Bitcoin’s (BTC) Free Fall, Ethereum’s (ETH) Collapse, and More: Bits Recap Feb 6
The past few days have been nothing but a massacre for the majority of the leading cryptocurrencies. Bitcoin (BTC) crashed to levels last seen in 2024, whereas Ethereum (ETH) tumbled well below $2,000.
Interestingly, Hyperliquid (HYPE) has shown notable resilience amid the crisis, with its price soaring by 60% in the past two weeks. In the following lines, we will touch upon these three cryptocurrencies and their latest performance.
BTC Bleeds Out
The primary cryptocurrency started the year on the right foot and at one point even challenged the $100K milestone. The past few weeks, though, have been brutal, with the price collapsing to as low as $60,000 on February 5. As of press time, BTC trades at approximately $66,400, representing a 20% weekly decline.
Pessimism among analysts has since dominated, with many suggesting that bears may simply be stepping in. Ali Martinez recently reminded that since 2015, every time BTC has lost the 100-week simple moving average (SMA), it has failed to reclaim it quickly and continued toward the 200-week SMA. Based on his chart, the asset’s valuation could plunge to $57,600.
For their part, PlanB (the anonymous creator of the Stock-to-Flow (S2F) model) presented several possible scenarios, including a devastating crash to $25,000.
The recent behaviour of the large investors supports the bearish thesis. Santiment’s data shows that whale and shark wallets have been selling BTC over the past few days, while smaller players have increased their exposure.
Meanwhile, the popular Fear & Greed Index (which measures the current sentiment of BTC investors) has fallen to 9, the lowest point since the summer of 2022. Extreme fear is a sign that investors are overly worried and may sound alarming, but it can also indicate that the bottom is in.
BTC Fear & Greed Index, Source: alternative.me
After all, prominent investors, including Warren Buffett, have advised over the years that the best buying opportunities occur when there’s blood on the streets. The exact words of the Oracle of Omaha are: “Be fearful when others are greedy and greedy when others are fearful.”
Bad Days for ETH
The second-largest cryptocurrency has also been significantly affected by the market crisis, with its price briefly falling to a nine-month low of approximately $1,750. Currently, it hovers around $1,900, down 30% over the last seven days.
Its negative performance coincides with substantial outflows from spot ETH ETFs, suggesting a decline in institutional investor interest. It also follows news that Vitalik Buterin (one of Ethereum’s co-founders) has sold millions of dollars’ worth of the asset.
One popular analyst who touched upon ETH’s recent downtrend is X user Ted. He claimed that the next major support zone for the price is around the April 2025 lows. Recall that at that time, ETH nosedived below $1,400.
Ali Martinez argued that the coin historically bottoms when the Market Value to Realized Value (MVRV) drops under 0.80. On February 5, the metric stood at 0.96, indicating that an additional slump isn’t out of the question.
HYPE Stands Its Ground
Contrary to BTC, ETH, and countless other cryptocurrencies, Hyperliquid (HYPE) is actually in green territory. Its price has rallied by 60% over the past two weeks, driven by significant developments, including support from Ripple and growing interest in HIP-3 activity amid increased trading volume and open interest.
A few days ago, the team behind the decentralized platform revealed that HIP-3 markets reached new all-time highs of $1 billion in open interest and $4.8 billion in 24-hour volume.
Analysts like Crypto General and Zach are quite bullish. The former predicted short-term volatility and an eventual spike beyond $100 sometime this year, whereas the latter claimed there are “so many reasons to buy and hold HYPE.”
The post Bitcoin’s (BTC) Free Fall, Ethereum’s (ETH) Collapse, and More: Bits Recap Feb 6 appeared first on CryptoPotato.
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