OSL Trading Moments: Cryptocurrency Market Plunges, Investors Mixed, US SEC Establishes New Cryptocurrency Working Group

Market Overview: Cryptocurrency markets experienced significant volatility, with Bitcoin reclaiming the $100,000 mark after a sharp drop, while Ethereum saw a 10% decline over the past week. The Fear & Greed Index suggests Bitcoin may be in a buy zone despite investor concerns.
Regulatory Developments: The US SEC established a new cryptocurrency working group, signaling potential regulatory shifts, while Utah considers becoming the first US state to create a Bitcoin reserve.
Key Data (as of Feb 5):
- Bitcoin: $98,147 (+5.07% YTD), daily spot volume of $70.48B
- Ethereum: $2,738.07 (-18.14% YTD), daily spot volume of $52.21B
- S&P 500 and Nasdaq showed positive YTD gains.
ETF Flows: Bitcoin ETFs saw inflows of $91.78M, while Ethereum ETFs attracted $83.54M on Feb 4.
Upcoming Events: ISM Services PMI (Feb 5) and Non-farm payrolls (Feb 7) are key dates to watch.
Hot News Highlights:
- US lawmakers are drafting cryptocurrency and stablecoin bills.
- NYSE submitted a Grayscale LTC ETF application to the SEC.
- A US-listed company added 871 BTC ($88.5M) to its holdings.
- XRP Ledger recovered after a brief block production halt.

Investor sentiment remains mixed amid regulatory uncertainty and market swings.

1. Market observation

Keywords: crash, ETH, BTC

Following the price crash, Bitcoin trading sentiment has dropped into the fear zone, which could indicate a buy signal, according to the Fear & Greed Index. Despite recent volatility that has caused each coin to swing $10,000 in 24 hours, Bitcoin has reclaimed the $100,000 mark. Other cryptocurrencies such as Ethereum and Solana have had mixed performances, with Ethereum struggling in the volatile market.

US authorities reportedly ignored a deadline demanded by Senator Cynthia Lummis to explain the seizure of Bitcoin from Silk Road, raising concerns among cryptocurrency advocates. In price prediction news, Bitcoin fell sharply from $91,252 to $101,549 in a matter of hours, with buyers aggressively defending the level. Meanwhile, Utah could become the first US state to establish a Bitcoin reserve.

Bitcoin derivatives data suggests that despite investor concerns, the currency has bottomed out and could potentially recover above $100,000. Ethereum prices have fallen 10% over the past week, and Trump-linked DeFi project World Liberty Financial currently holds 70,000 ETH worth $224 million, currently losing about $36.7 million. Amid these developments, the Bitcoin market remains volatile, and investors remain mixed about the cryptocurrency's prospects.

2. Key data (as of 09:49 HKT on February 5)

S&P 500: 6,037.88 (+2.66% year-to-date)
Nasdaq: 19,654.02 points (+1.78% year-to-date)
10-year Treasury yield: 4.521% (-5.50 basis points year-to-date)
US dollar index: 107.93 (-0.51% year-to-date)
Bitcoin: $98,147 (+5.07% year-to-date), with a daily spot volume of $70.48 billion
Ethereum: $2,738.07 (-18.14% year-to-date), with a daily spot volume of $52.21 billion