This week, Bitcoin dropped below $75,000 while Ethereum nearly touched $2,100.
Many altcoins crashed much harder and it felt like the market is falling apart.
But when you look at the data, several signals suggest that the market may have already formed a local bottom.
Here are the key reasons.
1) Bitcoin supply in profit is extremely low
Right now, less than 45% of Bitcoin supply is in profit.
That is very important.
This level is lower than November 2022 (FTX collapse) and even lower than March 2020 (COVID crash).
What does this mean?
It means most holders are already sitting in losses. A lot of selling has already happened. Pain has already been absorbed by the market.
Historically, when Bitcoin supply in profit falls this low, it has often marked bottoms.
2) Leverage has been fully flushed out
The derivatives market looks completely washed.
Funding rates, especially on Ethereum, have been negative for 4–5 days in a row.
Negative funding means: – Traders are heavily short – Sentiment is very bearish – Most people are positioned for downside
Markets usually do not crash when everyone is already bearish. They usually bottom around that time.
3) Institutional demand is returning
Bitcoin ETFs have started seeing inflows again.
Around $550 million worth of Bitcoin has flowed into ETFs recently.
Binance SAFU Fund is buying Bitcoin.
This matters because institutions do not usually buy during panic unless they believe prices are attractive.
This shows real demand is stepping in at lower levels.
4) Major FUD has cleared
A lot of fear stories were circulating recently.
– The claim that Epstein is Satoshi has faded – The fear that MicroStrategy would go bankrupt if BTC falls below its cost basis has not played out – Ethereum treasury companies are still buying
In fact, BitMine bought around $46 million worth of Ethereum today, even after recent losses.
This shows large players are not panicking. They are buying when fear is high.
$ETH – bounce looks weak, sellers still in control Short $ETH Entry: 2,260 – 2,320 SL: 2,395 TP1: 2,200 TP2: 2,120 TP3: 2,000 The push higher stalled quickly and sell pressure showed up on the first bounce, suggesting this move is corrective rather than a trend shift. Momentum is rolling over again and buyers aren’t getting acceptance above this zone, keeping downside continuation in play. Trade $ETH ETH here 👇
ZIL ($Zilliqa) just exploded +56% in 24 hours 🚀 While the broader market barely moved, traders piled into a clear, time-bound catalyst: the imminent Cancun hard fork — instantly turning $ZIL into a standout winner. The move was technically clean: • Breakout above key moving averages • Reclaim of a critical Fibonacci level • 1,700%+ volume spike, making the rally highly visible and momentum-friendly In a fearful market, high-beta alts like $ZIL benefited from early capital rotation, giving traders both a strong narrative and a clear setup to rally around. Now the key question 👀 👉 Can ZIL hold above $0.00672 post-upgrade? If it does, this could evolve from a buy-the-rumor spike into a more durable trend. If not, expect volatility to return fast. Patience here matters. #ZIL #Zilliqa #Altcoins #Crypto $ZIL
Satoshi has not sold any Bitcoin, ever. The last transfer out of his wallets was 16 years ago.
He is the best performing individual in crypto with a profit of $86 BILLION USD. He is the 22nd richest person in the world, and has never sold a single coin.
Vitalik Buterin sold about 352 ETH (worth ~$830K) via Cow Protocol in three transactions on Feb 2, 2026. The largest (~212 ETH for $500K USDC) was transferred to Kanro, likely for funding. This matches recent reports. $ETH
GOLD WAS DOWN 13% SILVER WAS DOWN 36% BTC WAS DOWN 25% BANKS ARE CRASHING
THE QUESTION IS WHERE'S THE MONEY FLOWING TO?
HERE IS WHAT'S HAPPENING:
Last few days wiped out almost $13T from the markets, which is one of the biggest wipeouts EVER in history
But usually when it happens with one market, another gets liquidity and this time it's different
What might be the cause:
- Bank crashing - New FED chair Kevin Warsh - Stock market chaos
As for me, all of those brought us here, creating less liquidity, tigher monetory policy and less support for risk assets
Most interesting that again thousands of insiders knew about this crash long ago before FED chair announcement, etc
Despite all of that, I think we might have a great buy opportunity soon, let me explain why not now:
Rn it's more like a gamble, we can go lower from here, I see BTC lows somewhere at $70K cause we still have targets to take out below
I don't believe that ETH will be down under $2k, so I'll buy somewhere at those levels
Remember that the best opportunity to buy comes when everyone is in fear, that was back in 10.10 crash, rn and every time
So short term I'd expect more volatility and probably further dump, follow me and turn notifs on cause I'll keep posting market updates daily $BTC #StrategyBTCPurchase #WhenWillBTCRebound