By Omkar Godbole (All times ET unless otherwise noted)
As the cryptocurrency market licks its wounds from the weekend’s decline, permissionless markets on decentralized exchange Hyperliquid have skyrocketed to record levels.
The markets, introduced in October with the Hyperliquid Improvement Proposal 3 (HIP-3), hit a record $1 billion in open interest and $4.8 billion in 24-hour volume. According to HIP-3, anyone can activate the markets for cryptocurrencies, stocks, gold, and more by staking 500,000 HYPE tokens. The initiative represents the democratization of market creation, not just trade.
This surge in activity has driven Hyperliquid’s native token, HYPE, to a notable 41% gain in seven days, in contrast to bitcoin’s 11% drop and ether’s steeper declines. and other major altcoins.
Some now call HYPE a “defensive play,” similar to pharmaceutical or utility stocks that hold steady in bear equity markets, prioritizing capital preservation and stability over speculative bets.
It remains to be seen if HYPE can maintain this safe haven status, especially if the cryptocurrency decline deepens. A continued sell-off could erode investor confidence, slow trading activity on all exchanges, including Hyperliquid, and limit the token’s gains. For now, however, traders have a token that bucks the BTC-centric trend, offering a rare glimpse of diversification in a market that appears to be blindly following Bitcoin lower.
Speaking of markets, over the weekend bitcoin fell below $75,000, and the broader market followed suit. Almost all crypto market subsector indices are down 15% or more this year, according to CoinDesk Indices.
The BTC crash has left spot ETF holders underwater, setting the stage for large redemptions and further bearish 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 primarily converge towards bitcoin. MSTR’s built-in leverage means it will plunge further, Tagus Capital explained, adding that a decoupling like the one seen on Friday, when BTC fell to $81,000 and MSTR rose 4%, won’t last.
According to QCP Capital, $74,000 is the key support price level for bitcoin. A move below that would “increase the risk of a deeper decline, which could see the broader crypto complex return to its 2024 trading range,” the firm said in a market update. He added that a decisive move above $80,000 could offer short-term relief. Stay alert!
Read more: For an analysis of current activity in altcoins and derivatives, see Crypto Markets Today
What to watch
For a more complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Crypto
- February 2: Auctions will launch on the Uniswap web app.
- Macro
- February 2: Canada S&P Global Manufacturing PMI for January (previous 48.6)
- Feb 2, 10am: January US ISM Manufacturing PMI (previous 47.9)
- Earnings (Estimates based on FactSet data)
symbolic events
For a more complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Governance votes and calls
- CoW DAO is voting to renew team grants through a 5% base allocation and up to 10% in performance incentives tied to revenue milestones. Voting ends 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 fastest blocking interval of 0.45 seconds. Voting ends on February 2.
- ENS DAO is voting 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 ends on February 2.
- GnosisDAO is voting to enable ranked-choice voting for governance proposals. This change allows the community to select from multiple options in an instantaneous runoff system. Voting ends on February 2.
- Unlock
- Token releases
- February 2: Zama (ZAMA) will list on OKX, Bybit, Bitrue, KuCoin and others.
Conferences
For a more complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
Market movements
- BTC is down 7.83% as of 4pm ET Friday to $77,639.00 (24 hours: -0.83%)
- ETH is down 15.5% to $2,286.95 (24 hours: -3.9%)
- CoinDesk 20 is down 7.5% to 2,331.94 (24 hours: -2.22%)
- Ether CESR Composite Staking Rate Up 6 Basis Points to 2.97%
- BTC funding rate is at -0.0038% (-4.1369% annualized) on Binance
- DXY remains unchanged at 97.07
- Gold futures unchanged at $4,746.60
- Silver futures rise 4.47% to $82.04
- The Nikkei 225 closed down 1.25% at 52,655.18
- Hang Seng closed down 2.23% at 26,775.57
- FTSE unchanged at 10,227.93
- The Euro Stoxx 50 falls 0.13% to 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
- Nasdaq Composite closed down 0.94% at 23,461.82
- S&P/TSX Composite closed down 3.31% at 31,923.52
- The S&P 40 Latin America closed with a fall of 3.64% to 3,623.17
- The 10-year US Treasury rate fell 2.5 basis points to 4.216%
- E-mini S&P 500 futures down 0.6% at 6,923.75
- E-mini Nasdaq-100 futures down 0.88% to 25,443.50
- E-mini Dow Jones Industrial Average index futures down 0.26% to 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
- Hashprice (spot): $34.43
- Total fees: 2.52 BTC / $196,950
- CME Futures Open Interest: 117,345 BTC
- BTC priced in gold: 16.5 oz.
- BTC market capitalization against gold: 5.19%
Technical analysis
- The chart shows weekly bitcoin price swings since 2023 in candlestick format along with the Ichimoku cloud, a moving average-based trend indicator.
- BTC fell more than 11% last week, decisively falling below the Ichimoku cloud to confirm a long-term bullish to bearish trend change.
- Attention is now focused on support around $74,000, which prices almost tested today, followed by $69,000, the 2021 high.
Crypto Stocks
- Coinbase Global (COIN): closed on Friday at $194.74 (-2.23%), -4.13% to $186.70 in the previous 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
- Bullish (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): closed 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 treasury 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 Flows
BTC Spot ETF
- Daily net flows: -$509.7 million
- Accumulated net flows: $54.99 billion
- Total BTC holdings ~1.28 million
ETH Spot ETF
- Daily net flows: -$252.9 million
- Accumulated net flows: 12,010 million dollars
- Total ETH holdings ~5.93 million
Source: Farside Investors
while you were sleeping
- Bitcoin briefly falls near $74,000 as tight liquidity keeps traders on edge (CoinDesk) – Bitcoin is back trading above $76,000 after testing $74,000, highlighting the fragile balance between dip buyers and forced sellers in a market still short on depth.
- Dollar Gains as Falling Metals Hurt Commodity Currencies (Bloomberg): The dollar gained strength again, advancing further against currencies sensitive to commodity prices, gold and silver plummeted sending ripples through the markets.
- Stocks fall as silver slide sparks heavy selling (Reuters): Global stocks fell as a sudden sell-off 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 US-Iran de-escalation (Reuters) Oil fell 5% on Monday after President Donald Trump said Iran was “talking seriously” to Washington, signaling a de-escalation with an OPEC member to ease concerns about supply disruption.
