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Post-Trump Election Advances Lost as Bitcoin Drops and Altcoins Tumble Significantly: A Weekly Cryptocurrency Roundup

In recent weeks, the cryptocurrency markets have experienced a significant downturn. Bitcoin, which had rebounded to around $83,000-$84,000, saw a volatile drop to under $76,000. Despite a brief recovery to $79,000, it was quickly rejected and dipped below $74,000, eventually plummeting to $60,000. This wiped out all gains following Trump's re-election in late 2024, with bitcoin positions dropping by $30,000 within a week. This crash, attributed to factors such as rising geopolitical tensions and excessive market leverage, wiped out over $2.6 billion in leveraged positions. Despite recovering to $67,000, Bitcoin is still down nearly 20% weekly. Other cryptocurrencies also saw significant declines, with ETH down 28%, BNB 23%, and XMR 26%. Despite the general downturn, HYPE defied the trend, soaring by 19%.

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Overview of the Sharp Decline in Bitcoin (BTC) and Ethereum (ETH) and the Rise of Hyperliquid (HYPE): A Recap for February 6

Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have seen a significant drop in their market values recently. BTC plummeted to a four-year low, while ETH fell below $2,000. However, Hyperliquid (HYPE) has demonstrated remarkable resilience and has seen a 60% increase in its value over the past fortnight. This negative trend for BTC and ETH is attributed to several factors, including large investors selling their holdings and a decrease in institutional investor interest. Meanwhile, HYPE's rise is linked to multiple advancements and growing interest. The market's current state has led to increased fear among BTC investors, which could indicate a bottoming out of the market.

Pi Network's PI Hits Record Low, Yet Indicators Suggest Further Decrease

Cryptocurrency markets have been hit hard recently, with Pi Network's PI token falling to new all-time lows of under $0.135. This represents a 30% drop in value over the past month, and a 95% decrease since its peak in February 2025. Despite this, some members of the Pi Network community remain optimistic for a bounce back. However, data from PiScan indicates that almost 8 million coins will become available for trading in the next month, increasing to over 18 million on February 12 and 23.6 million on February 13. This could lead to further selling pressure. On a positive note, the number of tokens unlocked is expected to decline after February 20, potentially easing selling pressure. Additionally, there are rumors that Kraken, a large exchange, may list Pi Network's token, which could boost its standing among investors.

Could the Expiration of $2B Worth of Bitcoin Options Today Lead to Further Market Downturns?

Approximately 34,000 Bitcoin options contracts, valued at an estimated $2.1 billion, are set to expire on Friday, Feb. 6. This development comes amid a significant downturn in the cryptocurrency market, which has seen a loss of around $686 billion since the beginning of the week. The current batch of Bitcoin options has a put/call ratio of 0.59, indicating more calls than puts, yet the highest open interest remains at the $100,000 and $70,000 levels. Meanwhile, about 217,000 Ethereum contracts, with a notional value of $400 million, are also due to expire. The total crypto market capitalization has dropped to a 16-month low of $2.27 trillion, with Bitcoin falling below $60,000 and Ether returning to bear market lows.

Public Anxiety Spurs Bitcoin Recovery, $70K Surge on the Horizon, Says Santiment

Bitcoin's recent fall to nearly $60,000, followed by a rebound close to $65,000, has caused a divide among traders, with some viewing it as a temporary reaction and others seeing it as a setup for a recovery towards $70,000. During the sell-off, social media mentions urging Bitcoin to go lower increased, a pattern that analytics firm Santiment suggests often precedes short-term price rebounds. The firm also questioned if this was merely a "dead cat bounce" and predicted a potential rally back to the $70,000s. Meanwhile, other data paints a mixed picture for the rebound, with some suggesting it was more of a mechanical response rather than renewed conviction. The market's current sentiment towards Bitcoin is extremely bearish, which, according to Santiment, could lead to short-lived relief rallies.

Ongoing Bitcoin Slump: 14-Month Lows Ignite Worries of a Further Plunge Under $60K

Bitcoin's recent slump, reflecting the wider crypto market downturn, has analysts predicting further declines, potentially falling below $60,000. The leading cryptocurrency recently fell below $70,000, a first since November 2024, and currently trades around $69,300 - a 21% drop in a week. Analyst Ali Martinez suggests a drop to $57,600 is possible, while a trader using the handle Hardy predicts a decline to $30,000. PlanB, the anonymous creator of the Stock-to-Flow model, also foresees a possible drop to $25,000. A recent surge in BTC held on exchanges, viewed as a precursor to sale, supports this bearish outlook. However, indicators such as the Relative Strength Index, currently at 19, suggest a potential rebound.

Ripple's XRP Plummets by 13% in a Day, Bitcoin (BTC) Drops Under $70K: Market Analysis

Bitcoin's price performance continues to disappoint, erasing all gains observed after the re-election of Trump, as it fell below $70,000. The decline is not limited to Bitcoin, with most altcoins, including ETH, BNB, SOL, DOGE, ADA, among others, recording significant drops. Just over a week ago, Bitcoin was trading at $90,000, but a series of price declines have seen it plummet to just above $70,000, marking a 7% daily drop and a 20% weekly drop. Its market cap has also fallen to $1.410 trillion. Meanwhile, altcoins are also suffering, with ETH down by 6%, BNB below $700, and XRP being the worst performer at under $1.38. The total crypto market cap has shed another $170 billion, falling below $2.5 trillion.

Bitcoin's Current Trading Discounted by 41%, Projected Value at $122K According to Power-Law Model

Despite Bitcoin's (BTC) recent dip below $71,000, market analyst David asserts that the cryptocurrency is trading at a 41% discount to its long-term trend value, estimating its fair value at $122,762. Using a power-law valuation model, David's analysis focuses on the underlying mechanics, pointing out that the price action seems to be driven more by derivatives market dynamics such as hedging and liquidation-related selling. He also noted that the increasing leveraged exposure could potentially lead to sharp price fluctuations. Moreover, he indicated a key gamma level near $73,000, where price movements above or below this level could significantly impact volatility. Amid these conditions, the analyst estimated a 70% probability of a squeeze if the price begins to ascend.

Analysts Report Present Bear Market Underperforming Compared to 2022

According to data from CryptoQuant, Bitcoin's bear market is showing a weaker start than in 2022, with a 23% decrease in 83 days since falling below the 365-day moving average in November. This compares to a 6% drop over the same period in 2022. The "Bull Score Index" which stood at 80 when Bitcoin peaked at $126,000 in early October, has now plummeted to zero, indicating extensive structural weakness. Bitcoin is now targeting the $70,000 to $60,000 range after losing key support levels. Other cryptocurrencies are also faring poorly, with Ethereum crashing below $2,100 and altcoins dropping 80% from their peaks. The overall crypto market capitalization has fallen 4.4% to $2.53 trillion, reaching its lowest level since April 2025.

Is Co-Founder Vitalik Buterin Offloading ETH Amid Its Sharp Decline?

The cryptocurrency market has experienced a severe downturn in the past week, with Bitcoin and almost all altcoins incurring significant losses. Ethereum's performance has been particularly poor, with a daily drop of 8% and a total drop of 30% since the previous Thursday. Factors such as political tension, economic uncertainty, and the Fed's hawkish interest rate stance may have contributed to the broader market correction. Ethereum's plight might have additional elements such as the withdrawal of funds by ETF investors and the selling off of ETH by co-founder Vitalik Buterin. Over the past three days, Buterin has reportedly sold $6.6 million worth of ETH at an average price of $2,228 per coin. This decline has affected the largest ETH holders, including market leader BitMine, which is currently over $6 billion in the red.

What Caused the Significant Drop in Ripple's (XRP) Price and Will it Reach $1?

Ripple's (XRP) price has dropped by over 10% in the past 24 hours, hitting a low of $1.42, a rate not seen since November 2024. The chart indicates a significant drop on various timeframes, with a 40% plunge from its $2.40 high just a month ago. Despite investors withdrawing $92.92 million in a day last week, recent data shows that $19.46 million and $4.83 million were invested on Tuesday and Wednesday respectively. Ripple's announcement of institutional support for Hyperliquid through its prime brokerage platform doesn't seem to have influenced the price. The drop seems unrelated to any ecosystem or fundamental issues, with analysts suggesting that it's the result of fear, uncertainty, and doubt in the broader crypto market, leading to investors offloading their positions. With the support level at $1.51 breached, $1.42 and $1.27 are the two remaining before the psychological $1 level is reached.

The Reason Behind Vitalik Buterin's Assertion on L2s Not Scaling Ethereum Anymore

Ethereum's co-founder, Vitalik Buterin, believes that the original concept of Layer 2 (L2) scaling within the Ethereum ecosystem is no longer viable due to slow progress and the mainnet's ability to scale directly. He suggested that L2s should now be seen as a range of systems with different degrees of connection to Ethereum, providing unique values beyond generic scaling. He also emphasized that for networks handling Ethereum-issued assets, achieving at least stage 1 should be a fundamental standard. Buterin further stressed the importance of a native rollup precompile that verifies ZK-EVM proofs as part of Ethereum itself, enabling trustless interoperability and composability while allowing L2s flexibility in extending functionality. Despite the inevitability of weaker systems in a permissionless ecosystem, Buterin believes Ethereum's duty is to make the guarantees clear and continue strengthening the base protocol.

ETH Experiences 25% Decline in One Week, However, Analysts Believe the Lowest Point Has Not Yet Been Reached

Over the past few weeks, Ethereum (ETH), the largest altcoin, has seen a significant drop from over $3,000 to a multi-month low of $2,100. Despite this substantial decrease, several prominent analysts predict that the lowest point has not yet been reached. Analyst CW suggests that ETH could reverse if it surpasses a significant sell wall at $2,560, while Ali Martinez, using the MVRV band metric, anticipates a potential price drop to just under $2,000. Crypto Tony, an analyst with over 560,000 followers, also predicts that ETH could drop to the major support and psychological level of $2,000 before a decisive rebound. He forecasts a swift surge to $3,600 before another drop to yearly lows at $1,500, followed by a massive run to new all-time highs above $6,000.

Priorities...

Understanding the Impact of US Financial Stability on Market Calmness and Bitcoin's Value

Bitcoin fell to roughly $72,800 as U.S. legislators discussed a temporary funding solution, but it rebounded after the House passed the bill on February 4, 2026, allaying fears of a government shutdown. As uncertainty rose during the vote, Bitcoin's value dropped, triggering approximately $30 million in DeFi liquidations, and reflecting a concurrent drop in the S&P 500 and gold. The market's response was immediate relief when the bill passed, and Bitcoin rose over 5% within hours while the S&P 500 also recovered. Despite this, Bitcoin continues to face broader challenges, with on-chain metrics deteriorating and large holders not accumulating significantly. Reports of Iran's intention to change the format of nuclear negotiations with the U.S. further contributed to Bitcoin's decline. Some analysts suggest a potential deeper test of support despite the resolution of immediate U.S. political risk.

Market Watch: Solana (SOL) Dips Under $100, Bitcoin (BTC) Bounces Back From Its Lowest in Over a Year

The latest market activities saw Bitcoin (BTC) taking a hit as the cryptocurrency fell to its lowest since November 2024, bottoming out at $73,000 before experiencing a slight recovery. This downward trajectory followed the Federal Reserve's decision not to cut rates again, amidst escalating tensions in the Middle East. Additionally, the larger-cap altcoins like Solana (SOL), Ethereum, and BNB have not been spared from the market crash. SOL experienced a 7% daily decline, taking it below the $100 mark. Meanwhile, Bitcoin's market capitalization has also suffered, dropping to $1.525 trillion with its dominance over altcoins declining to 57.3%. The combined market cap for all cryptocurrencies saw a $70 billion reduction in a single day, bringing it to $2.65 trillion.

XRP ETFs Outperform BTC, ETH, and SOL Despite Ripple's Struggling Price

In an environment of uncertainty and volatility, investors have shown a distinct preference for XRP spot crypto ETFs over their counterparts. Data from SoSoValue reveals XRP ETFs saw a daily net inflow outpacing Bitcoin, Ethereum, and SOL funds combined. Despite Bitcoin ETFs seeing a significant inflow on February 2, the overall trend for Bitcoin has been negative, with holdings dropping below their average cost basis for the first time in 18 months. Ethereum and SOL funds experienced minor inflows, but XRP funds dominated with a net gain of $19.46 million. Despite these inflows, Ripple's price remains unstable, dropping by nearly 17% weekly and 25% monthly. The token has struggled to recover since a high of $2.40 on January 6.

Yield Generation with XRP: New Modular Lending Markets Launched by Flare in Partnership with Morpho

Flare, a decentralized finance (DeFi) blockchain network, has pioneered modular lending markets for XRP in a partnership with Morpho. This novel undertaking also involves a collaboration with Mystic, a platform that curates lending markets in the Ethereum Virtual Machine ecosystem. Modular lending allows users to create customized markets with specific parameters, enhancing efficiency and security. The recent development introduces modular lending to the Flare ecosystem, marking significant progress in the network's vision for XRP DeFi. With the integration of Morpho and Mystic, Flare has made lending and borrowing more accessible while maintaining XRP on its native blockchain. With the latest integration, FXRP users can deposit their assets into yield-bearing vaults, use their assets as collateral to borrow, and integrate lending positions into structured strategies within the same ecosystem.

Bitcoin Plummets to $73K, Shattering Long-Term Support as Short-Term Investors Fold

Bitcoin prices have plummeted to roughly $73,000, marking its lowest level since November 2024 and breaking the April 2025 support levels of around $74,500, thereby confirming a bear market territory. The cryptocurrency has crashed 25% in less than three weeks and is down 40% from its all-time high. Analysts attribute the fall to extreme negative momentum post the October 10 flash crash, potential market manipulation, and escalating geopolitical tensions involving Iran. Moreover, short-term holders have exacerbated the selling pressure, with over 40,000 BTC sent to exchanges at a loss recently. Despite the crash, larger exchanges like Binance show no signs of stress, with normal netflows and reserves holding near 659,000 BTC.