Latest developments: ETF investors are proving more resilient than many expected during bitcoin’s latest drawdown. In an interview on CoinDesk’s Markets Outlook, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas highlighted several key data points demonstrating this stability:

• Bitcoin has fallen more than 40% from recent highs, a move that historically rattles retail-heavy crypto markets.
• Over the same period, only 6.6% of Bitcoin ETF assets have exited.
• “For now, the ETF boomers have really come through,” he said.

Why ETF holders are holding: Balchunas argues ETF investors are structurally different from crypto-native traders.

• Many ETF buyers treat bitcoin as a 1%–2% “hot sauce” allocation alongside stocks and bonds, rather than a core holding.
• Their broader portfolios have benefited from strong equity markets, cushioning the psychological blow of crypto losses.
• ETF investors “tend to hold really strong,” Balchunas said, having lived through multiple market cycles in traditional assets.

The contrast with crypto natives: The same price drop can feel radically different depending on exposure.

• Investors heavily concentrated in bitcoin face what Balchunas described as “existential crisis mode.”
• Leveraged traders and long-time holders may be driving more of the selling pressure than ETF investors.
• “Volatility is the cost of the returns,” Balchunas said, noting bitcoin has endured seven or eight similar drawdowns historically.

Lessons from gold ETFs: Balchunas sees parallels between bitcoin and gold as ETF-wrapped assets.

• Gold ETFs suffered a roughly 40% drop over six months about a decade ago, during which about one-third of assets left.
• Despite that, gold ETFs later rebuilt assets and now hold roughly $160 billion.
• Bitcoin ETFs briefly rivaled gold ETFs in size before the recent selloff, highlighting how flows can reverse over time.

What comes next: Volatility is likely to persist, but ETFs may anchor bitcoin’s place in traditional finance.

• Balchunas said bitcoin’s 17-year history shows repeated recoveries to new highs after major downturns.
• ETF structures mean Bitcoin now sits alongside stocks, bonds and commodities in mainstream portfolios.
• “A selloff doesn’t mean the end,” he said. “It just means it’s a selloff.”

The Bitcoin-focused investment vehicle Strategy reported a staggering net loss in the fourth quarter of 2025, underscoring how a sharp swing in crypto prices can still weigh on a stock that remains tethered to its long-term thesis. The quarter saw Bitcoin fall 22%, dragging prices from a late‑summer peak to a level that raised questions about capital allocation and liquidity in a period of heightened macro volatility. While quarterly bottom‑line figures looked grim, Strategy emphasized that it ended the period with a strengthened balance sheet and a strategic shift toward a capital-light ecosystem built around Digital Credit and a large BTC reserve.

Key takeaways

• Strategy posted a net loss of 12.4 billion dollars in Q4 2025, driven largely by a 22% drop in Bitcoin over the quarter.
• Bitcoin price action in the quarter featured a high near 126,000 dollars in October, followed by a slide to under 88,500 dollars by the end of December, with the year’s trajectory remaining negative.
• Q4 revenue climbed 1.9% year over year to 123 million dollars, supported in part by the company’s business intelligence division, even as BTC exposure and volatility weighed on earnings.
• Strategy reported 713,502 Bitcoins held and bolstered its cash position to 2.25 billion dollars, a stance designed to sustain 30 months of planned dividend payouts.
• The firm indicated no major debt maturities until 2027, suggesting limited near-term liquidity pressure and a potential buffer against forced BTC liquidation.

Tickers mentioned: $BTC, $MSTR

Sentiment: Neutral

Price impact: Negative. The quarter’s BTC decline and the resulting profit deterioration weighed on Strategy’s stock performance even as some operational metrics improved.

Trading idea (Not Financial Advice): Hold

Market context: The episode sits at the intersection of crypto price cycles and legacy corporate treasuries deploying large crypto stacks, amid a broader market environment that remains sensitive to volatility in digital assets and macro uncertainty.

Why it matters

For investors, the quarter highlights a familiar tension in crypto‑adjacent businesses: the scale and speed of BTC price moves can eclipse operational progress in the short run, even when revenue lines expand. Strategy’s Q4 revenue gain, driven in part by its business intelligence arm, signals ongoing demand for analytic capabilities that sit alongside a sizable Bitcoin reserve. Yet the price volatility of BTC continues to dominate earnings optics, illustrating how a concentrated crypto strategy can mask underlying profitability waves.

The company’s financial stance remains notable for its deliberate emphasis on resilience. Strategy has positioned itself as a “digital fortress,” underscored by a hefty BTC reserve (713,502 coins) and a substantial cash buffer. In a presentation tied to the quarter, executives argued that these assets provide a long‑horizon runway, aligning with an indefinite Bitcoin strategy even as market cycles fluctuate. The management team has pointed to the capital structure as evidence that the business can sustain dividend commitments and strategic investments despite short‑term losses.

Critically, Strategy’s balance sheet shows a lower near‑term debt burden than might be expected given a 12‑plus billion negative quarterly result. The company notes no significant maturities before 2027, reducing the risk of forced deleveraging or asset sales during weakness in the price of BTC. This is a meaningful departure from typical asset‑heavy corporate models that must navigate balance‑sheet pressures during downturns. management’s framing of the quarter as a temporary setback—paired with continued confidence in the digital‑asset thesis—speaks to a longer‑term bet on BTC as a foundational element of enterprise value.

What to watch next

• Q1 2026 results and management commentary on capital allocation, BTC holdings, and Digital Credit adoption.
• Any changes to the company’s 2.25 billion dollars of cash reserves or to the 30‑month dividend plan, especially if macro conditions shift liquidity needs.
• Debt profile updates, including monitoring of the 2027 debt maturities and any refinancings or debt actions that could affect liquidity.
• BTC price trajectory and its impact on Strategy’s enterprise value versus the BTC reserve, including potential stress tests under different price scenarios.

Sources & verification

• Strategy Q4 2025 earnings release and accompanying materials, including the referenced 713,502 BTC holdings and cash position of 2.25 billion dollars.
• Company disclosures on debt maturities and the 8.2 billion dollars of convertible debt.
• Quoted statements from Strategy’s CEO and CFO on the quarter’s results and the ongoing Bitcoin strategy.

Bitcoin strategy tested: Strategy’s Q4 results and the road ahead

Strategy, identified by its ticker, Strategy (NASDAQ: MSTR), entered the fourth quarter of 2025 amid a market backdrop that had already tested many crypto‑adjacent businesses. The company disclosed a net loss of 12.4 billion dollars for the quarter, a figure that reads as a stark outlier when taken against the backdrop of a single asset’s price movement. In the quarter, Bitcoin (BTC) (CRYPTO: BTC) slumped 22%, retreating from a high around 126,000 dollars in October to roughly 88,500 dollars by year’s end. The price path has been a primary determinant of Strategy’s quarterly results, underscoring how a macro‑driven risk appetite can reverberate through a company that has embedded BTC into its corporate identity.

Beyond the macro squeeze, Strategy’s earnings narrative was mixed. The company reported a 1.9% year‑over‑year increase in Q4 revenues to 123 million dollars, a figure that suggests some resilience in its core businesses, particularly in the data and analytics segments that feed into its digital offerings. The earnings release emphasized that the uptick was driven in part by the business intelligence arm of the group, indicating that Strategy’s diversified revenue base remains a stabilizing force even as BTC volatility imparts material volatility to the top and bottom lines. On the trading day, shares of the company fell sharply, closing down around 17% in response to the quarterly disclosures, reflecting investor sensitivity to the large quarterly loss and the path to profitability.

The company’s operational posture remains anchored in its crypto reserve discipline. Strategy confirmed it still holds 713,502 Bitcoins, a figure that anchors the firm’s strategic and financial narrative. The firm has also augmented its liquidity cushion, reporting cash on hand of 2.25 billion dollars, a level that it says is sufficient to fund dividend payouts for approximately 30 months. This liquidity stance is paired with a debt profile that shows no looming maturities until 2027, reducing the risk of forced asset sales to meet near‑term obligations. In the context of the broader Bitcoin narrative, the position underscores a belt‑and‑suspenders approach: maintain a sizable, long‑dated BTC reserve while ensuring operational cash flow and liquidity to ride out cycles.

On the leadership front, Strategy’s chief executive, Phong Le, addressed investors with an assurance that the company’s financial footing remains robust despite the quarterly loss. On an earnings call, Le stated that there was no reason to panic about the company’s financial position or its Bitcoin strategy, reinforcing the view that the long‑term plan remains intact. A close reading of the remarks showed an emphasis on resilience and strategic continuity rather than near‑term recalibration. The executive asserted that the company’s enterprise value continues to sit above its BTC reserve, and that the convertible debt of 8.2 billion dollars represents a modest 13% net leverage by comparison to many benchmark companies in the broader market. This framing is consistent with a philosophy that prioritizes balance‑sheet strength and a measured approach to capital allocation, even as BTC prices navigate further cycles of volatility.

The strategic narrative around Digital Credit also features prominently in the current discourse. Strategy’s pivot toward digital‑credit facilities is positioned as a complement to its core BTC holdings, offering a more diversified exposure to the digital economy while maintaining a substantial anchor in Bitcoin. This approach—paired with a substantial cash cushion and a long‑dated BTC reserve—suggests a deliberate stance that aims to weather downturns and participate in upside as the market stabilizes. In this context, the quarterly loss becomes a data point in a broader, longer‑term play rather than a terminal judgment on the company’s mission.

“I’m not worried, we’re not worried, and no, we’re not having issues.”

The financial architecture surrounding Strategy reinforces its claims of staying power. The enterprise value remaining above a multi‑hundred thousand figure in BTC terms is a critical reference point for investors evaluating risk and reward in a company whose identity is inextricably linked to the price path of Bitcoin. The company’s leverage profile, with relatively modest net leverage against a substantial cash hoard and a large BTC reserve, points to a balance sheet that can sustain a measured course through continued price volatility. While the quarter’s numbers are far from supportive, the narrative of resilience and capital discipline is consistent with a strategy built to endure across crypto cycles.

In sum, Strategy’s Q4 2025 results reflect the volatility inherent in a business whose core asset price is outside the company’s control. Yet the management team’s emphasis on financial strength, a robust BTC reserve, and a long‑term digital‑asset thesis provides a counterpoint to the near‑term losses. The balance sheet remains the fulcrum of confidence, with a liquidity runway and delayed debt maturities offering space to iterate product strategy and capital allocation as BTC valuation evolves. As the market continues to digest the implications of these results, investors will be watching for any signal of strategic refinement or a formal update on the Digital Credit initiative, both of which could influence the trajectory of Strategy’s holdings and its stock price in the quarters ahead.

Prediction markets have long promised a simple idea: let markets decide what’s most likely to happen. Space takes that idea several steps further—combining real price discovery, leverage, shared liquidity, and on-chain transparency to create a fast, capital-efficient way to trade real-world outcomes.

Built on Solana, Space is a decentralized prediction market platform where users can trade on outcomes across crypto, politics, sports, technology, culture, economics, and more—while earning rewards for being right.

What Is Space?

Space is a decentralized prediction market that allows users to trade real-world outcomes directly against other users, not a centralized house.

Instead of betting against an opaque platform, traders on Space participate in open markets where prices emerge from real supply and demand. You can enter or exit positions at any time, use leverage to amplify exposure, and provide liquidity to earn rewards—all in real time.

At its core, Space is designed to turn information, conviction, and timing into tradable signals.

What Makes Space Different?

True Price Discovery

On Space, you trade against other participants—not the platform itself. Prices are set by users placing bids and asks, just like traditional financial markets. This creates transparent, market-driven probabilities rather than fixed odds.

You’re free to:

Advanced Trading Tools

Space introduces tools typically reserved for professional markets:

• Leverage trading (up to 10x)

• Dynamic fee curves that reward conviction and early participation

• Continuous markets that remain tradable until resolution

These mechanics allow traders to express nuanced views, manage risk actively, and respond instantly to new information.

Multi-Outcome Markets

Instead of fragmented YES/NO markets, Space supports multi-outcome markets where related outcomes share liquidity.

For example, an election market may include all candidates in a single pool. Traders can seamlessly shift exposure between outcomes without locking additional capital—resulting in deeper liquidity and more efficient pricing.

Built for Speed

Space is powered by Solana’s high throughput and low latency. Markets update in real time as events unfold, enabling:

This speed is essential for markets where information changes quickly.

Capital Efficiency

Space uses a share-minting and burning mechanism to ensure liquidity is always available. Traders can convert positions across outcomes without depositing more capital, making markets more efficient and flexible.

Earn Rewards

Liquidity providers are rewarded for keeping markets healthy—especially in longer-dated markets where capital is most valuable. Providing limit orders and maintaining depth isn’t just good for the market; it’s directly incentivized.

How Space Works

1. Choose a Market

Browse markets across crypto, politics, sports, tech, economics, culture, and more. Pick outcomes where you believe you have an informational edge.

2. Build Your Position

Buy YES or NO shares using:

You can cash out at any time before resolution, or hold until the outcome is finalized.

3. Multiply Your Returns

Use leverage (up to 10x) to amplify exposure. Smaller capital can control larger positions, allowing outsized returns when your predictions are correct—while still managing risk dynamically.

Core Features Explained

Central Limit Order Book (CLOB)

Space uses a Central Limit Order Book, the same architecture as traditional stock exchanges.

• All bids and asks are visible on-chain

• Orders are matched transparently

• Liquidity is provided by users, not the platform

This structure ensures fair pricing, real competition, and strong price discovery.

Leverage

Leverage allows traders to control larger positions using a fraction of the capital as collateral. By choosing price and position size, traders can tailor exposure precisely—enhancing returns when conviction is high.

Continuous Markets

Unlike binary markets that only settle at expiry, Space markets remain tradable until resolution.

This allows users to:

Prices dynamically update to reflect changing probabilities, improving market accuracy.

Dynamic Fee Curve

Space’s Dynamic Fee Curve aligns incentives between makers and takers by:

• Rewarding early participation and conviction

• Encouraging deep, orderly order books

• Discouraging manipulation

• Incentivizing long-term engagement

Fees adapt based on market certainty and liquidity conditions.

Liquidity Rewards

Limit-order liquidity is actively rewarded. Deep order books lead to more reliable prices and healthier markets—and Space directly compensates users who provide that stability.

Airdrops, Points, and Participation

Points System

Space uses a points system to measure meaningful participation, including:

• Trading activity

• Providing liquidity

• Referrals

• Ongoing engagement

Points are not a token or a guarantee of rewards. They are an auditable participation metric used to determine airdrop allocations.

Airdrops

$SPACE tokens are distributed through seasonal airdrops based on points earned. Higher participation leads to larger allocations, with top contributors receiving access to exclusive events.

Points reset each season, and full criteria are announced in advance.

Market Categories

Space supports prediction markets across a wide range of topics:

• Crypto & DeFi

• Global politics

• Sports

• Technology

• Economics

• Culture

Whether you’re a domain expert or simply well-informed, Space turns insight into opportunity.

$SPACE Token Utility

The $SPACE token is designed to enhance platform efficiency without gating access.

Importantly:

• Users are not required to buy, hold, or stake $SPACE to use the platform

• This avoids limiting adoption or excluding participants

• The focus remains on open participation and market quality

Token utility complements the ecosystem rather than restricting it.

Final Thoughts

Space is building a next-generation prediction market—one that blends the transparency of DeFi, the mechanics of traditional exchanges, and the speed of Solana.

By prioritizing real price discovery, capital efficiency, and user incentives, Space transforms prediction markets from simple bets into sophisticated financial instruments driven by information and conviction.

If markets are the best way to forecast the future, Space is designed to make those forecasts faster, fairer, and more powerful than ever.

FOR REFERENCE

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ETH’s price has lost roughly $1,000 in just over a week, what’s next?

The overall market crash that began last week has only worsened in the past 24 hours, with BTC and almost all altcoins charting fresh losses.

Ethereum’s performance is among the poorest as it has dumped by 8% daily and a whopping 30% since this time last Thursday.

While the broader market’s correction could be attributed to some extent to the growing political tension, uncertainty among the biggest economies, or the Fed’s hawkish stance on the interest rates, ETH’s calamity might have additional reasons behind it.

For instance, ETF investors have consistently withdrawn funds, shows data from SoSoValue. In just two days last week, they pulled out over $400 million. After a brief trend reversal on Tuesday with a minor $14.06 million net inflow, they continued to take money out yesterday, with $79.48 million leaving the ETFs.

Data from Lookonchain shows that even Vitalik Buterin, one of the co-founders of the network and ecosystem behind the token, has been offloading lately. Over the past three days alone, wallets connected to him have disposed of $6.6 million worth of ETH at an average price of $2,228 per coin.

vitalik.eth(@VitalikButerin) is dumping $ETH fast!

Over the past 3 days, Vitalik has sold 2,961.5 $ETH($6.6M) at an average price of $2,228 — and the selling is still ongoing.https://t.co/Q9G1lEsdiP pic.twitter.com/C1vBn5UimJ

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— Lookonchain (@lookonchain) February 5, 2026

CoinGlass data shows that the price drop in the past 24 hours has liquidated over $210 million worth of long ETH positions.

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Aside from retail investors with exposure to Ethereum, this crash has harmed the largest ETH holders as well. BitMine, the market leader in the Ethereum space, is deep in the red (well over $6 billion) at press time, but Tom Lee remains optimistic and recently defended the underlying asset.

The XRP price is plunging alongisde everything else in the cryptocurrency market. Let’s have a look at where it may be headed to next.

XRP lost its support at $1.6. How low will it go next?

Ripple (XRP) Price Predictions: Analysis

Key support levels: $1.4, $1

Key resistance levels: $1.6

XRP Loses Key Support

With sellers on the offensive, XRP has lost its key support at $1.6 and is well on its way to make lower lows. Key target areas are at $1.4 and $1, which could trigger a relief rally.

Sell Volume Dominates

Every monthly candle since October 2025 has closed in red. This is a very aggressive selloff with no relief. There was a brief bounce around $2, but that level did not hold off the pressure from bears. Keep a close eye on $1.4 for a possible bounce.

Monthly MACD Remains Bearish

Even if buyers appear in the coming days and weeks, the macroeconomic outlook remains extremely bearish, as indicated by the monthly MACD. This downtrend may take several more months before a bottom is found.

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CleanSpark Inc. had a rough Thursday, with shares sinking as investors brace for the company’s first-quarter fiscal 2026 earnings report, set to drop after the market closes today.

It’s not exactly a “buy the rumor, sell the news” situation — more like “wait and see… but we’re nervous.”

Analysts are pegging CleanSpark’s expected earnings per share (EPS) at $0.09 for the quarter. While that’s nice, the company’s performance comes at a time when cryptocurrency markets are as volatile as a Tesla driver’s mood after a software update.

And it’s no secret that these rollercoaster markets have been shaking up mining stocks across the sector.

Crypto market turmoil: Because why not?

At the time of publication, CleanSpark shares were down 19.13%, hovering at $8.26. Investors are on edge as they wait for that earnings report, and with the volatility in the crypto sector, it’s anyone’s guess where the stock might land next.

So far, analysts seem to be sticking with CleanSpark for the most part. The stock holds a Buy Rating with an average price target of $23.16. Recent analyst moves include:

• Keefe, Bruyette & Woods: Outperform (lowered target to $18.00)
• Maxim Group: Initiated with Buy (target $22.00)
• Chardan Capital: Buy (maintained target of $30.00)

Technical talk: Don’t look. It’s ugly

CleanSpark’s technicals are looking a bit grim, too. The stock is 25.9% below its 20-day simple moving average (SMA) and a whopping 34.9% below its 100-day SMA, indicating a serious short-term slump. Over the past year, shares have dropped 10.81%, and right now, they’re hanging out closer to their 52-week lows than their highs — not exactly where you’d want to be for a quick turnaround.

With an RSI of 38.28 (aka neutral territory) and the MACD below its signal line, the stock seems to be caught in a bearish holding pattern. It’s not in full-on “panic sell” territory, but let’s just say the mood isn’t exactly “sunny and 75.”

Ripple made a big announcement yesterday, while the XRP ETFs are actually in the green – so, what’s up with the price move today?

Ripple’s cross-border token has not been spared in the past 24 hours (or the last week or so), and has actually become the poorest performer from the larger-cap alts.

The asset has slumped by over 10% daily as it dumped to $1.42 minutes ago, which became the lowest price tag since late November 2024.

The chart above demonstrates that XRP has dropped significantly on smaller and larger timeframes. Recall that it had surged to $2.40 just a month ago, when it was violently rejected, and has plummeted by 40% since then.

While last Thursday’s crash could be attributed, at least to some extent, to investors employing the ETFs to gain XRP exposure, as they withdrew $92.92 million in just a day, making it the worst since their inception, the price moves now contrast with the most recent ETF behavior.

Data from SoSoValue shows that investors have actually invested $19.46 million on Tuesday and $4.83 million on Wednesday into the financial vehicles.

Additionally, Ripple made a big announcement yesterday by outlining institutional support for Hyperliquid through its prime brokerage platform.

Consequently, the most probable reasons behind today’s crash don’t seem to be related to ecosystem weakness or fundamental problems. Instead, the growing FUD within the broader crypto market continues to take its toll, with (retail) investors disposing of their positions.

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Moreover, the liquidation cascades have often been blamed by analysts for the market behavior in crypto, where volatility is often in the double digits.

CryptoWZRD weighed in on XRP’s daily performance, indicating that the asset closed bearish. At the time of their post, the token tested the $1.51 support, which cracked in the following hours and opened the door for another decline.

Previously, analysts identified $1.42 and $1.27 as the only two support levels remaining before XRP heads toward the psychological $1.00 level.

Crypto derivatives-focused centralized exchange BitMEX has expanded its copy trading feature to let users copy the strategies of top traders from Hyperliquid, the largest decentralized perpetual futures platform by trading volume and open interest.

The new feature, called Hyperliquid Copy Trading, lets BitMEX users automatically replicate trades from selected Hyperliquid traders, according to a press release viewed by The Defiant.

Trades are opened directly on BitMEX and users can copy up to five Hyperliquid traders at once. Other features include basic risk-management tools, such as take-profit and stop-loss options.

The launch illustrates how CEXs continue to push into decentralized finance as on-chain platforms for both spot and derivatives trading gain popularity. A spokesperson for BitMEX told The Defiant, “We’ve basically leveraged Hyperliquid L1’s open-source code to track their users’ positions and have that as an automated system as part of our copy trading feature,” noting that the offering lets traders replicate trades using the CEX’s interface and risk management features they’re used to:

“It’s an opportunity for users to make the same perp trades as top hyperliquid traders and have that automatically reflected to their accounts.”

The Rise of DEXs

The move comes as trading activity continues to grow across DEXs, with volumes in some cases overtaking those on CEXs.

Over the past 24 hours, BitMEX reported about $655 million in trading volume and $14.5 billion in open interest, which represents the value of outstanding derivatives contracts. While OI on Hyperliquid is smaller at $5.8 billion, the perp DEX saw nearly $13 billion in trades in the past 24 hours, outpacing the CEX by nearly 20x.

The contrast is notable given BitMEX’s role as a first mover in crypto derivatives, and as the pioneer of perpetuals futures in particular, a version of which it first launched in 2016.

“BitMEX pioneered the perpetual swap, which has since become the industry standard for futures trading,” BitMEX CEO Stephan Lutz said in the release, continuing:

“The launch of Hyperliquid Copy Trading completes the circle, bringing the alpha available on the world’s leading PerpDEX to BitMEX users and incorporating it into their existing workflow.”

In the face of rising competition from decentralized platforms, as well as centralized giants, smaller CEXs have had to get proactive with their strategies. For example, in December, Bitfinex removed all trading fees across its spot and derivatives markets in an effort to attract and retain users.

The announcement comes as crypto markets have swung sharply in recent weeks, with Bitcoin falling to levels not seen since April 2025.

In October, self-custody crypto wallet MetaMask integrated Hyperliquid to offer perpetual futures trading from directly within the wallet.