Bitcoin Slides Below $98K as Crypto Market Faces Uncertainty and Altcoins Tumble

Crypto Market Faces Volatility: Bitcoin Drops Below $98K

On February 5, the cryptocurrency market experienced significant volatility, with Bitcoin (BTC) slipping to $98,054, marking a 3% decline in value. According to CoinGape, the flagship cryptocurrency saw a 24-hour low of $96,208.11 and a high of $100,826.91. The global crypto market cap also shrank by 2.84% to $3.22 trillion, while total market volume dropped 24.46% to $193.74 billion. Despite the downturn, Bitcoin's market dominance increased slightly to 60.40%, reflecting its continued influence in the market. Meanwhile, Ethereum (ETH) and other altcoins mirrored the downward trend, with ETH falling over 3% to $2,721. Ripple's XRP faced an even steeper decline of 8%, trading at $2.51 amid network issues highlighted by Ripple CTO David Schwartz. (Source: CoinGape, https://coingape.com/crypto-market-today-feb-5-btc-slips-to-98k-altcoins-volatile-melania-up-12/)

Bitcoin's Decline Despite Pro-Crypto Sentiments

Bitcoin's price fell by 6% following a press conference by David Sacks, which failed to deliver immediate pro-crypto policy changes. As reported by FX Empire, traders had anticipated bullish announcements, such as the inclusion of Bitcoin in U.S. reserves, but were left disappointed. The lack of concrete policy shifts led to a sell-off, with Bitcoin trading at $97,845 at the time of reporting. The cryptocurrency remains in a critical range of $92,000 to $108,000, with potential for either a breakout above $110,000 or a decline toward $85,000. Additionally, the supply of Tether (USDT) on exchanges hit a record 42.445 billion, indicating a defensive stance among traders. (Source: FX Empire, https://www.fxempire.com/forecasts/article/why-is-bitcoin-down-despite-david-sacks-pro-crypto-conference-1495498)

Semler Scientific Expands Bitcoin Holdings

Semler Scientific has made headlines by acquiring an additional 871 Bitcoin, bringing its total holdings to 3,192 BTC. According to CryptoNinjas, the company spent $88.5 million on the purchase, with an average price of $101,616 per BTC. This move positions Semler among the top 10 corporate Bitcoin holders globally. Since initiating its Bitcoin strategy in July 2024, Semler has achieved a 152% return on its investment, with its total Bitcoin holdings now accounting for over half of its $484.2 million market cap. The company’s leadership views Bitcoin as a strategic reserve asset, highlighting its potential as a hedge against inflation and economic uncertainty. (Source: CryptoNinjas, https://www.cryptoninjas.net/news/semler-scientific-buys-871-more-bitcoin-enters-top-10-corporate-holders/)

Market Sentiment and Confusion Among Traders

The cryptocurrency market has left traders puzzled, with Bitcoin's price movements defying traditional patterns. FXStreet reports that despite pro-crypto moves from the U.S. government, Bitcoin has struggled to maintain its momentum, trading at $97,925. The Crypto Fear & Greed Index dropped to a "Neutral" score of 54, reflecting growing uncertainty. Analysts had expected Bitcoin dominance to peak at 60% before an altcoin season, but it has already reached 61.47%. The market's unpredictability has been exacerbated by macroeconomic events, including trade tensions and liquidation events, which saw over $2.24 billion wiped from the market in a single day. (Source: FXStreet, https://www.fxstreet.com/cryptocurrencies/news/crypto-market-has-become-very-confusing-losing-all-logic-traders-202502050823)

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