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After a chaotic week for the cryptocurrency market, the US-based Bitcoin ETFs (exchange-traded funds) saw significant capital inflows on Friday, February 6. As the flagship cryptocurrency and the rest of the market suffered huge declines, the BTC-linked exchange-traded products also posted substantial withdrawals during the week.

With the bear market confirmed by the latest steep price decline, it would be interesting to see how the US Bitcoin ETFs would perform during their first extended period of downward price action. To give perspective, the BTC exchange-traded funds have had 11 days of capital inflows so far in 2026.

US Bitcoin ETFs Post $330M Net Inflows

According to the latest market data, the US Bitcoin ETFs saw a total net inflow of $330 million on Friday. This round of capital influx comes after three days of heavy withdrawals from the BTC exchange-traded funds over the past week.

While the market data for Friday’s activity remains incomplete, it comes as little surprise that BlackRock’s iShares Bitcoin Trust (with the IBIT ticker) led this round of capital inflows. According to SoSoValue’s data, the exchange-traded fund added $231.62 million in value to close the week.

Furthermore, Ark & 21Shares’ (ARKB) followed in second place, with a total net inflow of $43.25 million on the day. Meanwhile, Bitwise’s Bitcoin ETF (BITB) and Grayscale’s Bitcoin Mini Trust (BTC) registered $28.7 million and $20.13 million in total net inflows, respectively, on Friday.

Invesco Galaxy Bitcoin ETF (BTCO) was the only other Bitcoin ETF that registered activity on the day, posting a total net inflow of $6.97 million. As inferred earlier, these figures come in stark contrast to the performances seen earlier in the week.

It is worth mentioning that this capital influx seen by the Bitcoin ETFs coincided with the price of Bitcoin reclaiming the $70,000 level on Friday. Meanwhile, it is no coincidence that the Coinbase Premium, an indicator of demand from United States investors, flipped positive going into the weekend.

According to data from SoSoValue, this $330 million performance also brought the weekly record to around $350 million in negative outflows. Notably, the $561 million capital inflow recorded on Monday, February 2, also played a part in the final weekly figure.

Bitcoin Price At A Glance

After briefly reclaiming the $70,000 mark on Friday, the premier cryptocurrency has cooled off over the weekend. As of this writing, the price of BTC stands at around $68,900, reflecting an over 1% decline in the past 24 hours.

Bitcoin has popped back into public view this week as people flock to search engines to check prices and news. Reports say global Google searches for the word “Bitcoin” climbed to the highest level seen in about a year, a jump that lines up with a stretch of heavy price swings and renewed chatter across social channels and exchanges.

Search Interest Reaches One-Year High

According to Google Trends data analyzed by market outlets, the search index for Bitcoin hit the top score of 100 starting the week of February 1, 2026 — the peak level recorded in the past 12 months.

That index spike came as Bitcoin’s price moved sharply over a few days, pulling more everyday investors and curious readers back into the conversation. Reports note the timing and magnitude of the search jump as a clear sign ordinary users are paying attention once again.

Price Whipsaws Spark Curiosity

Bitcoin’s market action has been bumpy. Based on reports, prices slid from roughly $81,500 down to about $64,000 in early February before recovering into the low $70,000s, and that roller-coaster helped fuel the online interest surge.

When big moves like that happen, people who normally watch from the sidelines tend to look for quick updates, how-to guides, and platform reviews — which shows up as higher search counts.

Retail Attention Shows Up In Data

Analysts and some market watchers have pointed out that spikes in search volume often track with retail attention. Based on reports citing market commentators, the uptick has been interpreted as “retail is coming back,” a shorthand used to describe more individual traders and casual investors logging into apps and reading headlines.

While search numbers don’t say what people will do next, they do reveal a burst of interest that can amplify short-term price pressure.

What Traders And Analysts Say

Some traders are watching whether the renewed curiosity will solidify into longer-term demand or simply mark a short-lived return to headlines.

Reports note that past patterns show peaks in search activity often happen during sharp upswings or steep drops, so attention alone isn’t a reliable signal for where prices head next.

Still, a rise in public interest can mean higher on-ramps for new money into the market — and that changes the balance of buyers and sellers for a time.

Quick Takeaway

Search trends show people are watching Bitcoin again. That matters because attention can feed price moves, at least for a while.

For those tracking markets, the next few sessions will reveal whether this burst of searches turns into sustained buying, or whether it ends as another short news cycle.

Featured image from Unsplash, chart from TradingView

The price of Bitcoin is nearly 45% away from its all-time high of $126,080, reflecting a worsening market climate over the past few months. One of the indicators that confirmed the emergence of the bear market was the breach of the 365-day moving average to the downside late last year. Using this metric, a prominent crypto researcher has come forward with an evaluation that shows how the current Bitcoin bear market compares to the past ones.

BTC Price Is 30% Below 365-Day Moving Average

In a new post on the social media platform X, CryptoQuant’s head of research, Julio Moreno, revealed that the current bear market performance compares to the ones seen in Bitcoin’s recent history. The indicator in focus in this analysis is the 365-day simple moving average (SMA) on the BTC price chart.

Moreno defined the start of the bear market as the moment when the price of Bitcoin crossed below the 365-day SMA. According to the on-chain expert, the premier cryptocurrency is down by 30% so far in the current phase, making it one of the worst bear seasons in recent times.

As observed in the chart above, the Bitcoin price is deeper than it is often seen at this stage of the bear market. During the 2014 bear market, the flagship cryptocurrency was barely down by 20% at this current stage of the season.

The same could be said for the 2018 bear season, which was more around the 20% market at this stage. However, the price of Bitcoin might have succumbed to greater pressure during the 2022 season, as the market leader was down from its 365-day moving average by nearly 60% at this stage of the cycle.

This trend is especially interesting, considering that Bitcoin is believed to have matured as an asset class. However, the world’s largest cryptocurrency still appears to witness incredible levels of volatility at the beginning of the bear market.

While it is unclear when the Bitcoin price will reach a bottom, certain conditions need to be met for a turnaround to occur. One of these conditions is the apparent demand metric, which has continued to worsen over the past few weeks. As seen in the outflow numbers of the US-based Bitcoin ETFs, capital constraints have been a major issue for the premier cryptocurrency.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $70,500, reflecting an over 2% jump in the past 24 hours.

The US Commodity Futures Trading Commission (CFTC) has amended a recent staff advisory to recognize payment stablecoins issued by national trust banks as eligible margin collateral. This move forms part of a broader regulatory initiative by the Commission on digital asset integration in line with US President Donald Trump’s pro-crypto agenda.

Related Reading: US Treasury Sec To Wall Street: If You Hate Crypto Rules, El Salvador Is Waiting CFTC Clears FCMs To Accept Bank-Issued Stablecoins As Collateral 

In a press release on February 6, the CFTC’s Market Participants Division (MPD) announced an update to the CFTC Staff Letter 25-40, which communicated the “Staff No-Action Position Regarding Digital Assets Accepted As Margin Collateral.”

This memo was initially released on December 8, allowing all CFTC-registered futures commission merchants (FCM) to accept non-securities digital assets, e.g., payment stablecoins, as margin collateral as well as hold specific proprietary stablecoins in separate customer accounts.  

However, this earlier version of this memo only acknowledged eligible payment stablecoins as those issued by state-regulated money transmitters or trust companies. However, the CFTC has recognized that a payment stablecoin, as defined in the letter, may also be issued by a national trust bank. 

In Trump’s first term, the US historically chartered its first set of national trust banks to engage in custody and issuance of payment stablecoins. The CFTC clarifies there was no intention to initially exclude national trust banks as stablecoin issuers, a position that has now been formally affirmed in the updated version of CFTC Letter 25-40.

CFTC Chairman Michael S. Selig has lauded the reissue, recognizing the growing role of the national trust banks and America as a whole in the stablecoin industry. 

Selig said: 

I’m pleased that the CFTC staff is amending its previously issued no-action letter to expand the list of eligible tokenized collateral to include payment stablecoins issued by these institutions (national trust banks). With the enactment of the GENIUS Act and the CFTC’s new eligible collateral framework, America is the global leader in payment stablecoin innovation. 

National Bank Charter: Digital Asset Banks Push For Recognition

In other reports, the competition among digital asset firms to obtain national bank charters reflects a broader effort to integrate cryptocurrency services into the regulated US financial system. A national trust bank charter allows crypto companies to operate under federal oversight, strengthening credibility and expanding institutional partnerships. 

In January 2025, Anchorage Digital represented the first crypto-native firm to receive such approval. Presently, several firms, including Coinbase, Circle, Ripple, and BitGo, have also received conditional approvals from the OCC in a bid to broaden their service offerings. 

Recent data shows that the Bitcoin mining difficulty has experienced a major decline in the last day. This development follows significant bearish price struggles in the past week, which saw Bitcoin fall by an aggregate 11%.

Bitcoin Mining Difficulty Records Historic Fall Since China’s Crackdown

The mining difficulty, as the name implies, measures how hard it is for miners to solve the mathematical problem required to add a new block to the Bitcoin blockchain. Therefore, a rise in difficulty suggests that mining is challenging for the average network node and vice versa.

Generally, the Bitcoin network adjusts this metric every 2,016 blocks (approximately two weeks). According to the developer mononaut, Bitcoin recorded an 11.6% drop in mining difficulty over the past 24 hours, representing the largest single adjustment since China’s ban and the tenth largest negative adjustment of all time.

In 2021, the Asian nation issued a prohibitive order against all forms of Bitcoin mining activities within its borders, effectively eliminating over half of the global hashrate. In line, mining difficulty also crashed, dropping the participation barrier for new miners.

According to more data shared by mononaut, the Bitcoin mining difficulty now stands at 125.86T after the recent decline, which kicked in at block 935,429.

Mining Difficulty Crash Reflects Harsh Price Environment 

While a fall in Bitcoin mining indicates an increased ease in mining activity, it also suggests a surge in miner capitulation, i.e., where miners become unprofitable and shut down. This is usually due to energy cost spikes, a regulatory crackdown like in China, or market crashes, as recently seen. Notably, Bitcoin prices recorded an initial loss of 28% in February’s opening week, to trade as low as $60,000 before rebounding to $70,000. Therefore, it’s likely this latest correction pushed many miners into a heavy loss position. 

However, it’s worth noting that Bitcoin’s difficulty adjustment is a self-sustaining mechanism designed to ensure new blocks are continuously mined regardless of how many miners are participating. In addition, a new influx of miners is expected, considering the most recent negative adjustment, thus raising no cause for alarm.

Meanwhile, data from MARA Holdings’ disclosure in Q3, 2025, indicated the average Bitcoin mining cost to be at $67,704. According to Julio Moreno, Head of CryptoQuant, most Bitcoin mining companies are likely in steep losses at present market prices and are expected to increase selling activity, contributing to the recent miner flight. At press time, Bitcoin trades at $69,357 after a 1.71% loss in the past day.

Crypto expert Cypress has highlighted developments that XRP holders should be paying attention to. The expert alluded to Ripple’s roadmap for institutional DeFi on the XRP Ledger (XRPL), with the firm noting that XRP is at the core of all these plans. 

Developments XRP Holders Should Focus On

In an X post, Cypress stated that every holder should pay attention to the developments Ripple outlined in its institutional DeFi roadmap. The expert highlighted features such as native on-chain privacy, permissioned markets, and institutional lending, which are set to live in the coming months on the XRP Ledger (XRPL). 

Ripple noted that with these features, the XRP Ledger isn’t just positioning itself as a chain for tokenization but as an end-to-end operating system for real-world finance. Meanwhile, Cypress highlighted Ripple’s statement about how the indirect impact that they can focus attention on is through how XRP is used in base-layer operations. 

These operations include reserve requirements, transaction fees, which result in burning XRP, and bridging currency in FX and lending flows. Ripple also mentioned that each feature, both the ones that are already and the upcoming ones, is not a silo but a building block for “composable financial ecosystems,” which is tied together by XRP. 

Ripple declared that institutional DeFi is no longer theoretical as the XRPL is delivering the infrastructure these institutions need with programmable lending, privacy-preserving collateral, and regulated token markets. 

The firm added that XRP sits at the center of that infrastructure as a transactional asset and also as a utility-rich protocol token that connects the pieces together. Ripple added how stablecoin FX, tokenized treasuries, on-chain loans, and smart escrows all depend on XRP’s functionality. 

Ripple’s Roadmap Boosts Market Sentiment Towards XRP

Ripple’s institutional roadmap appears to have boosted market sentiment towards XRP, with the token one of the top gainers among the top cryptos by market cap. Specifically, this may have contributed to the spike in whale transactions during the recent dip, with 1,389 whale transactions of $100,000 or more, which is the highest in four months, according to Santiment. 

Furthermore, the number of unique addresses on the XRPL has surged to 78,727 in just one 8-hour candle, which is the highest in six months. This suggests a bullish sentiment not just among whales but also among retail investors. 

Meanwhile, Santiment noted that the increase in whale accumulation and spike in unique addresses are both major signals of a price reversal for any asset. As such, there is the possibility that the drop to $1.15 may have marked the bottom for XRP. 

At the time of writing, the XRP price is trading at around $1.47, up 15% in the last 24 hours, according to data from CoinMarketCap.

For decades, SWIFT has served as the backbone of global payments, enabling banks to message one another across borders but not to settle value in real time. As global commerce becomes faster, more digital, and more interconnected, the limitations of legacy messaging-based systems are becoming increasingly visible. This has brought renewed attention to XRP and Ripple’s payment infrastructure that aims to enable near-instant, low-cost settlement of value.

From Bank Messaging To Real-Time Settlement Rails

A massive 1.5 quadrillion financial shift is quietly unfolding, and it’s already shaking the foundations of global banking. Crypto analyst Archie has mentioned on X that SWIFT, the decades-old backbone of cross-border payments, is copying Ripple’s playbook for a real-time transfer system and testing the XRP Ledger integration that could flip the script on slow, outdated cross-border payments.

Meanwhile, analysts are suggesting that if XRP captures even a fraction of SWIFT’s estimated $150 trillion annual flow by 2030, the upside could be enormous, while some stated that the altcoin might surge to $3,000+. With Ripple’s RLUSD stablecoin integrating directly into core banking and treasury platforms, the bridge between crypto rails and fiat liquidity is rapidly taking shape.

Currently, there’s a speculation that XRP is being reviewed as a full SWIFT replacement in the US document, and trillions are flowing into the XRP Ledger. Meanwhile, banks like Citi are tokenizing, and Ripple technology is capable of leading the charge. Archie believes that Citi is already somewhere running on Ripple technology.

How The Last Major XRP Breakout Took Shape

A side-by-side comparison chart of XRP’s historical and current market cycles suggests that history may be rhyming once again. Analyst Archie has also pointed out that in the 2016 to 2018 cycle, the price started trading at a low level around $0.003, gradually building along a rising trendline, then dipping in the orange box, before the price exploded to highs near $3.50.

During that period, the Relative Strength Index (RSI) formed a clear low around the 50 level, signaling a momentum reset rather than a breakdown. The current 2025 to 2027 cycle is showing a structurally similar pattern. XRP is consolidating around the dollar mark, following a similar trend line, with a dip marked in an orange box to $0.70, and the formed bottom closer to the 40 mark. 

Archie noted that the patterns in price action, the dips, and the indicator signals across cycles are repeating almost identically. While history never repeats perfectly, these recurring fractal patterns suggest that XRP may be priming for an epic bull run phase, from fractions to dollars, now potentially from dollars to triple digits, like the projected $117 range. Archie is bullish because the riddlers were right all along, and believes Phoenix will rise.

In line with its bearish market structure, the Ethereum price struggled significantly in the first week of February. The cryptocurrency’s value fell by more than 30% over the week, crashing to as low as $1,850 on Friday, February 6. Amid the Ethereum market downturn, a significant development has emerged — one which could make or mar the world’s second-largest cryptocurrency.

Ethereum Breaches Realized Price Across All Investor Cohorts

In a recent post on Quicktake, on-chain analyst MorenoDV shared a shocking development within the Ethereum network. The analyst highlighted that the Ethereum price recently slipped below the cost basis of multiple investor groups. 

The revelation is based on the Realized Price by Balance Cohorts metric, which monitors the average on-chain cost basis of Ethereum holders. The metric groups these investors by wallet size, showing where these cohorts are holding profitably or running at losses. 

In the chart above, we see the Ethereum price break beneath multiple cost bases (represented with yellow, green, blue, and purple lines). The most striking, however, is the loss of the realized price of the largest holders (with 100k ETH and above stored), which stands at around $2,074. 

Historically, the realized price of this investor class (with more than 100k ETH in holdings) has taken on dual roles for the Ethereum price, depending on its trajectory. According to data from 2019, mid-2020, and late 2022 price actions, whale realized price typically takes on a role of formidably resisting price during downtrends; during uptrends, it interestingly acts as reliable support. 

Hence, at periods where the Ethereum price stabs through the whale realized price to the downside, MorenoDV explained that two potential paths typically emerge. In his words: “either a violent snap-back rally as the level flips to support (2020, 2022), or further capitulation into multi-year lows (2018-2019).”

Major ETH Price Levels To Watch

Because the Ethereum price went through all investor cohorts’ realized prices at the same time, there is something worth noting here. MorenoDV pointed out that smaller holders collectively have their realized prices between the $2,534 – $2,675 range.

Thus, should the Ethereum price attempt to recover previous legs, the $2,534–$2,675 price range will pose significant resistance to that effort. However, the aforementioned range is not the most critical one for the Ethereum price. 

The analyst highlighted the whale cohort’s realized price, which is approximately $2,074 — to be the most critical for the Ethereum price. Following previous extrapolations, a reclamation of this level would likely follow historical trends and push prices upwards, while failure to retake this level within a period of 30 – 45 days would precede significant drawdowns.

In the event that the latter scenario holds true, the Ethereum price could swiftly fall to $1,800, or even lower. If price breaks beneath $1,800 and is sustained below this level, MorenoDV hypothesizes that this could lead Ethereum to the $1,600–$1,300 levels.

As of this writing, Ethereum stands at a valuation of $2,030, reflecting an over 7% jump in the past 24 hours. 

The Bitcoin price has been on one of its worst runs in recent years, falling by double digits over the past week. While the premier cryptocurrency seems to be recovering well over the past day, the single-day 14% correction — on Thursday, February 5 — is an occurrence that has instilled fear in the market, and rightly so. In their latest report, a renowned pundit has tried to come up with answers to the questions currently swirling around the Bitcoin price.

Crypto Bear Markets End In Exhaustion, Not Excitement — Bitwise CIO

On Friday, February 6, Bitwise’s Chief Investment Officer, Matt Hougan, answered questions the about the current structure and outlook for the Bitcoin price. The senior executive wrote about why the market is down, if it would fall further, and what would help the BTC price reach a bottom.

Hougan started by noting that there is never a single reason why the crypto market fell, as multiple factors are often at play. In this latest correction, the Bitwise CIO listed about six contributing factors, including front-running the four-year cycle, the loss of “attention investor” to AI and metals, and the infamous October 10 liquidation event.

It is important to note that the market and the Bitcoin price action has not been the same since the significant leveraged blowout on October 10, 2025. This historical liquidation event came off the back of United States President Donald Trump announcing a surprise 100% tariff on all Chinese goods.

Other factors highlighted in the Bitwise’s report include concerns around Kevin Warsh as Federal Reserve chair, quantum computing fears, and macro risk-off sentiment. Notably, it could be said that Bitcoin and the crypto market are not the only victims of this sentiment shift, as mineral and stock markets have also seen significant declines.

Hougan mentioned the good news is that the sell-off signs appears to be showing signs of exhaustion.

The Bitwise CIO wrote:

According to onchain data, long-term holders have stopped selling aggressively, and some are beginning to nibble around the edges. Open interest on bitcoin derivatives exchanges has fallen to levels last seen in 2024.

Hougan went on to say that, if history is to go by, it is possible for the Bitcoin price to fall further in the current structure. However, the investment expert also believes that premier cryptocurrency is a more mature asset, and is less likely to see a 77% correction as in the past.

While he could not pinpoint the exact time the Bitcoin price would reach a bottom, the Bitwise CIO revealed that the catalyst that could turn things around is simply time. “Crypto bear markets tend to end in exhaustion, not excitement,” Hougan concluded.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $67,834, reflecting an over 4% jump in the past 24 hours.

Over the past week, Bitcoin has been experiencing an intense movement as prices slid sharply from around $84,000 to around $60,000, representing one of the largest weekly declines in the present market. Currently, based on live market data, Bitcoin’s price has rebounded slightly to around $70,000, indicating some market resilience.

Institutions Pull Back: Bitcoin’s Risk Remains In Red Zone Despite Rebound

According to a CryptoQuant analyst, Amr Taha, the recent on-chain and institutional flow data are signaling a risk-off warning on Bitcoin’s price action, as different classes of investors continue to reduce their market exposure. This caution-themed data has emerged from three key metrics, namely, the exchange-traded fund (ETF) outflows, which depict the institutional behavior, the Bitcoin UTXO Exchange Inflow, and the multi-asset inflow on the Binance exchange.

Generally, positive netflows into Bitcoin Spot ETFs are a bullish situation, indicating increasing buying pressure from US institutional investors. However, recent developments paint an opposite situation as withdrawals are on the rise, especially from BlackRock’s IBIT, which is the market’s most dominant player.

Analyst Amr Taha stated that IBIT experienced a massive outflow on two different occasions in the last week. The first event occurred on the 2nd of February, when investors redeemed $4.7 billion, and then on the 5th, with $7.7 billion, making over $12.4 billion in total. Also, Grayscale’s GBTC was said to have recorded a $2.1 billion outflow during this period.

Exchange Activity Reinforces Risk-Off Behavior

Using data from the UTXO Exchange Inflow SMA 7D, Ama Taha also highlighted an increase in Bitcoin inflow to exchanges over the week. On February 4, the BTC exchange inflow for shark/dophlin wallets reached over 14,900 BTC, before climbing to 20,800 BTC the following day. This represented the first time this metric touched 22,800 since October, when BTC was trading above $122,000.

However, as lots of Bitcoin were sent to exchanges, stablecoins like USDT are being pulled out. On February 5, data from the Binance exchange inflows show Bitcoin’s netflows increased to $727 million, reaching levels last seen in mid-November. Meanwhile, USDT recorded negative netflows totaling around $450 million.

These developments show that institutions are reducing their holdings, while retail holders are also exiting, creating a “risk off” environment that prefers safety in a very cautious market. While this does not confirm a further market downturn, it suggests a dominant heavy bearish sentiment among investor classes. At press time, the premier cryptocurrency trades at $68,513 after a 15.94% decline in the past seven days.

Vietnam’s crypto scene is about to face a new tax check. Reports say the Ministry of Finance has floated a draft that would charge a 0.1% levy on each crypto trade or transfer that passes through licensed platforms.

The move treats crypto transactions more like stock trades than casual peer-to-peer transfers, and it would apply even when a trade doesn’t produce a gain.

Cryptocurrency Transfers To Be Taxed Like Stock Trades

According to the draft, the charge is turnover-based — taken on the full value moved — rather than only on profits. That detail matters because it raises the cost of trading for retail users who often make many small moves.

Reports note the proposal was put out for public comment and would sit inside a broader plan to regulate the market more tightly.

Tax Breaks For VAT And Corporate Rules

Reports say transfers and trading would be exempt from VAT, but firms and institutions would not escape tax entirely. Domestic companies that earn income from trading would face a 20% corporate tax on their net profits after deductible costs.

In practice, that means exchanges and fund managers operating inside Vietnam will have to build tax accounting into their core systems.

Vietnam Sets High Capital Bar For Exchanges

Beyond taxes, regulators are pushing tough licensing rules. Reports say local licensing guidance requires a minimum contributed capital of VND 10 trillion — roughly US$380–$408 million depending on the exchange rate — along with strict governance and tech safeguards.

That threshold is likely to keep out many smaller operators and shift market share toward big, well-funded firms.

How The Pilot Program Frames The Rules

Reports note this tax push is part of a five-year pilot for a regulated crypto market that began in late 2025.

The pilot aims to bring trading, custody, and issuance under clearer rules while tying transactions to the Vietnamese dong and AML controls. For users, that means routine transfers may soon carry both visible costs and more paperwork.

Expected Market Drag On Volume

Some traders worry the added 0.1% drag will cut liquidity and nudge short-term players away from onshore platforms. Others say that clear rules could attract institutional capital that shuns legal gray zones.

Reports from local outlets show a mix of concern and cautious optimism as the market weighs higher compliance costs against the value of formal oversight.

Featured image from Pexels, chart from TradingView

Korean exchange Bithumb has cleared the air over an internal error that credited certain user wallets with a “concerning” amount of BTC. Notably, this mishap resulted in significant price volatility on the exchange, drawing attention from observing crypto enthusiasts.

Bithumb Moves To Wrap Up Recovery After Overpayment Error

On February 6, Lookonchain, among many crypto commentary accounts, shared that Bithumb had accidentally transferred 2,000 BTC ($134 million) each to users, instead of 2000 KRW ($1.34) in a reward payout. Some recipients immediately sold, causing a 10% flash crash on the Korean exchange, pushing prices briefly to around $55,000.

In a blog post, Bithumb explained the incident as an overpayment that occurred during a promotional event process involving 695 recipients. The exchange stated it had mistakenly transferred 620,000 BTC to these wallets, an error that was immediately noticed, resulting in a swift ban on withdrawals for all affected wallets within 35 minutes of the transaction.

Notably, Bithumb sharply recovered 618,212 BTC, representing 99.7% of the total overpayment amount. Meanwhile, 93% of the 1788 BTC already sold have also been recovered in KRW and other digital assets. According to the exchange, the remaining sold amount that hasn’t been recovered will be covered using company assets. Meanwhile, efforts are underway to ensure such operational errors never recur. 

A statement from the exchange said: 

Bithumb takes this incident very seriously and will do its utmost to prevent recurrence by redesigning the entire asset payment process and enhancing the internal control system. 

Bithumb also kicked against suspicion of external or malicious interference, assuring users that their system remains uncompromised:

They said: 

We want to make it clear that this incident is unrelated to any external hacking or security breach, and does not pose any issues with system security or customer asset management. Customer assets are being safely managed as before, and transactions and deposits/withdrawals are currently operating normally.

Crypto Market Overview

In other news, the total crypto market cap has now climbed to $2.34 trillion after a 5.68% gain in the past day. This follows an earlier bloodbath in the week, during which the market cap fell to around $2.19 trillion.

Despite the recent recovery, data from CoinMarketCap shows the digital asset market remains about 45% away from its present cycle all-time high at $4.28 trillion. Market sentiment also continues to reflect caution, with the Crypto Fear and Greed Index currently reading 8, signaling extreme fear among investors.

Featured image from Blocktempo, chart from Tradingview

China has signaled a renewed and more forceful push to tighten its grip on the cryptocurrency sector, reaffirming its long‑standing ban on virtual currencies while introducing stricter oversight of offshore token issuance tied to Chinese assets. 

According to a Reuters report, Chinese authorities said they will closely scrutinize the offshore issuance of tokens backed by assets located onshore and have explicitly banned the unauthorized issuance of yuan‑pegged stablecoins outside the country.

China Tightens Crypto Controls

In a notice published on the People’s Bank of China’s website, regulators said domestic companies and overseas entities under their control are prohibited from issuing virtual currencies abroad without official approval. 

The move effectively shuts the door on privately issued offshore yuan stablecoins, reinforcing Beijing’s position that cryptocurrencies cannot function as money within China’s financial system.

The announcement largely restates China’s existing prohibition on cryptocurrencies, but it also introduces new clarity around emerging areas of digital finance. Notably, some market participants see the language as a sign that China is laying the groundwork for regulating real‑world asset (RWA) tokenization. 

Louis Wan, chief executive of Unified Labs, described the distinction made by regulators as a significant development. He said the key change lies in the clear separation between virtual currencies and RWA tokenization. 

While cryptocurrencies remain banned, RWA activity is now being brought into the regulatory system. For China’s RWA sector, he called the move a milestone.

Crackdown On Private Stablecoins

China’s central bank also emphasized its control over digital currency issuance, underscoring that the digital yuan is the only legitimate form of state‑backed digital money. 

Winston Ma, an adjunct professor at NYU School of Law, said the message from regulators is that there will be no tolerance for a mix of private yuan‑based stablecoins circulating on global crypto exchanges. 

Officials said the tougher stance reflects concerns that recent speculative activity in virtual currencies has created “new risks” that require additional regulatory measures. 

In a joint statement issued by the People’s Bank of China along with seven other government agencies, authorities reiterated that virtual currencies do not carry the same legal standing as traditional fiat money. 

Regulators also warned that, without explicit approval, neither domestic firms nor their overseas affiliates are allowed to issue cryptocurrencies abroad. Both Chinese and foreign entities were barred from issuing offshore stablecoins linked to the yuan unless authorized. 

Authorities noted that stablecoins pegged to fiat currencies can effectively perform some of the same functions as money in circulation, making them a particular focus of regulatory scrutiny.

Featured image from OpenArt, chart from TradingView.com 

The Bitcoin mining Difficulty is set to see a significant reduction on Saturday, owing to the Hashrate disruption caused by the US snow storm.

Bitcoin Difficulty Is Estimated To Go Down 13% During The Next Adjustment

The Bitcoin “Difficulty” is a metric built into the blockchain that controls how hard miners will find it to mine the next block on the network. This indicator’s value automatically changes roughly every two weeks, based on the speed at which miners performed their task since the previous adjustment.

The next such adjustment is scheduled to occur tomorrow, February 6th. According to data from CoinWarz, the network will reduce the Difficulty during this event.

How the blockchain determines whether to increase or decrease the Difficulty is simple: it tries to bring block time back to the standard 10 minutes that Satoshi coded in for the network to follow. Whenever miners produce the average block in a time faster than this, the network responds by raising its Difficulty just enough that miners take 10 minutes between each block again. Similarly, the validators being slow forces BTC to ease the metric.

Since the last adjustment, the average block time has stood at 11.52 minutes, which is much slower than the expected value. As a result of this, Bitcoin is estimated to reduce its Difficulty by a massive 13% during the Saturday adjustment.

The reason for the drastic change in Difficulty lies in the crash that the Bitcoin Hashrate has witnessed recently. The “Hashrate” is an indicator that measures the total amount of computing power that miners as a whole have connected to the network.

As data from Blockchain.com shows, this metric’s 7-day average value has observed a sharp decline since January 24th.

On January 24th, the 7-day average Bitcoin Hashrate stood at 1,044 exahashes per second (EH/s). By the end of the month, that value had dropped to just 825 EH/s. This was an unusually rapid drawdown for the indicator, and it indeed had an unusual cause behind it: the US snow storm.

The winter storm disrupted various parts of the nation’s infrastructure, including power. To ease pressure on the grid, American Bitcoin miners curtailed their electricity consumption, which led to Foundary USA, the largest mining pool in the world, witnessing a Hashrate drop of nearly 60%.

In February so far, the US miners have started to bounce back, with the global 7-day average Hashrate returning to 913 EH/s. The decline in the Hashrate only being temporary doesn’t matter to the Difficulty, however, since the network only considers the average block time from the last two weeks.

The fact that the miners produced blocks at a slow rate during this window is already set in stone, so the Bitcoin network has no option other than reducing the Difficulty in the next adjustment.

BTC Price

Bitcoin plummeted all the way down to $60,000 on Thursday, but the cryptocurrency has since bounced back as it’s now trading around $69,300.

As Russia moves to establish a comprehensive digital assets framework this year, the country’s largest bank is reportedly planning to issue crypto-backed loans to corporate clients following a successful pilot conducted in December.

Sberbank Ready To Expand Crypto-Backed Loans

On Thursday, Reuters reported that Russia’s largest bank by assets, Sberbank, is preparing to offer crypto-backed loans to corporate clients amid strong corporate interest in the digital asset sector.

Sberbank is finalizing the necessary infrastructure and methodology for the potential scaling of crypto-backed lending, a spokesperson told news media outlets, and is ready to work with the Central Bank of Russia (CBR) to develop regulations.

“We are ready to engage in dialogue with the Central Bank to develop appropriate regulatory solutions for the launch of such services. Our work with clients whose activities are related to cryptocurrencies is carried out in several areas and is based on a deep understanding of their business models and risk profiles,” the bank shared with news media agency RIA Novosti.

The bank affirmed that interest from corporate clients is a good opportunity, but noted that clear regulation is necessary. It explained that a transition to a permanent regime of lending secured by digital assets and its mass implementation will depend on the development of the regulatory environment.

In December 2025, Sberbank conducted a successful pilot crypto‑backed loan to a crypto mining company, offering a loan against the digital assets the firm had mined. Now, Russia’s largest bank aims to expand its services to companies holding digital assets, following similar moves by global institutions such as JPMorgan and Wells Fargo.

“Sberbank has already conducted one pilot project on lending secured by cryptocurrency,” the statement explained. “Its main goal was to test the technological aspects of working with this type of collateral. We are currently analyzing its results and finalizing the necessary infrastructure and methodology for the potential scaling of such products.”

Sberbank’s domestic rival, Sovkombank, recently affirmed that it was the first Russian lender to start issuing crypto-backed loans. In a Thursday statement, Russia’s ninth-largest bank revealed it had begun offering Bitcoin-backed loans to individuals and corporations who legally own digital assets.

“Sovcombank sees the potential for partnerships with all participants in the crypto industry — from miners and data center operators to crypto exchanges and exchangers,” said Marina Burdonova, the bank’s compliance director, in a statement. “We are developing specialized products for each segment, such as cash management services with special features and conditions, loans and project financing, as well as risk management tools.”

Russia’s Upcoming Framework

These developments come as Russia works to implement its upcoming digital assets framework, which is expected to take effect by July. In December, the CBR unveiled its comprehensive regulatory proposals to enable retail and qualified investors to buy digital assets through licensed platforms in the country.

Under the central bank’s new rules, non-qualified investors will be allowed to purchase up to 300,000 rubles in the most liquid digital assets annually, following a knowledge test. Meanwhile, qualified investors will be able to acquire unlimited amounts of any digital asset after passing a risk-awareness test.

Notably, Russia’s leading stock exchanges, the Moscow Exchange (MOEX) and SPB Exchange, have shared their support for the CBR’s proposed framework. The institutions recently confirmed they are ready to launch crypto trading services as soon as the framework is enacted.

In addition, the Committee on State Building and Legislation at the State Duma, the lower house of the Federal Assembly of Russia, has also advanced a bill to complement the upcoming rules.

As reported by Bitcoinist, the ruling political party in Russia, the All-Russian Political Party United Russia, revealed that legislation to regulate the seizure of crypto assets in criminal proceedings was recommended for adoption in its upcoming third reading.

If approved, the bill would reduce the risks associated with the use of cryptocurrencies in criminal activities, such as money laundering, corruption, and terrorist financing.

Ethereum has slipped below the critical $2,000 level, reinforcing a broader bearish market structure as selling pressure intensifies across the crypto sector. The breakdown comes amid weakening macro sentiment, persistent outflows from risk assets, and declining confidence in short-term crypto demand. Together, these factors have pushed ETH into a defensive phase, with traders increasingly focused on downside liquidity zones rather than recovery signals.

Recent data highlighted by Lookonchain points to three major on-chain liquidation clusters that could shape Ethereum’s next moves. These zones represent areas where leveraged positions may be forced to close if price declines continue, potentially accelerating volatility. Historically, such liquidation pockets tend to act as magnets during corrective phases, amplifying both panic selling and short-term price swings.

Market sentiment has also been affected by reports of Ethereum co-founder Vitalik Buterin moving and selling ETH. While these transactions are often linked to funding ecosystem development, charitable initiatives, or operational needs rather than outright bearish positioning, they can still influence trader psychology. In fragile markets, even neutral fundamental events can trigger disproportionate reactions.

Major On-Chain Liquidation Zones Could Shape Ethereum’s Next Price Move

Lookonchain data highlights three major on-chain liquidation clusters that could significantly influence Ethereum’s short-term price dynamics if bearish pressure persists. According to the analysis, Trend Research reportedly holds about 356,150 ETH, valued near $671 million, with estimated liquidation levels between $1,562 and $1,698. If price approaches this band, forced position closures could amplify volatility and accelerate downside momentum.

Another key concentration involves Ethereum co-founder Joseph Lubin alongside two unidentified large wallets. Combined holdings are estimated at around 293,302 ETH, roughly $553 million, with potential liquidation thresholds between $1,329 and $1,368. This zone sits deeper in the corrective structure and could act as a secondary stress level if broader market weakness continues.

A third cluster attributed to the entity known as 7 Siblings holds approximately 286,733 ETH, valued at around $541 million. Their liquidation prices are significantly lower, near $1,075 and $1,029, representing a deeper capitulation scenario should selling pressure intensify further.

It is important to note that liquidation estimates depend heavily on leverage assumptions, collateral adjustments, and evolving market conditions. Still, these zones provide a useful framework for understanding where volatility could increase, as leveraged positions historically tend to magnify both downward cascades and eventual stabilization phases in crypto markets.

Ethereum Price Breakdown Signals Structural Weakness

Ethereum’s weekly chart shows a decisive deterioration in market structure after losing the psychologically important $2,000 level. Price has broken below the 50-week and 100-week moving averages, signaling a shift from late-cycle consolidation into a more defensive phase. This type of multi-MA breakdown historically reflects declining momentum rather than a simple short-term correction.

Volume behavior reinforces this interpretation. The latest downside move is accompanied by expanding sell-side volume, suggesting distribution rather than passive retracement. When rising volume coincides with lower highs and lower lows, it typically confirms sustained selling pressure rather than temporary volatility.

Technically, the next key support zone appears between roughly $1,600 and $1,750, where prior consolidation occurred in earlier market phases. A weekly close below this range would likely expose deeper liquidity pockets toward the $1,300 region, aligning with previously identified liquidation clusters.

From a trend perspective, Ethereum is now trading below all major weekly moving averages, which often caps upside attempts unless reclaim levels occur quickly. For recovery credibility, price would need to regain the $2,200–$2,400 region and stabilize above it.

Featured image from ChatGPT, chart from TradingView.com 

Bitcoin is struggling to stabilize around the $65K level as persistent selling pressure continues to weigh on market sentiment. The recent decline has reinforced uncertainty among investors, with volatility increasing and liquidity conditions tightening across major trading venues. Against this backdrop, on-chain data is beginning to reveal shifts in market structure that may help explain the current weakness.

A CryptoQuant report highlights a notable change in Bitcoin flows on Binance during the first days of February. Data shows that the whale inflow ratio — which measures the share of deposits coming from large wallets — has climbed to its highest level since 2022. This suggests a renewed presence of major holders on the exchange deposit side, a development often associated with repositioning, risk reduction, or preparation for active trading.

According to the report, total Bitcoin inflows to Binance reached roughly 78,500 BTC, while whale inflows alone accounted for about 38,100 BTC. As a result, whales represented approximately 48.5% of all deposits during this period. This means nearly half of the Bitcoin sent to the exchange originated from large addresses, marking a meaningful structural signal that could influence short-term price dynamics and broader market sentiment.

Whale Activity Signals Market Transition, Not Automatic Selling

The report emphasizes that the recent surge in the whale inflow ratio should not automatically be interpreted as imminent selling pressure. Large holders often move funds to exchanges for multiple operational reasons beyond liquidation. In this context, some whales may simply be reallocating capital, adjusting portfolio exposure, or positioning liquidity for derivatives trading rather than preparing immediate spot sales.

Another plausible explanation is defensive positioning. After periods of elevated volatility, institutional or high-net-worth participants frequently transfer assets to exchanges to hedge risk, secure profits, or maintain flexibility in uncertain market conditions. This behavior tends to increase during corrective phases, when sentiment weakens, and liquidity becomes more fragmented.

Historically, spikes in whale inflows have typically appeared during market transition stages rather than at definitive tops or bottoms. In several past cycles, similar readings preceded short-term selling waves as large players reduced exposure. However, there have also been instances where comparable inflow patterns coincided with accumulation phases, reflecting repositioning before renewed upward momentum.

Ultimately, the current data suggests a fragile equilibrium between supply and demand rather than a clear directional signal. Monitoring follow-through — particularly exchange outflows, derivatives positioning, and spot demand — will be essential to determine whether this activity evolves into distribution or longer-term accumulation.

Breakdown Below Trend Support Raises Structural Risk

Bitcoin’s price action in this chart reflects a decisive shift in market structure following a prolonged corrective phase. After failing to sustain momentum above the $110K–$120K region, price gradually transitioned into a lower-high sequence, ultimately accelerating downward with a sharp breakdown below the $70K area. The most recent move toward the mid-$60K range represents the weakest level seen since late 2024, confirming that sellers currently dominate the trend.

From a technical perspective, price has fallen below key moving averages, including what appears to be the 50-, 100-, and 200-period trend lines. This alignment typically signals a bearish regime rather than a short-term pullback. Additionally, the rejection near the longer-term average before the latest drop suggests that previous support has flipped into resistance, reinforcing downside pressure.

Volume dynamics also indicate stress. The spike accompanying the breakdown implies forced selling or liquidation activity rather than orderly distribution. Historically, such conditions often precede either a volatility climax or a prolonged consolidation phase while the market searches for equilibrium.

For now, the critical question is whether the $60K–$65K region can hold as structural support. Failure there could open a deeper retracement, whereas stabilization may indicate the early stages of a base formation rather than an immediate reversal.

Featured image from ChatGPT, chart from TradingView.com 

Metaplanet is pressing ahead with its plan to buy more Bitcoin even as the broader crypto market turns sour. Reports say the Tokyo-listed firm is keeping its target goals and moving to raise cash to support further purchases, a bet that has left the company with big paper losses but a steady, public commitment to its strategy.

Metaplanet Commits To Bigger Bitcoin Hoard

According to recent coverage, Metaplanet wants to grow its stash to far larger levels over the next year, with long-range figures aimed at reaching 100,000 Bitcoin by the end of 2026 and 210,000 by 2027, under what has been called the “555 Million Plan.”

“There has been no shift in Metaplanet’s approach. We plan to keep adding Bitcoin at a steady pace, grow our revenue streams, and get ready for the next stage of growth,” Metaplanet CEO Simon Gerovich wrote on X on Friday, based on a machine-translated version of the post.

The company has also opened financing channels to help fund buys, including a stock offering that was announced to support staged purchases rather than a single big trade.

おはプラネット。最近の株価動向を踏まえ、株主の皆さまにとって厳しい状況が続いていることは、私たちも十分に認識しています。しかしながら、メタプラネットの戦略に変更はありません。私たちは引き続き、ビットコインの積み上げ、収益の拡大、そして次の成長フェーズに向けた準備を、着実に進めてい…

— Simon Gerovich (@gerovich) February 6, 2026

Market Gloom And Heavy Paper Losses

Reports note that the recent slump in Bitcoin prices has hammered firms that use the coin as their main reserve asset. Metaplanet’s share price has slid, mirroring a wider selloff in corporate Bitcoin treasuries, and investor mood has turned cautious as unrealized impairments mount.

The wider market wobble has pushed some treasury companies to report deep impairments and to rethink near-term funding moves.

CEO Reaffirms Buying Plan

Reports say Metaplanet’s chief executive has publicly stated there is no change to the buying policy and that the firm will steadily keep adding BTC.

The message was posted on social channels and translated for local media, where the CEO stressed that accumulation will continue alongside efforts to expand revenue sources. That comment came amid heavy volatility and concerns about how long the downturn might last.

Bitcoin Price Action In The Middle Of The Story

Bitcoin itself has been volatile this week. The token traded below recent highs before recovering some ground, and the quick moves have amplified unrealized gains and losses across corporate balance sheets.

The market has swung hard, creating days when billions of dollars were wiped from prices and other days when a modest rebound pushed values back up.

Impairment And Funding Moves

Based on reports, Metaplanet recorded a substantial non-cash impairment tied to its Bitcoin holdings, a figure roughly in the hundreds of millions of dollars that trimmed reported earnings for the year.

At the same time, management has put in place capital-raising steps — including equity issuance — aimed at giving the company the firepower to buy in stages and support operations while prices remain rocky.

Featured image from Pexels, chart from TradingView

Ethereum’s (ETH) latest downturn below $2,000 is no longer confined to price charts alone. Capital flows, on-chain data, and technical structure are now aligning with the bearish momentum, supporting concerns that the selloff may have further room to run.

Related Reading: Bitcoin Price May Slide Toward $50,000 By March-April, Top Analyst Warns

As ETH breaks below key support zones, fresh ETF outflows and shifting investor behavior are adding pressure at a time when confidence already looks fragile.

ETF Outflows Signal Waning Institutional Appetite

Ethereum spot ETFs recorded a net outflow of $80.79 million on February 5, according to SoSoValue data.

Fidelity’s FETH accounted for the bulk of the move, with $55.78 million leaving the fund in a single session. While FETH still holds a cumulative historical inflow of $2.51 billion, the sharp daily withdrawal highlights renewed caution among investors.

Not all products saw exits. Grayscale’s Ethereum Mini Trust (ETH) posted the largest daily inflow at $7.05 million, followed by Invesco’s QETH with $3.53 million. However, these gains were not enough to offset broader selling.

Total Ethereum spot ETF assets now stand at $10.9 billion, representing about 4.83% of ETH’s market capitalization. The uneven flow picture suggests selective positioning rather than broad-based accumulation.

Ethereum Price Structure Weakens as Support Levels Give Way

Ethereum’s price action has continued to trend lower, with ETH recently trading below the $2,000 range after briefly dipping to $1,750 earlier this week. Analysts tracking higher time frames note that the bearish market structure remains intact, with no confirmed bullish shift on the four-hour chart.

Former support around $2,125 has now turned into resistance, while traders are watching liquidity zones near $2,200 and $2,300 for potential reactions. A sustained reclaim above $2,345 is widely viewed as the minimum requirement to signal a trend change.

Until then, rallies are being treated as corrective moves within a broader downtrend.

On-Chain Signals and Developer Concerns Add Context

On-chain data shows a clear divergence between investor cohorts. Mid-sized holders have reduced exposure during the decline, while large wallets have increased their holdings, suggesting accumulation by long-term players amid weakness.

At the same time, exchange inflows, particularly on Binance, have risen to levels last seen in 2022, often associated with distribution or repositioning.

Beyond price, Ethereum’s co-founder Vitalik Buterin has recently criticized the lack of innovation among copycat EVM chains, arguing that scaling progress risks stagnation without deeper technical differentiation.

While these comments are not directly market-related, they support broader concerns about direction and execution within the ecosystem.

Cover image from ChatGPT, ETHUSD chart on Tradingview

Bitcoin’s (BTC) slide below the $65,000 mark this week has rippled far beyond the crypto market, dragging down mining stocks and weighing on Asian equities already under pressure from a global tech sell-off.

The world’s largest cryptocurrency briefly dipped just above $60,000, its lowest level in about 15 months, before attempting a modest rebound. Even with that recovery, sentiment across digital assets and related equities remains fragile as investors reassess risk in an uncertain macro environment.

Whales Retreat As Sentiment Deteriorates

On-chain data shows a notable shift in Bitcoin ownership during the sell-off. According to Santiment, whales and sharks, controlling between 10 and 10,000 BTC, have reduced their share of Bitcoin’s circulating supply to around 68.04%, a nine-month low.

The large Bitcoin holders have sold roughly 81,000 BTC over the past eight days, coinciding with Bitcoin’s drop from near $90,000 to the mid-$60,000 range.

Similarly, smaller investors have continued to accumulate. Wallets holding less than 0.1 BTC reached a 20-month high in their share of supply, suggesting retail buyers are stepping in as prices fall.

Historically, similar patterns, large holders selling into retail demand, have been associated with prolonged bear phases. Reflecting this shift, the Crypto Fear & Greed Index fell to 9 out of 100, its lowest level since mid-2022.

Mining Stocks Slide Amid Bitcoin Weakness

The pressure on Bitcoin has translated quickly into losses for crypto-linked equities. Shares of major mining firms and Bitcoin proxies such as Marathon Digital, Riot Platforms, Hut 8, and Strategy Inc. posted double-digit declines, with several hitting new 52-week lows.

Strategy, one of the largest corporate Bitcoin holders, reported a sharply wider quarterly loss as falling prices weighed on the value of its holdings, adding to concerns about balance sheet risk if weakness persists.

Analysts note that the sell-off in miners has been largely macro-driven rather than tied to company-specific developments, reflecting their role as high-beta bets on Bitcoin’s price.

Asian Markets Feel The Spillover

Bitcoin’s drop also weighed on Asian markets, which were already tracking Wall Street’s losses, led by technology stocks. Equity benchmarks in South Korea, Hong Kong, and Australia declined, while Japan’s Nikkei managed modest gains after earlier losses.

Market players cited a broader risk-off mood linked to concerns over U.S. monetary policy, particularly following President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair, a move seen as less supportive of easy liquidity.

With Bitcoin now down roughly half from its October peak, investors remain cautious. While short-term rebounds are possible, continued selling by large holders and tightening financial conditions suggest volatility across crypto assets, mining stocks, and global markets is likely to persist.

Cover image from ChatGPT, BTCUSD chart on Tradingview