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Ethereum co-founder Vitalik Buterin has sold thousands of ETH in recent days as the token fell below $2,000, according to on-chain data from Lookonchain. His sales added to the broader wave of large-holder selling that has pushed ETH to multi-month lows and intensified downward pressure across the market.

Lookonchain reported that on February 5, wallets linked to Buterin sold 2,961 ETH, worth roughly $6.6 million at an average price of about $2,228. Less than 24 hours later, total sales over the same three-day period had risen to 6,183 ETH, or approximately $13.2 million, with an average exit price near $2,140 as ETH continued to slide.

Some of the proceeds were redirected for philanthropic purposes. Buterin transferred around $500,000 from the sale of 212 ETH on February 2 to Kanro, a fund supporting open-source biomedical research. The organization confirmed the transfer, noting that the funds will support anti-airborne-disease and pandemic-related projects. Buterin has been contributing to similar causes for nearly three years, including a $20 million personal donation in October 2025.

In a recent post on X, Buterin explained that he withdrew 16,384 ETH to fund work in biotech, secure hardware, privacy-focused software, and other areas outside Ethereum’s core protocol. He described the moves as part of tighter spending measures at the Ethereum Foundation.

Ethereum has struggled over the past week, falling below the $2,100 level seen as key support and underperforming Bitcoin amid waning risk appetite across altcoins. At the time of writing, ETH was trading around $1,900, down about 7% in 24 hours and over 30% in the past week. On-chain data suggests that institutional investors and whales are contributing to the selling pressure. A CryptoQuant report from February 5 shows U.S. investors selling ETH at a discount, pushing the Coinbase Premium Index to its lowest level since July 2022, indicating broad de-risking.

Other major holders have also been active. Trend Research reportedly sold more than 170,000 ETH in under ten hours to repay loans, and Aave founder Stani Kulechov sold roughly 4,500 ETH near $1,900. At the same time, some investors moved in the opposite direction. Serial crypto investors 7 Siblings bought 9,000 ETH at just under $2,000 each as prices dipped, reflecting mixed strategies among whales during the correction.

The recent selling by Buterin and other large holders underscores the ongoing redistribution of ETH among institutions, whales, and savvy investors, contributing to heightened market volatility while the token navigates key support levels.

Bitcoin’s price rebounded sharply, climbing past $71,000 just hours after dipping to $60,000, highlighting extreme volatility in the cryptocurrency market. Altcoins also surged, pushing the total crypto market capitalization up by roughly $200 billion since this morning’s lows.

The recent price swings show Bitcoin lost nearly $30,000 in just over a week, falling from $77,000 last Wednesday to $60,000 early Friday. Analysts attributed the dramatic decline to emotional selling and structural market shifts rather than issues with Bitcoin’s fundamentals.

Since hitting the multi-year low, BTC has gained over $10,000 and briefly surpassed $71,000 before slightly retreating. Altcoins have performed even better, with XRP leading the rally, rising 19% to over $1.50, while Ethereum reclaimed the key $2,000 level.

Despite the recovery, the market still reflects heavy losses from earlier liquidations. Over $2 billion in positions were wiped out in the past 24 hours, mostly longs, while recent price gains have triggered more than $350 million in short liquidations, with Bitcoin accounting for $261 million of that total.

The sharp moves underscore the high-risk, high-reward nature of crypto trading, as sentiment swings and market reactions continue to drive dramatic intraday price action.

Binance founder Changpeng “CZ” Zhao drew widespread attention on Monday after tweeting “Poor again” following Bitcoin’s drop to $60,000 in early Asian trading on Friday. The comment came amid broader controversy over Binance’s role in recent market turbulence, including a sharp sell-off that briefly pushed Bitcoin below $75,000.

The tweet quickly triggered strong reactions from investors, reflecting ongoing frustration in the retail community. Crypto commentator Nebraskangooner responded sharply, saying, “You dumped the market, and now you’re mocking everyone for being poor? Weird flex.” The comment captured the sentiment of many retail traders who suffered losses amid speculation that Binance may have influenced the market decline.

Earlier this week, CZ addressed allegations he called “pretty imaginative FUD,” denying claims that Binance sold $1 billion in Bitcoin to trigger the sell-off or that he single-handedly “canceled the crypto supercycle.” He clarified that Binance wallet balances reflect user deposits and withdrawals rather than proprietary trading and explained that conversions of the exchange’s SAFU fund from stablecoins to Bitcoin would occur gradually over 30 days. CZ also joked that if he could control the crypto supercycle, he would be “snapping his fingers all day long.”

Despite his explanations, Nebraskangooner’s response highlights the tension between retail investors and large exchanges. Many community members also pointed to Binance’s alleged role in last year’s October 10 crash, which wiped out billions in leveraged positions. Industry peers, including OKX founder Star Xu, publicly criticized Binance following the event.

Separately, CZ exposed a long-running misinformation campaign against him and Binance involving a fake account named “Wei 威 BNB.” The account, which had 863,000 followers and used images from a BNB Chain event, initially appeared supportive but posted critical content about the exchange. CZ revealed that photos of him and Binance executive Yi He were altered, and one image featured a shirt he does not own. He also noted that the account’s history indicated it had been hacked or sold, originally posting unrelated female content before switching to crypto posts in 2015. CZ described the campaign as “lazy” and suggested it was likely orchestrated by a competitor more focused on undermining Binance than building their own business.

The episode underscores ongoing scrutiny of Binance and CZ, as well as persistent retail frustration over market volatility and the perceived influence of major exchanges.

Bitcoin fell to around $60,000 earlier today before bouncing back toward $65,000, following one of the sharpest daily sell-offs in its history. The recent price action has sparked debate among traders, with some viewing the rebound as a temporary technical reaction and others interpreting it as a potential setup for a recovery toward $70,000 fueled by extreme market fear.

On February 6, analytics firm Santiment highlighted that social media mentions suggesting Bitcoin would go “lower” or “below” spiked after the drop to $60,000. Historically, the firm noted, similar patterns have often preceded short-term price rebounds. True to this pattern, Bitcoin climbed back to roughly $65,000, with the uptick occurring after what The Kobeissi Letter described as the first-ever daily drop of more than $10,000, reportedly triggered in part by the liquidation of a large leveraged position.

Santiment asked whether the rebound could be dismissed as a “dead cat bounce,” while also suggesting that the extreme fear may have shaken out enough retail participants to justify a quick rally toward the $70,000 range. The sell-off capped several weeks of sustained downside pressure, during which Bitcoin erased all gains achieved after Donald Trump’s re-election. The broader market followed suit, with XRP falling 13% in a single day, and Ethereum, Solana, and BNB also posting steep losses.

Despite the short-term bounce, on-chain and derivatives data suggest a more complex picture. DeFi commentator Marvellous observed that “smart money” has adopted a net short position while whales and public figures have taken long positions. According to Marvellous, the bounce appears more mechanical than conviction-driven, following $2.2 billion in long liquidations, with open interest remaining elevated and funding rates staying flat.

Trader Sykodelic also noted a highly imbalanced liquidation map, with most long positions cleared and roughly $29 billion in shorts remaining versus about $100 million in longs over a one-year view.

At the time of writing, Bitcoin was trading near $65,000, down nearly 9% in the past 24 hours and more than 21% over the last seven days. Over the past month, losses approach 30%, placing Bitcoin around 48% below its October 2025 peak of over $126,000. CryptoQuant analysts noted that this downturn has developed faster than the 2022 bear market. Their data show Bitcoin fell 23% within 83 days of losing its 365-day moving average, compared with a six percent decline over the same period in early 2022.

Santiment also highlighted that sentiment toward both Bitcoin and Ethereum has turned “extremely bearish,” a condition that can sometimes coincide with brief relief rallies when retail fear remains high.

For now, the market remains divided. Some traders see the concentration of short positions and elevated fear as potential fuel for a move back toward $70,000, while others caution that without a collapse in open interest and sustained sideways trading, the recent rebound may only precede another test of lower levels.

Bitcoin’s rebound illustrates the delicate balance between fear and opportunity in volatile markets, with short-term recoveries possible even amid structural weakness and large-scale liquidations. Investors are closely watching both spot and derivatives data to determine whether this bounce can sustain momentum or if further declines are imminent.

Crypto markets are bracing for another wave of volatility as roughly 34,000 Bitcoin options contracts, valued at around $2.1 billion, are set to expire on Friday, February 6. While this expiry is smaller than last week’s end-of-month contracts, it comes amid a severe market downturn that has seen sentiment collapse across the crypto sector. Since the start of the week, digital assets have lost approximately $686 billion in total value as both retail and institutional investors aggressively exit positions.

The Bitcoin options expiring today have a put/call ratio of 0.59, indicating that more calls than puts are set to expire. Coinglass estimates that the “max pain” price for these contracts is around $82,000, well above current spot levels, meaning a large portion of these contracts will expire out of the money. Open interest remains heavily concentrated at the $100,000 and $70,000 strike prices, with roughly $1.1 billion of contracts at these levels on Deribit alone. Overall, Bitcoin’s total options open interest across all exchanges has been declining over the past week and currently sits at $32.5 billion.

Deribit analysts suggest that the market is still showing signs of downside risk. They note that Bitcoin’s open interest is stacked through the $80,000 to $90,000 range, while elevated put activity shows that traders are leaning defensive amid ongoing declines. Crypto derivatives provider Greeks Live highlighted the $60,000 range as a key consolidation zone, corresponding to the support level prior to the so-called Trump rally. They added that a rapid short-term dip could present a potential buying opportunity if support holds.

Ethereum options are also expiring in significant volumes today, with around 217,000 contracts valued at $400 million. Max pain for ETH contracts is $2,550, with a put/call ratio of 1.15. Total Ethereum options open interest across all exchanges is roughly $7.1 billion, bringing the combined notional value of today’s crypto options expiries to approximately $2.5 billion. This adds another layer of potential volatility to an already fragile market.

Spot markets continue to reflect investor panic. Total crypto market capitalization has dropped to a 16-month low of $2.27 trillion as the digital asset sell-off continues. Bitcoin has been particularly hard hit, falling below $60,000 in early Asian trading on Friday. The asset has lost around 50% of its value from its all-time high, dropping more than $60,000 over just four months. Ether has also been hammered, briefly slipping below $1,800, while altcoins across the board have faced steep declines.

Analysts warn that these conditions may mark the early stages of another extended crypto winter. The combination of high open interest in out-of-the-money options, falling spot prices, and ongoing liquidation pressure from both retail and institutional investors suggests that volatility is likely to remain elevated in the near term. Traders and investors are watching today’s Bitcoin and Ethereum options expiries closely, as outcomes could influence the next phase of price action and determine whether key support levels hold or break further.

This expiry comes at a critical time for the market, testing the resilience of both spot and derivatives markets. While some traders see short-term buying opportunities around key support zones, others caution that without renewed positive sentiment or institutional inflows, the risk of further declines remains high. Market watchers are also keeping an eye on broader macro factors, including U.S. monetary policy and investor appetite for risk, which could amplify movements during the expiry and set the tone for crypto markets in the weeks ahead.

Ethereum co-founder Vitalik Buterin has criticized the proliferation of copy-paste Layer 2 networks and generic EVM chains, warning that they are stalling meaningful progress toward Ethereum’s long-term scaling goals.

In a February 5 post on X, Buterin argued that many L2 launches are driven by comfort and familiarity rather than technical necessity. He said repeatedly creating new EVM chains with “optimistic bridges” has become routine, adding little beyond surface-level Ethereum compatibility. He compared this pattern to past DAO governance habits, where forking projects like Compound became commonplace but stifled innovation.

Buterin was especially critical of designs that drop Ethereum bridges entirely, stating that such chains are even less useful. He emphasized that the Ethereum base layer is already scaling and will continue to add EVM block space through 2026, though certain workloads, such as AI applications, may require specialized environments. In his view, these demands should encourage genuinely new architectures rather than lightly modified replicas.

He also highlighted the need for projects to match their marketing with technical reality. Many L2s no longer meet Ethereum’s original scaling definition because they fail to inherit full security. Buterin suggested two valid models: app chains that deeply rely on Ethereum, such as prediction markets settling on the L1 while executing on a rollup, and “institutional L2s,” where cryptographic proofs are published on-chain for transparency. Projects that do not fit these models should be transparent about their connection to Ethereum rather than implying a closer link than actually exists.

Crypto companies have proposed giving community banks a greater role in stablecoin reserves in an effort to ease tensions and secure support for a stalled crypto market structure bill. The legislation, which passed the House last year, could significantly reshape the financial system, but disagreements between the crypto industry and traditional banks have slowed its progress in the Senate.

According to Bloomberg, the latest proposals include requiring stablecoin issuers to hold a portion of their reserves at community banks and making it easier for these institutions to issue their own dollar-pegged digital assets. These concessions aim to address bank concerns and prevent large deposit outflows, which some analysts warn could reach $500 billion across industrialized nations by 2028 if stablecoin adoption continues unchecked. Meanwhile, the overall supply of digitalized dollars has grown roughly 40% over the past year, highlighting the sector’s rapid expansion.

Not all crypto firms are aligned with the proposals. A key point of debate is whether platforms like Coinbase should be allowed to offer rewards to users for holding stablecoins. Traditional banks argue that such incentives could pull customers away from checking and savings accounts, threatening a major source of deposits.

In a bid to resolve these disagreements, the Trump administration recently hosted a meeting at the White House between crypto and banking trade groups, but no agreement was reached. Despite this, the effort is seen as a positive sign that the bill could continue to move forward. Senate Banking Committee Chair Tim Scott expressed optimism about finding common ground, stating that it is possible to protect consumers and community banks while fostering innovation and competition to lower costs and expand access to financial services.

Crypto markets recently saw a sharp sell-off, pushing Bitcoin to its lowest level since November 2024. Binance Research attributes the drop to Kevin Warsh’s nomination to chair the Federal Reserve, which markets interpreted as a signal for aggressive liquidity tightening and widespread deleveraging.

However, Binance Research argues that the reaction may be exaggerated. Physical and structural limits in the financial system make severe quantitative tightening unlikely.

Analyst Michael JJ noted that last week’s market turbulence reflected a classic liquidity scramble. Margin calls and risk aversion drove traders to sell highly liquid assets, including crypto, which acted as “end-of-liquidity-chain” assets. Bitcoin fell below key technical supports, hitting an intraday low near $73,000 on February 4, while precious metals and stocks also experienced extreme volatility.

The report emphasizes that fears of rapid balance sheet reduction under Warsh may be overstated. The Fed’s reverse repo facility is nearing depletion, meaning aggressive tightening could push bank reserves below regulatory minimums and destabilize the repo market. Additionally, the U.S. Treasury must issue around $2 trillion in debt annually, requiring buyers that the private sector may struggle to absorb if the Fed reduces purchases.

Binance Research concludes that the system cannot support extreme QT without regulatory changes, making severe balance sheet shrinkage a longer-term possibility rather than an immediate threat. The recent resolution of the U.S. government shutdown also removed near-term policy uncertainty, providing some relief to markets.

Bitcoin has erased all of the gains it recorded after Donald Trump’s reelection and return to the White House at the end of 2024. The asset plunged to just above $65,000 earlier today, putting it slightly in the red compared to levels seen around the presidential election.

The latest decline means Bitcoin has fallen nearly $25,000 since last Wednesday and has lost close to half of its value from the all time high reached in early October 2025.

As the sell off deepens, many investors are questioning what triggered the move. According to recent commentary, the downturn does not appear to be driven by negative developments within Bitcoin’s fundamentals. Instead, analysts suggest sentiment is playing the dominant role.

The Kobeissi Letter stated that the repeated price drops are largely the result of emotional selling. They explained that high risk assets like Bitcoin are heavily influenced by investor psychology, and the current slide reflects a broad exit driven by fear rather than any structural weakness in the network.

Doctor Profit, an analyst known for consistently bearish forecasts, said he has placed large buy orders between $57,000 and $60,000, which he views as a likely bottom for the current trend. He noted that he plans to hold those positions for two to three months and has no interest in buying at higher levels.

Another analyst, MMCrypto, said that while Bitcoin does appear to be in a bear market, he believes the worst of it is nearly over from a timing perspective.

Altcoins have also suffered heavy losses, with XRP standing out as the weakest performer. The token has dropped nearly twenty percent in the past twenty four hours and is now struggling to hold above the $1.25 level.

Ethereum has fallen below the key $2,100 level following an eight percent drop during a broader market correction. New on chain data suggests a sharp shift in sentiment among US investors, pointing to aggressive selling of the second largest cryptocurrency.

Data indicates that US based participants are rapidly reducing exposure, pushing the Coinbase Premium to its most negative level since July 2022. This signals that Ethereum is being sold at a discount on US exchanges compared to global markets.

According to CryptoQuant, the Ethereum Coinbase Premium Index based on a thirty day moving average has reached its lowest point in more than two years. The index measures the price difference between ETH traded on Coinbase, which is often used as a proxy for US institutional activity, and ETH traded on Binance, which is commonly associated with global retail trading.

CryptoQuant explained that a deeply negative premium suggests selling pressure is largely coming from US entities. While retail traders outside the US appear to be holding or accumulating Ethereum, institutions in the US seem to be actively reducing risk or exiting positions altogether.

The analytics firm noted that similar negative readings were last seen during the depths of the 2022 bear market. From that perspective, two scenarios are possible. Selling pressure could persist if US demand remains absent, limiting any meaningful price recovery in the near term. Alternatively, such extreme discount levels have historically aligned with capitulation phases, which can sometimes mark local market bottoms once heavy selling subsides.

CryptoQuant emphasized that the $2,100 level is a critical psychological and technical area for Ethereum. A sustained rebound would likely require the Coinbase Premium to normalize or turn positive, signaling a return of US demand. As long as US investors continue selling at a discount to the global market, upside momentum is expected to remain constrained.

Rising Network Activity Raises Red Flags

Adding to concerns, Ethereum network activity has spiked sharply. Total transfers surged to around 1.17 million on January 29, marking one of the highest readings ever recorded and reflecting a sudden and steep increase in transaction volume.

Historical data shows that similar spikes in network transfers have often occurred near major turning points in Ethereum’s price cycle. In January 2018, a comparable rise coincided with the market peak and was followed by a prolonged downturn. A similar pattern emerged in May 2021, when a surge in transfers aligned with a major market crash and a sharp correction.

While increased activity can signal growing usage, CryptoQuant cautioned that rapid and parabolic rises near elevated price levels have historically reflected market stress. Such conditions may point to heightened volatility, large scale fund movements, or distribution by long term holders moving assets to exchanges. Based on past patterns, the current spike places Ethereum in a high risk zone that has previously preceded significant price declines.