Bitcoin and Ether price update

Bitcoin (BTC) was priced at US$73,420.53, down by 3.9 percent over 24 hours.

Bitcoin price performance, February 4, 2026.

Chart via TradingView.

Expectations of tighter monetary policy and unresolved regulatory tensions are also weighing on investors.

Meanwhile, XS.com’s Samer Hasn is observing positive sentiment marked by long-term investors and new Bitcoin addresses accumulating at current low prices, despite speculative money leaving. He views the downtrend as a buying opportunity while the broader market anticipates crucial economic data and earnings from Alphabet (NASDAQ:GOOGL).

Ether (ETH) was priced at US$2,164.80, down by 5.7 percent over the last 24 hours.

Altcoin price update

• XRP (XRP) was priced at US$1.54, down by 4.7 over 24 hours.

• Solana (SOL) was trading at US$93.04, down by 7.7 percent over 24 hours.

Today’s crypto news to know

Bitcoin-led selloff wipes nearly US$500 billion from crypto market

A sharp crypto selloff has erased nearly half a trillion dollars in market value in less than a week, with Bitcoin leading the decline, according to a Bloomberg report.

The total market cap for crypto has fallen by about US$467.6 billion since January 29.

Meanwhile, Bitcoin slid to its lowest level since US President Donald Trump’s re-election in early November 2024, briefly touching US$72,877 in US trading before clawing back to around US$75,900.

The pullback comes despite a more crypto-friendly White House and growing institutional adoption, reflecting how fragile sentiment remains after months of heavy leverage.

More than US$700 million in bullish and bearish bets were liquidated in the past 24 hours alone, taking total liquidations since January 29 to over US$6.6 billion, according to CoinGlass data.

Burry warns Bitcoin slide could trigger cascading financial stress

In a Substack post published on Monday (February 2), Michael Burry speculated that Bitcoin’s recent sharp decline could be something beyond a normal bear market, framing it as a uniquely dangerous setup that could trigger cascading financial turmoil across leveraged portfolios, as well as the entire crypto market and metals.

As Bitcoin is deeply embedded into leveraged structures, further price drops could force more selling. He outlined several ‘sickening scenarios,’ including 15 to 20 percent hits for large institutional holders like Strategy (NASDAQ:MSTR), a company he predicts could see major losses if Bitcoin were to fall to US$60,000.

If the cryptocurrency were to dip toward US$50,000, Burry said miners could dump reserves to avoid bankruptcy, dragging minerals and tokenized metal futures into a collapse. Burry sees Bitcoin as a purely speculative asset that has failed to act as a reliable debasement hedge like gold, so its drawdown exposes broader balance sheet fragility driven not just by price moves, but also by over‑levered positions, aggressive artificial intelligence and cloud CAPEX accounting and weak capital discipline that will only become apparent when liquidity tightens.

Strategy’s Bitcoin bet goes underwater

Michael Saylor doubled down on his Bitcoin conviction this week even as Strategy’s vast holdings slipped below their average purchase price. Bitcoin’s drop under roughly US$76,000 has pushed the firm’s estimated cost basis into negative territory, leaving it about US$630 million underwater on paper, according to market estimates cited by critics.

The company has accumulated more than 712,000 BTC since 2020 using a mix of share issuance and convertible debt, a strategy that paid off during the bull market, but now faces renewed scrutiny.

Bitcoin critics, including Peter Schiff, argue that Strategy’s aggressive buying helped fuel the earlier rally and that slowing purchases are now exacerbating the decline. Saylor has rejected that view, posting on X that volatility is “Satoshi’s gift to the faithful” and reiterating his rule to “Buy Bitcoin.”

TRM Labs hits US$1 billion valuation

Blockchain intelligence firm TRM Labs has reached a US$1 billion valuation after closing a US$70 million Series C funding round that was led by Blockchain Capital and included backing from Goldman Sachs (NYSE:GS), Bessemer Venture Partners, Brevan Howard, Thoma Bravo and Citi Ventures.

Co-founder Esteban Castaño said the company was built around the belief that widespread crypto adoption would inevitably require sophisticated risk and compliance tools.

TRM gained traction with law enforcement agencies and financial institutions by tracking activity across multiple blockchains, an early strategic choice that helped it compete with more established rivals.

Bessent reasserts government Bitcoin stance

During testimony before the House Financial Services Committee during a mandatory oversight hearing on the annual report of the Financial Stability Oversight Council, US Secretary of the Treasury Scott Bessent reasserted his stance that Bitcoin is an asset of the US government, not a liability, and that the Strategic Bitcoin Reserve built from forfeited coins is a legitimate balance sheet asset that the treasury is treating as part of the nation’s financial toolkit.

Bessent noted that roughly US$500 million in seized Bitcoin retained by the government has appreciated to over US$15 billion while in custody, underscoring Bitcoin’s role as a high‑growth strategic asset on the federal balance sheet.

He reiterated that the US is not planning to buy more Bitcoin on the open market, but will continue to accumulate it in budget‑neutral ways to build the reserve, such as through forfeitures and seizures.

What stage is the market in?

While some investors see parabolic prices as a signal to exit entirely, Lara cautioned against all-or-nothing thinking. Instead, she emphasized understanding where the market sits within the broader arc of a bull cycle.

Referencing Doug Casey’s framework, she outlined three phases: the stealth stage, the wall of worry and the mania.

In her view, today’s market sits uncomfortably between the latter two.

“Some people think we’re already in mania because of the price,” Lara said. “I don’t think we’re quite there yet.”

She pointed to lagging indicators, including subdued valuations across the TSX Venture Exchange and conservative assumptions in mining feasibility studies, as signs that the cycle still has room to run.

That said, Lara acknowledged the risks of complacency.

She recounted stories of investors who rode bull markets too long, only to find “no bids” when they tried to exit. Her solution: gradual repositioning. “Don’t wait too long,” she said. “Start to leave your positions slowly.”

For her own portfolio — and hypothetically, for her daughter’s — Lara favors selling in thirds rather than making dramatic moves. Trimming positions can relieve pressure without sacrificing exposure to further upside. Fully exiting, she warned, risks missing the very payoff investors have waited years to see.

Equally important is what happens after selling. Holding large amounts of cash, Lara admitted, doesn’t suit every personality, especially active speculators.

To impose discipline, she has redirected some profits into dividend-paying oil stocks held in a separate account. “You get paid to wait,” she said, calling oil historically cheap by multiple measures.

Beyond precious metals, Lara highlighted emerging areas of interest among veteran investors.

Copper is getting increasing attention, and will likely receive more if prices stay stable. Nickel remains overlooked, while oil continues to offer a combination of value and income that contrasts sharply with the volatility of junior miners.

Ultimately, Lara framed successful investing as a psychological exercise as much as an analytical one.

“Doing this well is a result of greed and fear,” she said. “In a bear market, you need to be greedy. In a bull market, you need to be somewhat fearful.”

Her closing message for newcomers and longtime investors: participate, but don’t lose perspective. Bull markets reward patience and punish excess.

“We’re all salespeople, including me,” Lara reminded the audience. “So don’t believe everything you hear.”

US targets rare earths security with Project Vault

While Japan pushes deeper into rare earths supply diversification, developments in the US underscore how deeply critical minerals policies are shaping markets on both sides of the Pacific.

On Monday (February 2), the Trump administration rolled out Project Vault, a roughly US$12 billion strategic critical minerals reserve aimed at reducing US dependence on China for rare earths and other essential metals.

The initiative, anchored by a US$10 billion loan from the US Export‑Import Bank and about US$2 billion in private capital, is designed to stockpile strategic materials like rare earths, cobalt and lithium.

The program’s backers say the reserve will function much like America’s Strategic Petroleum Reserve, offering a buffer against global supply disruptions and insulating manufacturers from price shocks that have plagued markets during recent US-China trade tensions. Analysts say the effort signals an ongoing shift toward industrial policy that treats critical minerals as strategic assets, even as completion details and long‑term execution remain uncertain.

The financial markets responded quickly. Shares of Australian rare earths producer Lynas Rare Earths (ASX:LYC,OTCQX:LYSDY) rallied more than 3 percent on Tuesday (February 3), closing at AU$15.25, reflecting renewed investor interest tied to the policy news and the broader rare earth narrative.

Lynas’ recent movements come against a backdrop of broader gains in non‑Chinese mineral producers, as investors reposition around supply chain security and government policy support.

Rare earths stocks more generally saw upticks in the US market after the country’s critical minerals plan came into focus, with producers like MP Materials (NYSE:MP) and USA Rare Earth (NASDAQ:USAR) gaining on reports of increased government engagement in critical mineral sourcing.

Trump’s Fed chair nomination calms risk-off sentiment

Precious metals are a complex market, and prices are driven by a myriad of factors.

For this latest price movement, the biggest trigger was US President Donald Trump’s nomination of Kevin Warsh, a former Federal Reserve governor, to replace Jerome Powell as the next Fed chair.

Powell, whose term expires this coming May, has faced heavy criticism and targeted legal attacks from the Trump administration, which wants the Fed to cut interest rates in a hurry.

For months now, market participants have been piling into gold on the belief that Trump would try to use his position to nominate a puppet dove as Fed chair and push for greater influence over monetary decisions.

If that were to occur, it would not only undermine Fed independence, but looser policy decisions could in turn further weaken the US dollar on the global stage and lead to higher inflation.

Such an environment is price positive for safe-haven assets such as gold and silver. But with the more hawkish Kevin Warsh as the nominee, the belief is that swift rate cuts aren’t necessarily on the table.

“His focus on real-time data and fundamentals could bring much-needed modernization to the Fed’s framework, at a time when investors are seeking transparency and credibility in monetary policy.”

That shared sentiment among investors led the US dollar to strengthen sharply. The precious metals and US dollar share an inverse relationship — as gold and silver are typically priced in US dollars, a stronger dollar makes purchasing them much more expensive for foreign buyers. This leads to lower demand and downward pressure on prices.

Will gold and silver prices recover?

Does the largest correction in decades mean the party’s over for gold and silver prices?

It’s more likely to be a healthy correction in an otherwise strong bull market for precious metals. Don’t forget that one policy event does not foretell the complete collapse of the strong fundamentals underlying the gold and silver markets. There is still a very strong case for the precious metals bull market given the high demand for gold from central banks and institutional investors. And industrial demand for silver is still expected to eclipse available mine supply.

Not to mention, there’s still optimism that the Fed will need to lower rates to deal with the nation’s ever-growing mountain of debt — which could become impossible to service at higher rates.

“Our view remains that structural forces continue to support a lower-rate environment, which should be constructive for risk assets. We remain focused on fundamentals and are positioning client portfolios accordingly,” stated Hulick.

For those investors still optimistic that gold and silver are in the early stages of a bull market cycle, this rundown in gold and silver prices may represent a buying opportunity.