Crypto markets saw a burst of major updates on February 4, led by a sharp intraday move in Bitcoin. BTC fell below $73,000, triggering $285 million in liquidations, then quickly rebounded to $76,000, causing another $100 million in liquidations. QCP also said Bitcoin had dropped to a post-election low of $72,900 before recovering to test $75,000. Falling futures open interest and negative funding rates pointed to a broad deleveraging move.
In the short term, traders are watching $72,000 to $74,000 as a key liquidity zone that may be tested again. On the upside, the $78,000 to $82,000 range holds notable liquidity and is being tracked as a possible target for the next major move. QCP described $75,000 as a pivotal near-term level: a hold there supports renewed buying interest, while a break lower could shift positioning toward defense.
Profitable Bitcoin Supply Falls Hard
On-chain data showed a steep decline in the amount of Bitcoin supply held in profit, falling from 19.8 million BTC to 11.2 million BTC. That drop suggests holders who entered at higher prices are now selling at a loss. Longer-term indicators were described as entering a stress zone. Historically, that type of setup has often coincided with accumulation by larger and more patient buyers. Analysts said weaker hands appear to be exiting while stronger hands begin to step in.
Cathie Wood and CZ Clash Over the 2025 Flash Crash
ARK Invest CEO Cathie Wood blamed a Binance software issue for last year’s crypto flash crash. During that event, Bitcoin fell from $122,000 to $105,000, triggering $28 billion in forced margin calls and wiping out $19 billion in leveraged positions. The selloff happened as U.S. stocks lost $1.5 trillion on fears tied to China tariffs.
Binance founder Changpeng Zhao rejected the claim, saying investigations did not find any outage in the exchange’s core systems. Binance said affected users were fully compensated and that a $400 million relief fund had been established. The dispute has revived attention on how crypto trading platforms handle extreme market stress.
Bank of America Discloses XRP ETF Position as XRPL Adds Institutional Controls
Bank of America disclosed ownership of 13,000 shares of the Volatility Shares XRP ETF, valued at about $224,640, according to a February 3 SEC filing. The position adds to the bank’s visible engagement with XRP-related products. The report also noted its ongoing work with Ripple in cross-border payments and the RLUSD stablecoin. At the same time, spot XRP ETFs recently recorded $19.46 million in inflows, even as XRP remained below $1.60.
XRP Ledger also rolled out a notable institutional feature. Its Permissioned Domains upgrade is now active, allowing accounts with KYC and AML credentials to access specific zones on the network. The change was approved by more than 80% of validators and allows banks to create secure transaction environments with up to 10 approved issuer pairs. Ripple CTO David Schwartz said the feature should help institutions, including Ripple’s 300-plus partners, use the ledger with greater confidence. A related Permissioned DEX upgrade is said to be nearing activation.
TRM Labs Reaches $1 Billion Valuation
Blockchain analytics firm TRM Labs said it has closed a $70 million Series C round led by Blockchain Capital, with participation from Goldman Sachs, Bessemer, Brevan Howard, Thoma Bravo, and Citi Ventures. The financing lifted the company’s valuation to $1 billion. TRM Labs provides blockchain intelligence software used to track crypto-related crime for law enforcement agencies and private-sector clients around the world. The company said the new capital will support its growth and expand its compliance and investigation products globally.