Crypto World
Bitcoin spirals toward $65,000, headed for worst drawdown since FTX crash
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
Launch signals strategic move to provide trading execution and market data services to fintech platforms.
San Salvador, El Salvador, February 5, 2026 – Bitget Wallet, the everyday finance app, has launched Bitget Wallet API, marking a strategic expansion into business-to-business infrastructure as more fintech firms and digital asset platforms look to offer onchain trading services at scale. The API allows partners to access trading execution, market data, and cross-chain asset transfers through a single integration, reducing the need for companies to build and maintain complex backend systems internally.
The move reflects a broader shift toward fintech platforms relying on specialized infrastructure rather than building full technology stacks in-house. BCG estimates B2B fintech services will grow at a 32% annual rate to reach $285 billion in revenues by 2026, alongside rapid growth in Wallet-as-a-Service and embedded finance. At the same time, decentralized exchange trading hit a five-year high in January 2026, with more than $400 billion traded, highlighting DEXs’ growing role as a core source of market liquidity.
“Onchain trading is reaching a wider audience, but the underlying infrastructure is still fragmented and difficult to operate at scale,” said Alvin Kan, COO of Bitget Wallet. “By making the same systems that run our consumer wallet available to partners, we’re supporting companies that want to build professional trading products without taking on unnecessary operational complexity. This makes a step beyond being solely a user-facing wallet toward supporting the broader financial ecosystem.”
At the core of the API is Bitget Wallet’s proprietary DEX-based trade execution engine, which currently handles about 80% of all trades executed within Bitget Wallet. The Trading API aggregates liquidity from 80 decentralized trading protocols and supports trading across Ethereum, Solana, Base, Polygon, Arbitrum, Morph and BNB Chain. By using intelligent routing to compare quotes across venues and select execution paths, the system is designed to improve pricing consistency and reduce failed trades. Bitget Wallet said recent transaction success rates across major networks have remained in the mid-to-high 90% range, with the service operating under a 99.9% availability target.
To support reliable execution, the API includes Sentinel, an automated monitoring system that continuously reviews liquidity sources and removes unstable or abnormal pools before trades are placed. Transactions are also routed through MEV-protected nodes, which are designed to limit interference such as front-running during periods of market volatility. These measures are intended to address common operational challenges faced by trading platforms as transaction volumes increase.
In addition to execution, the Market API provides real-time pricing and activity data across 33 blockchains, covering millions of cryptocurrencies as well as more than 200 widely traded stocks through tokenized market data. The service includes address-level insights, such as activity linked to experienced market participants, alongside automated risk indicators that help flag unusual assets or trading patterns. The API suite also includes a Cross-chain API, which allows assets to be converted and transferred between blockchains in a single process, with built-in tracking that gives users and platforms visibility into transaction progress from start to finish.
Users can visit the Bitget Wallet website for more information.
About Bitget Wallet
Bitget Wallet is an everyday finance app designed to make crypto simple, secure, and usable in daily life. Serving more than 90 million users worldwide, it offers an all-in-one platform to send, spend, earn, and trade crypto and stablecoins through blockchain-based infrastructure. With global on- and off-ramps, the app enables faster and borderless onchain finance, supported by advanced security and a $700 million user protection fund. Bitget Wallet operates as a fully self-custodial wallet and does not hold or control user funds, private keys, or user data. Transactions are signed by users and executed on public blockchains.
For more information, visit: X | LinkedIn | Telegram | YouTube | TikTok | Discord | Facebook
Crypto treasury companies are under growing financial stress after Bitcoin and Ethereum fell nearly 30% in a week, wiping out an estimated $25 billion in unrealized value across digital asset balance sheets.
Data tracking public crypto treasury firms shows that none currently hold assets above their average cost basis. The sharp drawdown has pushed most treasury strategies into loss territory at the same time, raising concerns about liquidity, financing, and long-term viability.
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Losses Spread Across the Entire Digital Asset Treasury Sector
The sell-off hit treasury-heavy firms simultaneously.
Large holders recorded the deepest paper losses, dragging cumulative unrealized P&L sharply negative. The losses are unrealized, but the scale matters because it weakens balance sheets and equity valuations.
As a result, the market has shifted from rewarding crypto accumulation to pricing survival risk.
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Market Premiums Have Collapsed
A key stress signal is the collapse in market net asset value (mNAV), which compares a company’s equity valuation to the value of its crypto holdings.
Several major treasury firms now trade below an mNAV of 1, meaning the market values their equity at a discount to the assets they hold. This eliminates the ability to raise capital efficiently through equity issuance without dilution.
MicroStrategy, one of the largest corporate Bitcoin holders, trades below its asset value despite holding tens of billions of dollars in crypto.
That discount limits its flexibility to fund further purchases or refinance cheaply.
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Liquidity Drives Bankruptcy Risk
Unrealized losses alone do not cause bankruptcy. The risk rises when falling asset prices collide with leverage, debt maturities, or ongoing cash burn.
Mining firms and treasury vehicles that rely on external financing face the highest exposure. If crypto prices remain depressed, lenders may tighten terms, equity markets may stay closed, and refinancing options could narrow.
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This creates a feedback loop. Lower prices reduce equity value, which limits capital access and increases pressure on balance sheets.
A Stress Phase, Not a Collapse
The current drawdown reflects forced deleveraging and tighter financial conditions rather than a failure of crypto assets themselves.
However, if prices fail to recover and capital markets remain restrictive, stress could intensify.
For now, crypto treasury firms remain solvent. But the margin for error has narrowed sharply.
Key takeawys:
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Bitcoin fell below $63,000 as weak US job data and concerns over AI industry investments fueled investor risk aversion.
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Options markets show a 6% chance of Bitcoin returning to $90,000 by March.
Bitcoin (BTC) slid below $63,000 on Thursday, hitting its lowest level since November 2024. The 30% drop since the failed attempt to break $90,500 on Jan. 28 has left traders skeptical of any immediate bullish momentum. The current bearish sentiment is fueled by weak US job market data and rising concerns over massive capital expenditure within the artificial intelligence sector.
Regardless of whether Bitcoin’s slump was triggered by macroeconomic shifts, options traders are now pricing in just 6% odds of BTC reclaiming $90,000 by March.
On Deribit exchange, the right to buy Bitcoin at $90,000 on March 27 (a call option) traded at $522 on Thursday. This pricing suggests investors see little chance of a massive rally. According to the Black-Scholes model, these options reflect less than 6% odds of Bitcoin reaching $90,000 by late March. For context, the right to sell Bitcoin at $50,000 (a put option) for the same date traded at $1,380, implying a 20% probability of a deeper crash.
Quantum computing risks and forced liquidation fears drive Bitcoin selling
Market participants have reduced crypto exposure due to emerging quantum computing risks and fears of forced liquidations by companies that built Bitcoin reserves through debt and equity. In mid-January, Christopher Wood, global head of equity strategy at Jefferies, removed a 10% Bitcoin allocation from his model portfolio, citing the risk of quantum computers reverse-engineering private keys.
Strategy (MSTR US), the largest publicly listed company with onchain BTC reserves, recently saw its enterprise value dip to $53.3 billion, while its cost basis sat at $54.2 billion. Japan’s Metaplanet (MPJPY US) faced a similar gap, valued at $2.95 billion against a $3.78 billion acquisition cost. Investors are worried that a prolonged bear market might force these companies to sell their positions to cover debt obligations.
External factors likely contributed to the rise in risk aversion, and even silver, the second-largest tradable asset by market capitalization, suffered a 36% weekly price drop after reaching a $121.70 all-time high on Jan. 29.
Bitcoin’s 27% weekly decline closely mirrors losses seen in several billion-dollar listed companies, including Thomson Reuters (TRI), PayPal (PYPL), Robinhood (HOOD) and Applovin (APP).
US employers announced 108,435 layoffs in January, up 118% from the same period in 2025, according to outplacement firm Challenger, Gray & Christmas. The surge marked the highest number of January layoffs since 2009, when the economy was nearing the end of its deepest downturn in 80 years.
Related: Next Bitcoin accumulation phase may hinge on credit stress timing–Data
Market sentiment had already weakened after Google (GOOG US) reported on Wednesday that capital expenditure in 2026 is expected to reach $180 billion, up from $91.5 billion in 2025. Shares of tech giant Qualcomm (QCOM US) fell 8% after the company issued weaker growth guidance, citing that supplier capacity has been redirected toward high-bandwidth memory for data centers.
Traders expect investments in artificial intelligence to take longer to pay off due to rising competition and production bottlenecks, including energy constraints and shortages of memory chips.
Bitcoin’s slide to $62,300 on Thursday reflects uncertainty around economic growth and US employment, making a rebound toward $90,000 in the near term increasingly unlikely.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
BNB has experienced a sharp correction, with the price falling from $900 to near $700 in recent sessions. The decline erased months of gains and pushed the asset to a seven-month low.
While selling pressure has dominated, the downturn may not be finished unless holder behavior shifts. Emerging on-chain trends suggest conditions could still change.
BNB Is Observing A Flood Of New Holders
BNB’s network activity has shown notable strength despite the price crash. New address creation has risen consistently over recent days, peaking near 1.3 million additions. Even now, the network continues to add more than 1 million new addresses daily. This growth signals sustained interest during a volatile period.
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New addresses are significant because they often represent fresh capital entering the ecosystem. While existing holders are facing selling pressure, new participants can help absorb supply. Historically, strong network growth during corrections has supported stabilization. For BNB, this influx may counterbalance distribution if buying interest persists.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Despite improving on-chain participation, derivatives data remains bearish. Futures market positioning shows a clear skew toward downside risk. Liquidation maps highlight approximately $43 million in short liquidation leverage compared with just $6 million on the long side. This imbalance reflects strong bearish conviction among leveraged traders.
Such positioning often amplifies volatility. If price continues to decline, long liquidations could accelerate losses. The map shows the largest cluster of long contracts sitting at $682, BNB’s next support. Losing this support would also trigger $3.07 million in long liquidations. For now, the dominance of bearish exposure suggests caution.
BNB Price Correction Could Continue
BNB price has declined 22.5% over the past seven days and is trading near $698 at the time of writing. Technical indicators point to continued weakness. The Fibonacci Extension tool identifies $682 as the next major support level, making it a critical zone for near-term price stability.
If broader market conditions remain bearish, downside risks increase. Continued liquidations or heightened volatility could push BNB below $682. A breakdown there would likely send the price toward $650 or lower. Such a move would deepen losses and reinforce bearish sentiment among short-term investors.
A recovery scenario depends on capital inflows offsetting bearish pressure. If demand strengthens, BNB could reclaim $735 and advance toward $768. Flipping the latter into support would invalidate the bearish thesis. Under that outcome, BNB price may recover toward $821, signaling renewed confidence.
The flagship cryptocurrency has come under renewed selling pressure, extending a slide that has left market participants cautious about any near-term rebound. The latest move comes as a combination of softer U.S. job data and renewed concerns about AI-sector capital expenditure weigh on risk appetite. The price retreat follows a roughly 30% decline from a late-January high after a failed attempt to push above the $90,500 level on Jan. 28. As macro cues accumulate, derivatives markets hint at a cautious stance, suggesting that a rapid snapback may be unlikely in the near term as investors digest the evolving risk backdrop.
Key takeaways
- Bitcoin slipped below $63,000, entering a seasonally volatile zone as macro data challenges persist and AI-sector investment concerns mount.
- Options markets imply a relatively low probability of a swift rally back to $90,000 by March, with pricing signaling a muted upside scenario.
- Concerns over quantum computing risks and the prospect of forced liquidations by debt-funded Bitcoin holders have amplified risk-off sentiment.
- Public-company Bitcoin holdings and equity-structure dynamics show growing strain, as some firms face large unrealized gaps between market value and cost bases.
- Broader tech and AI narratives—capped by elevated capital expenditure plans and supply-chain bottlenecks—contribute to a cautious market tone across traditional equities as well as crypto.
- Risk-off conditions intensified after a run of negative headlines across large-cap names and an uptick in January layoffs across the U.S. economy.
Tickers mentioned: $BTC, TRI, PYPL, HOOD, APP, QCOM, MSTR, MPJPY
Sentiment: Bearish
Price impact: Negative. The ongoing price drift below key support levels reflects a softer near-term outlook and heightened risk-off sentiment.
Trading idea (Not Financial Advice): Hold. Caution remains warranted as macro headlines and AI investment cycles influence liquidity and risk appetite.
Market context: The current environment blends macro fragility with sector-specific dynamics in AI and tech, creating a cautious tone for risk assets. Liquidity conditions and derivative positioning continue to shape price action as investors weigh near-term catalysts against longer-term macro trends.
Why it matters
The forces weighing on Bitcoin are not isolated to crypto alone. A broader risk-off mood is filtering through global markets, with technology and AI-driven narratives playing a central role. The debilitation of a near-term revival above important thresholds underscores a structural challenge for the asset class: while institutional interest remains, upside momentum has been tempered by macro headwinds and the fear of swift retracements triggered by external shocks.
On the derivative side, traders are pricing in relatively modest odds of a dramatic rally, with call options at elevated strike levels pricing in limited upside potential. For context, on the Deribit exchange, a March 27 call option with a strike of $90,000 traded at around $522, suggesting that market participants assign a low probability to a rapid surge in price in the weeks ahead. The corresponding put options reveal a sense of potential downside risk priced into the market as well, underscoring a balanced but cautious risk-reward calculus in the near term. These dynamics echo the broader tension between bull-case scenarios and risk-off realities facing cryptos amid evolving macro data and capital allocation concerns.
Beyond price dynamics, a suite of fundamental developments has intensified risk aversion. Quantum computing fears—specifically worries that advanced quantum systems could threaten private keys—have led some investors to rethink crypto exposure. In mid-January, Christopher Wood, global head of equity strategy at Jefferies, removed a 10% Bitcoin allocation from his model portfolio, arguing that quantum threats introduce a material tail risk to hodling strategies and that the market could respond abruptly to new information. While such positioning shifts reflect sentiment rather than immediate price catalysts, they contribute to a cautious macro backdrop for crypto markets.
On the corporate front, the landscape of on-chain exposure among publicly traded firms remains a focal point. MicroStrategy (MSTR) remains the largest holder with on-chain BTC reserves, but the company’s enterprise value has fallen to around $53.3 billion while its cost basis sits near $54.2 billion. Similar gaps exist for Metaplanet (MPJPY US), where the market cap stood at roughly $2.95 billion against an acquisition cost of about $3.78 billion. The potential for a prolonged bear phase to force such entities to sell reserve holdings to service debt has investors watching balance sheets closely, even as executives underscore long-term conviction in the technology and underlying use cases.
Additional macro factors are weighing on risk assets as well. The week’s early data showed broad risk-off momentum, with silver, often viewed as a risk-off asset, retreating sharply after reaching an all-time high in late January. While crypto markets are distinct from traditional commodities, the cross-asset pull—driven by higher risk sentiment and macro uncertainties—helps explain the correlation in recent weeks between the performance of large-cap equities and crypto assets.
In the broader tech arena, larger dynamics around AI investment cadence are shaping the indirect risk profile for crypto markets. Google’s parent company signaled that capital expenditure in 2026 will be materially higher than in 2025, highlighting a continued push into data-center infrastructure. At the same time, Qualcomm reported softer guidance as supplier capacity shifts toward high-bandwidth memory for data centers, underscoring a delicate balance between innovation cycles and near-term profitability. Analysts anticipate that AI spending could deliver longer payoff horizons than many investors currently expect, a factor that compounds uncertainty for risk-sensitive assets, including crypto.
Against this backdrop, Bitcoin appears unlikely to stage a rapid rebound toward the $90,000 region in the near term. The price action around $62,000–$63,000 has become a focal point for traders watching for a sustainable bottom or a capitulatory event that could usher in a new phase for accumulation. The path forward for the asset will likely depend on a combination of macro resilience, continued liquidity, and the pace at which AI-capital expenditure and its supply-chain constraints unwind.
What to watch next
- Upcoming U.S. payrolls data and macro indicators, which could shape risk sentiment and liquidity conditions.
- Derivative flows and March expiry activity (including BTC options around key strike levels like $90,000).
- Updates on AI-capex realization and supply-chain bottlenecks affecting tech stocks and related risk assets.
- Monitor developments around large on-chain BTC holdings and any potential forced-liquidation events tied to debt covenants.
- Central bank signals and policy expectations that could influence risk appetite across crypto and traditional markets.
Sources & verification
- Deribit options data for March 27 BTC calls and puts, including the $90,000 strike call and $50,000 strike put pricing.
- Public-company BTC holdings and balance-sheet implications (on-chain context and company-level risk exposure).
- Jefferies note referencing a reduced Bitcoin allocation due to perceived quantum-computing risks.
- January layoff data from Challenger, Gray & Christmas (108,435 layoffs) and related macro commentary.
- Alphabet (EXCHANGE: GOOG) capex trajectory for 2026 and Qualcomm (EXCHANGE: QCOM) guidance signals; broader AI-funding implications.
Bitcoin under pressure in a cautious macro environment
While crypto natives lament Bitcoin’s underperformance compared to precious metals, institutional traders are eyeing the digital asset.
On one of BTC’s worst days in recent memory, JP Morgan’s quantitative strategist Nikolaos Panigirtzoglou is taking the contrarian approach and says that not only is Bitcoin undervalued, but it looks “even more attractive compared to gold.”
Panigitzoglou says that liquidations have been “more modest” despite the asset’s poor recent performance, and highlighted that the bitcoin-to-gold volatility ratio is at a “record low” in a recent investor research note, according to Yahoo Finance.
However, BTC is currently down 13.3% today compared to gold’s 3% decline, so that ratio gap is closing quickly.
Bitcoin’s stark underperformance relative to gold continues a trend that began when the new U.S. administration took office in January 2025. Gold is up 80% since Trump entered office, while BTC is down 37% over the same period.
While retail crypto traders have struggled to reconcile gold’s outperformance, Bitcoin analyst Willy Woo cites several reasons, including quantum computing threats and the marginal buyers in each asset class.
On Jan. 25, Woo said, “It’s really hard to convince sovereigns and fiduciary institutions to buy a nascent asset like BTC with 17 years of history (which is less than a retail home mortgage). Then think about their perspective on quantum uncertainty over the next 5-15 years.”
XRP is today’s most substantial loser from the largest 100 alts, dumping below $1.40. ZEC and MORPHO follow suit.
Bitcoin’s poor price performance continues in full force as the asset erased all gains seen after Trump’s reelection by slipping below $70,000 earlier today.
Most altcoins have bled out heavily as well, and it’s not just XRP. ETH, BNB, SOL, DOGE, ADA, and many more have posted massive declines.
BTC Dipped Beneath $70K
It’s almost hard to believe that just over a week ago, last Wednesday, bitcoin traded at $90,000. The developments since then have been nothing short of pure bear domination. While the reasons are still debated, the fact is that BTC was violently rejected at that point and driven south hard.
At first, it fell to $81,000 last Thursday, rebounded to $84,000 on Friday, and plummeted again to under $75,000 on Saturday. After an unsuccessful relief rally to $79,000, the bears were back in control and drove it to $73,000 on Tuesday.
The dead-cat bounce pattern repeated and bitcoin continued to lose value in the past 12 hours or so. Moreover, it dumped below $70,000 earlier today for the first time since just after the US elections in 2024.
It has now bounced to slightly above $70,000, but it’s still 7% down daily and 20% in the red weekly. Its market cap has plummeted to $1.410 trillion on CG, while its dominance over the alts struggles at 57%.
Alts Keep Bleeding
The altcoins’ charts are just as painful, even more on some occasions. ETH is down by 6% as well as even Vitalik Buterin has started to dispose of his tokens. BNB has dumped below $700, while XRP has become today’s poorest performers with a double-digit drop to under $1.38. This is its lowest price tag in well over a year.
SOL, ADA< DOGE, XMR, LINK, and many others are deep in the red. HYPE continues to be among the few exceptions, gaining almost 5% to $34.
The total crypto market cap has erased another $170 billion and is below $2.5 trillion on CG now.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
In a sign of the times, Gemini, the crypto exchange founded by billionaires Tyler and Cameron Winklevoss, is making significant cutbacks.
Summary
- Gemini will lay off up to 200 employees and shut down services in the UK, EU, and Australia amid a downturn in the crypto market and ongoing struggles to gain market share.
- Despite the challenges, Gemini is focusing on gambling: Gemini Predictions.
- The new prediction market platform has processed over $24 million in volume since its launch in December 2025, aiming for future growth.
The company is reportedly slashing up to 25% of its workforce and shutting down operations in the UK, European Union, and Australia. The decision follows a tough period for the company, which has struggled to gain market share despite being an early player in the crypto exchange space.
The New York-based exchange, which launched in 2014, announced it would lay off up to 200 employees across its global workforce, including in the US and Singapore. The cuts come after Gemini reported a $159.5 million loss in November, largely due to the high costs associated with its initial public offering and extensive marketing efforts.
As Bitcoin prices dipped below $70,000, the broader crypto sector has faced intense volatility, further weighing on Gemini’s fortunes.
The company also announced that it would place all customer accounts in the UK, EU, and Australia into withdrawal-only mode starting March 5, with full account closures to follow a month later. This move is part of a broader restructuring plan expected to cost the company about $11 million.
Despite these challenges, the Winklevoss twins are betting on the future of prediction markets, launching a new service called Gemini Predictions in December. The platform has processed over $24 million in volume from 10,000 users since its launch, with the Winklevosses hoping this will help steer the company toward a more focused and profitable future.
Bitcoin continues to face intense selling pressure, breaking below its yearly lows amid escalating geopolitical tensions between the United States and Iran. This risk-off backdrop has accelerated downside momentum, and while further weakness remains possible, the market is increasingly approaching levels that could trigger a short-term consolidation phase in the days ahead.
Bitcoin Price Analysis: The Daily Chart
On the daily timeframe, BTC has been hit by aggressive sell-side activity, driving the price decisively below key support levels, including the major yearly low at $74K. The decline has now extended into the $70K psychological zone, a historically significant area where resting demand and dip-buying interest are likely to emerge.
If this demand region succeeds in absorbing selling pressure and fresh buyers step in, the current downtrend may pause, allowing the market to transition into a corrective consolidation phase. In that scenario, the price action would likely stabilize within a $70K–$80K range as the market cools off. However, a clear failure to hold the $70K level would expose Bitcoin to another downside leg, with the next notable support located near the $63K region.
BTC/USDT 4-Hour Chart
From a lower-timeframe perspective, the 4-hour chart shows Bitcoin trading within a well-defined bearish channel, confirming a structurally weak market environment. The asset recently broke below the channel’s midline near $74K, triggering an impulsive sell-off toward the lower boundary of the structure.
Despite the sharp decline, Bitcoin has now reached a critical support level at $70K, which also carries strong psychological importance for market participants. Given the speed and intensity of the recent move, the market is likely in need of a consolidation and corrective phase. As a result, the most probable near-term scenario is choppy, range-bound price action around the $70K support until a clearer directional signal emerges. In the event of a relief bounce, the $75K and $80K supply zones stand out as the primary upside targets.
Sentiment Analysis
The futures average order size chart shows a notable shift in participant behavior as Bitcoin trades around the $70K region. The appearance of green dots at this level signals renewed whale participation, indicating that large players are actively engaging when price revisits this zone. Importantly, this is not an isolated event. The previous two occasions when Bitcoin traded around the same price range were also accompanied by green dots, reinforcing the idea that this area has historically attracted whale interest.
This repeated pattern suggests that the $70K region is perceived by large market participants as a favorable accumulation or positioning zone rather than an area for aggressive distribution. In contrast to periods dominated by red dots, which reflect retail-heavy or reactive selling, the return of green dots points to more strategic, higher-conviction activity in the futures market.
If this behavior persists and whale participation continues to strengthen around current levels, it increases the probability of a short- to mid-term rebound. Large orders entering at these prices can absorb selling pressure and act as a catalyst for stabilization, potentially setting the stage for a relief move higher if broader market conditions allow.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Senator Cynthia Lummis (R-Wyo.) wasted no time Thursday asking Treasury Secretary Scott Bessent the big question: Is China using blockchain to create a rival to American financial dominance?
Bessent told the Senate Banking Committee he “would not be surprised.”
Summary
- Bessent hints at gold-backed digital assets from China, but it’s unconfirmed.
- Hong Kong’s sandbox role allows China to explore new financial technologies, like a gold-backed digital asset, without directly involving mainland authorities.
- Why does it matter? It could potentially be a stable alternative to the dollar.
“We don’t know that for sure,” he added. “There are lots of rumors that China may be developing digital assets backed by something other than the RMB, perhaps gold-based. We haven’t seen that.”
So, what’s China’s game plan?
Apparently, Hong Kong is their “sandbox” — a financial testing ground where they can play with new ideas without getting mainland China too involved.
That means they can cook up gold-backed digital assets while keeping it on the down-low. A gold-backed asset could provide a stable store of value, which would directly challenge the dollar’s reserve currency status — especially since it wouldn’t be subject to U.S. monetary policy or sanctions.
Meanwhile, China’s digital yuan is still all about the RMB, so it’s not quite as rebellious.
Bessent didn’t stop there
When it came to Iran, he dropped this gem: Iranian leaders are moving money out “like crazy,” signaling “the end may be near” for the current regime. In a moment of unexpected drama, he likened it to “the rats leaving the ship.” If that’s not a metaphor for the ages, I don’t know what is.
And in a final mic-drop moment, Bessent stressed the importance of passing the Clarity Act, acknowledging that applying capital gains tax on cryptocurrency is a complex mess. The complexity of crypto taxes? It’s no surprise there.
In conclusion, the world of digital assets, gold-backed currencies, and escaping rats has never been more thrilling. Stay tuned for the next episode of “China’s Sandbox Adventures.”
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