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This Bitcoin Indicator Just Flashed Red After 3 Years

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8 Factors Impacting Crypto Markets


The Bitcoin network’s structural growth has entered a contraction phase.

Bitcoin stabilized above $66,000 on Friday, though the asset has fallen about 30% over the past month. According to analysis by Alphractal, Bitcoin’s Realized Cap Impulse (Long-Term) has turned negative for the first time in three years.

When this signal turned negative in past cycles, the crypto asset entered extended downturns as long-term capital inflows weakened.

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Bitcoin’s Capital Structure

Bitcoin’s long-term Realized Cap Impulse tracks changes in realized capitalization over extended periods and is used to assess whether new capital is entering the network or whether inflows are slowing or reversing.

A negative reading indicates that new capital inflows have weakened or stalled, demand is no longer absorbing supply at the same pace, and the network’s structural growth has moved into a contraction phase. Alphractal explained that in previous market cycles, every instance in which the Realized Cap Impulse (Long-Term) turned negative was followed by significant price corrections or prolonged bear markets.

The firm linked this pattern to Bitcoin’s supply-demand dynamics and said that when supply remains available while new capital inflows decline, downward pressure on price typically emerges. Unlike traditional market capitalization, realized capitalization values BTC at the price it last moved on-chain, which allows the metric to reflect actual capital committed to the network rather than price-driven fluctuations.

By filtering out short-term market noise, the indicator focuses on long-term capital behavior over months and years. With the signal now negative again after three years, Alphractal said the current cycle is potentially entering a phase of structural weakening in capital inflows.

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Meanwhile, Alphractal founder Joao Wedson also said that “even with ETFs accumulating and large institutions like Strategy increasing their positions, it is still not enough to offset the period when supply exceeds demand.”

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Global Uncertainty

The latest on-chain capital trends appear to be unfolding against a macro backdrop of unusually high uncertainty. As per CryptoQuant, the Global Uncertainty Index has reached an all-time high, after exceeding levels seen during the 9/11 attacks, the Iraq War, the 2008 financial crisis, the Eurozone debt crisis, as well as the Covid-19 pandemic.

CryptoQuant stated that the current reading demonstrates an environment where markets are struggling to find direction, capital is moving with greater caution, and risk is being priced more aggressively. The data also indicates that geopolitical, economic, and political pressures are all active at the same time. This environment has created conditions in which high volatility may become a feature rather than a temporary disruption.

Periods of extreme uncertainty have coincided with significant changes in market positioning, as participants reassess exposure amid unstable conditions. While uncertainty often triggers defensive behavior, the firm added that such phases have also seen periods of large-scale repositioning.

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Crypto World

Square launches zero-fee Bitcoin payments for US merchants through 2026: Square

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Square launches zero-fee Bitcoin payments for US merchants through 2026: Square


Square is waiving processing fees for Bitcoin payments at US merchants for two years, with instant dollar conversion to reduce adoption barriers.

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Crypto World

$80M Hyperliquid Whale Bet Predicts Bitcoin Crash and Oil Rally

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$80M Hyperliquid Whale Bet Predicts Bitcoin Crash and Oil Rally

Key takeaways:

  • A Hyperliquid whale placed an $80 million bet against Bitcoin and the S&P 500 while going long on Brent crude oil prices.

  • The whale’s history of massive losses and inconsistent signals suggests the trade could fall on the wrong side of the market.

Bitcoin (BTC) showed strength on Wednesday, bouncing back from Tuesday’s $66,000 low after President Donald Trump teased a potential ceasefire in the US and Israel-Iran war. Even with Bitcoin trading above $68,000, one whale used Hyperliquid DEX to place an $80 million bet on a market collapse. 

Traders are now watching closely to see if this whale’s massive position signals a looming Bitcoin price drop.

Hyperliquid whale 0x94d373…c933814 position. Source: CoinGlass

The Hyperliquid whale, linked to address 0x94d373…c933814, carefully built this nearly $80 million leveraged position between Tuesday and Wednesday. The trade includes a $40 million short (sell) on Bitcoin futures near $68,760, a $2 million short on synthetic S&P 500 Index contracts, and a $37 million long (buy) in synthetic Brent oil contracts.

Crude Brent oil (left) vs. Bitcoin/USD (right). Source: TradingView

The whale’s aggregate position leverage stood at 7 times, indicating high conviction. The Bitcoin futures liquidation price was $80,083, while the Brent oil position would be forcefully terminated above $93. The timing of the trade is curious as S&P 500 Index futures gained 4% between Tuesday and Wednesday as traders anticipate the US and Israel-Iran war dissipating over the next few weeks.

On Wednesday, President Trump said “Iran’s New Regime President” is considering a “ceasefire,” although the conditions to fully reopen the Strait of Hormuz remain unknown. Iran demands reparations and sovereignty. Thus, one could assume that the Hyperliquid whale is counter-trading the market’s optimistic take, betting that Brent crude oil prices will jump while Bitcoin loses its value.

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This Hyperliquid whale previously lost $40 million

This address belongs to a particularly unlucky whale, or at least one who has been extremely unsuccessful since late January. The Hyperliquid whale apparently uses bots for execution, given the sheer number of small trades that build into huge positions, but it still managed to lose $37 million in its first month of activity in December 2025.

The same user was flagged by X user ‘lookonchain’ on Feb. 5 after taking a massive loss on leveraged bullish bets on Ether (ETH), Bitcoin, Solana (SOL), and XRP (XRP). 

Source: X/lookonchain

According to the analysis, the whale had previously made $25 million in profits from shorts in multiple cryptocurrencies, but decided to flip the position on Feb. 4, resulting in a $40 million loss. There is no way to know exactly what triggered this entity to place those bets, but the event proves that even whales can misinterpret the market.

Related: Warren Buffett bought $17B in US T-bills: A bad omen for Bitcoin price?

The erratic signals from President Trump regarding a potential full-on invasion and the war in Iran leave room for opposing views. Iranian Foreign Minister Abbas Araghchi denied there were talks for a ceasefire but confirmed to Al Jazeera on Tuesday that there was an intention to end the war, according to CNBC.

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Given the history of this whale’s market positioning and its track record of losing trades, it’s possible that the current $80 million bet may fall on the wrong side of the market.