Daily Crypto Signals: Bitcoin Tumbles Toward $70K, XRP at 14-Month Low
The crypto market faces mounting pressure as Bitcoin struggles to maintain support above $70,000 and XRP slides below $1.50, while US
Quick overview
- Bitcoin struggles to maintain support above $70,000, raising concerns of a potential drop into the $60,000 range amid significant deleveraging in the futures market.
- XRP has fallen below $1.50 for the first time in over 14 months, with analysts predicting a possible decline to $1.22 if the bearish trend continues.
- TRM Labs achieved unicorn status with a $70 million funding round, reflecting growing institutional interest in blockchain analytics despite rising address-poisoning attacks on Ethereum.
- US Treasury Secretary Scott Bessent ruled out government intervention in the cryptocurrency market, emphasizing that investment risks lie solely with market participants.
The crypto market faces mounting pressure as Bitcoin BTC/USD struggles to maintain support above $70,000 and XRP XRP/USD slides below $1.50, while US Treasury Secretary Scott Bessent explicitly rules out government intervention during digital asset downturns. Meanwhile, blockchain analytics firm TRM Labs reaches unicorn status with a $70 million funding round, even as address-poisoning attacks surge on Ethereum following recent network upgrades.
Crypto Market Developments
The digital asset market saw major instability this week as macroeconomic uncertainty and regulatory clarity merged to change investor sentiment. Treasury Secretary Scott Bessent presented forceful evidence before Congress on Wednesday, underscoring that the government has neither authority or purpose to bail out Bitcoin or the broader cryptocurrency market during periods of extreme collapse. His statements confirmed Washington’s hands-off policy to digital assets, laying full responsibility for investing risks squarely on market participants.
In another great news for the blockchain infrastructure sector, TRM Labs concluded a $70 million Series C investment round sponsored by Blockchain Capital, attaining a $1 billion valuation and unicorn status. The investment, which included participation from Goldman Sachs, Bessemer Venture Partners, and Citi Ventures, highlights growing institutional interest in AI-powered blockchain analytics tools geared to tackle more sophisticated criminality and scams.
Ethereum ETH/USD network activity revealed troubling tendencies following the Fusaka update, with blockchain analytics firm Coin Metrics reporting that stablecoin “dust” transactions now account around 11% of all Ethereum transactions. These address-poisoning assaults, which entail transferring modest amounts of stablecoins to wallets to deceive users, tripled post-Fusaka as reduced transaction costs made such operations more economically viable. The business studied over 227 million balance changes for USDC and USDT, finding that 43% involved transfers under $1, with 38% below a single penny.
Bitcoin Faces Severe Deleveraging
Bitcoin’s struggle to retain support above $70,000 escalated this week as the leading cryptocurrency touched new year-to-date lows amid significant futures market deleveraging. Trading near $72,800, Bitcoin has aroused concerns among analysts that a collapse into the $60,000 range could materialize if existing support levels fail to hold. According to CryptoQuant statistics, over 744,000 BTC in open interest left major exchanges over the last 30 days, which is almost $55 billion at current rates. The futures market is a tale of catastrophic position closures.
Binance witnessed net open interest dip by 276,869 BTC, while Bybit recorded the highest drop at 330,828 BTC. OKX experienced a reduction of 136,732 BTC on Tuesday alone. This large decrease implies widespread deleveraging rather than simply fresh short positions, with traders closing off leveraged bets as prices dropped.
Cumulative volume delta data offers an equally bleak picture, with onchain analyst Boris observing that market sell orders continue to dominate across key exchanges. Binance derivatives CVD stands near -$38 billion over the past six months, while other platforms show varied trends following December’s liquidation wave.
Adding to supply-side concerns, Bitcoin exchange reserves have grown to 2.752 million BTC from 2.718 million BTC since January 19, with analyst Axel Adler Jr. warning that prolonged growth beyond 2.76 million BTC could strengthen selling pressure. Market researcher Scient said that durable bottoms often require two to three months of consolidation near important support zones, albeit whether this occurs in the high $60,000s or low $50,000s remains questionable.
XRP Under $1.50, Tests Multi-Month Lows
XRP’s price action deteriorated drastically over the weekend, dipping below $1.50 for the first time in over 14 months and currently trading near $1.49. The altcoin has created a perfect bear pennant pattern on four-hour charts, with technical analysts estimating a probable slide toward $1.22 if the breakdown continues.
After losing the $1.60 support level for the first time since November 2024, XRP slipped below its bear pennant’s lower trendline on Tuesday before trying a retest of that level as resistance. The assessed goal for this bearish continuation pattern, derived by adding the height of the initial drop to the breakout point, shows a 23% decrease from current levels. The January rally to $2.40 was described by anonymous analyst AltCryptoGems as a “fakeout,” pointing out that the downtrend is still in place and that XRP has entered a “huge no-support zone.”
On-chain data reflect falling demand, with the 90-day Spot Taker Cumulative Volume Delta indicating substantially declining buy orders since early January. While demand-side pressure dominated the order book since November 2025, buy orders have fallen over the previous 30 days according to CryptoQuant data, showing dwindling enthusiasm among investors.
However, one potential silver lining for bulls is the steep reduction in XRP futures open interest, which plummeted to $2.61 billion on Wednesday from $4.55 billion on January 6. When open interest falls alongside prices, it can imply a weakening bearish trend or potential reversal, bringing hope that XRP might challenge overhead barrier near $1.85—a level that served as support throughout most of 2025.
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