One of the reasons for the sell-off $BTC is the massive liquidations of long positions. Over the past seven days, more than $2.6 billion of margin trades on purchases have been forcibly closed. At the same time, the liquidation of short positions turned out to be five times less — $521.8 million. The worst day for buyers was Thursday, February 5th, when a long position was liquidated for an amount exceeding $1 billion.
There is no support for Bitcoin from exchange-traded funds. A cash outflow from spot ETFs on BTC has been recorded for the third consecutive week. This time, the outflow amounted to $689.22 million. This is somewhat less than the previous two weeks when the outflow exceeded $1.3 billion in both cases. The most money, $346.76 million, was withdrawn from the BlackRock iShares Bitcoin Trust (IBIT) fund.
We cannot overlook the political factor. In the USA on Monday, February 2, a meeting of cryptocurrency market participants and bankers regarding the CLARITY bill was held unsuccessfully at the White House. The bill did not advance, indicating that the conflict between banks and stablecoin platforms persists.
Additionally, the USA issued a new warning to its citizens to leave Iran — the second time this year. The timing is crucial. This new warning came just before the US and Iran negotiations regarding the Islamic Republic's nuclear program, which are scheduled to take place in Oman on February 6. The news only added to the nerves of crypto investors.
From a technical analysis perspective, Bitcoin remains in a downward trend. The price of BTC is significantly below its 50-week moving average (marked in blue), which may indicate a prolonged correction. The RSI has entered the oversold zone (below 30), which can be viewed as a positive signal for buyers. However, it should be noted: in a declining market, this oscillator can show low values for quite some time. Currently, Bitcoin has a relatively high chance of dropping to the support level around $50,000. The resistance level is $74,000.
The Fear and Greed Index fell by seven points compared to last week. Its current value is 9. There is extreme fear among crypto investors.
Ethereum
$ETH fell in price from January 30 to February 6 by almost 25%. Five out of seven trading sessions ended negatively for ETH. Ethereum dropped to $2000. The last time the second largest cryptocurrency by market capitalization traded lower was on May 8, 2025.
An interesting pattern was noted by an analyst from the CryptoQuant platform under the pseudonym CryptoOnchain. He pointed out the metric of the total number of Ethereum transfers per day. It peaked at 1.66 million on January 16. At the same time, the simple 14-day moving average for the metric recorded its maximum at 1.17 million later on January 29. Although at first glance, such data indicates increased network activity, CryptoOnchain comes to a different conclusion. In January 2018 and May 2021, there was also a sharp increase in the total number of Ethereum transfers. In each case, a sharp drop in the value of ETH followed.
CryptoOnchain concludes — the sharp increase in the number of Ethereum transfers indicates two things: long-term investors transferring funds to exchanges to lock in profits and a peak in price volatility. CryptoQuant's analyst is confident that a prolonged crash in February 2026 is also quite realistic, and investors should be very cautious in their decision-making.
As with spot ETFs on Bitcoin, similar products on Ethereum have recorded cash outflows for the third consecutive week. It is worth noting: this time the outflow was the smallest over the period — $149.07 million. Investors were most actively withdrawing money from the BlackRock iShares Ethereum Trust (ETHA). The outflow from this fund amounted to $106.72 million — over 70% of the total figure for the week.
Among other news regarding ETH, it is essential to note the launch on February 4 of the stablecoin by Fidelity, FIDD, on the Ethereum blockchain. Fidelity's move should enhance competition in the stablecoin market. Kraken has already managed to be the first among major centralized cryptocurrency exchanges (CEX) to list FIDD.
From a technical analysis perspective, the trend of Ethereum is downward. This is supported by the price being below the 50-day moving average (marked in blue). The trend is strengthening as the ADX indicator shows growth. The mark of $2112, which had long been a support level, has now become resistance. The new support level is $1750, from which the growth began in May 2025.
Solana
For the week from January 30 to February 6, $SOL fell by 27.91%. The price of SOL dropped below $85 for the first time in two years. The minimum price of Solana during the week was $66.76. The decline in value was accompanied by an increase in volatility and trading volume.
Besides the overall decline of the crypto market, new actions from Chinese authorities have also negatively impacted Solana. The People's Bank of China, together with seven ministries, issued a circular stating that any activity related to virtual assets in any way is considered illegal. This includes the functioning of cryptocurrency exchanges, direct trading, intermediary participation, issuance of tokens, and related financial products. It is worth noting that tokenized real-world assets (RWA) are also banned. This is particularly negative for Solana. The cryptocurrency is losing a significant market, being one of the top 3 networks for tokenized goods.
Spot ETFs on SOL showed modest, yet positive dynamics. The cash inflow for the week was $2.94 million. The best performer was the Fidelity Solana Fund ETF (FSOL), which received $5.19 million from investors. The worst performance was demonstrated by the Grayscale product, Grayscale Solana Trust (GSOL), which had an outflow of $5.22 million.
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