By Omkar Godbole (All times ET unless otherwise noted)
As the crypto market licks its wounds after the weekend drop, the permissionless markets of decentralized exchange Hyperliquid have exploded to record highs.
The markets, introduced in October with Hyperliquid Improvement Proposal 3 (HIP-3), reached a record high of $1 billion in open interest and $4.8 billion in 24-hour volume. Under HIP-3, anyone can boost the crypto, stock, gold and beyond markets by staking 500,000 HYPE tokens. This initiative represents a democratization of market making, and not just trading.
This burst of activity propelled Hyperliquide’s native token, HYPE, to a remarkable 41% seven-day gain, in contrast to bitcoin’s 11% decline and ether’s steeper fall. and other major altcoins.
Some now refer to HYPE as a “defensive play,” similar to pharmaceutical stocks or utilities that hold steady in bear stock markets, prioritizing capital preservation and stability over speculative bets.
It remains to be seen whether HYPE can maintain this safe-haven status, especially if the crypto crash worsens. Continued selling could erode investor confidence, slow trading activity on all exchanges, including Hyperliquide, and cap the token’s gains. For now, however, traders have a token that bucks the BTC-centric trend, offering a rare glimmer of diversification in a market that seems to be blindly following Bitcoin’s decline.
Speaking of markets, over the weekend, bitcoin fell below $75,000, and the entire market followed suit. Nearly all crypto market subsector indices are now down 15% or more this year, according to CoinDesk Indices.
The BTC plunge left spot ETF holders underwater, paving the way for significant buybacks and further downside pressure. Traders are also worried about how Strategy (MSTR) stock will trade on Monday.
With 712,000 BTC (3.4% of the total supply), the strategy will mainly converge towards bitcoin. MSTR’s built-in leverage means the crater will be even stronger, Tagus Capital explained, adding that a decoupling like the one seen on Friday, when BTC fell to $81,000 and MSTR rose 4%, will not last.
According to QCP Capital, $74,000 is the main support price level for Bitcoin. A move below that “would increase the risk of a larger decline, potentially moving the broader crypto complex back toward its 2024 trading range,” the company said in a market update. He added that a decisive move above $80,000 could provide short-term relief. Stay vigilant!
Read more: For analysis of current altcoin and derivatives activity, see Crypto Markets Today
What to watch
For a more comprehensive list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Cryptocurrency
- February 2: Launch of auctions on the Uniswap web application.
- Macro
- February 2: Canada S&P Global Manufacturing PMI for January (previous 48.6)
- February 2, 10 a.m.: American ISM manufacturing PMI index for January (previous 47.9)
- Earnings (Estimates based on FactSet data)
Token Events
For a more comprehensive list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Votes and calls on governance
- CoW DAO votes to renew team grants via a 5% base allocation and up to 10% performance incentives tied to revenue milestones. Voting closes on February 2.
- BNB Chain is voting on a proposal to adjust five system parameters to align with the upcoming Fermi hard fork and its faster 0.45 second block interval. Voting closes on February 2.
- ENS DAO votes to fund a $125,000 independent retrospective led by Metagov. The project will analyze past spending and governance effectiveness to create an evidence-based roadmap for the future of the DAO. Voting closes on February 2.
- GnosisDAO votes to enable ranked choice voting for governance proposals. This change allows the community to choose from multiple options in a flash flow system. Voting closes on February 2.
- Unlocks
- Token Launches
- February 2: Zama (ZAMA) will be listed on OKX, Bybit, Bitrue, KuCoin and others.
Conferences
For a more comprehensive list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
Market movements
- BTC is down 7.83% from 4 p.m. ET Friday at $77,639.00 (24 hours: -0.83%)
- ETH is down 15.5% at $2,286.95 (24 hours: -3.9%)
- CoinDesk 20 is down 7.5% at 2,331.94 (24 hours: -2.22%)
- Ether CESR Composite Staking Rate Up 6 Basis Points to 2.97%
- BTC funding rate is -0.0038% (-4.1369% annualized) on Binance
- The DXY is unchanged at 97.07
- Gold futures unchanged at $4,746.60
- Silver futures are up 4.47% at $82.04
- The Nikkei 225 closed down 1.25% at 52,655.18
- Hang Seng closed 2.23% lower at 26,775.57
- FTSE is unchanged at 10,227.93
- The Euro Stoxx 50 is down 0.13% at 5,939.96
- DJIA closed Friday down 0.37% at 48,892.47
- The S&P 500 closed down 0.43% at 6,939.03
- The Nasdaq Composite closed down 0.94% at 23,461.82
- The S&P/TSX Composite Index closed down 3.31% at 31,923.52
- The S&P 40 Latin America closed down 3.64% at 3,623.17
- The 10-year U.S. Treasury yield is down 2.5 basis points at 4.216%.
- E-mini S&P 500 futures are down 0.6% at 6,923.75
- E-mini Nasdaq-100 futures are down 0.88% at 25,443.50
- E-mini Dow Jones Industrial Average futures are down 0.26% at 48,883.00
Bitcoin Statistics
- BTC dominance: 60% (+0.1%)
- Ether-bitcoin ratio: 0.02946 (-0.13%)
- Hashrate (seven-day moving average): 876 EH/s
- Hash price (spot): $34.43
- Total fees: 2.52 BTC / $196,950
- Open interest on CME futures: 117,345 BTC
- BTC valued in gold: 16.5 ounces.
- BTC vs. gold market capitalization: 5.19%
Technical analysis
- The chart shows weekly Bitcoin price fluctuations since 2023 in candlestick form as well as the Ichimoku Cloud, a trend indicator based on a moving average.
- BTC fell more than 11% last week, falling decisively below the Ichimoku cloud to confirm a long-term bullish to bearish trend change.
- The focus now shifts to support around $74,000, which was almost price tested today, followed by $69,000, the 2021 high.
Crypto Stocks
- Coinbase Global (COIN): Closed Friday at $194.74 (-2.23%), -4.13% at $186.70 in pre-market
- Circle Internet (CRCL): closed at $63.93 (-5.36%), -2.58% at $62.28
- Galaxy Digital (GLXY): closed at $28.26 (-5.67%), -6.86% at $26.32
- Bull (BLSH): closed at $30.20 (-7.53%), -1.59% at $29.72
- MARA Holdings (MARA): closed at $9.50 (-3.65%), -5.26% at $9.00
- Riot Platforms (RIOT): close at $15.47 (-8.84%), -5.49% at $14.62
- Core Scientific (CORZ): closed at $17.99 (-4.51%), -5.73% at $16.96
- CleanSpark (CLSK): closed at $11.84 (-5.96%), -6.76% at $11.04
- CoinShares Valkyrie Bitcoin Miners ETF (WGMI): Closed at $45.06 (-7.55%), -4.57% at $43.00
- Exodus Movement (EXOD): closed at $13.09 (-6.37%), -1.38% at $12.91
Crypto Cash Companies
- Strategy (MSTR): closed at $149.71 (+4.55%), -6.62% at $139.80
- Strive (ASST): closed at $0.82 (+4.59%), -7.38% at $0.76
- SharpLink Gaming (SBET): closed at $8.88 (-5.23%), -8.78% at $8.10
- Upexi (UPXI): closed at $1.78 (-2.73%), -8.43% at $1.63
- Lite Strategy (LITS): closed at $1.21 (-3.20%), -2.48% at $1.18
ETF Feed
Spot BTC ETF
- Daily net flows: -$509.7 million
- Cumulative net flows: $54.99 billion
- Total BTC holdings ~1.28 million
ETH Spot ETF
- Daily net flows: -$252.9 million
- Cumulative net flows: $12.01 billion
- Total ETH holdings ~5.93 million
Source: Farside Investors
While you were sleeping
- Bitcoin briefly falls near $74,000 as low liquidity keeps traders on edge (CoinDesk): Bitcoin traded above $76,000 after testing $74,000, highlighting the delicate balance between declining buyers and forced sellers in a still shallow market.
- Dollar Gains as Falling Metals Hurts Commodity-Linked Currencies (Bloomberg): The dollar strengthened again, rising the most against currencies sensitive to commodity prices, gold and silver plunged, sending ripples through markets.
- Stocks fall as silver rout triggers sharp sell-off (Reuters): Global stocks fell as massive sell-offs in precious metals forced investors to dump other assets to cover losses, ahead of a week packed with corporate earnings, central bank meetings and major economic data.
- Oil prices fall 5% on U.S.-Iran de-escalation (Reuters) Oil fell 5% on Monday after President Donald Trump said Iran was “talking seriously” with Washington, signaling a de-escalation with an OPEC member to ease supply disruption concerns.
