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3 Reasons Why Bitcoin Won’t Stay Below $80,000 for Long

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Coinbase Bitcoin Premium Index. Source: Coinglass

Bitcoin got off to a rough start in February as negative sentiment persisted and market liquidity weakened. However, the latest data suggests that selling pressure is gradually easing, while early signs of recovery are emerging.

These signs are not yet strong enough to confirm a reversal, but they remain some of the few positive signals in this phase.

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3 Reasons Bitcoin Could Soon Recover From Below $80,000

A recent report from BeInCrypto noted that crypto funds saw $1.7 billion in outflows last week. This reversed year-to-date inflows into net losses.

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Still, early indicators suggest that selling pressure may be fading. This is evident in the Coinbase Premium Index, which measures the price difference between Bitcoin on Coinbase and other exchanges.

Coinbase Bitcoin Premium Index. Source: Coinglass
Coinbase Bitcoin Premium Index. Source: Coinglass

The Coinbase Bitcoin Premium is recovering, even though it remains negative. This is an early signal that buying demand from the United States via Coinbase is slowly returning. Historically, this often points to a reversal once the premium moves from negative to positive.

“Coinbase Bitcoin Premium is recovering. April 2025 lows have been taken. Not calling for a mega rally, but things are looking good for a relief rally,” investor Ted predicted.

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Another signal that has been interpreted pessimistically is that Bitcoin is currently trading below the average cost basis of all US Bitcoin ETF funds. CryptoQuant data places this level at around $79,000.

Bitcoin US ETF Realized Price. Source: CryptoQuant.
Bitcoin US ETF Realized Price. Source: CryptoQuant.

However, historical trends since the approval of US Bitcoin ETFs show that Bitcoin rarely stays below this cost level for long.

History suggests that this zone often acts as demand support before a strong rebound. Institutional investors and long-term holders typically have little incentive to sell at a loss below their cost basis.

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The chart shows that during the most bearish phase in Q3 2024, Bitcoin tested this level multiple times. Each time, the price recovered within one to two weeks.

“If you missed the sub-$80k boat, it just came back to pick you up. You’re now buying Bitcoin cheaper than the average price of every US ETF combined. Wall Street is down 10% on their entry, while you’re just getting started. Max pain for them = Max opportunity for you. Don’t overthink the dip,” analyst Whale Factor commented.

While many analysts continue to highlight negative signals, Swissblock — a Switzerland-based crypto analytics and investment firm — noted a positive convergence between network growth and liquidity that emerged in early February.

Bitcoin Network Growth vs Liquidity. Source: Swissblock
Bitcoin Network Growth vs Liquidity. Source: Swissblock

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Swissblock noted that the last time network growth and liquidity recovered together from low levels was in 2021, just before Bitcoin reached a new all-time high. This suggests that another recovery phase could be approaching.

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“Sustained growth in these indicators could be the catalyst for one last push,” Swissblock predicted.

Overall, these signs suggest that Bitcoin may not remain below $80,000 for long and could soon climb back above this level.

However, not all outlooks are optimistic. Alex Thorn, Head of Research at Galaxy Digital, warned that Bitcoin’s recent weakness could persist. The price could even fall further toward the 200-week moving average, near $58,000, in the coming weeks or months. The main drivers include declining liquidity and the lack of positive short-term catalysts.

These differing perspectives provide a broader view of the forces shaping the market. They may also help traders reduce risk while attempting to capture potential opportunities.

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Crypto World

Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch

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BTCUSD Feb 4. Source: TradingView


Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.

Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.

Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.

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BTC’s Latest Rollercoaster

It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.

The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.

Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.

Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.

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BTCUSD Feb 4. Source: TradingView
BTCUSD Feb 4. Source: TradingView

SOL Below $100

Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.

Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.

The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.

Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto

 

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Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.