Crypto World
Is $1,500 Next for ETH After the ‘Aggressive Deleveraging’?
Ethereum has entered an aggressive deleveraging phase, breaking decisively lower after weeks of distribution near the upper boundary of its medium-term range. A key macro driver behind this move appears to be the recent escalation of geopolitical tensions in the Middle East, which has pushed broader risk assets into de-risking mode and amplified existing technical fragilities in the ETH market.
The combination of macro uncertainty, elevated leverage, and vulnerable chart structure has produced a sharp unwind rather than a controlled pullback.
Ethereum Price Analysis: The Daily Chart
On the daily chart, ETH has broken down from the prior ascending structure that extended from the late-2025 lows and has failed to break above the 100-day and 200-day moving averages, which are now both located above the $3,000 mark. This price behavior has confirmed a transition from corrective sideways action into a clear downside trend.
The price has also broken below the first major demand band around the $2,200-$2,000 area, which coincides with a prior consolidation base and the origin of the last strong impulsive advance. Daily RSI has also fallen into deeply oversold territory in the low 20s, indicating stretched short-term conditions.
However, as long as the market remains capped below the broken moving averages and former support around $2,200, the broader structure continues to point toward a bear-market rally at best rather than a confirmed reversal.
ETH/USDT 4-Hour Chart
The 4-hour chart highlights the velocity of the current sell-off, with ETH cascading lower from the previously defended $2,800–$2,900 support and barely pausing on intermediate levels. The market is now trying to stabilize around the $1,850–$1,900 range, and a mild bullish divergence is emerging on the 4-hour RSI, where momentum has begun to print higher lows despite marginally lower price lows.
This configuration often signals that forced selling pressure is easing and that a short-term relief bounce or sideways consolidation may follow.
Immediate resistance now sits in the $2,100–$2,200 area, with a stronger supply zone at $2,800. Any rebound that stalls below these bands would keep the intraday trend firmly bearish, while a clean breakdown below the recent $1,800 low would pave the way toward the deeper demand zone at $1,500.
Sentiment Analysis
On the derivatives side, open interest across Ethereum futures has collapsed from elevated levels above 30 billion USD to nearly a third that size, tracking the price decline and signaling a large-scale liquidation cascade rather than an orderly reduction in positioning. This sharp contraction in open interest indicates that a significant portion of leveraged longs has been forced out of the market, with margin calls and auto-deleveraging accelerating the downside once key support levels failed.
While such events are painful in the short term, they also tend to cleanse excess leverage from the system, leaving a lighter positioning backdrop where spot flows and fresh capital, rather than crowded derivatives exposure, can play a larger role in setting the next directional move.
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Key takeaways:
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Bitcoin’s derivatives signal caution, with the options skew hitting 20% as traders fear another wave of fund liquidations.
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Bitcoin price recovered some of its Thursday losses, but it still struggles to match the gains of gold or tech stocks amid low leverage demand.
Bitcoin (BTC) has gained 17% since the $60,150 low on Friday, but derivatives metrics suggest caution as demand for upside price exposure near $70,000 remains constrained. Traders fear that the liquidations of $1.8 billion of leveraged bullish futures contracts in five days indicate that major hedge funds or market makers may have blown up.
Unlike the Oct. 10, 2025, market collapse that culminated with a record $4.65 billion liquidation of Bitcoin futures, the recent price weakness has been marked by three consecutive weeks of downside pressure. Bulls have been adding positions between $70,000 and $90,000, as aggregate futures open interest increased despite forceful contract liquidations due to insufficient margins.
The aggregated Bitcoin futures open interest on major exchanges totaled 527,850 BTC on Friday, virtually flat from the prior week. Although the notional value of those contracts dropped to $35.8 billion from $44.3 billion, the 20% change perfectly reflects the 21% Bitcoin price decline in the seven-day period. Data indicates that bulls have been adding positions despite the steady price decline.
To better understand if whales and market makers have turned bullish, one should assess the BTC futures basis rate, which measures the price difference relative to regular spot contracts. Under neutral circumstances, the premium should range between 5% and 10% annualized to compensate for the longer settlement period.
The BTC futures basis rate dropped to 2% on Friday, the lowest level in more than a year. The lack of demand for bullish leverage is somewhat expected, but bulls will take longer than users to regain confidence even as Bitcoin price breaks above $70,000, especially considering that BTC is still 44% below its all-time high.
Bitcoin derivatives metrics signal extreme fear
Traders’ lack of conviction in Bitcoin is also evident in the BTC options markets. Excessive demand for put (sell) options is a strong indicator of bearishness, pushing the skew metric above 6%. Conversely, when fear of missing out kicks in, traders will pay a premium for call (buy) options, causing the skew metric to flip negative.
The BTC options skew metric reached 20% on Friday, a level that rarely persists and typically represents market panic. For comparison, the skew indicator stood at 11% on Nov. 21, 2025, following a 28% price correction to $80,620 from the $111,177 peak reached twenty days earlier. Since there is no specific catalyst for the current downturn, fear and uncertainty have naturally intensified.
Related: What’s really weighing on Bitcoin? Samson Mow breaks it down
Traders are likely to continue speculating that a major market maker, exchange, or hedge fund may have gone bankrupt, and this sentiment erodes conviction and implies a high probability of further price downside. Consequently, the odds of sustained bullish momentum remain low while BTC derivatives metrics continue to signal extreme fear.
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.
Crypto’s latest sell-off isn’t just a price story. It’s showing up on balance sheets, inside spot exchange-traded funds (ETFs) and even in how infrastructure gets used when markets turn.
This week, Ether’s (ETH) slide is leaving treasury-heavy companies nursing massive paper losses, while Bitcoin (BTC) ETFs are giving a new wave of investors their first real taste of downside volatility.
At the same time, extreme weather is reminding miners that hash rate still depends on power grids, and a former crypto miner-turned-AI darling shows how yesterday’s mining infrastructure has quietly become today’s AI backbone.
This week’s Crypto Biz newsletter breaks down BitMine Immersion Technologies’ widening paper losses, BlackRock Bitcoin ETF investors slipping underwater and the impact of a US winter storm on public miner production.
BitMine’s ETH paper losses widen
BitMine Immersion Technologies, chaired by Tom Lee, is facing mounting paper losses on its Ether-heavy treasury as ETH slid below $2,200 during the latest crypto sell-off.
The decline has pushed the company’s unrealized losses past $7 billion, underscoring the risks tied to balance sheets built around volatile digital assets.
BitMine currently holds about $9.1 billion worth of Ether, including a recent purchase of 40,302 ETH, leaving the company highly exposed to further price swings.
While the losses remain unrealized unless assets are sold, they highlight the fragility of crypto treasury strategies when markets turn lower. Lee has pushed back on the criticism, arguing that unrealized losses are inherent to ETH-holding companies. “BitMine is designed to track the price of ETH,” he said, adding that in a downturn, ETH weakness is to be expected.
BlackRock Bitcoin ETF holders slip underwater
As Bitcoin crashed below $80,000, aggregate returns for investors in BlackRock’s iShares Bitcoin Trust (IBIT) turned negative, highlighting the depth of the recent selloff and its impact on investor portfolios.
According to Unlimited Funds chief investment officer Bob Elliott, the average dollar invested in IBIT is now underwater. Bitcoin has since extended its decline below $75,000, adding further pressure to returns.
IBIT was one of BlackRock’s most successful ETF launches, becoming the asset manager’s fastest fund to reach $70 billion in assets. Those investors are now getting a firsthand lesson in Bitcoin’s volatility, especially when price action moves decisively to the downside.
US winter storm slams Bitcoin production
A powerful winter storm sweeping across the US in late January forced Bitcoin miners to sharply curtail production, underscoring how sensitive mining remains to energy grid stress during extreme weather.
New data from CryptoQuant shows daily output from public miners averaged about 70 to 90 BTC before the storm, then plunged to just 30 to 40 BTC at the height of the disruption. The drop was abrupt, reflecting widespread shutdowns as miners reduced load or went offline to avoid strain on local power grids.
The slowdown proved temporary. As weather conditions improved, production began to recover, highlighting the flexibility miners retain but also the volatility introduced by grid-dependent operations.
The CryptoQuant data tracks publicly listed miners, including CleanSpark, MARA Holdings, Bitfarms and Iris Energy, offering a snapshot of how large-scale US mining operations respond when power becomes scarce.
CoreWeave shows how crypto infrastructure became AI’s data center backbone
CoreWeave’s evolution from crypto miner to AI infrastructure provider offers a clear example of how mining-era hardware is being repurposed for the AI boom, highlighting how computing resources migrate across technology cycles.
According to The Miner Mag, Ethereum’s shift from proof-of-work to proof-of-stake sharply reduced demand for GPU-based mining, pushing CoreWeave and similar operators to pivot toward AI and high-performance computing.
While CoreWeave no longer operates as a crypto company, its transition has become a blueprint for other miners exploring diversification, including HIVE Digital, Hut 8 and MARA Holdings.
CoreWeave’s pivot gained new prominence after Nvidia agreed to a $2 billion equity investment in the company, reinforcing the idea that infrastructure built for crypto mining is now forming a critical layer of AI’s data center backbone.
Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.
Amid the market uncertainty, Bitcoin shed over 20% in the past week alone.
Binance founder Changpeng “CZ” Zhao sparked a flurry of responses on Monday after tweeting “Poor again” following Bitcoin’s decline to $60,000 in early Asian trading hours on Friday.
The comment came amid controversy over Binance’s role in last weekend’s market turbulence, including a sharp sell-off that briefly pushed Bitcoin below $75,000.
Retail Frustration Boils Over
CZ’s remark ignited a wave of responses from investors. One of the most pointed reactions came from popular crypto commentator, pseudonymously known as “Nebraskangooner,” who tweeted,
“You dumped the market, and now you’re mocking everyone for being poor? Weird flex.”
His response echoed frustration from retail investors who suffered losses while speculation circulated that Binance may have influenced the market decline. Earlier this week, CZ had addressed multiple allegations he labeled as “pretty imaginative FUD,” as he denied claims that Binance sold $1 billion in Bitcoin to trigger the sell-off and countered criticism that he single-handedly “canceled the crypto supercycle.”
He clarified that Binance’s wallet balances indicate user deposits and withdrawals, not proprietary trading, and explained that the conversion of the exchange’s SAFU fund from stablecoins to Bitcoin would be executed gradually over 30 days.
CZ also joked that if he had the power to control the supercycle, he would be “snapping his fingers all day long.” Despite these explanations, Nebraskangooner’s response points to the ongoing tension between retail investors and large exchanges. Several crypto community members also blamed Binance for last year’s October 10 crash, which wiped out billions in leveraged positions. Industry peers, including OKX founder Star Xu, had also pointed fingers at Binance following the event.
Dismantling Fake Accounts
The former Binance CEO recently dismantled a long-running misinformation campaign targeting him and the exchange. The campaign centered on a fake account named “Wei 威 BNB,” which posed as a loyal supporter but posted critical content about Binance. The account, which had 863,000 followers and used images from a BNB Chain event, initially appeared legitimate.
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CZ, however, revealed that photos showing him and Binance executive Yi He were altered, and one image featured him wearing a shirt color he does not own. The account’s history also suggested it had either been hacked or sold, as it originally posted only female photos before abruptly switching to crypto content in 2015. CZ called the campaign “lazy” and said it likely came from a competitor more focused on undermining Binance than running their own business.
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As XRP searches for a price floor amid broader market weakness, some holders are shifting focus from short-term price moves to strategies designed to stay steady through volatility.
Summary
- XRP’s recent stabilization has moved market sentiment from panic toward cautious evaluation of whether a durable bottom can form.
- With price direction still uncertain, some investors are exploring fixed-income style participation models instead of relying on rebounds alone.
- Arc Miner positions itself as one such option, offering USD-settled, contract-based cloud mining designed to generate predictable daily income regardless of XRP price swings.
After a significant decline, XRP has begun to show signs of stabilization, and market focus is gradually shifting from panic to a potential recovery. Although the entire cryptocurrency market remains under considerable downward pressure, whether XRP can establish a sustainable price bottom is a core issue discussed by investors and analysts, which will determine whether it will rebound or continue to face pressure.
Recent XRP price volatility once again reflects the direct impact of changes in the market environment on its valuation. In the absence of a clear market direction, relying solely on price increases for profits remains highly uncertain.
Therefore, XRP enthusiasts choose to use the Arc cloud mining platform to obtain relatively stable passive income during market downturns or periods of volatility, without the need for frequent trading, and to reduce overall risk while waiting for the market to recover.
Does a drop in cryptocurrency prices affect returns?
- Cryptocurrency price fluctuations do not affect Arc Miner. The platform returns a fixed amount of USD daily.
- Recent cryptocurrency volatility has had a significant impact. The platform’s current mining projects offer the highest returns in history.
- Moreover, the income is fixed. Return decisions are made by senior UK financial analysts, and principal and returns are guaranteed on the platform under unified regulatory oversight.
- Arc Miner has a professional team to hedge, ensuring no losses even during market downturns. User income is fixed during the contract period and unaffected by cryptocurrency price fluctuations.
- Users will earn profits in USD and can convert them daily to their desired cryptocurrency.
How can one generate stable passive income during periods of market downturn and volatility?
Step 1: Register an account. Users can visit the Arc Miner official website and register using an email address. New users will receive $15 in initial funding.
Step 2: Deposit into the account. Users can obtain their personal deposit address and transfer funds; the minimum investment is only $100.
Step 3: Choose a contract. Users can choose from a variety of cloud mining contracts with different terms and capacities. Once confirmed, the mining process will begin automatically.
Step 4: Receive earnings. After contract activation, earnings will be automatically credited to user accounts daily, which users can withdraw or reinvest at any time.
Getting started is easy: Register, deposit $100 or more, choose a contract, and earnings are credited daily and available anytime.
Arc Miner contract options, examples:
⦁【Daily Sign-in Contract】Principal: $15, Term: 1 day, Total Return: $15.6
⦁【Classic Contract】Principal: $500, Term: 6 days, Total Return: $540.5
⦁【Classic Contract】Principal: $2500, Term: 20 days, Total Return: $3225
⦁【Advanced Contract】Principal: $10000, Term: 40 days, Total Return: $16560
⦁【Super Contract】Principal: $100000, Term: 50 days, Total Return: $205500
About Arc Miner
Arc Miner is headquartered in the UK and complies with EU MiCA and MiFID II regulations. The company prioritizes transparency, security, and institutional standards. Features include:
- Regular audits by PwC
- Digital asset insurance through Lloyd’s of London
- Enterprise security using Cloudflare and McAfee
- Support for BTC, ETH, USDC, USDT, BCH, LTC, DOGE, XRP, and SOL.
Final thoughts
In the context of volatile crypto markets, Arc Miner provides users with stable, daily passive income settled in USD through cloud mining and smart contracts. Without relying on rising cryptocurrency prices, it helps investors maintain cash flow and reduce risk during downturns and periods of market volatility, making it a robust choice in the current market environment.
To learn more about Arc Miner, visit the official website and download iOS and Android mobile apps. Contact email: [email protected]
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
AI-driven agents are moving from the fringes of crypto discourse toward practical onboarding features, with ai.com announcing an autonomous AI agent aimed at retail users. The platform, led by Kris Marszalek, co-founder of Crypto.com, said the agentic AI would handle a range of tasks—from stock trading in traditional markets to workflow automation and even mundane calendar updates or adjustments to social profiles. The announcement emphasizes privacy controls: user data is segregated and encrypted with keys unique to each user, and the agent operates within restrictions defined by the user. If proven reliable, the technology could lower the barriers for newcomers navigating blockchain networks, token standards, and on-chain actions that historically demanded technical know-how.
Key takeaways
- The autonomous AI agent targets retail users, promising to automate tasks that span financial activities and everyday digital management, including calendar updates and social-profile changes.
- Data protection is central: per-user encryption keys and user-defined restrictions aim to limit what the agent can do on behalf of individuals.
- Interest in agentic AI is rising among enterprises, with about 23% of respondents in a McKinsey survey indicating their organizations are expanding the use of AI agents.
- Proponents argue AI agents could simplify crypto onboarding by choosing optimal execution paths and streamlining stablecoin usage, potentially reducing friction for newcomers.
- Industry observers see opportunity to automate wallet management and arbitrage under autonomous guidance, though security and governance questions remain.
Sentiment: Neutral
Market context: The emergence of autonomous AI agents comes as crypto markets grapple with onboarding friction, evolving user interfaces, and a push toward more accessible wallet and token management. The development aligns with broader enterprise AI adoption trends and a growing interest in agent-based automation within digital economies.
Why it matters
The promise of agentic AI in crypto hinges on lowering the entry barrier for non-technical users. By abstracting away the decision-making and operational steps involved in sending funds, selecting networks, or interacting with tokens, these agents could make it easier for newcomers to participate in decentralized finance and Web3 ecosystems without mastering complex interfaces or learning every token standard. In theory, an autonomous agent could scan networks for cost-effective routes, select faster payment rails, and automate repetitive tasks that currently require manual intervention. This shift could broaden the user base beyond hobbyists and early adopters to a more mainstream audience curious about crypto but deterred by technical hurdles.
The technology also carries implications for portfolio management and yield opportunities. Proponents point to the potential for agents to optimize arbitrage or identify yield-bearing opportunities across token standards, all while respecting predefined risk limits. If AI can consistently identify cheaper and faster execution paths and simplify stablecoin usage, it might encourage more users to explore diversified holdings, including tokens and assets that require more sophisticated transaction flows. However, the same capabilities that enable efficiency also raise concerns about misconfigurations, overreach, and the potential for exploited permissions if safeguards fail.
From a builder’s perspective, the introduction of autonomous agents could spur new abstractions around key management and secure signing. The emphasis on encryption and per-user keys signals a governance-driven approach to reduce cross-account risk, yet it also shifts responsibility for setting appropriate restrictions and monitoring agent behavior onto users. Security design, transparency about agent actions, and robust audit trails will become essential as these tools scale from pilot programs to broader consumer use. The balance between convenience and control will shape how quickly such technology gains trust and traction in crypto markets.
What to watch next
- Product availability and rollout timing: when will retail users gain access to the autonomous AI agent and what onboarding steps will be required?
- Security features and governance: how granular will user restrictions be, and what happens if an agent attempts an action outside approved scopes?
- Regulatory clarity: how will regulators respond to autonomous agents handling on-chain and off-chain tasks, particularly around custody and execution?
- Partnerships and integrations: will the agent integrate with major wallets, exchanges, or DeFi protocols to broaden supported actions?
- Adoption metrics: early user feedback, engagement levels, and the impact on friction-to-activation for new crypto participants.
Sources & verification
- ai.com announcement of autonomous AI agents for retail consumers via PR Newswire.
- “What is agentic AI and how does it work” explainer linked in the article.
- McKinsey & Company, The State of AI — findings indicating that about 23% of surveyed organizations are expanding AI agent usage.
- AI agents and blockchain redefine digital economy — Cointelegraph piece referenced for context on agentic AI in crypto.
- Crypto dev launches website for agentic AI to ‘rent a human’ — Cointelegraph reference for related developments.
Autonomous AI agents and onboarding: What it changes
The launch by ai.com signals a broader push to bring autonomous, decision-support tooling into crypto and Web3, moving beyond purely trading signals toward hands-off management capabilities. By positioning the agent as a general-purpose assistant capable of executing a spectrum of tasks—ranging from portfolio actions to routine digital housekeeping—the platform seeks to address the most persistent user-experience bottlenecks in crypto adoption: the misalignment between user intent and technical execution. The core proposition is simple in concept: let an autonomous agent navigate the complexities of networks, tokens, and wallets so that a typical user can focus on goals rather than steps.
On the execution front, proponents argue that agentic AI can select the most cost-efficient routes for transfers, optimize timing to benefit from price movements, and streamline interactions with stablecoins—reducing the cognitive load that typically accompanies crypto transactions. The promise extends to wallet management, where agents could monitor balances, rebalance portfolios, and even implement predefined risk controls without requiring manual intervention. This, in turn, could enable users to maintain exposure to a broader array of assets and token standards than they would manage manually, potentially increasing diversification while maintaining discipline over risk tolerance.
Security and privacy are central to the design. The announcement highlights segregated user data and encryption keys unique to each user, coupled with user-defined restrictions that govern what the agent can and cannot do. In practice, this means that the agent operates within a sandbox of permissions, reducing the likelihood that a single misstep could expose sensitive information or trigger unintended transfers. Yet the guardrails themselves become a new layer of governance: users must understand and configure the constraints that govern automated actions, and providers must offer transparent auditing to build lasting trust as these agents scale to millions of individuals.
From a market perspective, the idea of autonomous agents aligns with longer-term trends toward more accessible crypto experiences. The McKinsey statistic cited in the related discourse—about a quarter of organizations expanding AI agent use—reflects a broader appetite for automation across sectors. The convergence of AI with blockchain could unlock efficiencies that help onboarding and ongoing participation feel less daunting. Still, the trajectory depends on how convincingly these agents can demonstrate reliability, maintain security standards, and adapt to evolving regulatory expectations. The conversation is shifting from theoretical potential to measurable outcomes: user retention, reduced churn, and tangible reductions in friction points at critical milestones such as onboarding, funding a wallet, and executing trades.
Experts indicate that the most meaningful impact may emerge not from replacing human oversight entirely but from augmenting it. As one advocate noted, “When AI is integrated, all of the complexity in this space will be gone,” while emphasizing the capacity to manage more diverse token standards within a single interface. The vision is compelling: users could hold larger portfolios spanning different networks, with automation shouldering the operational burden while preserving user intent and control. In practice, this requires robust risk controls, clear visibility into agent actions, and defenses against errors or exploits. If these conditions are met, autonomous AI agents could become a mainstream feature of crypto wallets and platforms, accelerating both participation and sophistication among a broader user base.
Ultimately, the trajectory of autonomous agents will hinge on how well they balance convenience with accountability. They promise to unlock new forms of participation—a more fluid onboarding experience, the ability to react quickly to market opportunities, and a streamlined workflow for non-technical users. At the same time, they demand rigorous security, transparent governance, and a clear regulatory lens to address potential misuse. The coming months will reveal whether the initial demonstrations translate into a reliable product that can coexist with established trading and custody practices, or whether stakeholders will demand stricter standards before mass adoption takes hold.
TLDR
- The Democratic Party’s tweet linking Trump to the crypto crash sparked backlash from both political and financial leaders.
- Anthony Scaramucci criticized the Democrats’ tweet, calling it foolish and highlighting Trump’s advantage in the political arena.
- Bitcoin’s price dropped to $60,245, leading to a $2.6 billion market liquidation, but the cryptocurrency quickly rebounded.
- Ethereum and other altcoins showed recovery, with XRP surging by 22% and Solana and Dogecoin seeing gains.
- Despite the rebound, analysts remain cautious about Bitcoin’s long-term price stability amid market volatility.
The recent crypto crash has sparked political tensions, with the Democratic Party drawing criticism for its reactions to Bitcoin’s decline. Bitcoin’s value dropped significantly to $60,000, triggering a loss of billions in investor wealth. The Democratic Party’s controversial social media post has added fuel to the fire, leading to backlash from both political and financial leaders.
Democrats Criticize Trump Amid Crypto Crash
The Democratic Party’s recent tweet linked President Donald Trump to the crypto crash, showing a chart of Bitcoin’s fall. The post included an image of Trump wearing a MAGA hat, which immediately caused a stir among investors and party members. Many saw the tweet as insensitive, especially as it highlighted the financial pain affecting crypto investors.
Anthony Scaramucci, former White House communications director, sharply criticized the tweet, calling it “tops” in terms of foolishness. He argued that the best asset Trump has is the Democratic Party’s inability to handle the situation. The crypto market experienced heavy losses, with Bitcoin dropping by 33.1% over the past year.
The tweet followed a statement from California Governor Gavin Newsom’s office, further criticizing Trump’s role in the crypto market’s downturn. Newsom’s press office suggested that Trump was crashing the market faster than he could manage a scandal. This comment heightened partisan tensions, drawing further attention to the role of politicians in the crypto space.
Bitcoin’s Volatile Price and Its Impact
Bitcoin has been at the center of the crypto crash, with its price plummeting to as low as $60,245. The cryptocurrency’s value quickly bounced back to $70,000 in a single day, showing its volatile nature. As Bitcoin’s price fluctuates, investors remain on edge, with many seeing the dip as an opportunity to buy.
The volatility of Bitcoin is heightened by a large number of options set to expire, worth over $2.1 billion. A significant portion of liquidations came from long positions, with $1.35 billion attributed to Bitcoin. This shows how deeply the market is influenced by investor behavior, making it prone to rapid changes.
While Bitcoin has seen a short-term recovery, analysts are cautious about its future performance. The put/call ratio at 0.60 reflects an earlier bullish sentiment before the price drop. Investors are watching closely to see whether Bitcoin’s bounce will be sustained or if further declines are ahead.
Ethereum and Other Altcoins Also Recover
Alongside Bitcoin, Ethereum has also shown signs of recovery after the market’s recent downturn. Ethereum’s value has increased by 5.8% in the past 24 hours, reflecting a broader positive trend in the altcoin market. Other cryptocurrencies like XRP, Solana, and Dogecoin have also experienced gains.
XRP surged by 22%, while Solana and Dogecoin each rose by over 4%. These altcoins have proven resilient amid the larger crypto crash, with many investors shifting focus to these assets. As a result, the overall crypto market cap rose by 4%, reaching $2.39 trillion.
While Bitcoin’s volatility continues to be a concern, altcoins are showing promise as a safer alternative. Ethereum’s rise in particular suggests that the broader market may be slowly stabilizing after the crypto crash.
Shares of Galaxy Digital (GLXY) jumped 18% to $19.90 on Friday after the company approved a share repurchase program of up to $200 million, giving it authority to buy back its Class A common stock over the next 12 months.
The buybacks may be executed through the open market, privately negotiated transactions or other methods, including trading plans under Rule 10b5-1, the company said. Galaxy added that it retains the right to suspend or discontinue the program at any time, depending on market conditions and other factors.
The announcement signaled confidence from management that Galaxy’s shares are undervalued and that the firm has excess capital to deploy. Share repurchase programs often support stock prices by reducing the number of shares outstanding, which can boost earnings per share and signal balance-sheet strength. In volatile markets, buybacks can also reassure investors that management believes the company’s fundamentals remain intact.
“We are entering 2026 from a position of strength, with a strong balance sheet and continued investment in Galaxy’s growth,” said Mike Novogratz, founder and CEO of Galaxy. “That foundation gives us the flexibility to return capital to shareholders when we believe our stock doesn’t reflect the value of the business.”
The sharp move higher reflects investor approval of that message.
Galaxy reported fourth-quarter earnings earlier this week that initially weighed on the stock. The company posted a net loss of $482 million for the quarter, sending shares down initially. Despite the quarterly loss, Galaxy said it generated $426 million in adjusted gross profit for the full year and ended the year with $2.6 billion in cash and stablecoins, underscoring its liquidity position.
Other crypto stocks and major cryptocurrencies were also green no the day’s trading, with bitcoin climbing back to $70,000 and ethereum breaking $2,000 over the last 24 hours. Coinbase (COIN) had climbed over 10% to $163. In more traditional markets, the Dow Jones Industrial Average broke 50,000 for the first time.
Cypherpunk launched in November and has accumulated about 290K ZEC so far.
Zcash (ZEC) has fallen roughly 60% from its November 2025 high, extending a multi-month slide that has reversed much of the asset’s Q4 gains.
The privacy-focused coin, which was the top-performing large-cap crypto asset of 2025, began its downward trend in December, shortly after the Winklevoss-backed Zcash treasury company Cypherpunk Technologies last disclosed a ZEC purchase, its third since launching.
Cypherpunk, which launched in November as a Zcash-focused treasury company, last reported buying ZEC on Dec. 30, 2025, bringing its holdings to 290,062.67 ZEC. The spot price of Zcash has dropped over 50% since then.
The firm hasn’t announced any new purchases, and CoinGecko data shows total holdings have remained the same since.
Data shows the company paused accumulation after reaching about 1.76% of ZEC’s total supply. Cypherpunk has said it aims to build a position equal to 5% of the token’s supply.
With an average ZEC purchase price of about $334, Cypherpunk Technologies is sitting on an unrealized loss of $25.73 million, down 26.5%, with ZEC trading around $245 at press time.
ZEC kicked off a multi-month rally this fall, starting in late September, reaching as high as $700 in mid-November. While the privacy coin has retraced much of its 2025 gains, it’s still trading almost 400% higher than its pre-rally levels in September.
The Defiant reached out to Cypherpunk to clarify its plans for the DAT, but hasn’t received a response by press time.
Meanwhile, Cypherpunk’s shares have dropped about 40% over the past 30 days, though they remain over 100% higher than in November, before the company rebranded from a biotech firm, Leap Therapeutics, Inc, to a Zcash DAT, according to data from Google Finance.
Top DATs Keep Buying
Cypherpunk’s pace of ZEC purchases stands out against more aggressive digital asset treasury (DAT) strategies elsewhere in crypto. The original and largest DAT, Michael Saylor’s Strategy, has been making its BTC purchases on a weekly basis for over a year, with few exceptions.
While Strategy’s unrealized losses have ballooned to about $4.36 billion amid the market downturn, the firm has kept up its accumulation cadence, making five Bitcoin purchases so far in 2026, according to the company’s data.
Tom Lee’s BitMine, the largest Ethereum DAT, has kept pace so far this year with the same number of ETH purchases, per data from DefiLlama. BitMine’s unrealized losses reached $6 billion this week as the spot price of ETH slipped below $2,000.
Amid Cypherpunk’s dropping shares and rising paper losses, Gemini, the crypto exchange founded by the Winklevoss twins, announced this week that it’s restructuring its business.
The company said in a blog post on Thursday, Feb. 5, that it plans to cut roughly 25% of its remaining workforce and exit Europe, the UK, and Australia, as it doubles down on the U.S. market.
Vitalik Buterin sold over 6,100 ETH as prices slid below $2,000, adding to heavy whale-led selling pressure.
Ethereum co-founder Vitalik Buterin sold thousands of ETH over the past few days as the token fell below $2,000, according to on-chain data shared by Lookonchain.
The sales came during a broader wave of large-holder deleveraging that pushed ETH to multi-month lows and added to already heavy selling pressure across the market.
ETH Sales Coincide With Heavy On-Chain Distribution
On February 5, Lookonchain reported that wallets linked to the blockchain developer had sold 2,961 ETH worth about $6.6 million over three days at an average price near $2,228. Less than 24 hours later, the analytics account said total sales over the same three-day window had risen to 6,183 ETH, or roughly $13.2 million, with the average exit price closer to $2,140 as ETH continued to slide.
Some of the proceeds were quickly redirected, with Buterin transferring about $500,000 he earned from the sale of 212 ETH on February 2 to Kanro, a philanthropic initiative tied to open-source biomedical research.
Kanro Fund confirmed the transfer the same day and said the funds will be used to support anti–airborne-disease and pandemic-related projects. The group also pointed out that the Ethereum stalwart has been funding similar efforts for nearly three years, including a $20 million personal contribution made in October 2025.
Buterin has publicly addressed his broader plans, saying in a recent post on X that he withdrew 16,384 ETH to support work spanning biotech, secure hardware, privacy-focused software, and other areas outside Ethereum’s core protocol. He framed the move as part of a period of tighter spending at the Ethereum Foundation.
Institutions and Whales Repositioning
The price of ETH has faced some severe action in the last few days, falling well below the $2,100 level that many traders viewed as a key support area and underperforming Bitcoin as risk appetite faded across altcoins.
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At the time of writing, the world’s second-largest cryptocurrency was trading around $1,900 after losing about 7% in the last 24 hours and more than 30% over the past week. On-chain data suggests the pressure is not limited to retail traders, with a February 5 CryptoQuant report showing U.S. investors have been selling ETH at a discount, pushing the Coinbase Premium Index to its lowest level since July 2022. That pattern points to institutional de-risking during the current correction.
According to Lookonchain, other large holders have also been active. The firm reported on February 6 that Trend Research sold more than 170,000 ETH in under 10 hours to repay loans, while Aave founder Stani Kulechov sold about 4,500 ETH near $1,900.
At the same time, some entities moved the other way, with serial crypto investors, 7 Siblings, buying 9,000 ETH for just under $2,000 each as prices dipped.
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- Bitcoin price plunged to $60,000, its biggest single-day fall since the FTX crash.
- Prices rose to above $66,000 as analysts forecast a potential dead cat bounce.
- Market sentiment remains in extreme fear.
Bitcoin fell sharply on Friday, crashing to lows of $60,000, which ignited widespread selling before swiftly staging a dramatic recovery to around $67,100.
The volatile swing has sent the cryptocurrency market sentiment into extreme fear, with top altcoins, including Ethereum, XRP, and Solana, hitting critical support levels below $1,900, $1.40, and $80, respectively.
But after experiencing one of its most severe single-day plunges in history, can bulls sustain the flip?
Bitcoin sees biggest 24-hour dip since FTX crash
As noted, Bitcoin plummeted more than $10,000 in a matter of hours on Thursday, briefly dipping to lows near $60,000.
While Bitcoin has since recovered some ground and stabilised near $67,000 at the time of writing, the broader market remains under pressure following the cryptocurrency’s sharpest one-day decline since the collapse of FTX in November 2022.
Unlike previous sell-offs triggered by clear catalysts such as regulatory actions or exchange failures, the latest downturn appears to have been driven largely by technical factors.
Analysts have pointed to a wave of liquidations and forced unwinding of highly leveraged positions, as traders who had positioned for continued gains were caught off guard by the sudden reversal in momentum.
Crypto analyst and investor Lark Davis shared the following on X:
There’s discussion that Bitcoin’s dump is part of a bigger domino effect.
People borrowed money to buy Bitcoin, gold, and silver. When prices dropped, lenders said “give us more money NOW or we’ll sell your stuff.”
The problem: People didn’t have cash, so they sold their OTHER…
— Lark Davis (@LarkDavis) February 6, 2026
Data from Coinglass showed that more than $2.6 billion worth of cryptocurrency positions were liquidated over the past 24 hours, with Bitcoin derivatives accounting for the largest share.
The sell-off spread across major altcoins. Ethereum fell below $1,800 for the first time in more than a year, while Solana slid to around $67, its lowest level since December 2023.
XRP also came under heavy pressure, touching lows near $1.13 and raising the risk of a move back below the $1 mark for the token linked to Ripple.
Market participants noted that open interest in Bitcoin futures had climbed to record levels before the downturn, leaving heavily leveraged long positions exposed when prices reversed sharply.
Bitcoin price outlook: dead cat bounce or sustained rally?
As Bitcoin trades near $66,000, traders are weighing whether the rebound marks the start of a sustained recovery or represents a short-lived “dead cat bounce” that could give way to renewed losses.
Bearish sentiment remains dominant, with market confidence sliding to extreme lows.
The CoinMarketCap Fear and Greed Index is currently at 5 out of 100, signalling severe investor anxiety.
Despite this, some analysts argue that supportive factors are still present.
The scale of the recent sell-off, driven in part by heavy long liquidations, has raised the possibility of a short squeeze.
If short sellers continue to cover positions, prices could extend their recovery.
For bulls, a sustained move above $70,000 and a retest of $73,000 would be key technical milestones.
However, if momentum weakens amid ongoing macroeconomic and geopolitical pressures, Bitcoin could slip toward $60,000, undermining the rebound.
In that scenario, some market participants see $50,000 as the next potential downside target.
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