CoinSignals

Crypto investment products experienced outflows for the fourth consecutive week, totaling $173 million and bringing cumulative losses over the month to $3.74 billion. Early optimism drove $575 million in inflows, but continued price weakness quickly led to $853 million in withdrawals. Sentiment improved slightly on Friday following softer CPI data, with $105 million returning to funds. Trading activity slowed, and ETP volumes dropped to $27 billion, less than half of the prior week’s $63 billion.

Altcoins attracted strong interest despite overall outflows. Bitcoin-related products lost $133 million, and short Bitcoin funds declined by $15.4 million over two weeks, a trend often seen near cyclical lows. Ethereum funds saw $85.1 million withdrawn, and multi-asset strategies lost $14 million. In contrast, XRP, Solana, and Chainlink funds gained $33.4 million, $31 million, and $1.1 million, respectively, with Litecoin adding $0.4 million.

Regional flows highlighted a split between US and international investors. The US recorded $403 million in outflows, while other regions added $230 million. Germany led with $115 million, followed by Canada with $46.3 million, Switzerland $36.8 million, Brazil $14 million, Australia nearly $10 million, and Sweden $2.8 million.

Bitcoin has dropped nearly 50% since its October high, with some analysts predicting a fall to $50,000 before recovery. Fintech expert Hedy Wang described the turbulence as part of a normal market evolution rather than a collapse, noting the Web3 ecosystem is supported by a resilient, long-term focused community.

Bitwise Chief Investment Officer Matt Hougan argues that the current crypto downturn is far less severe than the bear markets of 2018 and 2022. He pushed back on comparisons, saying those earlier cycles were marked by far weaker fundamentals. In 2018, Bitcoin fell to around $3,000 while Ethereum had limited real world usage and scalability. In 2022, the industry endured major corporate collapses and faced aggressive regulatory threats that created existential concerns for many firms.

According to Hougan, today’s environment looks different. Stablecoins are seeing significant growth, tokenization of real world assets is expanding rapidly, institutional players are entering the space, and spot Bitcoin ETFs have strengthened market access. He also pointed to improving regulatory clarity and more sustainable token models as signs that the industry has matured.

The broader crypto market has declined roughly 49 percent from its October peak near $4.4 trillion to about $2.23 trillion earlier this month. While significant, this pullback is milder than the 88 percent crash in 2018 and the 73 percent drop recorded in 2022.

On chain data shows that Bitcoin’s recent fall to $60,000 created notable psychological pressure, with some long term holders realizing losses, a pattern typically seen in deeper stages of bear markets. However, metrics such as Net Unrealized Profit and Loss indicate that long term holders remain in overall profit, suggesting the market has not yet reached the level of capitulation seen in prior cycles.

Although Hougan acknowledged that volatility may persist and recovery may not be smooth, he expressed optimism that the stronger structural foundation of the industry positions it better than in previous downturns.

Xaman Wallet founder Wietse Wind has warned of a large scale scam campaign targeting XRPL users, citing fake transaction requests, phishing emails, impersonation accounts, and fraudulent apps.

Wind said attackers are attempting to trick users into signing malicious transactions through scam NFTs, fake desktop wallet software, and direct messages posing as support. He emphasized that the attacks rely on social engineering rather than flaws in the XRPL code. Users were urged not to click unknown links, respond to unsolicited messages, or share secret keys.

He also noted that phishing emails are being circulated despite Xaman not storing user email data, suggesting criminals are using information from unrelated data breaches. Some scams promote fake desktop versions of the wallet or offer free tokens in exchange for private keys.

Wind stressed that funds remain safe as long as users avoid approving suspicious transactions or revealing sensitive information.

The warning comes amid a broader rise in crypto related scams. A recent PeckShield report found that hacks and scams led to more than 4.04 billion dollars in losses in 2025, with scams alone accounting for 1.37 billion dollars, up 64 percent from the previous year. The report added that attackers are increasingly focusing on targeted phishing campaigns and that centralized platforms made up about 75 percent of stolen funds.

In January 2026, blockchain investigator ZachXBT disclosed a case in which a victim lost roughly 282 million dollars in Bitcoin and Litecoin through a hardware wallet scam, with the stolen funds later routed through THORChain and converted into Monero.

Wind described the situation as an ongoing battle between users and scammers, stressing that wallet security ultimately depends on individual caution.

Bitcoin has fallen nearly 50 percent since reaching its all time high last October. As it struggles to hold above 70,000 dollars, concerns are growing that the market could be heading into another prolonged downturn.

Despite the volatility, retail investors on Coinbase have continued to buy during price pullbacks. Coinbase CEO Brian Armstrong said platform data shows that holdings of Bitcoin and Ethereum among retail users have increased. He noted that most retail customers in February held balances equal to or higher than they did in December, suggesting steady participation from smaller investors.

Still, some analysts believe the broader outlook remains fragile. Market commentator Mippo warned that conditions resemble the start of a deep crypto winter, potentially as severe as the 2022 bear market or even the 2019 downturn. He attributed current pressure to a gap left by previously inflated valuations combined with a shifting regulatory landscape.

Mippo argued that past crypto valuations were largely driven by speculative capital rather than business fundamentals. Regulatory uncertainty limited projects’ ability to generate compliant revenue or sustainable cash flow, so prices were often determined by how much capital chased a limited supply of tokens tied to popular narratives. Riskier themes tended to command higher valuations.

He believes that model is now changing as regulatory clarity improves, beginning with stablecoins and likely expanding to other digital assets. While he views this shift as positive over the long term, it creates short term challenges for projects whose prices were built mainly on speculation. As compliant revenue models become more viable, investors are placing greater emphasis on cash flow, prompting a reassessment of token valuations. That dynamic may explain why on chain activity and usage can rise even as prices fall.

Mippo also said crypto is losing attention to the artificial intelligence boom and that the surge in meme coin speculation failed to produce meaningful products. He estimates that the market reset could last another nine to eighteen months before broader conditions start to improve.

Bitcoin has returned to the price range last seen in October 2024, when large holders began their previous accumulation phase. On-chain data shows these whales are still buying rather than selling, indicating that the current dip may be seen as a re-entry opportunity.

Pseudonymous analyst CW8900 noted steady accumulation among both BTC and Ethereum whales. Bitcoin’s current price matches the zone where whales started buying in October 2024, and accumulation has reportedly increased despite the recent decline. Ethereum whales are also holding positions near cycle low losses and continue buying in preparation for the next rally.

Market data from CoinGecko shows BTC trading near 69,000 dollars after moving between 68,000 and 71,000 in the past day, down about 2 percent this week and nearly 28 percent over the past month. Ethereum is trading below 2,000 dollars after falling roughly 40 percent in a month. Fundstrat’s Tom Lee highlighted that ETH has historically recovered fully after drawdowns exceeding 50 percent, forming V-shaped bottoms.

However, some large positions have closed at significant losses. Trend Research recently exited its final ETH long, realizing an 869 million dollar loss after previously holding $2.1 billion in leveraged positions.

Not all indicators are bullish. Analyst Wise Crypto warned that Bitcoin’s recent 9 percent rebound may be a trap, pointing to bearish divergence and high NUPL readings. Support levels are seen around 65,000 to 66,000 dollars, with 60,000 as a major psychological floor. Meanwhile, Santiment notes that BTC often moves against crowd sentiment, suggesting a potential rally if fear continues to dominate.

A United States federal judge has ordered crypto influencer Ben Armstrong, formerly known as BitBoy, to pay 2.8 million dollars after failing to respond to a defamation lawsuit filed by investor and television personality Kevin O’Leary.

US District Judge Beth Bloom issued a default judgment, citing Armstrong’s lack of participation in the case. The award includes approximately 78,000 dollars for reputational damage, 750,000 dollars for emotional distress, and 2 million dollars in punitive damages.

The lawsuit arose from posts Armstrong made on X in March 2025, where he accused O’Leary and his wife of murder and claimed they paid millions to conceal involvement in a fatal 2019 boating accident in Ontario. O’Leary was a passenger in the incident and was never charged, while his wife Linda O’Leary was later acquitted after trial. Armstrong also shared O’Leary’s private phone number and encouraged followers to contact him, leading to a temporary suspension from the platform.

In January 2026, Armstrong sought to overturn the judgment, arguing that incarceration and mental health issues prevented his response. Court filings referenced a bipolar disorder diagnosis. The judge rejected the motion, noting he had been properly served and delayed nearly a year before acting.

The ruling adds to Armstrong’s ongoing legal challenges. Since 2023, he has faced multiple arrests, including detention in March 2025 related to alleged threats against a Georgia judge and another arrest in June 2025 on charges of harassing phone calls.

Armstrong was removed from the BitBoy Crypto brand in August 2023 after the parent company cited concerns about substance abuse. His career has been marked by controversy, including acknowledgments of paid promotions for failed or fraudulent crypto projects and a withdrawn lawsuit against YouTuber Atozy following public backlash.

The crypto market remains uncertain, with mixed signals and weak momentum. Bitcoin has also shown limited strength, slipping more than 1 percent in the past day as pressure persists.

According to Joao Wedson, co founder of Alphractal, Bitcoin’s strongest bull runs have historically begun only after long term holders fall into unrealized losses. The Net Unrealized Profit and Loss metric for long term holders currently stands at 0.36, meaning these investors are still in profit. Wedson explains that the critical signal appears when this metric turns negative, indicating that even the most resilient holders are at a loss. In previous cycles, this shift has aligned with extreme pessimism, seller exhaustion, and the transition from bear markets into new bull phases.

Additional valuation data supports the cautious outlook. CryptoQuant reports that Bitcoin’s Market Value to Realized Value ratio has entered the Accumulation Zone for the first time in four years, a level last seen in May 2022. During the previous occurrence, Bitcoin later fell roughly 50 percent from around 30,000 dollars to 15,000 dollars.

The Accumulation Zone is defined by an MVRV reading below 1.44 and potentially as low as 0.90, levels that historically suggest undervaluation relative to realized price. While such periods are often marked by pessimism and volatility, they have also tended to provide favorable conditions for long term accumulation before the start of a new bullish cycle.

Bloomberg Intelligence senior commodity strategist Mike McGlone has cautioned that Bitcoin could retreat toward 10,000 dollars if broader financial market stress continues. He views the current decline as part of a wider unwinding of risk assets tied to equities, volatility cycles, and tightening liquidity.

McGlone points to several macroeconomic signals, including US stock market capitalization relative to GDP at historic highs, unusually low six month volatility in the S&P 500 and Nasdaq 100, and a rapid rise in gold and silver reminiscent of moves seen decades ago. He argues that if equities reverse sharply, Bitcoin could follow. In his base case, a pullback in the S&P 500 toward 5,600 could correspond with Bitcoin falling near 56,000 dollars, with deeper losses possible if stocks reach a major peak.

Recent performance data highlights growing pressure. Bitcoin has fallen about 2 percent in the past day and nearly 28 percent over the past month, with six month losses close to 39 percent. Futures trading volume and open interest remain elevated at around 44 billion dollars, signaling heavy derivatives activity during the downturn. A CryptoQuant report noted that roughly 43 percent of Bitcoin’s circulating supply is currently at a loss, while the Fear and Greed Index has dropped to 8, a level associated with previous crisis periods.

Despite these bearish signals, accumulation trends offer a counterpoint. CryptoQuant data shows long term accumulator addresses are purchasing approximately 372,000 BTC per month, a sharp increase from late 2024 levels. These wallets typically show no outflows and multi year holding patterns, suggesting strategic positioning rather than short term speculation.

Institutional participation also remains visible. Binance recently converted its 1 billion dollar SAFU reserve fully into Bitcoin, holding about 15,000 BTC. Regulatory filings indicate Goldman Sachs maintains exposure to 13,740 BTC through spot exchange traded funds, despite a decline in market value.

Some analysts have also observed that Bitcoin has been moving in tandem with pressured technology stocks, particularly those affected by artificial intelligence disruption. This correlation suggests that investors with exposure to both sectors may be selling crypto assets to raise liquidity amid broader market uncertainty.

Gains from yesterday were quickly reversed across the crypto market, with several altcoins including PI, DOGE, and XRP posting sharp losses.

Bitcoin’s weekend rally stalled just above 70,000 dollars before the price retreated to around 68,000 dollars, where it found temporary support. Earlier this month, the asset experienced heavy volatility, dropping to 60,000 dollars on February 6 after shedding 30,000 dollars in less than two weeks. It then rebounded strongly to 72,000 dollars but struggled to maintain momentum.

After trading within a range between 72,000 and 68,000 dollars, Bitcoin slipped below 66,000 midweek before buyers stepped in. The price climbed back above 70,000 dollars over the weekend but was rejected again and now trades below 69,000 dollars. Its market capitalization stands near 1.375 trillion dollars, with dominance over altcoins at 56.6 percent.

Altcoins have also turned lower. Ethereum was rejected near 2,100 dollars and has fallen below the key 2,000 dollar level. XRP, which briefly surged past 1.65 dollars, has dropped under 1.50 dollars. Dogecoin, after leading gains among large cap tokens, has declined 9 percent in the past day to around 0.10 dollars.

Other notable declines include XMR, ZEC, WLFI, MNT, and the PI token, which fell from above 0.20 dollars to near 0.17 dollars. Overall, the total crypto market capitalization has decreased by 70 billion dollars in one day, now sitting at approximately 2.425 trillion dollars.

Bitcoin has struggled through February, yet continued accumulation by miners and long term holders suggests potential underlying support.

Data from analyst GugaOnChain shows that about 42.85 percent of Bitcoin’s circulating supply is currently at a loss. Quarterly performance sits near negative 26 percent, and the Net Unrealized Profit and Loss indicator has dropped to 21.30 percent, a level associated with fear in the market. The analyst sees limited chances of recovery before the second quarter of 2026.

XWIN Research supported this cautious outlook, noting that the Fear and Greed Index recently fell to 8, a level typically seen during major stress periods such as the 2018 bear market bottom, the March 2020 pandemic crash, and the FTX collapse in November 2022. Analysts say the data reflects loss aversion and herd behavior, as investors reduce exposure following steep declines.

Institutional activity also signals weakness. Spot Bitcoin ETFs have recorded net outflows of 2.17 billion dollars since the start of the month, with withdrawals accelerating as prices approached 60,000 dollars in early February.

Additional data from Santiment shows funding rates across exchanges have turned sharply negative, indicating traders are positioning for further downside. According to CoinGecko, Bitcoin is down roughly 3 percent over the past week, 10 percent over two weeks, and 28 percent over the past month. The asset remains about 46 percent below its October 2025 all time high above 126,000 dollars.

The broader crypto market has also contracted. Mid cap and small cap altcoins are down 18.3 percent, while the top 20 assets have declined by 12.48 percent in growth rate terms.

Despite the downturn, accumulation remains notable. Accumulator addresses have added 380,104 BTC in the past 30 days, and miners appear to be holding their reserves rather than selling, supported in part by revenue from artificial intelligence related operations.

Overall, current conditions reflect fear, defensive positioning, and selective accumulation, with recovery likely dependent on renewed investor resilience.