Crypto
Bitcoin Continues Months-Long Steep Decline In Value
No customers for the bitcoin ATM (Justin Sullivan/Getty Images)

Bitcoin struggles to reach $70,000 as it heads for worst Q1 since 2018

If bitcoin ends February in the red, it will be its fifth consecutive monthly loss, and one analyst says bitcoin could “revert to $10,000.”

Yaël Bizouati-Kennedy

Bitcoin is struggling to stay above $70,000, a level it briefly broke over the weekend, as a lack of catalysts coupled with macro-driven factors are keeping the price stagnant in the mid- to high $60,000s.

Bitcoin is down over 14% in February, and if it closes the month in the red, that will be its fifth consecutive monthly loss and its worst Q1 since 2018, CoinGlass data shows.

“Market cap compression has matured; volatility has declined; participation has thinned. This is a grinding phase. The next impulse will likely be violent, whichever direction it resolves,” Timothy Misir, head of research at Blockhead Research Network, said.

Misir added that the unrealized losses across the network represent 16% of bitcoin’s total market cap, a pain profile similar to early May 2022.

Kyle Rodda, senior financial analyst at Capital.com, told Sherwood News that two big levels stand out for him.

“The first is major support at $60,000, which is the most recent lower low. Second is previous support and possible resistance at $74,000. The trend looks negative, and the price action hints at another possible break lower to test $60,000. But a push above $74,000 would negate some of that bearishness and maybe allay fears BTC is heading lower from here,” Rodda said.

btc 60K support
(Kyle Rodda/Capital.com)

Looking ahead, Rodda said he’s watching Friday’s inflation data because it might provide “a touch of support beneath what is an otherwise pretty strong downtrend” for bitcoin.

“Obviously, the nasty scenario would be if it comes in a bit spicy and casts doubt about the depth and timing of rate cuts. Should that happen, itll add to bitcoins list of woes,” Rodda said.

Meanwhile, Glassnode analysts said bitcoin’s recent drop to $60,000 “imposed drastic psychological pressure on diamond hands, comparable to the May 2022 LUNA crash.”

“Simply put, long-term holders realized significant losses — a rare shift in conviction typically seen in deeper stages of bear markets,” they wrote on X.

BTC chart
(Glassnode)

Bloomberg Intelligence macro strategist Mike McGlone posted an even more bearish outlook on X that the “crypto bubble is imploding,” and bitcoin could “revert to $10,000.”

Not everyone agrees with McGlone’s bleak scenario.

Shawn Young, chief analyst at MEXC Research, told Sherwood he doesn’t believe projections that call for a retest of the $10,000 level. 

“The fundamentals remain — and even though mass acquisitions have slowed, the current buying activity outweighs the coins mined daily. The first crucial sign would be bitcoin reclaiming the $80,000 resistance. If this happens and it stays above that level for a few weeks, a return to $100,000 is likely,” Young said.

Finally, Bitfinex analysts told Sherwood that there is a lack of upward momentum, even though implied volatility has dropped, and de-leveraging is running out of steam.

“But funding rates have yet to show appetite for aggressive re-leveraging and derivatives markets support the view of a stabilization rather than renewed buying,” they said.

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Crypto exchange Blockchain.com confidentially files for IPO

Blockchain.com, one of the oldest crypto firms, announced it confidentially submitted a draft registration statement on Form S-1 with the US Securities and Exchange Commission, a step toward conducting an initial public offering.

The number of offered shares and price range has yet to be determined, according to a Thursday press release. If the company completes its IPO, Blockchain.com would join Circle and Bullish as crypto companies that have gone public in the year.

Simultaneously, a number of other companies, namely ethereum development firm Consensys, security hardware firm Ledger, and rival crypto exchange Kraken, have paused their plans to IPO due to rough market conditions.

The exchange started in 2011 as a bitcoin search engine before expanding to providing wallets and powering bitcoin transactions. The company raised funds through a series of funding rounds, with a Series D funding round in 2022 giving the firm a $14 billion valuation at the time.

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Hyperliquid ETFs top inflows as HYPE soars

While investors are opting out of ETFs focused on the two largest cryptocurrencies, some are adding ETFs of alternative coins, chief among them being hype, the native token for Hyperliquid. 

Digital asset managers 21shares and Bitwise rolled out hype ETFs last week and have yet to notch any outflows. Tuesday saw the highest level of inflows so far at over $11 million, outpacing XRP and solana ETFs’ combined inflow of nearly $5.3 million. Meanwhile, bitcoin and ethereum saw $393 million exit their funds yesterday, according to SoSoValue.

Bloomberg senior ETF analyst Eric Balchunas noted the 21shares Hyperliquid ETF “is growing volume each day since launch in the tens of millions now, 8x over day one, which is [a] really good sign of organic interest.”

The ETF flows coincide with the token’s outperformance, jumping 5.7% in the last 24 hours, 29.5% in the past seven days, and more than 100% year to date, data from CoinMarketCap shows. Bitcoin, ethereum, solana, and XRP are all down double digits in 2026.

Hype began trading a week after former SEC Chairman Gary Gensler announced ending his tenure, and has an all-time high price of $59.30, set in September 2025.

Hyperliquid, the perpetual futures exchange built on its own blockchain, gained traction among users who wanted to trade assets such as commodities, cryptocurrencies, and equities with leverage in hours when traditional venues are closed. 

Treasury firm Hyperliquid Strategies has also rallied on news the SEC will soon greenlight trading tokenized versions of stocks.

Bitwise CIO Matt Hougan thinks investors are underestimating Hyperliquid’s impact and value. “The market is valuing Hyperliquid as a perpetual crypto futures exchange that happens to be growing quickly. But it should be valued as a global super-app covering all assets,” Hougan said in a Tuesday memo.

“Its addressable universe is not the $3 trillion crypto market, but the $600 trillion market for global assets. Those are two completely different businesses,” Hougan continued. “Today’s prices suggest you’re being offered the second at the cost of the first.”

Last week, Coinbase and Circle announced a new agreement with Hyperliquid. Coinbase became Hyperliquid’s official treasury deployer of Circle’s USDC on Hyperliquid, a move that translates to sharing around 90% of stablecoin reserve yield with the protocol.

99% of fees generated on Hyperliquid are dedicated to token buybacks, which, annualized, comes to $618 million, data from DefiLlama shows. The market capitalization of hype stands at $12.3 billion. 

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Ethereum exits: Investors depart its ETFs and the Ethereum Foundation shrinks (again)

On Monday, two researchers announced they were leaving the nonprofit organization tasked with supporting the second-largest blockchain network, adding to a growing exodus from the Ethereum Foundation.

Carl Beek, who helped architect the early design of ethereum’s beacon chain, will end his seven-year tenure with the foundation at the end of the month, while research scientist Julian Ma, who focused on product and growth work, has also decided to leave after four years.

Beek and Ma deepen a recent bout of turnover. Last week, the foundation said in a blog post that lead developers Barnabé Monnot and Tim Beiko are moving on from the organization. In April, Josh Stark, who was on the Ethereum Foundation leadership team for five years, left, as did Trent Van Epps, who organized Protocol Guild, which provides funding to core developers. The string of departures has raised concerns among those in the ecosystem.

“There have been a lot of disagreements about where ETH should move, whether from an issuance or architectural standpoint,” Laurens Fraussen, a research analyst at data provider Kaiko, told Sherwood News. “I’d assume the people leaving are either looking for greener pastures or don’t agree with the way the EF is being run.”

The foundation exodus comes as investors exit from ethereum ETFs. The investment vehicles saw more than $86 million in outflows on Monday, making six straight days of outflows, the longest streak since March, according to SoSoValue.

Meanwhile, an address identified as Galaxy Digital has a $2.3 million short position on ethereum using 20x leverage on Hyperliquid, data from blockchain analytics firm Nansen shows. The price of ethereum stands just under $2,110 as of 12:10 p.m. ET. With an entry point of $2,203, the firm has an unrealized gain of $102,000.

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