Friday has come around again, which means another batch of expiring Bitcoin options as spot markets continue to melt down. 

Around 34,000 Bitcoin options contracts will expire on Friday, Feb. 6, with a notional value of roughly $2.1 billion. This event is much smaller than last week’s end-of-month expiry.

Crypto markets have collapsed into bear market territory, losing around $686 billion since the start of the week, as sentiment plunges and both retail and institutional investors dump crypto assets.

Bitcoin Options Expiry

This week’s batch of Bitcoin options contracts has a put/call ratio of 0.59, meaning that there are more expiring calls (longs) than puts (shorts). Max pain is around $82,000, according to Coinglass, which is well above current spot prices, so many will be out of the money on expiry.

Open interest (OI), or the value or number of Bitcoin options contracts yet to expire, remains highest at $100,000 and $70,000, which have $1.1 billion at these strike prices on Deribit. Total BTC options OI across all exchanges has been in decline for a week and is at $32.5 billion.

“BTC option flows suggesting downside plays not over,” said Deribit.

“Bitcoin’s open interest is stacked through the $80K to $90K region, with elevated put activity showing traders leaned defensive into the move.”

🚨 Options Expiry Alert 🚨

At 8:00 UTC tomorrow, over $2.5B in crypto options are set to expire.$BTC: $2.15B notional | Put/Call: 1.42 | Max Pain: $82K$ETH: $408M notional | Put/Call: 1.13 | Max Pain: $2.55K

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Bitcoin’s open interest is stacked through the $80K to $90K region,… pic.twitter.com/WPCdYeS2aC

— Deribit (@DeribitOfficial) February 5, 2026

“The upcoming $60,000 range represents the consolidation zone prior to the Trump rally, where support remains relatively strong. Should a rapid dip occur in the short term, it may present a buying opportunity,” said crypto derivatives provider Greeks Live.

In addition to today’s batch of Bitcoin options, around 217,000 Ethereum contracts are also expiring, with a notional value of $400 million, max pain at $2,550, and a put/call ratio of 1.15. Total ETH options OI across all exchanges is around $7.1 billion. This brings the total notional value of crypto options expiries to around $2.5 billion.

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Spot Market Outlook

Crypto market capitalization has tanked to a 16-month low of $2.27 trillion as the digital asset exodus continued.

Bitcoin was smashed by double digits, tanking below $60,000 in early trading in Asia on Friday. The asset has now lost 50% from its all-time high, dumping more than $60,000 in just four months.

Ether is back at bear market lows, falling below $1,800 briefly, and the altcoins have been destroyed in what appears to be the start of another long, drawn-out crypto winter.

Bitwise Asset Management has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot Uniswap ETF, marking a major step toward a regulated exchange-traded product tied directly to the UNI token.

Uniswap ETF filing fails to lift UNI price

Despite the filing, Uniswap (UNI) showed little immediate upside. The token continued to trade lower, reflecting cautious sentiment across altcoins even as institutional interest grows.

At press time, UNI was exchanging hands at $3.22, down 14.5% over the past 24 hours.

The filing, submitted on February 5, 2026, proposes the launch of the “Bitwise Uniswap ETF,” a trust designed to hold Uniswap tokens as its primary asset. It provides investors with a regulated vehicle to gain exposure to UNI price movements through traditional brokerage accounts.

According to the SEC registration, the ETF would issue shares intended to trade on a U.S. exchange under a yet-to-be-announced ticker symbol.

Bitwise Investment Advisers will sponsor and manage the trust, while Coinbase Custody will hold the Uniswap tokens. The structure aims to offer investors exposure to Uniswap without requiring them to manage wallets or private keys.

If approved, the Bitwise Uniswap ETF would be the first regulated ETF focused on a DeFi protocol’s native token in the U.S. market. UNI is the governance token for the Uniswap decentralized exchange, one of the largest decentralized trading venues built on Ethereum.

Bitwise’s filing arrives in a market where demand for crypto ETFs is evolving. Bitwise and other issuers have recently filed for a range of altcoin-linked ETFs, including products tied to AAVE, Chainlink, and other major tokens.

Trader losses intensified during the first week of February. Liquidation volume kept rising as the market repeatedly crushed recovery expectations, driven by consecutive red candles.

However, several analyses point to light at the end of the tunnel, even though a rapid recovery remains unlikely.

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Over $2.6 Billion Liquidated in 24 Hours Reflects Structural Market Weakness.

CoinGlass reported that total crypto market liquidations reached $2.65 billion over the past 24 hours. Long positions accounted for more than $2.2 billion of that total.

“According to CoinGlass data, in the past 24 hours, 586,053 traders were liquidated, with total liquidations reaching $2.65 billion,” CoinGlass reported.

CoinGlass data also shows that the smallest event in the Top 10 Crypto Liquidation Events of All Time occurred recently on January 31, with $2.56 billion in liquidations. This suggests the ranking could soon be reshuffled.

The market analysis account, The Kobeissi Letter, explained that this move is not a short-term shock. It reflects a structural downturn that has been developing since October last year.

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The root causes include weak liquidity, negative sentiment, and cascading liquidation pressure across markets. The account emphasized that this is a recurring cycle: liquidations damage sentiment, and worsening sentiment triggers further liquidations.

Bitcoin’s intraday price swings of up to $10,000 were attributed to sharply reduced market depth. The current Bitcoin market depth is only 30% of its October peak. This condition mirrors the post-FTX collapse environment seen in 2022.

A BeInCrypto report noted that ongoing panic selling has pushed many crypto treasuries toward rising bankruptcy risk. Bitcoin’s drop to $60,000 pushed MicroStrategy’s holdings below cost basis, increasing balance-sheet pressure.

Against this backdrop, veteran technical analyst Peter Brandt offered a forecast based on the “Bitcoin Power Law” model. He suggested that Bitcoin could trade within a “banana peel” range, with potential support near $42,000.

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Brandt argued that if Bitcoin enters this zone, similar to previous bear cycles, bullish investors are unlikely to remain below that level for an extended period.

Is a Major Opportunity Taking Shape?

Despite the bleak outlook, not all analysts remain pessimistic.

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Glassnode reported that Bitcoin’s capitulation index recorded its second-largest spike in the past two years. This signals a sharp rise in forced selling. The metric tracks supply held at different price levels and measures market stress to identify potential local bottoms.

Such stress events often coincide with rapid de-risking and heightened volatility. Investors rebalance positions during these phases.

Large-scale liquidations also reduce overall market leverage. This process drives a shift away from leveraged speculation toward spot accumulation. “Weak hands” exit, making room for higher-conviction investors.

“Bitcoin deleveraging may create a strong opportunity soon,” economist Daniel Lacalle noted.

These observations suggest a buying opportunity may be forming. They do little, however, to pinpoint exactly when a recovery will begin.

TLDR

• Bitcoin has dropped to $65,000, erasing all gains since Donald Trump’s reelection in 2024.
• The cryptocurrency has lost nearly $25,000 since last Wednesday and is now almost 50% off its all-time high.
• Analysts suggest that the recent BTC crash is primarily driven by emotional selling and market sentiment.
• Experts from the Kobeissi Letter attribute the crash to fear and uncertainty, with no fundamental changes in Bitcoin’s ecosystem.
• Doctor Profit believes Bitcoin could hit a bottom between $57,000 and $60,000, presenting a potential buying opportunity.

Bitcoin has just dropped to $65,000, erasing all gains since Donald Trump’s reelection in 2024. The cryptocurrency has lost nearly $25,000 since last Wednesday. This drop marks almost a 50% decline from its all-time high in October 2025. Analysts are now speculating about the reasons behind the crash and where the bottom could be.

BTC Crash Driven by Emotional Selling

The recent BTC crash appears to be driven by emotional selling rather than any fundamental issues within the cryptocurrency ecosystem. Analysts from the Kobeissi Letter highlighted that market sentiment has been volatile. According to them, riskier assets like Bitcoin often experience large price swings due to shifts in investor sentiment.

The current bearish trend has seen a mass exodus of investors, although it doesn’t seem linked to any major changes in Bitcoin’s underlying fundamentals. The experts suggest that fear and uncertainty have been driving the market, leading many to sell without any clear reason tied to the market’s core fundamentals. As a result, BTC has struggled to maintain its value.

BTC May Bottom at $57,000–$60,000

Doctor Profit, a well-known analyst with a bearish outlook, has been predicting a Bitcoin crash for months. He believes that Bitcoin is nearing its bottom, which he places at around $57,000–$60,000. “I consider $57k to $60k as a great entry to make money for the short term and gain some serious % before we continue going down,” Doctor Profit stated.

Doctor Profit has set up “big buy” orders in that range, indicating that he believes Bitcoin will stabilize and possibly recover from that level. He plans to hold for a few months and is not looking to buy Bitcoin at higher prices than that. His outlook suggests a brief short-term recovery before the next decline.

Altcoins Struggling, XRP Takes the Biggest Hit

As Bitcoin falls, altcoins are also experiencing substantial losses. XRP, in particular, has faced a major drop, falling by nearly 20% in just 24 hours. It now struggles to maintain a price above $1.25, marking a troubling trend for the token. Other altcoins are also facing pressure, but XRP’s performance has been the poorest during this downturn.

The altcoin market is taking a heavy hit, with many tokens following Bitcoin’s downward trajectory. Investors are growing increasingly cautious, and the entire market seems to be undergoing a correction. This has resulted in significant losses for many, with XRP leading the decline.

Large Bitcoin holders are now controlling the smallest share of the cryptocurrency’s supply since late May, when it first reclaimed $100,000 after more than three months, according to crypto sentiment platform Santiment.

Santiment posted to X on Thursday that “whale and shark wallets” holding between 10 and 10,000 Bitcoin (BTC) have fallen to a nine-month low, collectively accounting for about 68.04% of the entire Bitcoin supply.

“This includes a dump of -81,068 BTC in just the past 8 days alone,” Santiment said, as Bitcoin fell from around $90,000 to $65,000 over the same period, a roughly 27% decline, according to CoinMarketCap. Bitcoin is trading at $64,792 at the time of publication, up from a 24-hour low of just over $60,000.

Crypto market participants often track large Bitcoin holders to spot signs of accumulation or offloading, as these moves can signal whether whales believe the asset has peaked or is poised for an uptrend.

It isn’t just large Bitcoin holders that are showing signs of caution. CryptoQuant CEO Ki Young Ju posted to X on Wednesday that “every Bitcoin analyst is now bearish.” 

The Crypto Fear & Greed Index, which measures overall crypto market sentiment, dropped to a score of 9 out of 100 on Friday, its lowest score since mid-2022, when the market was reeling from the collapse of the Terra blockchain.

While there has been a sell-off among large holders, retail investors have been aggressively accumulating. Santiment said, “This combination of key stakeholders selling and retail buying is what historically creates bear cycles.” 

Related: Bitcoin slips under $64K as record-high selling intensifies: Where is the bottom?

“Shrimp wallets,” which Santiment defines as those holding less than 0.1 Bitcoin, have risen to a 20-month high since June 2024, when Bitcoin was trading at around $66,000, before falling to $53,000 just two months later in August. 

However, by December 2024, it had reached $100,000 for the first time amid a booming market after Donald Trump won the US presidential election.

The cohort now accounts for 0.249% of Bitcoin’s total supply, which is equivalent to roughly 52,290 Bitcoin.

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