The crypto market is marginally down, with price action remaining mixed. Bitcoin (BTC) has slipped below $98,000 over the past 24 hours. The flagship cryptocurrency is trading at around $98,700 as it struggles to reclaim $100,000. BTC has remained sluggish since recovering from Monday’s collapse as markets await a catalyst to resume its bull run.
On the other hand, Ethereum (ETH) is up over 2% and trading above $2,800, while Ripple (XRP) is down nearly 4%, trading below $2.50. Solana (SOL) has remained above $200 despite being down almost 2% over the past 24 hours. Dogecoin (DOGE) is down nearly 1%, while Cardano (ADA), Tron (TRX), and Toncoin (TON) have registered notable gains. The crypto market cap is down by 0.44% at $3.22 trillion.
The Crypto Market Has Lost All Logic
Crypto traders fear the market has lost all sense of logic and is confusing every investor. The market is not following traditional patterns, throwing off even experienced traders. Despite pro-crypto moves by the US government, the market keeps retracing. One analyst stated on X,
“The market is totally cooked. It has lost any sort of rhyme or reason. This is very confusing for almost every investor.”
Another analyst believes that something is wrong with the market’s pricing of Bitcoin, adding the cryptocurrency is undervalued by $50,000-$100,000.
“Something is terribly wrong with the market’s pricing of Bitcoin. We are easily $50K-$100K undervalued. There is far too much to be bullish about. There is going to be a violent repricing.”
The Crypto Fear & Greed Index has also dropped to neutral as markets remain muted. Analysts were confident BTC dominance and prices would peak in early 2025 following Donald Trump’s election victory. While BTC surged past $100,000 and reached a new all-time high, it has seen volatility and sluggishness in recent sessions as bulls struggle to build momentum. Growing concerns of a trade war after Trump announced tariffs on Canada, Mexico, and China led to the largest liquidation event in crypto history on February 3, as $2.24 billion was liquidated from the market in 24 hours, although CoinGlass suggested the liquidations were significantly higher.
Russia Enforces Mining Oversight
Russia has enforced crypto mining oversight, mandating miners to report earnings. The country’s Federal Tax Service (FNS) has said taxpayers involved with crypto mining must declare their crypto earnings through their personal accounts. The development corresponds with Federal Law N0- 259-FZ, which outlines the legal framework for crypto mining and taxation in the country. The FNS stated,
“taxpayers who are engaged in digital currency mining must report to the authorized body on the mined currency no later than the 20th day of the month following the month in which the digital currency was received.”
According to the tax agency, the new guidelines allow individuals and businesses to file reports efficiently and ensure adherence to established regulations. The agency clarified,
“At the same time, individual entrepreneurs and legal entities will be able to send information about mined currency to the tax authority if they are included in the Register of Miners and Operators.”
David Sacks Prioritizes Stablecoin Regulation
David Sacks, the White House AI and Crypto Czar has said he will focus on stablecoin regulations and begin work on creating a regulatory framework for crypto.
“They are very committed to moving legislation through the House and the Senate this year in order to provide that clear regulatory framework that the digital assets ecosystem needs to sustain innovation in the United States. Moving legislation through Congress takes time, but I think this is something we could do in the next six months.”
Sacks and leading House and Senate leaders will prioritize a stablecoin bill introduced by Senator Bill Hagerty, who proposed new rules for stablecoins to create a clear regulatory framework for the asset. Stablecoins have gained significant popularity overseas, with lawmakers focusing on promoting US-based stablecoins to reinforce the Dollar’s dominance. Sacks also said the White House will evaluate the feasibility of a Bitcoin reserve.
Bitcoin Reserve Could Become A Political Weapon
According to Arthur Hayes, chief investment officer at Maelstrom, a strategic Bitcoin reserve could become a net negative for the industry as it could be used as a political weapon. It could even be reversed if Democrats win the 2028 election and decide to sell the stockpile. Hayes stated in a blog,
“Broadly speaking, many misguided crypto folks wish for the US government to print dollars and purchase Bitcoin as part of a national stockpile […] I believe these folks are asking for the wrong things. There would be 1 million Bitcoin just sitting there, ready to be sold; it just takes a signature on a piece of paper.”
Hayes acknowledged a Bitcoin reserve could make the Bitcoin price go haywire, but added that whatever BTC the US buys would be for political and not financial gains. If President Trump fails to slow inflation and fix pressing issues, the Democrats could build momentum, win the House majority, and even punish crypto investors for supporting Trump. However, others, like asset management firm VanEck, are more optimistic about the prospects of a Bitcoin stockpile, adding that a Bitcoin reserve could reduce the US’s national debt by 35% by 2049.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) climbed above $98,000 as it tried to build momentum and reclaim $100,000. The flagship currency has struggled and experienced high levels of volatility, as shown in the daily chart. BTC faced a precipitous drop followed by a quick rebound thanks to lower-level support. However, it faces resistance around $103,000 and $100,00 after sellers drove the price below the 50-day SMA.
Analysts from Bitfinex have predicted BTC is on the brink of a decisive price move in the coming weeks as the US evaluates its next move regarding the flagship cryptocurrency. Several other macroeconomic factors can also impact BTC’s price action. The analyst pointed out that BTC has been trading in a 15% price range since mid-November when its price was around $90,000. Historically, 15%-20% consolidated price ranges tend to resolve in either direction within 80-90 days. The analysts also stressed that despite BTC’s high correlation with macro conditions and its ability to stay above its pre-election price highlights the asset’s strength. Trump’s tariffs led to the largest liquidation event in the crypto industry, with over $2.24 billion liquidated in 24 hours. However, despite recent market struggles, the analysts were optimistic about BTC’s long-term prospects.
“While Bitcoinʼs short-term volatility may continue in response to macroeconomic influences, its long-term outlook remains positive.”
BTC’s price action has been in the doldrums since last Monday when it dropped below $100,000 to $97,766 before recovering to reclaim $100,000 and settle at $102.064. Sellers retained control the following day as BTC fell 0.69% to $101,362. The price rebounded from this level on Wednesday, rising over 2% and settling at $103,663. BTC surged to an intraday high of $106,296 on Thursday before losing momentum and settling at $104,553, an increase of nearly 1%. However, sentiment changed on Friday as BTC dropped almost 2% and fell to $102,616.
Source: TradingView
Sellers retained control over the weekend as BTC fell by 1.54% on Saturday, going below the 20-day SMA and settling at $101,041. Bearish sentiment intensified on Sunday as BTC fell below $100,000 and the 50-day SMA to settle at $97,881, but not before dropping to an intraday low of $96,373. The crypto market collapsed on Monday as markets witnessed the largest liquidation event in history. As a result, BTC plunged to an intraday low of $91,274. Incredibly, BTC recovered from this level, rising nearly 4% to reclaim $100,000 and settle at $101,579. However, the rally was short-lived as BTC fell 3.54% on Tuesday, dropping below $100,000 and the 50-day SMA and settling at $97,979.
Sellers retained control on Wednesday as BTC dropped 1.34% after a failed attempt to move past the 50-day SMA, ultimately settling at $96,668. The current session sees BTC up nearly 2% as buyers look to build momentum and push the price above the 50-day SMA and reclaim$100,000. If BTC reclaims $100,000, it would indicate buyers have the upper hand. BTC will look to move past the 20-day SMA and retest its all-time high. However, if sentiment changes and sellers take over, BTC could drop towards $90,000. The RSI is just below the neutral zone but pointing upwards, indicating a bullish tilt. The MACD could also flip to bullish if BTC reclaims $100,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is up nearly 2% over the past 24 hours, as it bucks the market trend to register a notable increase over the past 24 hours. Recently, Ethereum researcher Justin Drake stated the upcoming Pectra upgrade would help improve the ETH burn mechanism, helping the asset regain its status of “ultra sound money” again. The researcher also shared how a change in the ETH issuance model could help reduce supply growth. Drake stated in a post on X,
“To become ultra sound again, either issuance has to decrease or the burn has to increase. I believe both will happen.”
The Pectra upgrade, slated for March, will double the limit of blob space in Ethereum blocks from three to six, reducing fees on Layer2 networks and affecting ETH burn. Drake also highlighted that scaling data availability through increasing blobs could lead to a surge in the amount of ETH burned.
“Yes, the data availability supply shock from EIP-4844 that introduced blobs temporarily lowered total burn. This is the nature of supply and demand.”
ETH made a strong recovery after dropping to an intraday low of $3,039 on Tuesday, registering an increase of 1.20% and settling at $3,114 on Wednesday. Buyers retained control on Thursday as ETH rose 4.29% and moved to $3,248. Buyers pushed ETH to an intraday high of $3,442 on Friday. However, it lost momentum after reaching this level and settled at $3,300, just above the 20-day SMA. ETH was back in the red on Saturday, dropping 5.52% to slip below the 20-day SMA and settling at $3,118. Bearish sentiment intensified on Sunday as ETH slipped below $3,000 and the 200-day SMA and settled at $2,859.
Source: TradingView
ETH plunged to an intraday low of $2,160 on Monday as markets tanked. However, it recovered from this level to register a marginal increase and settle at $2,882. Sellers were back in control on Tuesday as ETH dropped over 5% to $2,732 before rising just over 2% on Wednesday and settling at $2,789. The current session sees ETH up nearly 2% and trading around $2,843. ETH has support at around $2,700, a level from which it has recovered over the past couple of sessions. However, buyers must reclaim $3,000 to resume ETH’s uptrend. If ETH reclaims this level, its next target will be the resistance around $3,200. A break above this level could see ETH push to $3,500. The RSI and MACD indicate a waning bearish trend as buyers make a comeback. If buyers retain control, both indicators could flip to bullish.
Solana (SOL) Price Analysis
Solana (SOL) has bounced back during the ongoing session after slipping below $200 on Wednesday. SOL has faced considerable bearish pressure since mid-January after it surged to $295. SOL has steadily declined since, struggling to stay above $200. SOL fell to a low of $224 on Tuesday as sellers sought to drive the price below the 20-day SMA. However, SOL registered a marginal increase on Wednesday, preventing a decline and moving to $228. Buyers retained control on Wednesday as SOL rose 4.47% and moved to $238. However, the price was back in the red on Friday as SOL dropped nearly 3% to settle at $231.
Source: TradingView
Bearish sentiment intensified on Saturday as SOL plummeted over 8% to go below the 20-day SMA and settle at $213. Sellers retained control on Sunday as SOL fell below the 50-day SMA, dropping to an intraday low of 4193 before settling at $203. SOL tanked to an intraday low of $176 on Monday as markets collapsed. However, it rebounded from this level, rising over 6% to reclaim $200 and settle at $216. SOL was back in the red on Tuesday, falling 4.51% to slip below the 50-day SMA and settle at $206. SOL dropped below $200 on Wednesday, registering a decline of over 5%, and settled at $196. The current session sees SOL up nearly 3% and trading at $201 as buyers look to prevent a further decline.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) plunged below $1 over the weekend as it fell to a yearly low, with the meme coin facing a make-or-break moment. WIF surged to $4 in December thanks to a market rally following Donald Trump’s victory. However, it has seen a substantial decline since and also registered a notable fall in speculative activity. The meme coin has registered a drop in open interest, indicating a reduction in capital flowing to the asset. WIF’s open interest stood at $600M at the peak of its rally. However, this figure has dipped to $150 million.
WIF has traded in the red since Wednesday, when it registered an increase of 12.11% and moved to $1.18. The price was back in the red on Thursday, falling 2.58% to $1.15. Buyers attempted a recovery on Thursday as WIF rose to an intraday high of $1.31 before losing momentum and dropping to $1.15. Bearish sentiment intensified over the weekend as WIF fell 11% on Saturday and settled at $1. WIF fell below $1 on Sunday, dropping to $0.94 after registering a decline of nearly 6%.
Source: TradingView
WIF slumped to an intraday low of $0.637 on Monday as prices across the board tanked. However, it recouped some losses to settle at $0.86, a drop of over 9%. Sellers retained control on Tuesday, dropping nearly 7%, and settled at $0.802 before falling to $0.794 on Wednesday. The current session sees WIF up almost 2% as buyers look to build momentum and reclaim $1.
Bittensor (TAO) Price Analysis
Bittensor (TAO) struggled to move past the 20 and 200-day SMAs last week despite surging to an intraday high of $509 on Monday. Buyers and sellers struggled to establish control for the rest of the week as TAO faced volatility while registering marginal increases and declines, with the price hovering around $450. After settling at $448 on Friday, TAO plummeted over 12% on Saturday, falling below the 20-day SMA and $400 to settle at $393. Buyers retained control on Sunday as TAO fell nearly 10% and settled at $350.
Source: TradingView
TAO tanked to an intraday low of $239 on Monday as markets collapsed before rebounding to register an increase of over 14% and settle at $400. However, TAO was back in the red on Tuesday, falling 10.50% to $358. Sellers retained control on Wednesday as the price fell 2.38% to $349. The current session sees TAO up nearly 3% as buyers look to build momentum and push TAO towards $400.
Internet Computer (ICP) Price Analysis
Internet Computer (ICP) made a strong recovery after a drop of nearly 4% on Tuesday, registering a marginal increase on Wednesday before rising over 6% on Thursday and settling at $9.12. ICP surged to an intraday high of $9.76 on Friday, briefly rising above the 200-day SMA. However, buyers lost momentum after reaching this network and ultimately settled at $9.29, up 1.86%. Sentiment changed over the weekend as ICP fell over 8% on Saturday and settled at $8.51. Bearish sentiment intensified on Sunday, and ICP fell over 12%, dropping to a low of $7.08 before settling at $7.48.
Source: TradingView
ICP fell to an intraday low of $5.66 on Monday before recovering to register an increase of just over 2% and settle at $7.63. Sellers returned to the market on Tuesday, as the price dropped nearly 8% and settled at $7.05. ICP slipped below $7 on Wednesday, dropping to $6.98, but it has recovered during the current session and is up over 2% and trading around $7.13.
Theta Network (THETA) Price Analysis
Theta Network (THETA) has been trading in the red since Friday after a failed attempt to go past key moving averages and consolidate above $2. THETA rose to an intraday high of $2.19 on Friday but lost momentum, dropping just over 1% to $1.93. The price remained red on Saturday as THETA fell over 8% to $1.77. Bearish sentiment intensified on Sunday as the price dropped nearly 13%, going below the 200-day SMA and settling at $1.54.
Source: TradingView
Monday saw THETA drop to an intraday low of $1.16. However, it recovered from this level to recoup its losses, register an increase of 1.30%, and settle at $1.56. The recovery was short-lived as THETA fell back in the red on Tuesday, dropping over 8% to $1.43. Sellers retained control on Wednesday as THETA fell over 5% to $1.36. The current session sees THETA up nearly 3% and trading around $1.40. Buyers will look to build momentum and push THETA above $1.50 and beyond the 200-day SMA. However, if sellers retake control, THETA could drop to $1 before rebounding.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
