Bitcoin is testing a local low at $70,000.
The wave of liquidations is approaching $850 million in a day. Sentiment is negative—the Fear and Greed Index is in the panic zone (11).
The selloff hasn't only affected crypto—the stock market and metals are also slumping. Investors are posting significant losses.
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The wave of liquidations is approaching $850 million in a day. Sentiment is negative—the Fear and Greed Index is in the panic zone (11).
The selloff hasn't only affected crypto—the stock market and metals are also slumping. Investors are posting significant losses.
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U.S. state pension funds suffer significant losses
This is related to investments in Strategy.
Against the background of the decline in the bitcoin exchange rate, the drawdown of 10 out of 11 funds exceeds 60%. According to some estimates, it's more than $300 million.
Strategy shares have falled from the peak by 76%. The paper loss of the bitcoin portfolio exceeded $3 billion.
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This is related to investments in Strategy.
Against the background of the decline in the bitcoin exchange rate, the drawdown of 10 out of 11 funds exceeds 60%. According to some estimates, it's more than $300 million.
Strategy shares have falled from the peak by 76%. The paper loss of the bitcoin portfolio exceeded $3 billion.
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The current drawdown of bitcoin directly hits the main rate of Michael Saylor's Strategy company.
The company's balance sheet now has 713,502 BTC with a total value of about $49.9 billion at the current price.
With an average entry price of Strategy of about $76,000, this gives an unrealised loss of about $4.4 billion.
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At night, bitcoin went down to $60,000
Thus provoking $2.5 billion in liquidations per day.
Ethereum was falling to $1750, BNB - $570, Solana - $68.
The index of fear and greed from Alternative collapsed to 9 points for the first time since 2022. CMC signals 5 points.
By morning, bitcoin quotations had recovered to $66,000.
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Thus provoking $2.5 billion in liquidations per day.
Ethereum was falling to $1750, BNB - $570, Solana - $68.
The index of fear and greed from Alternative collapsed to 9 points for the first time since 2022. CMC signals 5 points.
By morning, bitcoin quotations had recovered to $66,000.
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Whales sold over 80,000 BTC for $5.3 billion.
According to Santiment, over the past eight days, wallets with balances between 10 and 10,000 BTC sold 81,068 BTC (~$5.3 billion), bringing their share of the total supply down to a nine-month low of 68.04%.
While major players are unloading, retailers are buying.
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According to Santiment, over the past eight days, wallets with balances between 10 and 10,000 BTC sold 81,068 BTC (~$5.3 billion), bringing their share of the total supply down to a nine-month low of 68.04%.
While major players are unloading, retailers are buying.
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Bitcoin miners are shutting down their equipment en masse amid record losses
The hash price (revenue per unit of computing power) has fallen to 3 cents per terahash. For comparison, this figure was $3.50 in 2017.
Newhedge analysts predict a decline in mining difficulty of more than 13% at the next reset. This would be the largest drop since the cryptocurrency ban in China in 2021.
The situation has hit public miner stocks. On February 5, CleanSpark shares fell 10%, MARA by 11%, TeraWulf by 8.5%, and Riot by 4.8%.
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The hash price (revenue per unit of computing power) has fallen to 3 cents per terahash. For comparison, this figure was $3.50 in 2017.
Newhedge analysts predict a decline in mining difficulty of more than 13% at the next reset. This would be the largest drop since the cryptocurrency ban in China in 2021.
The situation has hit public miner stocks. On February 5, CleanSpark shares fell 10%, MARA by 11%, TeraWulf by 8.5%, and Riot by 4.8%.
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Analyst at JPMorgan estimated the long-term potential of BTC above gold
Nikolaos Panigirtsoglu believes that in the long run bitcoin may look more attractive than gold, despite the drawdown from ~$126,000 to ~$60,000 and the outflow of funds from spot ETFs.
According to the bank's estimates, bitcoin is now trading below the estimated cost of mining (~$87,000), and its volatility is gradually approaching gold - a historically rare phenomenon.
To equalise the volume of private investment with gold (~$8 trillion), bitcoin would theoretically need a price of about $266,000 per coin.
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Nikolaos Panigirtsoglu believes that in the long run bitcoin may look more attractive than gold, despite the drawdown from ~$126,000 to ~$60,000 and the outflow of funds from spot ETFs.
According to the bank's estimates, bitcoin is now trading below the estimated cost of mining (~$87,000), and its volatility is gradually approaching gold - a historically rare phenomenon.
To equalise the volume of private investment with gold (~$8 trillion), bitcoin would theoretically need a price of about $266,000 per coin.
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Thus, on February 6, 66,940 BTC were credited to the wallets, which was the largest inflow of funds for the current market cycle.
At the same time, the Sharpe coefficient, which helps to assess the effectiveness of risk-adjusted investments, fell to -10 - the minimum since March 2023.
Darkfost analyst believes that the departure of the indicator to the negative zone historically indicates the final stage of the "bear".
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Bernstein analysts call the current fall the weakest "bear" scenario in the history of the asset
And also confirm the goal of $150,000 by the end of 2026.
According to their assessment, the market is experiencing a crisis of confidence rather than fundamental problems.
Neither system failures nor hidden leverage were found in the company - those factors that usually provoke real collapses. At the same time, the launch of bitcoin ETFs in the United States, growing liquidity and a more friendly position of the authorities create a strong basis for further growth.
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And also confirm the goal of $150,000 by the end of 2026.
According to their assessment, the market is experiencing a crisis of confidence rather than fundamental problems.
Neither system failures nor hidden leverage were found in the company - those factors that usually provoke real collapses. At the same time, the launch of bitcoin ETFs in the United States, growing liquidity and a more friendly position of the authorities create a strong basis for further growth.
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Glassnode reports that the current market structure resembles May 2022
That was the time the market experienced the collapse of the Terra/LUNA ecosystem, in case anyone has forgotten.
With Bitcoin at $70,000, the unrealized loss is ~16% of the market cap.
CryptoQuant CEO Ki Young-Joo stated that he sees no potential for a Bitcoin price pump, which is facing excessive selling pressure. Even a $308 billion influx in 2025 couldn't resolve the difficulties currently facing DAT companies that provided liquidity.
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That was the time the market experienced the collapse of the Terra/LUNA ecosystem, in case anyone has forgotten.
With Bitcoin at $70,000, the unrealized loss is ~16% of the market cap.
CryptoQuant CEO Ki Young-Joo stated that he sees no potential for a Bitcoin price pump, which is facing excessive selling pressure. Even a $308 billion influx in 2025 couldn't resolve the difficulties currently facing DAT companies that provided liquidity.
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The RWA platform Securitize will list the BlackRock tokenised fund - BUIDL - on the UniswapX infrastructure.
Only authorised institutional investors will be able to trade it.
The purpose of the integration is to give institutions round-the-clock access to liquidity between BUIDL and USDC through decentralised infrastructure.
Against the background of the news, the UNI token has jumped by 40% at the moment.
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However, this isn't due to the explosive growth of stablecoins.
In his opinion, the trigger will be a market decline:
- ETH to $1,500,
- BTC to $10,000.
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