Crypto World
Can It Pump Even More?
Will HYPE continue its uptrend or will it follow the broader market downtrend?
It’s quite difficult to spot a popular cryptocurrency whose price hasn’t tumbled by 20% or even more in the last few weeks.
Hyperliquid (HYPE), though, is an evident exception, and its solid performance has caused analysts to envision further gains in the near future.
The Lone Survivor
Bitcoin (BTC) has crashed to a 14-month low of around $69,000, Ethereum (ETH) is struggling to keep the $2,000 level, while Ripple’s XRP and Solana (SOL) have plummeted by 27% in the past seven days. However, Hyperliquid (HYPE) has somehow defied the ongoing massacre and currently trades at around $32, representing a 50% increase on a two-week scale.
Its strong performance comes amid a string of positive developments surrounding the ecosystem. Earlier this week, Ripple announced that its institutional prime brokerage platform (called Ripple Prime) enabled support for Hyperliquid. Meanwhile, Grayscale recently revealed that it was encouraged by the rise in perpetual futures trading for non-crypto assets on the decentralized exchange.
Before that, on-chain data revealed growing interest in HIP-3 activity amid skyrocketing trading volume and open interest. These metrics continued to increase as the market tumbled in the past few days, reaching new peaks of $1B in OI and $4.8B in 24-hour volume.
HYPE has been the subject of numerous optimistic predictions, and many analysts believe there’s fuel left for additional gains. The analyst, using the X moniker Crypto General, expects volatility ahead and an eventual explosion above $100 later this year. Speaking on the matter was also Zach, who argued there are “so many reasons to buy and hold HYPE.”
There are so many reasons to buy and hold $HYPE.
The more it takes over market share and volume, the bigger the buybacks are, which is one of the reasons it’s so strong.
Really would love to get a spot entry around yearly open of $25 but who knows if it’ll come
— Zach (@CryptoZachLA) February 4, 2026
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The popular analyst Crypto Tony chipped in, too, suggesting that HYPE could do “magical things when the market conditions are right.” Those interested in additional bullish forecasts for the token can read our dedicated article here.
Can It Follow the Pack?
It is important to note that the broader crypto market remains shaky, and sustained bearish conditions could eventually weigh in on HYPE as well.
Some analysts believe this is a likely outcome. The one using the X handle, Greeny, predicted that the native token of Hyperliquid could plummet to $20 later in 2026.
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ETHZilla plans to tokenize the loan portfolio into a cash-flow-generating manufactured home loan token.
ETHZilla has announced its acquisition of a portfolio comprising 95 manufactured and modular home loans valued at approximately $4.7 million, with plans to tokenize these assets on Ethereum Layer 2. This strategic move is aimed at enhancing transparency and accessibility in real estate finance.
The tokenization initiative will be executed through the Liquidity.io ecosystem, with the launch expected in late February or early March.
“Manufactured housing loans offer predictable cash flows and strong underlying collateral, which we believe makes them well suited for tokenization within a regulated, transparent structure,” said McAndrew Rudisill, CEO of ETHZilla.
ETHZilla’s strategy is designed to meet institutional compliance and reporting standards, crucial for the integration of real-world assets into blockchain systems.
The manufactured housing market is projected to grow significantly, from $45.82 billion in 2024 to $75.1 billion by 2035, driven by affordability and sustainability.
This article was generated with the assistance of AI workflows.
Crypto exchange Gemini announced its exit from the United Kingdom, European Union and Australia markets on Thursday, as the company slashed its workforce by 25%.
Gemini cited artificial intelligence automating labor and making engineers “100x” more efficient, and a more challenging business environment in the UK, EU and Australia, as reasons for the exit, according to Thursday’s announcement:
“These foreign markets have proven hard to win in for various reasons, and we find ourselves stretched thin with a level of organizational and operational complexity that drives our cost structure up and slows us down.
“We don’t have the demand in these regions to justify them. The reality is that America has the world’s greatest capital markets,” the announcement said.
The company will instead focus its resources on developing its prediction market platform, Gemini Predictions, which launched in December 2025, and building its business in the US.
The news comes at a challenging time for the crypto industry, as digital asset prices continue to bleed amid a broad market downturn that began with a flash crash in October and the stalling of the CLARITY Act, a widely anticipated US crypto market structure bill.
Related: SEC dismisses civil action against Gemini with prejudice
Gemini shifts focus to prediction markets as the sector grows
Gemini’s announcement highlighted the growing role of prediction markets in its strategy, which it says will be “more front-and-center” on its platform.
“Our thesis is that prediction markets will be as big or bigger than today’s capital markets,” the announcement said.
The company said it has recorded over 10,000 users on Gemini Predictions and $24 millon in trading volume since launch.
Prediction market trading volume surged in the third quarter of 2024 during the US presidential election, with a 565.4% quarter-on-quarter increase in total trading volume, reaching about $3.1 billion.
In January 2026, daily prediction market trading volume ranged from about $277 million to about $550 million, according to data from Dune.
The market remains dominated by Polymarket and Kalshi, with Polymarket accounting for over 37% of total prediction market 24-hour trading volume and Kalshi commanding over 26%, according to Dune.
Magazine: One metric shows crypto is now in a bear market: Carl ‘The Moon’
HBAR price remains under heavy pressure as the broader crypto market stays weak. The token is down nearly 47% over the past three months and has slipped another 6% in the past 24 hours, tracking Bitcoin’s latest decline. More importantly, this is not just a short-term sell-off. Hedera’s price has been falling steadily since September, losing almost 67% from its highs.
Behind this move is a deeper problem: shrinking network liquidity, weak institutional demand, and fading retail participation. As TVL continues to fall and ETF inflows remain absent, charts now suggest that HBAR could face another major downside leg. Here is what the data is showing.
Hedera’s TVL Collapse Shows Liquidity Has Been Leaving for Months
HBAR’s downtrend began in mid-September, when the price started trading against a falling trendline. Soon, the weakening prices entered a falling channel as lower highs met lower lows. Since then, every rally has been weaker, and each breakdown has pushed the token lower.
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This HBAR price action mirrors what happened to Hedera’s on-chain liquidity.
Total value locked was near $122.5 million in September. It has now dropped to around $56 million, a decline of more than 50%. TVL measures how much capital is locked inside DeFi protocols. When TVL falls, it usually means users are withdrawing funds and activity is slowing.
In simple terms, money started leaving the network months ago. The price just followed this fundamental weakness. This explains why HBAR’s decline looks gradual rather than sudden. Liquidity has been drying up steadily. Without fresh capital, rallies fail quickly.
As long as TVL stays weak, HBAR’s upside remains structurally limited.
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CMF Shows Selective Buying, But ETF and Retail Demand Remain Weak
Not all signals are bearish.
The Chaikin Money Flow has been rising since mid-December, even as the price moved lower. This creates a bullish divergence, showing that some larger investors are accumulating. However, CMF is still below zero. Outflows still dominate. Inflows are improving, but not strongly enough.
At the same time, spot HBAR ETFs have shown no recent inflows over the past two weeks. ETFs bring institutional capital and could help CMF move above the zero line. Their absence limits upside momentum.
The bigger warning comes from On-Balance Volume. OBV has been trending lower since October. This showed that participation and conviction were steadily weakening even during short-term bounces. Recently, OBV broke below this descending support line.
When OBV loses long-term support, it signals that selling pressure is accelerating and that market participation is deteriorating. It suggests that fewer buyers are stepping in, even at lower prices.
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So the current setup looks like this:
- Some large buyers are accumulating slowly (CMF divergence)
- Institutional flows remain weak (ETF inactivity)
- Broader participation is shrinking (OBV breakdown)
Without strong volume support, rallies lack follow-through. This explains why HBAR continues to fail at resistance despite occasional inflow signals.
Until OBV stabilizes and ETF demand improves, upside moves are likely to remain fragile.
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Falling Channel and OBV Breakdown Point to a 30% Risk Zone
The Hedera Price structure confirms this fragile setup.
HBAR remains trapped inside a falling channel that has guided price lower since September, with a breakdown projection of around 30% if the lower trendline breaks.
The first major support sits near $0.080-$0.076. This zone has been in place since the October 10 crash. A daily close below it would weaken the structure. Below that, the next support lies near $0.062, based on Fibonacci extensions to the downside.
If this level breaks, the channel projection points toward $0.043, opening the 30% breakdown path. On the upside, recovery remains difficult.
HBAR must first reclaim $0.107. A move above $0.134 is needed to break the bearish channel. But that likely requires:
- A sustained TVL rebound
- Consistent ETF inflows
Without both, any HBAR price bounce attempt may fade quickly.
TLDR
- Aster’s layer-1 blockchain testnet is now live for all users, marking a key milestone for the platform.
- The Aster team plans to launch the mainnet in the first quarter of 2026.
- New features, including fiat currency on-ramps, will be introduced in Q1 2026.
- Aster will release its code for developers, fostering ecosystem growth and innovation.
- The platform’s shift to a perpetual futures DEX positions it as a competitor to Hyperliquid.
Aster, a decentralized crypto exchange (DEX) and perpetual futures platform, has announced the launch of its layer-1 blockchain testnet. The testnet is now available to all users, with the mainnet rollout scheduled for the first quarter of 2026. This major milestone is part of the company’s ambitious plans to enhance its platform and expand its offerings.
Aster’s Upcoming Features and Q1 2026 Launch Plans
Aster’s roadmap for 2026 includes several key developments that will significantly enhance its services. The introduction of fiat currency on-ramps will allow users to seamlessly convert their traditional currency into digital assets. Along with this, Aster will release its code for developers, enabling third-party builders to contribute to the platform’s growth.
The upcoming Aster layer-1 mainnet is designed to improve the platform’s efficiency and scalability. It will also serve as the backbone for future features and expansions. These developments are expected to increase Aster’s appeal to both traders and developers, fostering a more vibrant ecosystem.
In March 2025, Aster rebranded as a perpetual futures DEX. This move positioned the platform as a competitor to Hyperliquid, another prominent perpetual futures DEX. Hyperliquid operates on its own application-specific blockchain network, highlighting the trend of Web3 projects developing custom layer-1 blockchains for high-throughput transactions.
Aster’s decision to launch its own layer-1 blockchain aligns with this growing trend. It reflects the increasing demand for specialized blockchains that can handle high transaction volumes. By moving away from general-purpose chains like Ethereum and Solana, Aster aims to provide a more tailored and efficient solution for its users.
Surge in Perpetual Futures Trading Volume and Market Growth
The perpetual futures market saw a sharp rise in trading volume during 2025. According to DefiLlama, the cumulative trading volume nearly tripled, growing from approximately $4 trillion to over $12 trillion by the year’s end. About $7.9 trillion of this volume was generated in 2025, signaling increasing interest in crypto derivatives.
Monthly trading volumes hit the $1 trillion mark in October, November, and December. This surge highlights the growing demand for perpetual futures contracts, which allow traders to keep positions open without expiration dates.
Zcash price remains under heavy pressure as bearish momentum continues to build across the market. After losing nearly 35% since late January, Zcash (ZEC) is now slipping deeper inside a falling channel that has guided prices lower for months.
Weak volume, fading whale interest, and shrinking derivatives activity are all reinforcing the downside trend. With multiple indicators flashing warning signs, charts now suggest that Zcash may be entering another breakdown phase.
Falling Channel and OBV Breakdown Show Sustained Selling Pressure
Zcash has been trading inside a clear falling channel since November, marked by consistent lower highs and lower lows.
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After peaking above $740, ZEC entered this declining range and has already experienced one major collapse of more than 56% inside the channel, also the breakdown target. Each rebound has become weaker, showing that buyers are unable to shift momentum.
The weakening structure is confirmed by On-Balance Volume (OBV) tracks buying and selling pressure by adding volume on up days and subtracting it on down days. Rising OBV suggests accumulation, while falling OBV signals distribution.
From early November through late January, Zcash’s OBV was forming an ascending trendline. This showed that some Zcash buyers were still trying to accumulate, even as the price traded inside a falling channel.
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That support finally failed on January 29. Since this breakdown, Zcash has already fallen nearly 36%. This validates the OBV signal and shows that the loss of volume support directly translated into lower prices.
On-chain behavior reinforces this trend. Over the past seven days, whale holdings have declined by around 36%, with large wallet counts falling toward the 8,000 range. This suggests that major holders are trimming exposure rather than accumulating.
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At the same time, exchange balances have surged by nearly 160%. Rising exchange supply usually means more tokens are being prepared for sale, increasing immediate selling pressure.
Together, the falling channel, OBV breakdown, whale reduction, and exchange inflows point to sustained distribution. Retail participation is weakening, long-term holders are reducing exposure, and supply is moving toward selling venues. This combination explains why ZEC continues to struggle to hold support.
Derivatives Activity Weakens as Remaining Long Positions Add Risk
With spot participation fading, the next question is whether derivatives can push prices up, as they have during past short squeezes.
So far, the data suggests limited support.
Zcash open interest peaked near $1.13 billion in December. It has now dropped to around $395 million, a decline of nearly 65%. This shows that speculative interest has cooled sharply, with many traders closing positions and moving to the sidelines.
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When open interest falls this much, it signals reduced conviction. There is less leverage in the system to drive strong rebounds, and fewer traders willing to defend key levels.
At the same time, funding rates have cooled since October but remain slightly positive. Positive funding means that long positions still dominate, even though overall participation is shrinking. In simple terms, fewer traders are active, but many of those who remain are still betting on higher prices.
This creates a fragile setup. If prices fall further, these remaining longs become vulnerable to liquidation. When liquidations occur in low-liquidity conditions, they can trigger rapid downside moves.
So even though derivatives no longer have enough “fuel” to drive a major rally, the presence of exposed long positions still amplifies breakdown risk. Instead of supporting price, leverage now increases the chance of accelerated selling.
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Key Zcash Price Levels Show Why the $100 Zone Remains in Focus
The Zcash price remains trapped inside its falling channel, with the lower trendline continuing to guide the price lower. The first major support zone sits at $230.
A sustained daily close below $230 would expose the next support near $212, but not without triggering a trendline breakdown.
If $212 fails, the channel projection and Fibonacci extensions both point toward the $103 region. This zone represents the full downside move implied by the current structure.
On the upside, recovery remains difficult. ZEC must first reclaim $286 to regain short-term stability. A move above $389 is needed to improve the medium-term structure. A rally toward $557 would require a major revival in volume, whale accumulation, and derivatives participation, making it unlikely under current conditions.
As long as Zcash remains below $230 and fails to hold $212, downside risks dominate. Without renewed participation and capital inflows, the charts continue to favor a move toward the $100 zone.
Markets sold Bitcoin after Warsh nomination, but Binance Research argues liquidity and structural limits make severe QT unlikely.
A major sell-off swept through crypto markets in the last few days, pushing Bitcoin (BTC) to its lowest price since November 2024.
According to analysis from Binance Research, the move was triggered by news that Kevin Warsh had been nominated to chair the Federal Reserve, with markets interpreting his historical stance as a sign of aggressive liquidity tightening, forcing widespread deleveraging.
However, Binance Research suggested the reaction may be overblown, as physical constraints in the financial system could prevent the severe balance sheet reduction the market fears.
Liquidity Crisis Hits the End of the Chain
Per Binance analyst Michael JJ, last week’s turbulence displayed classic signs of a liquidity scramble. Following disappointing earnings from major tech firms such as Microsoft and rising geopolitical tensions, the nomination of Warsh, known for advocating a reduction of the Fed’s bond holdings, sparked a rush to exit risk.
Traders facing margin calls sold their most liquid assets to raise cash, and precious metals saw trading volumes spike to over ten times normal levels as the U.S. dollar rebounded sharply. Data presented by the on-chain technician shows cryptocurrencies acted as “end-of-liquidity-chain” assets, meaning they were among the first sold when liquidity was needed elsewhere.
When gold fell, crypto fell with it, but when the metal rebounded, digital assets continued to drop alongside stocks. This confirmed its low priority in the liquidity hierarchy. In that period, Bitcoin broke below several critical technical supports, including the head-and-shoulders neckline and key moving averages, hitting an intraday low near $73,000 on February 4.
Are QT Fears Overstated?
The core of the Binance Research argument is that markets are overpricing the risk of Quantitative Tightening (QT) under a potential Warsh chairmanship. While his proposals call for shrinking the Fed’s balance sheet, the report outlined technical constraints that may make aggressive contraction physically difficult.
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For instance, the Fed’s reverse repo facility, a crucial buffer, is approaching its depletion point. This means future QT would directly drain bank reserves, potentially pushing them below regulatory minimums and risking a repo market crisis like the one seen in 2019.
Furthermore, the U.S. Treasury’s need to issue about $2 trillion in new debt annually requires a buyer. If the Fed steps back as a net purchaser through QT, the private sector must absorb the supply, which could strain markets.
The analysis suggests that without changes to banking regulations, such as exempting Treasuries from certain capital ratios, the financial system’s “plumbing” cannot support the balance sheet shrinkage Warsh has historically supported.
As a result, such regulatory changes are seen as a longer-term possibility, not an immediate threat.
The report also pointed to the resolution of the latest U.S. government shutdown on February 3 as a positive development that may have been overlooked in the recent market frenzy. The development removed a source of near-term policy uncertainty, allowing federal agencies to be funded through September 2026.
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TLDR
- IQVIA’s stock dropped 8.5% following the company’s weaker-than-expected 2026 profit forecast.
- The company’s adjusted earnings forecast for 2026 ranged from $12.55 to $12.85 per share, missing Wall Street’s estimate of $12.95.
- Despite strong fourth-quarter results, IQVIA’s revenue of $4.36 billion and adjusted profit of $3.42 per share were overshadowed by the weak outlook.
- Investors focused on the disappointing guidance, causing the stock to decline, even after a solid quarterly performance.
- IQVIA’s stock has been volatile, with 10 price moves greater than 5% in the past year, signaling ongoing market uncertainty.
Shares of IQVIA (NYSE: IQV) dropped 8.5% in the morning session following the company’s weak profit forecast for 2026. The clinical research firm’s outlook for adjusted earnings fell short of Wall Street expectations. Investors focused on the disappointing guidance rather than strong fourth-quarter results, pushing the stock lower.
IQVIA’s Full-Year 2026 Forecast Misses Wall Street Expectations
IQVIA projected adjusted earnings for 2026 to range from $12.55 to $12.85 per share. This forecast was below the analysts’ average estimate of $12.95 per share. Despite the company’s solid fourth-quarter performance, which included revenue of $4.36 billion and an adjusted profit of $3.42 per share, the weak guidance overshadowed the positive results.
The disappointing forecast caused concern among investors, as it reflected a potential slowdown in future growth. As a result, IQVIA’s stock took a sharp decline in response to the news. Investors appeared to be more focused on the company’s outlook rather than its recent achievements, leading to a market reaction that drove the price lower.
Strong Fourth-Quarter Results Fail to Offset Weak Guidance
IQVIA exceeded expectations in the fourth quarter, posting strong revenue and earnings figures. The company’s revenue of $4.36 billion surpassed estimates, and its adjusted profit of $3.42 per share also beat consensus forecasts. However, despite these positive results, the stock market’s attention shifted quickly to the lowered profit projections for 2026.
The focus on the weaker future guidance led to a significant drop in IQVIA’s share price. Investors seem to have placed more weight on the company’s forward-looking expectations than its recent performance. This resulted in a sell-off, which has left the stock struggling to recover from the early loss.
IQV Stock Volatility Continues to Influence Investor Sentiment
IQVIA’s stock has shown volatility in recent months, with 10 moves greater than 5% over the past year. Today’s 8.5% drop fits within this pattern, but it also signals that the market views the news as impactful yet not a major shift in the company’s overall outlook. The recent downturn represents a continuation of IQVIA’s unpredictable stock movements.
Despite the recent fall, IQVIA’s stock price remains down 17% for the year. The company’s shares are trading at $187.09, a significant 23.4% below their 52-week high of $244.29. Investors who have held IQVIA stock for five years have seen a modest return, with their investment now valued at $1,005 for every $1,000 invested.
Bitcoin tumbled below $66,000 during early afternoon U.S. hours as this week’s crypto selloff accelerated into a bloodbath on Thursday.
The largest cryptocurrency fell more than 10% over the past 24 hours to a session low of $65,156, according to CoinDesk data, the weakest level since October 2024 and below the 2021 peak.
Feb. 5 could be one of the worst days in bitcoin’s history. BTC is on track to suffer its steepest one-day drawdown — 10.5% since midnight UTC at current prices — since Nov. 8, 2022, when the collapse of crypto exchange FTX sent BTC below $16,000 after a 14.3% drop on the day.
Crypto wasn’t the only asset class under relentless selling pressure. Silver also plunged 15% during the day, and is now almost 40% below its record high just a week ago. Gold also fell more than 2.8% to $4,820, but that selloff wasn’t as bad as silver. The precious metal is now trading about 15% below its record last week.
Software stocks, often moving in lockstep with bitcoin, continued to selloff, with the thematic iShares Expanded Tech-Software ETF (IGV) declining more than 3% and down 24% year to date. The S&P 500 and the tech-heavy Nasdaq were also 1% lower.
Crypto stocks weren’t spared either. Coinbase (COIN), Galaxy (GLXY), Strategy MSTR) and BitMine (BMNR) tumbled more than 10%, while several crypto miners, including Bitfarms (BITF), CleanSpark (CLSK), Hut 8 (HUT), and Mara (MARA), saw similar losses.
“One big factor is just very thin liquidity,” said Adrian Fritz, chief investment strategist at 21shares. “If there is a bit of a sell pressure, it usually triggers a lot of liquidations.”
In a fragile market environment with only a few buy and sell orders to cushion trades, even modest sell-offs can trigger a large price reaction, in turn triggering further liquidations.
While some have said the worst is over for weeks now, Fritz believes otherwise.
“There’s still no signal that we bottomed out. I think it’s too early. There’s no confirmed turnaround,” he said.
He points to the 200-moving-day average — currently around $58,000 to $60,000 — as a key support level to watch. That level also aligns with bitcoin’s “realized price,” or the average cost basis of all bitcoin holders, which he believes could serve as a strong, multi-year support.
Read more: Bitcoin can still fall further. Historical data shows $60,000 will be the bottom
Altcoins decimated
Bitcoin’s performance could seem minor compared to the brutal selloff in altcoins.
Almost all CoinDesk index prices, including major tokens and memecoins, are down by more than 10% over the last 24 hours.
XRP, which fell 19% over the same 24-hour period, underperformed most other large-cap cryptos.
While Fritz said he believes there’s no specific trigger that puts extra pressure on the token, he said that “from a technical point of view, there’s not a lot of support levels for XRP.”
Read more: Here is what industry veterans are saying as bitcoin tumbles below $70,000
Global markets sold off sharply this week, hitting cryptocurrencies, equities, and even traditional safe havens like gold and silver. The synchronized decline points to a broader liquidity shock rather than asset-specific weakness.
Bitcoin led losses in risk assets, while gold and silver posted their steepest weekly drops in months. The unusual correlation signals forced de-risking across portfolios, not a shift in investor preference.
A Liquidity Squeeze, Not a Rotation
Normally, stress in crypto pushes capital toward gold or cash. This time, investors sold everything that could be sold.
That pattern typically emerges when leverage unwinds. Traders facing margin calls liquidate liquid assets first, including Bitcoin, gold, and silver. The selling is mechanical, not ideological.
Fed Actions Failed to Calm Markets
At the center of the turmoil is confusion around US monetary conditions. The Federal Reserve halted quantitative tightening in December and began buying short-dated Treasury bills to stabilize bank reserves.
When the Fed halted QT, it stopped actively draining cash from the financial system. For banks, this means reserve levels are no longer shrinking. For households and businesses, it reduces the risk of sudden funding stress in the banking system.
By buying short-term government debt, the Fed ensures banks have enough cash to meet daily funding needs and keep money markets functioning smoothly.
These actions support the financial system’s plumbing, not market prices. They do not lower borrowing costs for consumers, reduce mortgage rates, or encourage risk-taking.
Long-term interest rates remain elevated, and financial conditions remain restrictive.
As a result, markets interpreted the move as a sign of underlying stress rather than relief.
Jobs Data Added Pressure Instead of Clarity
US labor data released this week deepened uncertainty. Job openings continued to fall. Hiring slowed. Layoffs rose. Consumer confidence dropped to its lowest level since 2014.
At the same time, unemployment remains relatively low and inflation has not cooled enough to justify rapid rate cuts. This left markets trapped between slowing growth and tight financial conditions.
Why Gold and Silver Fell with Crypto
Gold and silver declined despite rising uncertainty because investors needed cash. Both assets had rallied strongly earlier this year, making them easy sources of liquidity.
In addition, real yields remained elevated and the dollar strengthened during the sell-off. That combination removed short-term support for precious metals.
Cryptocurrencies fell more sharply because they sit at the bottom of the liquidity hierarchy. When leverage unwinds, crypto is sold first.
Bitcoin derivatives data showed long positioning had built up in recent weeks. As prices dropped, liquidations accelerated. ETF inflows slowed at the same time, reducing demand.
A Broader Market Reset is Underway
The last two weeks reflect a single theme: markets priced in easier conditions too early. Liquidity did not expand fast enough to support those bets.
As a result, risk assets corrected together. The move reset positioning across crypto, equities, and commodities.
What this Means Going Forward
This sell-off does not signal a failure of Bitcoin or gold as long-term hedges. It reflects a short-term liquidity stress phase that often appears before policy or macro clarity improves.
For now, markets remain fragile. Until liquidity expectations stabilize or economic data decisively weaken, volatility is likely to persist.
The post US Economy is Crashing Every Market, And It’s Not a Crypto Problem appeared first on BeInCrypto.
TLDR
- BitMine holds 4.29 million ETH, now worth $8 billion less than its initial investment.
- Ethereum’s price drop to below $2,000 has caused significant unrealized losses for the company.
- BitMine’s stock has fallen 88% from its peak in July, reflecting investor concerns over Ethereum exposure.
- The company continues to accumulate Ethereum and generates income through staking despite the downturn.
- BitMine is not under pressure to liquidate its assets as it used equity issuance to fund its ETH purchases.
BitMine Immersion Technologies, led by Wall Street strategist Thomas Lee, has faced substantial losses as Ethereum (ETH) dropped below $2,000. The company’s position is now worth nearly $8 billion less than its initial investment of approximately $16.4 billion. The downturn has caused BitMine’s stock to fall sharply, reflecting a significant loss on its Ethereum holdings.
BitMine’s Ethereum Bet and Unrealized Losses
BitMine holds around 3.55% of Ethereum’s total circulating supply, with 4.29 million ETH accumulated through equity issuance. The company’s massive ETH stake was once worth $16.4 billion but is now valued at just $8.4 billion, marking a $8 billion unrealized loss. Despite the decrease in Ethereum’s value, BitMine has maintained a strategy of holding and staking its Ether, generating income despite the ongoing market volatility.
The company’s approach of using equity issuance instead of debt financing has shielded it from immediate liquidation pressure. With $538 million in cash and nearly $200 million in annual staking revenue from its ETH holdings, BitMine is positioned to ride out the current market challenges. “There is no pressure to sell any ETH at these levels,” Thomas Lee stated, defending the firm’s strategy of holding through market downturns.
Stock Price Declines Alongside Ethereum’s Drop
The recent downturn in Ethereum has coincided with a sharp decline in BitMine’s stock price. Shares of BMNR have fallen by 88% from their peak in July, reflecting growing concerns over the company’s heavy exposure to Ethereum. The stock hit new multi-month lows, paralleling Ethereum’s 30% drop over the past month, and investors are scrutinizing BitMine’s ability to weather the market downturn.
Bitmine Immersion Technologies, Inc., BMNR
Despite the loss in stock value, BitMine’s strategy of staking 2.9 million ETH has provided some cushion. The firm has also continued accumulating Ether, adding more to its holdings even during this difficult market period. Investors are keenly watching how BitMine manages its exposure to Ethereum amid the current price fluctuation.
No Immediate Need for Liquidation
Lee’s defense of BitMine’s strategy highlights that the company has no immediate need to sell its Ethereum holdings. Unlike other firms with significant debt, BitMine has no obligations forcing it to liquidate at a loss. Instead, the firm focuses on earning consistent revenue through staking, which has allowed it to manage liquidity even as Ethereum’s price continues to decline.
BitMine’s strategy centers on long-term growth, with the firm continuing to bet on the future of Ethereum. While the value of its holdings has dropped, the company remains optimistic about the long-term potential of its Ethereum position.
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