Risk Asset Selloff Continues as Bitcoin Plunges Toward 200-Day Moving Average
Summary
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Macro: Latest U.S. employment data point to a notably softening labor market, yet market expectations for a March rate cut have not materially increased. Both the ECB and the Bank of England kept rates unchanged, with the BoE delivering a more explicit dovish signal. Meanwhile, panic surrounding the AI sector continued to spread. Under pressure from a sharp selloff in tech stocks, all three major U.S. equity indices closed lower. Precious metals pulled back, while rising risk aversion drove U.S. Treasury yields sharply downward.
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Crypto Market: The crypto market saw a steep decline, with Bitcoin briefly falling to $60K and recording its largest single-day drop since October 2022. Total crypto market capitalization erased over $200 billion, with trading volumes continuing to expand. Altcoins also declined but underperformed Bitcoin in terms of downside, leading to a slight increase in their market share. Market sentiment remains highly fearful. Bitcoin’s 200-day moving average, around the $58,000–$60,000 range, may serve as a key potential support zone. Amid the recent surge in market volatility, close attention is advised on technical stability, risk controls for leveraged derivatives, liquidity management contingency planning, and enhanced user care and retention measures during extreme market conditions.
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Project Developments
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Hot tokens: HYPE, RNBW
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HYPE: Coinbase to list HYPE spot trading; Hyperliquid previously proposed HIP-4; Ripple Prime integrates Hyperliquid
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RNBW: Coinbase to list RNBW; Binance Alpha to list RNBW and distribute an airdrop; CoinList distribution underway
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SKR/ZRO: Robinhood launches SKR and ZRO spot trading
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Major Asset Changes
Crypto Fear & Greed Index: 9 (24h prior: 12) — Extreme Fear
Today’s Outlook
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Release of U.S. January unemployment rate, January nonfarm payrolls (seasonally adjusted), and final 2025 nonfarm benchmark revision postponed
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Amazon to release annual report
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Preliminary February University of Michigan Consumer Sentiment Index (U.S.)
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Strategy to release 2025 Q4 earnings and host conference call
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Hyperliquid (HYPE) token unlock: ~9.92M tokens (~$305M)
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Berachain (BERA) token unlock: ~63.75M tokens (~$30.8M)
Macro Economy
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U.S. initial jobless claims (week ending Jan 31): 231K vs. 212K expected, prior 209K
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U.S. December JOLTS job openings: 6.542M, lowest since Sep 2020 (expected 7.25M); November revised down to 6.928M
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U.S. Challenger January layoffs: 108K, highest for the month since 2009, up 205% MoM
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ECB kept all three key rates unchanged, in line with expectations
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BoE held rates at 3.75%; 5–4 vote signaled strong easing bias
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Trump stated that “Waller would already be out if he proposed hikes”; Bessent said the president can intervene with the Fed
Policy Direction
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Brazil plans to ban issuance and trading of algorithmic stablecoins; offshore stablecoins must be provided by locally operated entities
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CFTC withdraws Biden-era proposal banning political event prediction contracts; CFTC chair supports lawful innovation in prediction markets and calls for clear regulatory frameworks
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U.S. House launches probe into a $500M transaction involving WLFI and a UAE royal family member
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Hong Kong SFC reportedly considering allowing licensed VATPs to offer tokenized securities secondary trading to retail investors
Industry Highlights
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~$2.114B liquidated across the crypto market in the past 24 hours
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Strategy reported a $12.4B net loss in Q4 2025; raised $25.3B throughout the year; unrealized losses on holdings once widened to $10.16B, a record high
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Some Antminer S21 models and Whatsminer M60-and-below series have reached shutdown price levels
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Gemini to cease operations in the UK, EEA, and Australia
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Circle partners with Polymarket to bring stablecoin infrastructure into prediction markets
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Tether makes $100M strategic equity investment in Anchorage Digital
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Ethereum treasury ETHZilla “capitulates” amid the downturn, pivoting toward real-estate tokenization
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Bullish reports Q4 2025 adjusted revenue of $92.5M
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Tether Q4 report: USDT metrics hit multiple record highs in Q4 2025
Deep Dive: Industry Highlights (Feb 06, 2026)
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$2.114B Liquidated in 24 Hours
This massive liquidation event was triggered by a leveraged chain reaction after the market broke through key support levels. During this period of intense volatility, nearly $1.8 billion in market value evaporated in a single day. While this "deleveraging" process causes short-term panic, it serves as a necessary flush of over-speculative positions, helping the market seek a more stable floor under lower leverage conditions.
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MicroStrategy Reports $12.4B Net Loss in Q4 2025
Despite raising $25.3 billion throughout 2025 to aggressively execute its Bitcoin strategy, MicroStrategy faced extreme accounting volatility risk as unrealized losses peaked at $10.16 billion. This record high reflects the double-edged sword of using BTC as a primary reserve asset. However, the firm’s commitment to its "BTC Yield" model—buying more during the dip—underscores a long-term institutional conviction that ignores short-term paper losses.
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Mining Hardware Hits Shutdown Price Levels
With the post-halving difficulty adjustments and rising energy costs, the marginal profit for older hardware like the Antminer S21 and Whatsminer M60 series has hit a breaking point. At current price levels (fluctuating between $69k–$74k), many miners are operating at a loss. This could lead to a short-term drop in global hash rate and force mining firms to either upgrade their fleets or sell BTC reserves to cover operational overhead.
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Gemini to Cease Operations in UK, EEA, and Australia
Gemini’s retreat marks a "compliance cost watershed" in the global regulatory landscape. As the EU’s MiCA framework enters full enforcement, Gemini has opted to bypass the complexity of multi-jurisdictional licensing. By exiting these markets, the firm aims to cut labor costs by 25% and consolidate resources into the U.S., focusing on emerging regulatory tailwinds and its decentralized prediction market ventures.
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Circle Partners with Polymarket for Stablecoin Infrastructure
The collaboration between Circle and Polymarket represents an "institutional upgrade" for prediction markets. By migrating from bridged USDC to native USDC infrastructure, Polymarket provides users with higher transparency and fiat-backed redemption guarantees. This move not only improves capital efficiency but also sets a technical standard for compliant prediction platforms under regulatory scrutiny.
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Tether’s $100M Strategic Investment in Anchorage Digital
This investment is a calculated move by Tether to penetrate regulated financial infrastructure. As the first federally chartered digital asset bank in the U.S., Anchorage Digital provides Tether with a "green lane" into compliant custody and stablecoin issuance. Beyond bolstering the compliance narrative for USDT, this stake suggests Tether is building a defensive moat between traditional banking and the crypto-native world.
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ETHZilla Treasury Capitulates, Pivots to RWA Tokenization
The "capitulation" of ETHZilla, an Ethereum-heavy treasury, reflects a broader shift among institutional investors toward cash-flow-generating assets. Faced with ETH price stagnation and debt pressure, ETHZilla liquidated its holdings to pivot toward Real-World Assets (RWA), specifically modular housing loans. This move aims to secure stable yields (approx. 10%) for shareholders, moving away from pure speculative appreciation.
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Bullish Reports $92.5M Adjusted Revenue in Q4 2025
Bullish’s record revenue amidst a market downturn highlights the explosive growth of institutional-grade services and derivatives. Ranking second globally in Bitcoin options open interest (OI), the exchange has capitalized on the surging demand for hedging tools. Bullish’s performance proves that even in a bearish environment, deep liquidity and professional-grade products remain highly profitable.
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Tether Q4 Report: USDT Metrics Hit Multiple Record Highs
Tether’s Q4 performance demonstrates incredible liquidity resilience, with its market cap surging toward $187 billion and U.S. Treasury holdings exceeding $140 billion. The record-breaking metrics indicate that during times of market uncertainty, the global demand for "safe-haven" liquidity remains tethered to USDT. As the market's primary "war chest," Tether now holds unprecedented pricing power and intervention capability.