Brazil’s congressional committee has approved Bill 4,308/2024 to strengthen stablecoin oversight. The law requires all stablecoins to be fully backed by reserves, banning unbacked tokens like Ethena’s USDe and Frax. Issuers of unbacked coins could face up to eight years in prison, and exchanges handling foreign stablecoins such as USDT and USDC must follow strict compliance and risk rules. This move is set to reshape Brazil’s crypto market.
Bitcoin briefly dropped below the $70,000 mark for the first time since November 2024 and is now trading at $70,131, down 5.34% in the past 24 hours. Ethereum also faced heavy selling pressure, sliding to $2,095 after a sharp 6.96% daily decline. Market volatility triggered massive liquidations, with CoinGlass data showing $951 million wiped out in the last 24 hours. Long traders were hit the hardest, accounting for $790 million of the total liquidations, as the sudden sell-off caught bullish bets off guard.
On February 4, U.S. spot Bitcoin ETFs recorded total net outflows of $545 million, with BlackRock’s iShares Bitcoin Trust (IBIT) seeing the largest single‑day withdrawal at about $373 million. Spot Ethereum ETFs also saw net outflows of $79.48 million, reflecting continued selling pressure in major crypto funds. In contrast, XRP spot ETFs attracted net inflows of $4.83 million, showing selective investor interest despite broader ETF outflows. The data highlights growing divergence in where capital is flowing within the crypto ETF market.
Grant Cardone confirmed that his firm, Cardone Capital, has bought more Bitcoin at around $72,000 per coin, adding to its growing institutional crypto holdings as part of a hybrid strategy that blends real estate cash flow with long‑term BTC accumulation. He used recent announcements to challenge investors waiting for lower prices to buy, telling them to act now rather than time the market. Cardone also dismissed bearish predictions that Bitcoin could fall to zero, reinforcing his belief in Bitcoin’s future.
BitMine Immersion Technologies, led by Tom Lee, is reporting over $7.4 billion in unrealized losses on its 4.285 million ETH holdings, bought at an average of $3,830 per coin, now worth below $2,100, while Ethereum has fallen below current levels. Despite these paper losses, the company continues its Ethereum treasury strategy, adding more ETH during the downturn and staking a large portion of its holdings to earn yield. Lee emphasizes that such drawdowns are normal in a long-term treasury approach, reflecting broader market cycles rather than a flaw in strategy. BitMine’s Ethereum holdings, roughly 3.5% of circulating ETH, show both its conviction in the market and the risks involved in deep crypto treasury plays.
U.S. Treasury Secretary Scott Bessent told Congress the government has no power to bail out Bitcoin or force private banks to buy it. In response to questioning by crypto critic Rep. Brad Sherman, Bessent stressed that interventions in Bitcoin markets are not part of the Treasury’s authority. He also confirmed that the U.S. will retain its seized Bitcoin, which has grown from $500 million to over $15 billion, as part of a strategic reserve policy focused on holding rather than selling these assets.
Over the past three days, Vitalik Buterin sold roughly 2,961.5 ETH, worth about $6.6 million, at an average price of $2,228 per coin, with selling still ongoing. On-chain data from his Gnosis Safe wallet shows repeated WETH outflows via CoW Protocol into tokens like USDC and GHO. The sales are a small portion of his 300,000+ ETH holdings, sparking mixed reactions: critics call it retail exit liquidity, while supporters note his history of funding Ethereum projects, biotech ventures like Kanro, and open-source initiatives. Ethereum traded near $2,150, down 5% in 24 hours, amid daily volumes exceeding $10 billion and continued institutional buying.
XRP dropped 10.08% to $1.43, underperforming the broader crypto market’s 7.18% decline and falling 23.85% over the past seven days. The drop followed a break below the critical $1.60 support, triggering automated selling and hitting the lowest price since November 2024. Bitcoin’s 6% decline and a global tech sell-off added pressure. Despite this, social sentiment remains strong, though extreme fear suggests short-term emotional selling may continue before a potential bounce.
Economist Peter Schiff criticized former President Trump’s push for U.S. dominance in Bitcoin and digital assets, calling it misguided as China focuses on building factories and buying gold. While the U.S. holds around 198,000 BTC, China’s holdings from seizures are close to 190,000-194,000 BTC. Meanwhile, China continues expanding its gold reserves, reaching 2,306 tonnes valued at over $319 billion by December 2025, signaling a preference for traditional assets over crypto.
Swiss banking giant UBS Group AG, which manages around $6.9 trillion in assets, is planning to offer cryptocurrency access to individual clients and tokenized deposit solutions for corporate customers as part of its digital asset strategy. CEO Sergio Ermotti described a cautious “fast follower” approach, focusing on building the right infrastructure and rolling out selective services while expanding pilot projects, highlighting the growing interest in blockchain among traditional banks amid evolving global demand and regulations.
The Bitcoin price is under pressure after slipping below its April 2025 low. The move has reignited fears of a deeper correction, but analysts remain divided on whether this is the final phase of the bear market or just another leg down before recovery.
Historically, Bitcoin bear markets last around 12 months. Considering this, the current cycle appears roughly one-third complete. However, this time the decline has been faster than usual, raising the possibility that the bottom could arrive earlier than in past cycles.
Bitcoin Market Cycle Appears to Be Moving Faster
One key difference in this cycle is speed. Bitcoin topped earlier than expected in October, and the decline since then has been sharper than previous bear markets. Some analysts believe this faster drop could mean the bottom also forms sooner, possibly between June and August instead of late Q4.
There is also a growing belief that Bitcoin market cycles are shortening overall. As institutional participation increases, long-term holders and miners may have less influence on price swings, slowly pushing Bitcoin toward behavior closer to traditional risk assets like the S&P 500.
How Low Can Bitcoin Price Crash?
Based on historical drawdowns, Bitcoin often finds strong buying interest after falling 40% to 60% from its peak. In this cycle, many analysts do not expect a 70% crash like earlier bear markets.
Current estimates suggest Bitcoin may be 20% to 30% away from the final bottom. If price continues lower, the $65,000 level is seen as a zone where fear typically builds. A deeper drop toward $55,000 could trigger panic selling.
So, Late Q3 or early Q4 could offer better conditions for long-term investors to re-enter the market with confidence. Using the traditional 365-day bear market model, there are roughly 200 days left before a formal bottom forms.
From here, Bitcoin may move sideways with slow weakness, or it could drop sharply, bringing the bear phase to an earlier end.
Bitcoin Below Long-Term Support Raises Risk
Veteran trader Peter Brandt has noted that Bitcoin has breached an important long-term support level on the weekly chart. Historically, when this happens, the price often moves lower before finding real stability.
Past cycles in 2014, 2018, and 2022 show that once Bitcoin fell below the 100-week moving average, it often dropped quickly toward the 200-week level before any meaningful bounce occurred. This history suggests that short-term relief rallies are not guaranteed.
Galaxy CEO Says Bitcoin Is Near the Lower End of a New Range
Galaxy Digital CEO Mike Novogratz believes Bitcoin’s recent drop is driven by profit-taking rather than a breakdown in fundamentals. After Bitcoin surged above $100,000 and later reached near $130,000, many early investors locked in gains, creating selling pressure.
According to Novogratz, Bitcoin may now be trading within a broad $70,000 to $100,000 range. With price hovering near $76,000, he believes much of the excess leverage has already been flushed out, bringing the market closer to balance.
Further, macro conditions may play a role in stabilizing the Bitcoin price. The progress on crypto market structure regulation and shifts in interest rate expectations could improve sentiment.
Novogratz also highlighted that stablecoin usage and blockchain infrastructure growth remain strong, suggesting adoption continues even as prices struggle.
FAQs
How low can Bitcoin price fall during this correction?
Analysts see strong demand between $65,000 and $55,000, a range where fear peaks and long-term buyers often step back in.
Why is this Bitcoin market cycle moving faster than before?
Higher institutional activity and faster capital flows are shortening cycles, making price drops sharper but potentially reducing bear market length.
When could Bitcoin recover from the current downturn?
If history repeats, Bitcoin may stabilize by late Q3 or early Q4 as selling slows and macro conditions improve.
Binance’s Secure Asset Fund for Users (SAFU) has made another big move in its ongoing plan to shift its $1 billion emergency reserve from stablecoins into Bitcoin. The fund added 1,315 BTC worth about $100 million in its latest buy, boosting total two‑day accumulation to 2,630 Bitcoin valued at roughly $201 million. This purchase is part of a 30‑day conversion strategy announced by Binance, reflecting confidence in Bitcoin as a core reserve asset and strengthening user protection in volatile markets.
Elon Musk has pulled far ahead as the world’s richest person after SpaceX acquired his AI startup xAI. Forbes’ real-time tracker now estimates Musk’s net worth at $852.5 billion. The deal merged SpaceX, xAI, and X, valuing the combined company at $1.25 trillion. Musk owns 42% of SpaceX, which now accounts for more than half of his total wealth. His fortune is now larger than the combined wealth of Jeff Bezos, Larry Page, and Sergey Brin. Tesla still makes up about 12% of his holdings, while SpaceX’s Starship and Starlink continue to drive growth.
Bitmine (BMNR) has faced criticism after reports showed an unrealized loss of about $6.6 billion on its Ethereum holdings amid a market downturn. Some traders warned that this could create future selling pressure and limit ETH’s price. Bitmine Chairman Tom Lee pushed back, saying these views misunderstand the purpose of an Ethereum treasury; it’s meant to mirror ETH’s price over the full cycle, so paper losses during a slump are expected. Lee called the losses “a feature, not a bug,” comparing them to index ETFs that also show losses in down markets, and emphasized Bitmine’s long‑term strategy and ongoing ETH accumulation.
Tether has pulled back its fundraising plans after investors raised concerns about a reported $500 billion valuation, the Financial Times reported. The company had earlier considered raising $15–20 billion, but advisers are now discussing a much smaller amount of about $5 billion. CEO Paolo Ardoino said the higher figure was only the maximum Tether was willing to raise. He added that the company, which made around $10 billion last year from USDT reserves, is comfortable not raising any new funds.
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