Welcome to the US Crypto News Morning Briefing—key summary of major developments in the world of crypto assets for today.
Grab a coffee and sit back — the market has been up and down lately. Bitcoin is moving, stocks are volatile, and important news keeps coming in. While some investors choose to hold back, others are watching closely, trying to read the signals behind the market noise.
Crypto News Today: Bitcoin Drops Below US$68,000 Amid Forced Deleveraging
Bitcoin fell below US$70,000 on Thursday, then continued to drop to the area below US$68,000, a level last touched on October 28, 2024. This decline occurred alongside a massive sell-off in the crypto market.
This decline reflects a decrease of about 45% from the October high, triggered by ETF outflows, decreasing demand, and the 'forced deleveraging' phase in the Futures market.
"...due to declining demand, drying ETF inflows, and the Futures market entering a 'forced deleveraging' phase. Analysts assess that weak trading volume and ongoing selling pressure are causing investors to exit at a loss, even though technical indicators show oversold conditions," wrote Walter Deaton.
Low trading volume and ongoing selling pressure have caused many investors to choose to exit positions at a loss, even though technical indicators show oversold conditions.
Amid this short-term turbulence, JPMorgan has become increasingly optimistic about Bitcoin's long-term potential compared to gold.
The bank highlights that BTC is now trading well below the estimated production cost of US$87,000, a level historically regarded as a floor, and its volatility against gold has now dropped to a record low.
"...the performance of gold has far outperformed Bitcoin since last October, coupled with a sharp spike in gold volatility, making Bitcoin appear more attractive than gold for the long term," reported MarketWatch, citing JPMorgan's quantitative strategy, Nikolaos Panigirtzoglou.
According to the bank, this improved risk profile indicates significant upside potential for investors willing to hold assets for several years.
The market stress size highlights how fragile the current situation is. Data from Glassnode shows that the Bitcoin capitulation metric recorded the second largest spike in the last two years. This reflects forced selling and rapid risk reduction by market players.
At the same time, it should be noted that Bitcoin has erased all gains since Donald Trump won the election, closing the post-election rally at 78% and highlighting still high volatility.
Crypto Stocks Plummet Amid Bitcoin Sell-Off and Growing Economic Uncertainty
Crypto stocks also reflect the overall weakness of Bitcoin. Stocks of Coinbase, Riot, Marathon, and Strategy fell between 5% and 7% in the pre-market session after Bitcoin dropped below US$70,000, and ETF holdings also fell more than 5%.
This weakening of the crypto market occurs amid broader macroeconomic pressures. Layoffs in the US in January rose 205% year-on-year to 108,435, the highest January figure since 2009, according to Challenger, Gray & Christmas.
Job cuts are most prevalent in the transportation sector—led by UPS—and the technology sector, with Amazon announcing 16,000 layoffs. The healthcare sector has also seen significant workforce reductions.
At the same time, federal job protections were overhauled, where the Trump administration enacted reforms impacting 50,000 civil service workers. Continued unemployment claims remain high at 1.84 million, indicating ongoing economic uncertainty.
The stock market is also facing a backdrop that is no less complicated, with BMO Capital Markets forecasting that the S&P 500 could reach 7,380 by the end of 2026, indicating a potential return of 8%.
The firm prefers cyclical sectors such as industry, materials, energy, and finance, while defensive sectors tend to receive less allocation. Inflation remains a primary risk, but global monetary and fiscal stimulus still supports the market.
With all these developments, Bitcoin investors and financial market players in general must balance their strategies more carefully:
Oversold technical conditions and relatively low volatility signal long-term opportunities
However, direct pressure from leveraged positions, ETF outflows, and macroeconomic uncertainty continue to weigh on sentiment.
JPMorgan's analysis shows potential gains for patient holders, but short-term prospects remain volatile, reflecting that the market is in an adjustment phase.
Chart of the Day
Here is a summary of other US crypto asset news to follow today:
Ethereum loans reached US$28 billion after Aave demonstrated DeFi resilience amid the weekend crash.
Solana's price is approaching US$90, but long-term buyers continue to accumulate.
Congress is questioning whether the Treasury will 'save Bitcoin'—this strange exchange highlights the federal immunity of crypto.
XRP treasury company, Evernorth, suffered a loss of US$380 million due to ongoing price pressure.
Bitcoin fell below the US$70,000 support, with a 37% downside risk beginning to emerge.
Ethereum network activity has peaked, but this does not necessarily signal a bullish trend.
Tether surpassed 500 million users amid rapid growth—but risks and peg concerns still haunt.
Crypto Stock Pre-Market Summary
CompanyClosing as of February 4Crypto Stock Pre-Market SummaryStrategy (MSTR)US$129.09US$120.78 (-6.58%)Coinbase (COIN)US$168.62US$159.42 (-5.46%)Galaxy Digital Holdings (GLXY)US$20.16US$19.10 (-5.26%)MARA Holdings (MARA)US$8.28US$7.81 (-5.68%)Riot Platforms (RIOT)US$14.14US$13.36 (-5.51%)Core Scientific (CORZ)US$16.15US$15.50 (-4.02%)
Crypto stock market opening race: Google Finance