collateral utility.
  • Market signal: With BTC above $76,000 and $2.25 billion in cash reserved, Strategy’s dual move – more BTC plus refined shareholder returns – is a compounding demand signal for the spot market.

What Saylor Dual Signal Actually Means for Strategy’s Bitcoin Capital Stack

The STRC preferred series – branded “Stretch” – launched in mid-2024 at an 11.5% annualized yield, initially paying monthly dividends funded in part by Bitcoin treasury yields.

Michael Saylor hints at another significant Bitcoin purchase. Discover the company's latest BTC buying history and strategy.
Source: Strategy STRC

Volatility on the instrument has collapsed from 13% in its first eight months to 2.1% over the past two months, a compression driven by surging institutional demand that has pushed outstanding notional value to $6.4 billion.

The semi-monthly proposal doesn’t change the yield – 11.5% annualized remains fixed – but splits payment cadence to record dates on the 15th and last day of each month, pending Nasdaq compliance review and dual approval from both STRC holders and MSTR common shareholders.

Saylor’s stated rationale: “The proposed changes are intended to stabilize price, dampen cyclicality, drive liquidity, and grow demand.” He added the team views semi-monthly as “twice as good” as monthly for the instrument.

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If approved, STRC would be the only preferred security or equity globally paying dividends twice monthly , a structural differentiator that improves collateral utility for borrowing and tightens haircuts for institutional holders using it as leverage collateral.

That’s not a minor footnote. Better collateral terms mean more institutional capital can rotate into STRC without consuming as much balance sheet, which expands the buyer pool at the exact moment Saylor is telegraphing another large BTC purchase. The feedback loop here is deliberate: more demand for STRC funds more capital raises, which fund more BTC accumulation, which backstops the yield instrument.

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BIS Warns on Stablecoin Risks, Urges Global Coordination

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Coinbase, Japan, Switzerland, ECB, United Kingdom, BIS, Stablecoin

The Bank for International Settlements (BIS) general manager, Pablo Hernández de Cos, called for tighter global coordination on stablecoins Monday, warning that US dollar-denominated tokens could have “material consequences” for financial stability and economic policy if they grow large enough to rival traditional money. 

Speaking at a Bank of Japan seminar in Tokyo, he said current stablecoin arrangements fall short of what is needed for a widely used means of payment, even if they offer faster cross-border transfers and integration with smart contracts.

De Cos said the largest US dollar stablecoins, such as USDt (USDT) and USDC (USDC), share characteristics with investment products rather than cash-like money, pointing to fees and conditions on primary market redemptions and episodes where their prices diverge from par in secondary markets. 

In his view, these features make the tokens behave more like exchange-traded funds (ETFs), while still creating run and contagion risks because issuers hold short-term government debt and bank deposits as reserve assets. In a stress episode, he warned, rapid outflows from stablecoins could force sales of those reserves into already strained markets or transmit funding pressure to banks.

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The warning comes as policymakers globally debate how to regulate fast-growing stablecoins and other tokenized money-like instruments.

Coinbase, Japan, Switzerland, ECB, United Kingdom, BIS, Stablecoin
Stablecoins: framing the debate. Source: BIS

He added that the use of public, permissionless blockchains and unhosted wallets means a significant share of activity sits outside conventional Anti-Money Laundering and Counter-Terrorism Financing controls, making stablecoins attractive for illicit use unless bespoke safeguards are implemented at on- and off-ramps.

Europe sharpens its stablecoin stance

The speech comes as European policymakers push for tighter control of non-euro stablecoins and other tokenized money-like instruments.

Earlier this month, Bank of France First Deputy Governor Denis Beau urged the European Union to go beyond the original Markets in Crypto Assets Regulation text by limiting the use of non-euro-denominated stablecoins in everyday payments, tightening rules on issuing the same coin inside and outside the bloc to reduce regulatory arbitrage in times of stress. 

Related: EU central bank backs plan for crypto supervision under EU markets watchdog

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In parallel, the European Central Bank has contrasted euro stablecoins with tokenized money market funds, noting that both perform liquidity transformation and are exposed to run risk, but operate under different transparency, liquidity management and regulatory regimes that can shape how stress feeds into funding markets.

Other major jurisdictions are also recalibrating their approaches. In the United Kingdom, members of the House of Lords questioned Coinbase in March over whether stablecoins could drain commercial bank deposits, trigger Silicon Valley Bank-style runs and facilitate crime, as the government finalizes a bespoke regime for fiat-backed tokens. 

In Switzerland, UBS and several domestic peers launched a franc-denominated stablecoin pilot in a sandbox environment on April 8, in an effort to explore blockchain-based franc payments while keeping the instruments firmly anchored in the regulated financial system.

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