Daily Crypto Signals: Bitcoin Consolidates at $69K, Ethereum Struggles at $2,000 as “Euphoria Fades”
After plunging 52% from its October 2025 peak of $126,220, Bitcoin has stabilized around $69,000 following a brief dip to $60,000, while
Quick overview
- Bitcoin has stabilized around $69,000 after a significant drop from its October 2025 peak of $126,220, while Ethereum struggles to maintain support above $2,000 amid regulatory scrutiny.
- The UK Financial Conduct Authority has intensified enforcement actions against cryptocurrency exchanges, highlighting compliance issues with financial advertising regulations.
- Institutional demand for Bitcoin remains optimistic, as evidenced by recent net inflows into US-listed Bitcoin ETFs despite overall market caution.
- Ethereum's on-chain data indicates potential demand zones below $2,000, with significant supply clusters creating overhead resistance and suggesting a long-term consolidation phase.
After plunging 52% from its October 2025 peak of $126,220, Bitcoin BTC/USD has stabilized around $69,000 following a brief dip to $60,000, while Ethereum ETH/USD struggles to maintain support above $2,000 amid mounting regulatory scrutiny from UK authorities and shifting sentiment in traditional finance.
Crypto Market Developments
The cryptocurrency market is currently going through a difficult time that is characterized by technical uncertainty, changing institutional attitude, and regulatory enforcement. By initiating High Court proceedings against Panama-based cryptocurrency exchange HTX for allegedly marketing cryptocurrency services to British consumers in violation of financial advertising regulations put into effect in October 2023, the UK Financial Conduct Authority intensified its enforcement actions. The regulator emphasized that such advertisements without sufficient compliance constitute a criminal violation and accused HTX of continuing to advertise on platforms such as Facebook, Instagram, YouTube, X, and TikTok in spite of prior warnings.
As cryptocurrencies become more and more entwined with traditional finance, the initial enthusiasm that followed President Donald Trump’s election triumph has subsided. Chris Waller, the governor of the Federal Reserve, noted that recent sell-offs have been exacerbated by market players being obliged to modify their risk positions as a result of mainstream financial institutions entering the cryptocurrency field. Additionally, Waller pointed out that regulatory uncertainty brought about by Congressional delays in drafting laws pertaining to crypto market structure has discouraged institutional engagement.
This cautious approach was mirrored in investment sentiment, as cryptocurrency exchange-traded products had $187 million in withdrawals in the most recent week, which was a considerable slowdown from the $3.43 billion that left during the preceding two weeks. Bitcoin hit $60,000 last Thursday, its lowest level since November 2024, at the same time as this downturn. James Butterfill, head of research at CoinShares, however, hypothesized that the slowing rate of withdrawals might indicate a shift in investor opinion.
Former FTX CEO Sam Bankman-Fried added to the market’s interest by filing a motion for a new trial on fraud charges. He claimed that previously unobtainable testimony from executives Ryan Salame and Daniel Chapsky might refute the prosecution’s story, which led to his 25-year jail sentence.
Bitcoin Rotates Around $69,000
Following a sharp decline to $60,130 on Friday, Bitcoin has spent the last four days consolidating inside a narrow 8% range around $69,000. Despite a 14% rally that temporarily lifted prices beyond $72,000, professional traders are skeptical of the 52% decline from its all-time high of $126,220 in October 2025. The long-to-short ratio among prominent traders at Binance fell from 1.93, a 30-day low, to 1.20, demonstrating a significant decrease in demand for leveraged long positions even as Bitcoin hit 15-month lows. This cautious approach is also visible in derivatives markets.
Nonetheless, institutional demand via exchange-traded funds for spot Bitcoin indicates that bigger investors continue to have an optimistic attitude. After three days of outflows, US-listed Bitcoin ETFs have seen $516 million in net inflows since Friday, suggesting that the circumstances that led to $2.2 billion in redemptions between January 27 and February 5 may have abated.
With $264.4 million leaving last week, Bitcoin investment products led ETP withdrawals, while spot Bitcoin ETFs in particular saw $318 million in withdrawals. With the put-to-call ratio at Deribit rising to 3.1 on Thursday before falling to 1.7, the options market also showed reactive rather than anticipatory positioning, indicating that traders changed positions after price weakness appeared rather than preparing for future drops.
Ethereum On-Chain Data Reveals Demand Zone Under $2,000
With prices momentarily topping $1,736 on Tuesday, Ethereum was under tremendous pressure to hold onto the psychologically crucial $2,000 mark. This 31% 2026 drop is consistent with past bull market cycles, especially the consolidation phase of 2021–2022. According to technical analysts using fractal analysis, ETH’s recent decline might be only the first of several lows in a protracted base-building phase, with prices possibly falling between $1,300 and $2,000 before creating a stable floor.
Long-term consolidation is more likely, according to onchain statistics. Significant supply clusters at high levels are visible in Ethereum’s UTXO realized price distribution; $2,822 holds 5.86% of the ETH supply, while $3,119 has 6.15%, forming strong overhead resistance. On the other hand, $1,881 (1.58 million ETH) and $1,237 show up as significant demand zones, with the latter possibly serving as a cycle floor. Positive divergences are emerging beneath the surface despite short-term bearish pressure.
With daily net outflows of over 158,000 ETH on Thursday, Binance alone saw exchange withdrawals soar to their highest level since October 2025, surpassing 220,000 ETH. ETH was trading between $1,800 and $2,000 at the time of this accumulating pattern. Furthermore, despite ETH prices remaining 30% lower, the amount of stablecoin transactions on Ethereum has surged by about 200% over the last 18 months, indicating fundamental network growth that could eventually trigger a price repricing.
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