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On 8 February 2026, the cryptocurrency market showed signs of stabilization following a volatile "crypto winter" style correction that saw many assets drop significantly from their 2025 highs. Bitcoin (BTC) ended the day around $70,264.73, attempting to hold a narrow consolidation range between $67,300 and $71,751.
Market Overview
Total Market Cap: The global crypto market capitalization was approximately $2.37 trillion, reflecting a 24-hour decline of about 2.25%.
Market Sentiment: Investors remained cautious as the market digested recent liquidations totaling nearly $2.6 billion earlier in the week.
Bitcoin Dominance: Bitcoin maintained a strong market share of 56.79%.
Major Assets Performance
Most leading cryptocurrencies experienced weekly declines as they struggled to regain momentum from a sharp market-wide drawdown.
Key Market News & Drivers
Institutional Inflows: Despite the price drop, U.S. spot ETFs saw net inflows of $145 million, indicating continued institutional interest.
MicroStrategy Activity: MicroStrategy (MSTR) continued its aggressive accumulation, purchasing 1,142 BTC between 2 February and 8 February at an average price of $78,815.
Operational Errors: A major South Korean exchange, Bithumb, briefly caused a market stir by accidentally distributing $40 billion worth of Bitcoin to users due to an internal error, though 99.7% was successfully recovered by the end of the day.
Macro Environment: Traders were focused on upcoming U.S. payroll and CPI data, which were expected to determine if the market would flip from "cautious stabilization" to renewed expansion.
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On February 7, 2026, the global cryptocurrency market experienced a tentative recovery following a period of extreme volatility and a significant sell-off. The total cryptocurrency market capitalization stood at approximately $2.33 trillion, reflecting a 3.45% increase over the preceding 24 hours.
Market Performance Summary
Despite the daily rebound, market sentiment remained in a state of "Extreme Fear," with the Fear & Greed Index hitting a rare low of 7/100.
Bitcoin (BTC): Traded between $65,550 and $71,751. It closed the day at approximately $69,319.50, a slight decline from its opening price as it struggled to maintain momentum above the $70,000 psychological barrier.
Ethereum (ETH): Showed resilience, trading around $2,063 to $2,091. It saw a daily gain of about 1.15% to 1.39% as it attempted to stabilize above $2,000.
Altcoins: Performance was mixed but generally positive during the rebound. XRP notably outperformed the broader market with an 18.6% surge to $1.53 following news of DeFi expansion strategies. Other gainers included Litecoin (up 10.2%) and Cardano (up 10.0%).
Key Market Drivers
Institutional Activity: While spot ETFs saw limited outflows, institutions continued to buy the dip, with some analysts maintaining long-term year-end targets of $150,000 for Bitcoin despite recent "crisis of confidence".
Liquidations: The week leading up to February 7 was marked by massive liquidations exceeding $2.5 billion in 24 hours, which fueled the initial market crash before the Saturday stabilization.
Macro Environment: Global markets showed signs of recovery as macroeconomic concerns eased slightly, aided by a record close for the Dow Jones and a proposed framework for a U.S.-India interim trade agreement.
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On February 6, 2026, the cryptocurrency market experienced a severe, broad-based sell-off characterized by high volatility and massive liquidations. Total market capitalisation fell approximately 9% during the session, dropping to roughly $2.2 trillion to $2.3 trillion. The market sentiment reached "Extreme Fear" (index level 12) as over $2.7 billion in derivative positions were liquidated.
Market Performance Summary
Despite a sharp late-day rebound for major assets like Bitcoin, the overall market remained deeply under pressure.
Bitcoin (BTC): Slipped as low as $60,017—its lowest level since October 2024—before staging a recovery back above $70,000 by the day's close.
Ethereum (ETH): Traded as low as $1,748 during the session, eventually rebounding toward the $2,060 level late Friday.
Altcoins: Performance was mostly negative, with 90 of the top 100 coins seeing price drops. However, some tokens like DCR (+31%) and PARTI (+14%) managed significant gains against the trend.
Key Market Drivers
Institutional Capitulation: BlackRock’s Bitcoin ETF recorded a record $10 billion in volume as heavy selling signaled a potential shift in institutional sentiment.
Macroeconomic Pressure: A strong US dollar and rising bond yields reduced the appeal of non-yielding digital assets.
Corporate Impact: MicroStrategy (MSTR) faced paper losses exceeding $12 billion as the price dipped well below their estimated average cost of acquisition during the crash.
Operational Incident: South Korean exchange Bithumb faced scrutiny after an error caused an accidental transfer of 620,000 BTC to users, though nearly 100% was reportedly recovered.
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US headline retail sales were unexpectedly flat (0.0% MoM) in December, missing economist forecasts for a 0.4% increase. Total sales for the month amounted to $735 billion, a sharp deceleration from the 0.6% growth recorded in November.
December 2026 Retail Sales Report Summary
The data, released by the Commerce Department on February 10, 2026, suggests consumer momentum stalled at the end of the holiday shopping season due to high living costs and a softening labor market.
Key Insights
Broad-Based Weakness: Declines were notable in furniture stores (-0.9%), miscellaneous retailers (-0.9%), and auto dealers (-0.2%).
Bright Spots: Spending remained resilient in building materials and garden supplies (+1.2%) and sporting goods (+0.4%).
Economic Impact: The miss triggered a decline in U.S. Treasury yields as traders increased bets on Federal Reserve interest rate cuts later in 2026.
Currency Reaction: The U.S. Dollar Index (DXY) pulled back following the report, testing new lows as the data signaled underlying consumer fatigue.
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In early 2026, US technology fund flows have shown a significant divergence between broad market indices and specific sector ETFs as investors rotate away from highly concentrated mega-cap names. While the broader ETF market saw record net inflows of $156 billion to $166 billion in January 2026, the pure-play technology sector experienced notable pressure.
Key Technology Fund Flows (USD) Broad Tech (QQQ): The Invesco QQQ Trust, which tracks the Nasdaq-100, managed to maintain positive momentum with $520.99 million in net inflows over the last month (as of February 6, 2026). However, it recorded short-term outflows of $1.91 billion in the first week of February. Sector-Specific (XLK): The Technology Select Sector SPDR Fund has faced a sharp reversal, recording $1.33 billion in net outflows over the past month. For the week ending February 10, 2026, it saw an additional $391.53 million exit the fund. Communication Services (XLC): This tech-adjacent sector also saw weekly outflows of $411.56 million. Specialised Growth: Despite the broader sector retreat, retail inflows into software stocks hit record highs in early February 2026, driven by continued implementation of AI technologies.
Market Sentiment and Drivers Rotation to Value: Investors are increasingly shifting capital toward international equities and dividend-focused ETFs. International equity ETFs pulled in a record $68 billion in January 2026, outpacing US equity inflows for the first time in three years. Concentration Risks: The "Magnificent Seven" stocks have faced selling pressure, with the Roundhill Magnificent Seven ETF down over 3% year-to-date as of February 2026. Institutional Shift: Large tech firms like Meta, Alphabet, and Amazon are increasingly turning to public bond markets to finance AI expansion rather than relying solely on cash flows, leading to a massive issuance of AI-linked bonds estimated to reach $1–$3 trillion in the coming years.
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