CoinSignals

Bitcoin and the broader crypto market continue to face price weakness, but this market cycle has avoided the large scale institutional collapses that defined previous downturns.

While investors deal with prolonged drawdowns, real world assets are steadily expanding on blockchains, largely independent of cryptocurrency price movements.

Real World Assets Continue Expanding On Chain

In a recent post on X, Chainlink co founder Sergey Nazarov said the current cycle stands apart from the last one, which was marked by failures such as FTX and several crypto lenders. He explained that crypto systems have handled price declines and liquidity stress more effectively this time, creating a more dependable environment for both retail and institutional participants.

Nazarov also noted that the adoption of real world assets on blockchains is accelerating regardless of market conditions. He pointed to continued issuance of tokenized assets and the growth of on chain perpetual markets tied to traditional commodities like silver, which can compete with conventional markets, especially when permissioned systems become restrictive.

According to Nazarov, the momentum behind RWAs comes from the benefits of always available markets, on chain collateral management, and access to reliable data, rather than from Bitcoin price action.

He outlined three forces likely to drive the next phase of adoption. The first is the long term value created by on chain perpetual markets and tokenized real world assets. The second is growing institutional interest fueled by the advantages of permissionless and always on DeFi infrastructure. The third is rising demand for robust systems that support the tokenization and management of complex assets.

Nazarov added that if these trends persist, real world assets on chain could eventually exceed cryptocurrencies in total value, reshaping the industry while also drawing more capital into crypto.

Developer Activity Remains Strong

Data from Santiment shows continued developer engagement across RWA related projects over the past month. Hedera led the rankings, followed by Chainlink and Avalanche, with Stellar and IOTA also placing near the top. Other projects including Chia Network, VeChain, Lumerin, Creditcoin, and Injective rounded out the top ten.

The data suggests that development across RWA focused blockchains remains resilient despite ongoing market volatility.

BitMine, an Ethereum focused treasury firm chaired by Fundstrat’s Tom Lee, purchased approximately $83 million worth of ETH on Monday, even as its existing holdings remain heavily underwater.

The buying took place during another turbulent trading session for Ethereum, with on chain data indicating strong selling activity from other major holders and ETH hovering near multi month lows.

BitMine Accumulates ETH as Other Whales Sell

According to data shared by analytics firm Lookonchain on February 10 and 11, BitMine completed two major purchases of 20,000 ETH each through institutional platforms BitGo and FalconX.

The firm has been steadily adding to its position, acquiring more than 40,000 ETH last week and nearly 42,000 ETH the week before. BitMine now holds around 4.32 million ETH, accumulated at an average price of $3,850 per token. With ETH currently trading near $2,040, Lookonchain estimates the firm is sitting on unrealized losses exceeding $7.8 billion.

Despite this, Lee has played down the recent sell off, arguing that price action is not aligned with Ethereum’s on chain fundamentals. He has pointed to record levels of daily transactions and suggested that the downturn is driven by external factors such as rising gold prices and low leverage, rather than weaknesses in the Ethereum network.

Lee also emphasized that BitMine carries no debt that would force it to liquidate its ETH holdings. This stance contrasts sharply with other large investors. Lookonchain data shows that Trend Research has sold nearly all of its ETH since early February, depositing more than 650,000 tokens to Binance and realizing losses of roughly $747 million.

Ethereum Faces Pressure but Long Term Signals Emerge

Ethereum is down about one percent over the past 24 hours and nearly 13 percent over the past week. Over the last month, the asset has lost more than 34 percent of its value, according to CoinGecko.

ETH fell below $2,000 on February 5 for the first time in months. While selling pressure from large holders has been evident, other indicators suggest potential relief ahead. Analyst CoinNiel recently noted that ETH exchange reserves have dropped to multi year lows, signaling that long term holders may be moving assets off exchanges.

The current market reflects a clear split. Some participants are exiting positions after steep losses, while others, including BitMine, are increasing exposure based on long term confidence that Ethereum’s fundamentals are stronger than current prices suggest.

Bitcoin’s price recovery has stalled just below $70,000, while RAIN emerged as the standout performer with a nearly 20 percent daily gain. Other altcoins showing notable increases include M, NEXO, and ASTER, whereas HYPE lost more than five percent of its value.

The recent movements in Bitcoin have raised questions about the broader market trend. The cryptocurrency reached $90,000 on January 28, but it experienced a sharp decline over the following week, culminating last Friday when it dropped to $60,000 for the first time in over a year. This represented a $30,000 loss in less than 200 hours.

Following the drop, Bitcoin rebounded quickly, gaining $12,000 in under a day to reach $72,000 by Saturday morning. Despite this rebound, the rally failed to sustain momentum, and BTC slipped below $70,000 for most of the weekend. Attempts to push higher on Monday were halted at $71,000 and $72,000, and the cryptocurrency now trades around $69,000. Its market capitalization has fallen to $1.38 trillion, with Bitcoin maintaining a 57 percent dominance over altcoins.

Ethereum continues to struggle to stay above $2,000 after a slight daily decline, and TRX experienced a similar drop. XRP gained three percent, pushing its price above $1.40. Other altcoins including BNB, SOL, BCH, ADA, and ZEC also posted positive movements, led by ZEC which surged six percent to $242.

On the other hand, HYPE fell 5.5 percent and remains below $30, highlighting the uneven recovery across altcoins. Meanwhile, RAIN has captured attention as the largest daily gainer, rising nearly 20 percent to surpass $0.01. The total cryptocurrency market capitalization has remained relatively stable, holding just above $2.42 trillion.

Overall, while Bitcoin struggles to reclaim $70,000, selective altcoins such as RAIN, NEXO, and M are driving short-term market excitement, illustrating continued volatility and uneven performance among major digital assets.

Bitcoin miners faced increasing pressure in late January and early February after network difficulty declined by roughly 14 percent over three weeks, while publicly listed miner Cango revealed it sold $305 million worth of Bitcoin.

The combination of weakening profitability indicators and targeted asset sales suggests mounting stress across the mining industry, even though broader on chain data does not yet point to widespread or panic driven selling.

Falling Difficulty Signals Mining Cutbacks

On chain analyst Axel Adler Jr. reported on February 10 that Bitcoin’s network difficulty dropped a total of 14.1 percent between January 22 and February 6, following two consecutive reductions. Such declines typically indicate that less efficient miners are shutting down equipment, often during periods of declining prices.

Over the same period, Bitcoin’s price fell by about 25 percent, briefly dipping to $60,000 before recovering toward $70,000. At the time of reporting, Bitcoin was trading near $69,000, down slightly on the day and more than 12 percent over the past week, according to CoinGecko.

Bitcoin has also dropped around 24 percent over the past month and nearly 29 percent compared to a year ago, falling short of earlier cycle expectations and keeping mining profit margins under pressure.

Amid these conditions, Cango confirmed the sale of 4,451 BTC for approximately $305 million, saying the move was intended to strengthen its balance sheet. The announcement weighed on investor sentiment, with Cango shares closing 8 percent lower in the first trading session following the disclosure.

Adler emphasized that the sale appeared to be an isolated event rather than a sign of forced liquidation across the sector. He noted that overall miner transfers to exchanges remain stable, suggesting no large scale dumping of reserves.

Data tracking miner inflows to exchanges supports this view. The 30 day average of daily miner transfers stands near 82 BTC, only slightly below mid January levels and consistent with recent norms. There have been no sustained spikes that would indicate broad selling pressure from miners.

Profitability Remains Under Strain

Profitability indicators continue to signal stress. Adler noted that the Puell Multiple, which compares daily miner revenue to its annual average, fell to a 30 day average of 0.77 in early February, down from 0.86 in mid January. Short term readings briefly dropped to around 0.61, a range historically linked to mining stress and capacity reductions.

When miners earn below their annual average, they tend to focus on liquidity and selective reserve sales rather than expansion. Adler added that a full recovery typically requires difficulty adjustments to turn positive and the Puell Multiple to move back toward the 0.85 to 0.90 range.

For now, the data suggests miners are responding mainly by reducing hashrate rather than selling aggressively. However, Adler warned that another drop below $60,000 could further pressure profitability and trigger additional sales by other publicly traded miners.

Crypto market analysts are growing increasingly pessimistic as technical indicators suggest Bitcoin may face further declines before any solid recovery takes place.

A rising number of signals associated with peak bear markets are appearing on Bitcoin charts, leading analysts to believe that while the worst may be approaching, the market has not fully stabilized yet.

Bitcoin has closed below its 100 week moving average for three consecutive weeks and has remained under this long term indicator for 13 days, according to Coin Bureau chief executive Nic Puckrin. Historically, Bitcoin has stayed below this level for an average of 267 days, with the shortest duration being 34 days during the March 2020 Covid market crash. Puckrin noted that while a short term rebound is possible, prolonged weakness below this level reduces the likelihood of a quick recovery.

Accumulation May Follow Further Declines

MN Fund founder Michaël van de Poppe pointed out that the proportion of Bitcoin holders sitting at a loss continues to increase, a pattern typically seen during major bear markets such as those in 2015, 2018, and 2022. He suggested that this phase could present long term accumulation opportunities.

CryptoQuant founder Ki Young Ju echoed the cautious outlook, stating that Bitcoin currently lacks the conditions needed for strong upward momentum. He explained that selling pressure remains too intense and that institutional or treasury driven demand is unlikely to have an impact until market conditions improve.

On chain data firm Glasnode reported that unrealized losses around the $70,000 level account for roughly 16 percent of Bitcoin’s total market capitalization, a structure similar to market conditions observed in early May 2022.

Market analyst Sykodelic noted that trading volume spiked significantly during the recent drop toward $60,000, marking one of the largest volume events since the 2022 bottom. He added that similar volume surges in the past have often coincided with major price turning points, raising the possibility that $60,000 could represent a local bottom.

Bitcoin Slips Below $70K Again

Bitcoin fell below $70,000 twice on Monday and was trading near $69,000 during Asian market hours on Tuesday. The price has been consolidating around this range after rebounding from a sharp decline to $60,000 on Friday. Despite the bounce, Bitcoin remains 44 percent below its all time high and continues to trade firmly within bear market territory, with downside pressure still dominating.

Ethereum co founder Vitalik Buterin has questioned the credibility of many popular DeFi strategies, arguing that much of today’s decentralized finance is centralized in practice. He specifically criticized USDC yield farming, saying it fails to uphold the core values of true DeFi.

Buterin’s comments followed a post by crypto analyst C node, who argued that modern DeFi has shifted away from building decentralized infrastructure and now focuses largely on speculation. According to C node, DeFi offers little value unless users hold long crypto positions and need access to financial services while maintaining self custody.

Agreeing with this view, Buterin stated that depositing stablecoins like USDC into lending platforms such as Aave should not be considered genuine DeFi. He emphasized that because USDC remains under the control of Circle, these strategies are inherently centralized even if the protocols themselves operate on decentralized networks.

Buterin outlined two approaches for defining what qualifies as real DeFi. The first, which he referred to as an easier model, focuses on ETH backed algorithmic stablecoins. In this setup, users can transfer counterparty risk to market makers through collateralized debt positions, where crypto assets are locked in order to mint stablecoins.

He explained that even if most liquidity comes from CDP holders with offsetting positions, the ability to shift counterparty risk remains a critical feature of decentralized finance.

The second and more complex model allows stablecoins to be backed by real world assets, but only under strict conditions. Buterin said that such systems must be heavily overcollateralized and diversified enough to withstand the failure of any single asset. The collateral ratio must exceed the largest share of any individual backing asset, ensuring the system remains solvent and resilient.

According to Buterin, this structure spreads risk rather than concentrating it within centralized entities. He added that the long term objective should be moving away from reliance on the US dollar as the primary unit of account and toward a more diversified index.

Community Reaction

Many members of the crypto community on X supported Buterin’s stance. Some praised ETH backed algorithmic stablecoins for offering meaningful risk reduction, while others noted that diversification of real world assets distributes risk instead of simply shifting it. One user commented that true DeFi requires genuine innovation in risk management rather than passive USDC yield strategies.

However, not everyone agreed fully. Some users raised concerns that algorithmic stablecoins have not sufficiently evolved to address past failures, comparing them to money market funds that face similar stability risks. Others warned that even diversified real world asset backing could fail during extreme market events or if assets become highly correlated.

Two crypto investors lost a combined $62 million after mistakenly copying incorrect wallet addresses, highlighting the growing risks of human error and phishing attacks in the crypto space.

In January, one user lost $12.25 million after sending funds to the wrong wallet address. A similar incident occurred in December, when another user mistakenly transferred $50 million. According to Web3 security firm Scam Sniffer, these two errors alone resulted in $62 million in losses.

Rise in Crypto Scams

Signature phishing attacks also increased sharply in January. Scam Sniffer reported that $6.27 million was stolen from 4,741 victims, representing a 207 percent jump compared to December. Some of the largest losses included $3.02 million stolen from SLVon and XAUt through permit and increaseAllowance approvals, along with $1.08 million taken from aEthLBTC using similar methods.

Notably, just two wallets were responsible for 65 percent of all phishing related losses during this period.

Address poisoning remains a common tactic used by scammers. In this method, attackers send small transactions from wallet addresses that closely resemble legitimate ones, hoping victims will copy the fake address from their transaction history. When funds are later sent, they go directly to the attacker. Signature phishing compounds the danger by deceiving users into approving malicious permissions, allowing scammers to move funds at a later time. These scams rely heavily on social engineering and simple mistakes, making even seasoned crypto users vulnerable.

In November last year, another crypto holder lost more than $3 million worth of PYTH tokens after accidentally transferring them to a scammer’s wallet. Blockchain analysts at Lookonchain explained that the attacker created a wallet address that matched the first four characters of the legitimate address and sent a small SOL transaction to appear authentic. The victim later transferred 7 million PYTH tokens without fully verifying the address, resulting in a loss valued at approximately $3.08 million at the time.

Coordinated Attacks Target Multisig Wallets

As these scams become more frequent, the non custodial wallet provider Safe, previously known as Gnosis Safe, warned users about a large scale address poisoning and social engineering campaign targeting multisig wallets. The company revealed that attackers created thousands of fake Safe addresses designed to deceive users into sending funds to incorrect destinations. Safe clarified that the incident was not caused by a protocol exploit, infrastructure failure, or smart contract vulnerability.

The platform identified around 5,000 malicious addresses, which have since been flagged and removed from the Safe Wallet interface to help prevent accidental transfers.

Bitcoin miners have transferred more than 90,000 BTC to Binance since the start of February, marking the highest level of miner exchange inflows seen since 2024, according to on-chain data from Arab Chain. The spike comes amid heightened market volatility and investor uncertainty, creating short-term selling pressure even as large holders moved in the opposite direction.

Rising Miner Activity Signals Potential Sell Pressure

Arab Chain’s data shows that miner deposits accelerated immediately after February began, with a single day recording over 24,000 BTC sent to Binance. Such activity typically reflects miners selling part of their holdings to cover operating costs or secure profits during volatile periods, making these inflows a key indicator of near-term supply.

The timing coincided with Bitcoin’s sharp correction last week, which briefly pushed prices below $60,000 for the first time since October 2024, extending the drawdown to more than 50% from its last all-time high. During this period, nearly 241,000 BTC were moved to exchanges, with Binance seeing particularly heavy inflows from short-term holders. Analyst Darkfost described this activity as consistent with capitulation, especially among investors reacting to rapid losses.

Retail investors also changed behavior during the sell-off. Holders with less than one Bitcoin, often called “shrimps,” increased their daily transfers to Binance, reaching more than 1,000 BTC on February 5, well above their monthly average of approximately 365 BTC. This spike in activity eased once prices recovered above $70,000, suggesting retail selling pressure diminished as the market stabilized.

Whales Accumulate During Price Recovery

While miners and smaller holders moved coins to exchanges, large holders took the opposite approach. Analyst CW8900 reported on February 8 that whales added nearly 67,000 BTC to long-term accumulation addresses in a single day, the largest inflow of this cycle.

Since then, Bitcoin has traded just above $70,000 according to CoinGecko, rising roughly 1% on the day but still down nearly 8% over the past week and more than 22% in the last 30 days. The recent rebound follows a steep decline from the mid-$80,000 range, which erased post-election gains and pushed major altcoins lower by double digits.

Market sentiment remains fragile. The Bitcoin Fear and Greed Index fell to its lowest reading since 2019, even after prices bounced from recent lows. Elevated miner inflows suggest continued selling pressure, while whale accumulation and reduced retail activity indicate that supply and demand are becoming more balanced, with Bitcoin currently attempting to hold above $70,000.

Robert Kiyosaki, the author of Rich Dad Poor Dad, has once again highlighted Bitcoin as a preferred investment over gold. In a recent tweet, he explained that while owning gold, Bitcoin, and silver can help diversify a portfolio, if he had to choose only one asset, he would pick Bitcoin. His reasoning comes down to the fundamental differences between the two assets.

Kiyosaki pointed out that gold is theoretically unlimited. As its price rises, miners are encouraged to extract more, which increases the total supply over time. Bitcoin, in contrast, is deliberately limited to a maximum of 21 million coins. Currently, about 19.98 million Bitcoin have been mined, leaving fewer than two million coins yet to be released. Once the limit is reached, no additional coins can be created. Kiyosaki praised this scarcity as a clever mechanism that could drive the long-term value of Bitcoin.

He also shared that he is glad he bought his Bitcoin early, while continuing to mine gold and drill for oil. This shows that while he sees Bitcoin as extremely valuable due to its finite supply, he still values traditional assets as part of a diversified strategy.

However, Kiyosaki has made some contradictory statements regarding his own Bitcoin holdings. He previously said he bought Bitcoin as its price rose above $105,000 in mid-2025 but also admitted that he stopped buying at $6,000, a price last seen in mid-2020 after the COVID-19 market crash.

He has also shared conflicting views about selling. In November 2025, he tweeted that he would not sell Bitcoin and would continue buying, yet a week later he revealed he sold the coins he bought at $6,000 for $2.25 million to invest in surgery centers and a billboard business for cash flow.

These contradictions raise questions about which Bitcoin holdings he refers to in his latest tweet. Nevertheless, Kiyosaki continues to emphasize that Bitcoin’s fixed supply makes it a stronger long-term store of value and, in his view, a better investment than gold.

Ethereum (ETH) has experienced a sharp increase in on-chain token transfers this week as its price declined from around $3,000 to near $2,000, with activity reaching levels not seen since August 2025, according to data from analyst CryptoOnchain. The surge in transfers reflects heavy sell side pressure and rapid repositioning by investors, even as some metrics suggest that overall supply on exchanges is tightening.

CryptoOnchain reported that the 14-day simple moving average of Ethereum tokens transferred jumped from roughly 1.6 million on January 29 to about 2.75 million by February 7, marking the highest activity level since last August. Historically, such a divergence falling prices paired with rising on chain activity is often associated with panic driven behavior, as holders rush to move their assets in response to sharp drawdowns. Much of this movement appears to be tied to rotations into stablecoins, transfers to exchanges for liquidation, and forced sales in decentralized finance protocols as collateral values dropped.

The price pressure is not limited to smaller investors. Ethereum co-founder Vitalik Buterin sold more than 6,100 ETH over several days last week, and other large holders have reduced exposure to repay loans or rebalance positions. These actions have amplified short-term selling pressure during the recent correction. The spike in ERC-20 token transfers during this period indicates that many investors are seeking to exit positions, converting volatile holdings into stablecoins or moving assets onto exchanges for liquidation.

The timing of this activity aligns with broader market declines, including Bitcoin’s drop from above $80,000 to near $60,000 before recovering to around $72,000, while Ethereum struggled to maintain support near the $2,000 level. This has created a tense market environment, with high volatility fueling rapid asset movements.

At the same time, several indicators point to shrinking ETH availability on exchanges. CoinNiel reports that the amount of Ethereum held on trading platforms has dropped to levels not seen since mid-2016. Arab Chain analysts noted that Binance’s ETH reserves have fallen to approximately 3.7 million coins, the lowest since 2024. This decline in exchange balances suggests that while short-term selling is intense, the number of coins immediately available for spot trading is decreasing, which could mitigate further large-scale liquidations.

Currently, Ethereum trades around $2,040, down roughly 3% over the past 24 hours and nearly 11% over the past week. The token briefly dipped below $1,900 on February 5 before rebounding slightly. Analysts note that similar spikes in on-chain transfer activity during past corrections often appear near local lows, when forced selling starts to ease.

Overall, Ethereum’s market is caught between ongoing volatility and a shrinking exchange supply. On-chain data highlights fear-driven transfers, as investors react to rapid price movements, while longer-term holders continue to withdraw coins from trading platforms, potentially setting the stage for stabilization once the immediate panic subsides.