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Bitcoin Erases Post-Trump Election Gains, Altcoins Crash by Double-Digits: Your Weekly Crypto Recap

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Cryptocurrency Market Overview Weekly Feb 6. Source: QuantifyCrypto


It was a catastrophic week in terms of price movements, but HYPE has defied the trend and stands out as a top performer.

The past few weeks have been anything but dull in the cryptocurrency markets. Unfortunately for the bulls, it’s not in their favor.

It all began last Saturday. Bitcoin had finally recovered some ground following the previous crash to $81,000 and stood around $83,000-$84,000, which was rather unusual as the two largest precious metals – assets known for their stability – crashed on Friday by double digits.

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This heightened volatility reached BTC on Saturday when it dumped from $84,000 to under $76,000. The bulls tried to intervene, but all they could do was help BTC recover slightly to $79,000. The asset was quickly rejected there and dipped below $74,000 on Monday. The same failed rebound scenario repeated, and the bears took complete control of the market in the following days.

The culmination, at least for now, transpired yesterday. Another brutal sell-off drove the largest digital asset down to $60,000. As such, BTC not only erased all gains charted after Trump’s reelection victory in late 2024, but it actually dumped to under the levels from back then. Strategy’s bitcoin positions went deep in the red as the cryptocurrency dropped by $30,000 in just over a week.

The reasons behind this calamity may vary and are still debated by analysts. From rising geopolitical tensions to the new Fed Chair to excessive leverage in the markets. The fact is, though, the overall crash on Thursday alone wiped out more than $2.6 billion in leveraged positions.

Despite rebounding to $67,000 as of press time, BTC is still nearly 20% down weekly. Many altcoins have produced even more significant declines, such as ETH (-28%), BNB (-23%), LINK (-21%), XMR (-26%), and others. HYPE, on the other hand, continues to defy the overall trend and has soared by 19% within the same timeframe.

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Cryptocurrency Market Overview Weekly Feb 6. Source: QuantifyCrypto
Cryptocurrency Market Overview Weekly Feb 6. Source: QuantifyCrypto

Market Cap: $2.38T | 24H Vol: $360B | BTC Dominance: 56.6%

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BTC: $67,200 (-18.4%) | ETH: $1,950 (-28.3%) | XRP: $1.43 (-20%)

Institutional Exit? US Investors Are Dumping ETH at a Record Rate. Even before Ethereum’s most significant decline to under $1,800, reports claimed that US-based investors had intensified the selling pressure, which was evident from the declining ETH Coinbase Premium Index.

Roubini Predicts a ‘Crypto Apocalypse’ Amidst Bitcoin’s Plunge Under Trump-Era Policies. These times of pure uncertainty and price calamity are the perfect opportunity for industry haters, such as Nouriel Roubini, to lash out again. Recently, the economist predicted a “crypto apocalypse,” explaining that the evolution of money and payments will be a gradual process, instead of the quick revolution promised by crypto advocates.

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Michael Burry Warns Bitcoin Treasury Firms Face Existential Risk as BTC Slide Deepens. Michael Burry also spoke out after years of silence, warning that Bitcoin Treasury Companies could soon face liquidation threats if the cryptocurrency’s price declines continue.

Crypto Winter Has Been Here Since January 2025, But Recovery May Be Closer Than You Think. Despite the multiple new all-time highs registered by BTC last year before October, Bitwise’s CIO, Matt Hougan, recently asserted that the asset has been in a bear market since January 2025. More optimistically, though, he noted that the end may be closer than you expect.

Tom Lee Shrugs Off ETH Sell-Off, Says Fundamentals Don’t Match Falling Prices. Tom Lee, who has perhaps the largest exposure to ETH through Bitmine, dismissed the recent asset decline. Although Bitmine’s position is deep in the red, Lee said ETH’s crashing price doesn’t reflect the strong fundamentals behind the token and the network.

Bitcoin Trading at 41% Discount, Power-Law Model Shows $122K Fair Value. Basing their analysis using the power-law valuation model, market commentator David put BTC’s fair value at just under $123,000. If true, this would mean that the cryptocurrency currently trades with a massive discount of roughly 50%.

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Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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