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Bitcoin’s (BTC) Free Fall, Ethereum’s (ETH) Collapse, and More: Bits Recap Feb 6

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BTC Fear & Greed Index

The past few days have been nothing but a massacre for the majority of the leading cryptocurrencies. Bitcoin (BTC) crashed to levels last seen in 2024, whereas Ethereum (ETH) tumbled well below $2,000.

Interestingly, Hyperliquid (HYPE) has shown notable resilience amid the crisis, with its price soaring by 60% in the past two weeks. In the following lines, we will touch upon these three cryptocurrencies and their latest performance.

BTC Bleeds Out

The primary cryptocurrency started the year on the right foot and at one point even challenged the $100K milestone. The past few weeks, though, have been brutal, with the price collapsing to as low as $60,000 on February 5. As of press time, BTC trades at approximately $66,400, representing a 20% weekly decline.

Pessimism among analysts has since dominated, with many suggesting that bears may simply be stepping in. Ali Martinez recently reminded that since 2015, every time BTC has lost the 100-week simple moving average (SMA), it has failed to reclaim it quickly and continued toward the 200-week SMA. Based on his chart, the asset’s valuation could plunge to $57,600.

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For their part, PlanB (the anonymous creator of the Stock-to-Flow (S2F) model) presented several possible scenarios, including a devastating crash to $25,000.

The recent behaviour of the large investors supports the bearish thesis. Santiment’s data shows that whale and shark wallets have been selling BTC over the past few days, while smaller players have increased their exposure.

“This combination of key stakeholders selling and retail buying is what historically creates bear cycles. Until there is a sign of clear capitulation from the crowd, smart money will continue to gladly sell off their bags and not have any urgency to buy back in until the crowd has decided to move on from crypto,” the analysis reads.

Meanwhile, the popular Fear & Greed Index (which measures the current sentiment of BTC investors) has fallen to 9, the lowest point since the summer of 2022. Extreme fear is a sign that investors are overly worried and may sound alarming, but it can also indicate that the bottom is in.

BTC Fear & Greed Index
BTC Fear & Greed Index, Source: alternative.me

After all, prominent investors, including Warren Buffett, have advised over the years that the best buying opportunities occur when there’s blood on the streets. The exact words of the Oracle of Omaha are: “Be fearful when others are greedy and greedy when others are fearful.”

Bad Days for ETH

The second-largest cryptocurrency has also been significantly affected by the market crisis, with its price briefly falling to a nine-month low of approximately $1,750. Currently, it hovers around $1,900, down 30% over the last seven days.

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Its negative performance coincides with substantial outflows from spot ETH ETFs, suggesting a decline in institutional investor interest. It also follows news that Vitalik Buterin (one of Ethereum’s co-founders) has sold millions of dollars’ worth of the asset.

One popular analyst who touched upon ETH’s recent downtrend is X user Ted. He claimed that the next major support zone for the price is around the April 2025 lows. Recall that at that time, ETH nosedived below $1,400.

Ali Martinez argued that the coin historically bottoms when the Market Value to Realized Value (MVRV) drops under 0.80. On February 5, the metric stood at 0.96, indicating that an additional slump isn’t out of the question.

HYPE Stands Its Ground

Contrary to BTC, ETH, and countless other cryptocurrencies, Hyperliquid (HYPE) is actually in green territory. Its price has rallied by 60% over the past two weeks, driven by significant developments, including support from Ripple and growing interest in HIP-3 activity amid increased trading volume and open interest.

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A few days ago, the team behind the decentralized platform revealed that HIP-3 markets reached new all-time highs of $1 billion in open interest and $4.8 billion in 24-hour volume.

Analysts like Crypto General and Zach are quite bullish. The former predicted short-term volatility and an eventual spike beyond $100 sometime this year, whereas the latter claimed there are “so many reasons to buy and hold HYPE.”

The post Bitcoin’s (BTC) Free Fall, Ethereum’s (ETH) Collapse, and More: Bits Recap Feb 6 appeared first on CryptoPotato.

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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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