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Crypto steadies after selloff as bitcoin, ether rebound from multiyear lows

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Crypto steadies after selloff as bitcoin, ether rebound from multiyear lows

Bitcoin and ether are posting gains after a sharp market-wide decline, with derivatives traders continuing to reduce risk exposure.

By Oliver Knight, Omkar Godbole|Edited by Sheldon Reback
Updated Feb 4, 2026, 11:30 a.m. Published Feb 4, 2026, 11:29 a.m.
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Bitcoin and ether steady after Tuesday selloff (Matthias_Groeneveld/Pixabay modified by CoinDesk)

What to know:

  • Bitcoin is trading near $76,100 after dipping to $72,870, while ether holds around $2,255 as markets recover from Tuesday’s lows.
  • Futures open interest has dropped to $105.9 billion, liquidations hit $679 million in 24 hours and bitcoin implied volatility climbed to its highest level since December.
  • Monero and zcash posted gains, while Solana-based tokens stayed weak and bitcoin dominance pushed back above 59%.

The crypto market is enjoying a rare period of calm after Tuesday's selloff took bitcoin BTC$75,925.17 and ether ETH$2,251.72 to fresh multiyear lows.

BTC was recently trading at $76,100 having bounced from $72,870, the lowest since November 2024, while ETH is at $2,255 after dropping to a level not seen since May last year. Both assets in the black since midnight UTC, if only just.

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The altcoin market is mixed, with privacy coins embarking on a much-needed bounce while Solana-based tokens like PUMP and JUP fell, losing 2% and 2.5%, respectively, since midnight.

The recovery occurred after the U.S. House of Representatives passed a government funding package to end a partial shutdown, lifting U.S. equity futures and other global markets. Precious metals rebounded, with gold back above $5,000 and silverat $90 having risen by almost 6%.

Derivatives positioning

  • Traders continue to reduce their risk exposure, driving the cumulative notional open interest in all crypto futures down to $105.90 billion, the lowest since last April.
  • Crypto futures bets worth $679 million have been liquidated in 24 hours, with bullish plays accounting for most of the tally.
  • Bitcoin's 30-day implied volatility climbed to an annualized 53%, the highest since Dec. 1, indicating heightened market fear.
  • Open interest (OI) in bitcoin and ether futures dropped 0.7% and 2%, respectively. DOGE and recent outperformer HYPE have seen bigger capital outflows.
  • OI in LINK futures increased 2% alongside positive cumulative volume delta. The combination points to influx of bullish pressure in the market. The 24-hour CVD is also positive for TRX, XLM and ZEC.
  • Deribit-listed options are still showing a bias for bitcoin and ether puts, a sign of persistent demand for downside protection. Short-dated puts are trading at a 10-12 volatility premium to calls, a sign of peak fear.
  • Block flows featured demand for bitcoin and ether put spreads, a bearish strategy.

Token talk

  • Derivatives exchange tokens HYPE, LIT and ASTER all fell over the past 24 hours as traders rotated back into privacy coins.
  • HYPE lost 8.5%, but remains up by 30% since the turn of the year.
  • Monero XMR$388.91 bounced by 4% halt the bleeding after losing more than 50% of its value since Jan. 14. Zcash ZEC$278.08 is up by 3.4% after tumbling by more than 62% from its record high in November.
  • Generally speaking, the altcoin market lost ground to bitcoin during the recent market plunge. Bitcoin dominance is now back above 59% having started the year at 58.5%.
  • The divergence is typical of previous crypto bear markets, characterized by exaggerated altcoin moves in low liquidity environments.
  • Crypto majors SOL, ADA and XRP are all trading at their lowest levels since 2024 having retraced the entire bullish rallies over the past few years.
Crypto Markets TodayDerivatives
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Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals

Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals

BitcoinWorld Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals The financial world often keeps us on our toes, and Wednesday was no exception. Investors watched closely as the US stock market concluded the day with a mixed performance across its major indexes. This snapshot offers a crucial glimpse into current investor sentiment and economic undercurrents, prompting many to ask: what exactly happened? Understanding the Latest US Stock Market Movements On Wednesday, the closing bell brought a varied picture for the US stock market. While some indexes celebrated gains, others registered slight declines, creating a truly mixed bag for investors. The Dow Jones Industrial Average showed resilience, climbing by a notable 0.57%. This positive movement suggests strength in some of the larger, more established companies. Conversely, the S&P 500, a broader benchmark often seen as a barometer for the overall market, experienced a modest dip of 0.1%. The technology-heavy Nasdaq Composite also saw a slight retreat, sliding by 0.33%. This particular index often reflects investor sentiment towards growth stocks and the tech sector. These divergent outcomes highlight the complex dynamics currently at play within the American economy. It’s not simply a matter of “up” or “down” for the entire US stock market; rather, it’s a nuanced landscape where different sectors and company types are responding to unique pressures and opportunities. Why Did the US Stock Market See Mixed Results? When the US stock market delivers a mixed performance, it often points to a tug-of-war between various economic factors. Several elements could have contributed to Wednesday’s varied closings. For instance, positive corporate earnings reports from certain industries might have bolstered the Dow. At the same time, concerns over inflation, interest rate policies by the Federal Reserve, or even global economic uncertainties could have pressured growth stocks, affecting the S&P 500 and Nasdaq. Key considerations often include: Economic Data: Recent reports on employment, manufacturing, or consumer spending can sway market sentiment. Corporate Announcements: Strong or weak earnings forecasts from influential companies can significantly impact their respective sectors. Interest Rate Expectations: The prospect of higher or lower interest rates directly influences borrowing costs for businesses and consumer spending, affecting future profitability. Geopolitical Events: Global tensions or trade policies can introduce uncertainty, causing investors to become more cautious. Understanding these underlying drivers is crucial for anyone trying to make sense of daily market fluctuations in the US stock market. Navigating Volatility in the US Stock Market A mixed close, while not a dramatic downturn, serves as a reminder that market volatility is a constant companion for investors. For those involved in the US stock market, particularly individuals managing their portfolios, these days underscore the importance of a well-thought-out strategy. It’s important not to react impulsively to daily movements. Instead, consider these actionable insights: Diversification: Spreading investments across different sectors and asset classes can help mitigate risk when one area underperforms. Long-Term Perspective: Focusing on long-term financial goals rather than short-term gains can help weather daily market swings. Stay Informed: Keeping abreast of economic news and company fundamentals provides context for market behavior. Consult Experts: Financial advisors can offer personalized guidance based on individual risk tolerance and objectives. Even small movements in major indexes can signal shifts that require attention, guiding future investment decisions within the dynamic US stock market. What’s Next for the US Stock Market? Looking ahead, investors will be keenly watching for further economic indicators and corporate announcements to gauge the direction of the US stock market. Upcoming inflation data, statements from the Federal Reserve, and quarterly earnings reports will likely provide more clarity. The interplay of these factors will continue to shape investor confidence and, consequently, the performance of the Dow, S&P 500, and Nasdaq. Remaining informed and adaptive will be key to understanding the market’s trajectory. Conclusion: Wednesday’s mixed close in the US stock market highlights the intricate balance of forces influencing financial markets. While the Dow showed strength, the S&P 500 and Nasdaq experienced slight declines, reflecting a nuanced economic landscape. This reminds us that understanding the ‘why’ behind these movements is as important as the movements themselves. As always, a thoughtful, informed approach remains the best strategy for navigating the complexities of the market. Frequently Asked Questions (FAQs) Q1: What does a “mixed close” mean for the US stock market? A1: A mixed close indicates that while some major stock indexes advanced, others declined. It suggests that different sectors or types of companies within the US stock market are experiencing varying influences, rather than a uniform market movement. Q2: Which major indexes were affected on Wednesday? A2: On Wednesday, the Dow Jones Industrial Average gained 0.57%, while the S&P 500 edged down 0.1%, and the Nasdaq Composite slid 0.33%, illustrating the mixed performance across the US stock market. Q3: What factors contribute to a mixed stock market performance? A3: Mixed performances in the US stock market can be influenced by various factors, including specific corporate earnings, economic data releases, shifts in interest rate expectations, and broader geopolitical events that affect different market segments uniquely. Q4: How should investors react to mixed market signals? A4: Investors are generally advised to maintain a long-term perspective, diversify their portfolios, stay informed about economic news, and avoid impulsive decisions. Consulting a financial advisor can also provide personalized guidance for navigating the US stock market. Q5: What indicators should investors watch for future US stock market trends? A5: Key indicators to watch include upcoming inflation reports, statements from the Federal Reserve regarding monetary policy, and quarterly corporate earnings reports. These will offer insights into the future direction of the US stock market. Did you find this analysis of the US stock market helpful? Share this article with your network on social media to help others understand the nuances of current financial trends! To learn more about the latest stock market trends, explore our article on key developments shaping the US stock market‘s future performance. This post Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals first appeared on BitcoinWorld.
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