「20M Liquidation Hunter」 Takes Profit on BTC Short, Reduces Position Worth $3.02M

February 2nd — Per HTX market data, Ethereum briefly topped $2,300 and is now trading at $2,293.42, with its 24-hour decline narrowing to 0.94%.

February 2 — Digital asset investment products posted a record $1.7 billion in outflows last week, pushing year-to-date net flows into negative territory at $1 billion, according to CoinShares’ latest weekly report. Total assets under management (AuM) have dropped by $73 billion since the October 2025 price peak. Outflows were heavily concentrated in the U.S. ($1.65 billion), with notable withdrawals also in Canada and Sweden. Bitcoin led the outflows at $1.32 billion, while mainstream tokens including Ethereum, XRP and Solana also saw investor exits. Analysts cite three key factors driving the shift in market sentiment: a more hawkish Federal Reserve chair appointment, four-year cycle “whale selling,” and escalating geopolitical turmoil. Notably, short Bitcoin products and Hype investment products bucked the trend, bringing in $14.5 million and $15.5 million in inflows respectively — the latter boosted by a frenzy of online sales for tokenized precious metals.

According to an official announcement on February 2, Binance will delist and cease trading for the following spot trading pairs on February 3 at 4:00 PM: ARKM/FDUSD, ASTR/BTC, AWE/BTC, BANANA/BNB, DYDX/BTC, EUL/FDUSD, IMX/BTC, JTO/FDUSD, KSM/BTC, LINEA/FDUSD, LINK/BNB, NEAR/ETH, NFP/BTC, PIVX/BTC, PNUT/EUR, QTUM/ETH, SCRT/BTC, SNX/BTC, STG/BTC, SYS/BTC, and UTK/USDC.

Feb. 2 — Per The Kobeissi Letter, Ethereum-focused treasury firm BitMine’s unrealized losses have hit $6.6 billion. If these paper losses materialize, they would rank as the fifth-largest proprietary trading loss in global financial market history. In 2021, Archegos Capital Management posted losses of roughly $10 billion — equal to about 66% of its total assets — making it the largest ever in the space.

**February 2nd Crypto Brief** Per Coinglass data, Bitcoin dropped below $75,000 at noon today—falling below the strategy’s cost basis—sparking widespread market panic. Current funding rates across major centralized (CEX) and decentralized (DEX) exchanges signal strong bearish sentiment: **none of BTC, ETH, or SOL funding rates are in positive territory**. Notably, bearishness toward altcoins lags that of mainstream coins; most major altcoins’ funding rates also remain non-positive. Specific rates are detailed in the attached chart. --- **BlockBeats Note** Funding rate is a perpetual contract mechanism designed to align contract prices with underlying asset values. It facilitates fund exchanges between long and short traders—exchanges do not collect this fee—adjusting traders’ holding costs/profits to keep contracts closely tied to underlying assets. **Rate Benchmarks**: - 0.01% = baseline - >0.01% = bullish trend - <0.005% = bearish trend

On February 2, QCP issued a brief noting that Bitcoin fell below the key $80,000 support level on Saturday, hitting a low of $74,500, while Ethereum also dropped below $2,170. This latest downturn came as Kevin Warsh was confirmed as the next Federal Reserve Chair, stoking market expectations of policy tightening. Reports indicate over $25 billion in leveraged long positions have been liquidated, amplifying downward price pressure. Bitcoin is currently stabilizing around $74,500—a level matching its 2025 cycle low. The options market remains cautious, though downside hedging intensity is lower than during the last period of market stress. Analysts note the near-term trend will hinge on three factors: whether institutional funds re-enter the market, geopolitical risks ease, and Warsh’s policy stance emerges clearly. Bitcoin has now posted four straight months of declines.