Wednesday, February 4, 2026 — 7:00 AM IST
The market is currently navigating a "capitulation phase." After a brutal Tuesday that saw Bitcoin plunge to its lowest price since the 2024 U.S. election, traders are searching for a definitive floor amidst extreme fear.
1. Latest Crypto Market News
Bitcoin Hits Post-Election Low: On Feb 3, Bitcoin dropped as much as 7%, touching $72,877—erasing all gains made since Trump's 2024 victory. The slide is fueled by "AI bubble fears" in the stock market and persistent economic headwinds.
White House Meeting Statement: Following Monday's private meeting between banking trades and the White House, the Bank Policy Institute (BPI) issued a statement warning that yield-bearing stablecoins could reduce bank lending by $850 billion. This tension is a major hurdle for the upcoming CLARITY Act.
Institutional Deleveraging: Funding rates for perpetual futures have turned negative, signaling that the market is now dominated by bearish bets. Meanwhile, Crypto ETFs have flipped to net negative flows for the year 2026.
2. Trending Coins
BTC (Bitcoin): Trending for all the wrong reasons as it enters a technical "bear market" (down 40% from its October record high).
HYPE (Hyperliquid): One of the few survivors, currently trading at $31.32 (+2.32%). It has become the primary destination for traders fleeing centralized exchanges.
WLFI (World Liberty Financial): Notoriously bucking the trend with a 5.85% gain over the last 24 hours.
ZEC (Zcash): Up 3.73% as privacy narratives strengthen in response to increased regulatory scrutiny on stablecoins.
3. Whale Activity
Aave Deleveraging: Two "mega-whales" (including "BitcoinOG") offloaded $371M in ETH over 48 hours specifically to repay loans on Aave, signaling a massive "risk-off" move by the biggest players.
Strategic Buying: Despite the panic, one institution purchased $208M in cbBTC and ETH during Tuesday's dip. They acquired 60,392 ETH at an average price of $2,495.
ADA & SHIB Accumulation: Whale cohorts holding >1B ADA added 300 million tokens recently, while SHIB whales added 690 billion tokens since Jan 27, suggesting these are the primary "recovery play" candidates for February.
4. Significant Volume Increases
Tether Gold (XAUt) & PAXG: Volume and price for gold-backed tokens are up ~4.5% as investors treat them as a "flight to safety" during the crypto and tech-stock rout.
Solana (SOL): Volume remains high ($10B+) as it attempts to hold the psychological $100 level.
SUI: Massive 24h volume of $1.81B despite an 8.8% price drop, showing heavy liquidations and active fighting at the current support.
#GoldSilverRebound #USIranStandoff #USCryptoMarketStructureBill #
