Market Signal Briefing

The cryptocurrency market has an uncanny ability to expose the emotional weaknesses of investors. When Bitcoin trades near cycle peaks, enthusiasm reaches fever pitch and price targets soar into the stratosphere. Conversely, when the asset approaches its lows, despair takes hold and predictions turn catastrophically bearish. This cyclical pattern of sentiment extremes reveals a fundamental truth about market psychology: investors consistently misjudge Bitcoin's value at both ends of the spectrum.

Recent market action provides a textbook example of this phenomenon. After Bitcoin briefly touched levels near $74,000 in early February 2026, declining more than 13% in a single week, bearish sentiment intensified dramatically. Prediction markets reflected this shift, with Polymarket showing a 72% probability that Bitcoin would fall below $65,000 during the year. Even more striking, the platform indicated a 61% chance of prices dropping beneath $55,000, accompanied by nearly $1 million in trading volume on these downside bets.

Analyst predictions grow darker as Bitcoin price declines

The descent through technical support levels has prompted prominent analysts to revise their cycle bottom projections significantly lower. One market observer who previously anticipated a bottom between $50,000 and $60,000 has now adjusted expectations downward to a range of $54,000 to $44,000. This revision came after Bitcoin lost a critical technical indicator that had previously separated bull and bear market conditions since October 2023.

The shift in analyst outlook demonstrates how bearish sentiment compounds as prices fall. When Bitcoin traded between $115,000 and $125,000, few imagined the asset would decline by more than 40% in subsequent months. Yet as the selloff accelerated, projections for the ultimate low point moved progressively deeper, illustrating the tendency for expectations to track price action rather than fundamental value.

Technical analysis has reinforced the bearish narrative. The formation of a death cross pattern and the breakdown below key moving averages have been cited as confirmation of a market structure similar to the 2021-2022 downturn. Some analysts now anticipate further consolidation before continued weakness toward $70,000, which they explicitly state would not represent the cycle bottom.

Of course, even during the darkest hours, opposing voices can be heard. The Dutch crypto website Bitcoinkoers.org, for example, recently wrote about a counterpoint to the prevailing negative narrative. The article featured well-known crypto personality and Real Vision CEO Raoul Pal. He still expects Bitcoin and the crypto market as a whole to have a good year in 2026. He bases this prediction on the business cycle and the expected increase in global liquidity.

Fear intensifies around institutional holdings

Additional anxiety has emerged surrounding the world's largest publicly listed Bitcoin holder, whose position fell below its average acquisition cost for the first time since late 2023. This development occurred when Bitcoin declined beneath approximately $76,000, a psychologically significant threshold. The situation carries heightened risk because a substantial portion of these holdings was acquired using leverage, with declining stock prices complicating stabilization efforts.

Market observers have warned that this situation could intensify fear and trigger panic selling, as the position sits roughly flat on a profit-and-loss basis with no realised gains throughout the accumulation period. The psychological impact of seeing a high-profile institutional holder underwater has contributed to the broader sentiment deterioration.

Demand indicators signal structural weakness

Beyond price action and technical patterns, fundamental demand metrics have deteriorated. Bitcoin exchange-traded funds recorded three consecutive months of net outflows through early 2026, despite many wealth management firms only recently enabling client access to these products. The last period of meaningful inflows occurred in July, with a brief resurgence in October before momentum stalled.

This weakness in traditional finance demand has prompted speculation that Bitcoin may require a fresh narrative before establishing a durable bottom and attracting renewed institutional interest. The timing is particularly notable given the strong performance of gold and ongoing dedollarization trends, suggesting that crypto-specific factors rather than broader macro conditions may be driving the weakness.

Coinbase Premium data has painted an even more concerning picture of US demand. The metric, which measures the price difference between Coinbase and Binance trading pairs, has remained deeply negative since mid-December. By late January, it reached its lowest level in over a year at negative 0.177, indicating that Asian demand significantly outpaced American buying interest.

Analysts have characterised this as a structural vacuum in US spot demand, noting that the negative premium persists even after substantial price adjustments. Unlike previous periods when discounts appeared briefly and resolved quickly, the current environment shows sustained weakness with only shallow, temporary relief. This pattern suggests US buyers are remaining on the sidelines rather than stepping in at lower prices.

Historical patterns show sentiment extremes at both ends

The current pessimism stands in stark contrast to sentiment just months earlier. When Bitcoin approached its all-time high above $126,000, major investment firms projected continued gains throughout 2026. Some forecasts called for prices reaching $150,000, while others suggested Bitcoin could surpass previous peaks by mid-year based on institutional demand and regulatory clarity.

These bullish projections, made near the market top, now appear as overly optimistic as current bearish predictions may prove overly pessimistic. The pattern repeats across crypto market cycles: euphoria near peaks gives way to despair near troughs, with investor expectations lagging price action by a significant margin.

Technical indicators provide some perspective on the extent of current oversold conditions. The relative strength index on weekly timeframes has approached levels last seen at the end of the 2022 bear market, while daily readings have reached the most oversold territory since Bitcoin traded at $26,000. However, some analysts caution that macro bottoming processes take time, noting that meaningful reversals in past cycles occurred only after indicators confirmed the bottoming process had already played out.

Bitcoin price weakness reflects broader market stress

The cryptocurrency decline has occurred alongside significant volatility in traditional markets. Gold experienced unprecedented single-day declines approaching 10%, while silver plunged over 30% following the announcement of a new Federal Reserve chair. These moves represented the worst single-day drops in precious metals since the early 1980s, erasing approximately $4 trillion in combined market capitalisation.

The timing has raised concerns that Bitcoin may be serving as a leading indicator for broader financial market liquidity challenges. Some analysts have suggested the cryptocurrency's breakdown could be warning of trouble ahead for other risk assets, particularly as corporate earnings season unfolds and macroeconomic uncertainty remains elevated.

The confluence of negative factors - technical breakdowns, weak demand metrics, institutional stress, and broader market volatility - has created an environment where bearish sentiment feeds on itself. Traders who previously sought bottoms are now warning others against attempting to call lows, advising that bear market bottoms require months to form properly.

The contrarian opportunity in extreme sentiment

Yet this extreme pessimism may itself signal that a bottom is forming. Market history consistently shows that the best buying opportunities arrive when sentiment is most negative and fear is most intense. The difficulty lies in distinguishing between justified concern and excessive panic, a challenge that investors face at every cycle turning point.

As Bitcoin approaches technical support levels from the 2021 bull market, the question becomes whether current pessimism will prove as misguided as previous euphoria. The answer may only become clear in retrospect, after prices have already reversed and sentiment has shifted once again from despair to hope.

Apart from those affected, users who were active during the incident will also receive $15 compensation.

South Korean crypto exchange Bithumb announced today it will fully compensate customers affected by an incident in which 620,000 Bitcoin worth over $40 billion was mistakenly distributed to 695 users during an event reward payment.

The error occurred on February 6 when an input mistake during the reward process led to the massive overpayment. Bithumb said it detected the issue within 20 minutes and blocked all transactions and withdrawals.

Bithumb recovered nearly all of the overpaid Bitcoin, amounting to 618,212 BTC or 99.7% of the total. In addition, 93% of the assets that recipients had already sold have been reclaimed, with no coins sent outside the platform.

“We sincerely apologize for the confusion and inconvenience caused to our customers due to the overpayment incident,” said Bithumb CEO Lee Jae-won in a statement. “We feel a deep sense of responsibility for failing to uphold the top priorities of a virtual asset exchange: stability and integrity.”

Bithumb confirmed customer losses from panic selling during the incident totaled approximately 1 billion Korean won (over $680,000) as of February 7. The company will provide 110% compensation to customers who sold at unfavorable prices on Friday.

All customers who accessed the platform during the incident will receive 20,000 KRW ($15), and trading fees will be waived for seven days.

The exchange also announced a permanent Customer Protection Fund worth 100 billion Korean won ($68 million) to address future incidents.

The Financial Supervisory Service and Financial Services Commission are probing Bithumb following the mistake.

The company stated that it is working with regulators after reporting the matter to authorities and will implement system upgrades such as enhanced asset verification, multi-step payment approvals, and an AI-powered Safeguard for 24-hour abnormal transaction detection.

Journalist

Posted: February 7, 2026

Starknet [STRK] was a leader among the Layer-2 projects by developmental activity, according to Santiment. This was a huge positive for long-term investors, who saw the token prices reach all-time lows.

High developmental activity, regardless of price action and market conditions, tends to separate the strong projects from the chaff.

Starknet was followed by Arbitrum [ARB] and zkSync [ZK]. Their 30-day activity scores were relatively lower compared to Starknet. Token Terminal data showed that Starknet was ranked 10th for active weekly users among Layer 2 blockchains.

The high-performance scaling solution for the Binance Smart Chain dominated L2 activity, followed by Arbitrum and Base. Compared by revenue, Starknet ranked a modest 6th among L2s.

CoinMarketCap data showed that STRK was down 42% over the past month and has slid nearly 17% in a week. In the face of these dire stats, on-chain metrics looked slightly healthier than they did in the second half of 2025.

Starknet holders’ capitulation might be over The age consumed metric has seen sizeable spikes over the past three weeks. At the same time, the 365-day mean coin age plummeted from 3-month highs. It showed increased token movement, which is understandable given the fear across the market.

Holders selling STRK also contributed to increased transaction volume, evidenced by spikes in the metric. This selling flurry can also signal heavy profit-taking activity, as it did in November when prices rallied to $0.27.

However, the mean coin age has begun to rise once again. This does not mark a price bottom by itself, but it was a slightly encouraging sign. Over the coming weeks, higher lows in the MCA metric would signal weaker waves of selling and more network-wide accumulation.

There are some other threats, such as a decline in Total Value Locked (TVL). AMBCrypto reported in mid-January that the TVL had reached the $300 million milestone for the first time since 2024.

This feat was only a brief victory lap for the investors. DeFiLlama stats showed that TVL has slid lower once again, reaching $289.45 million at press time.

Market conditions remain uncertain, and it may take time before TVL begins to rise again.

For long‑term investors, strong developmental activity offers some reassurance, but it’s still important to monitor metrics such as mean coin age and stablecoin liquidity to gauge the overall health of the L2.

Final Thoughts The Starknet holder conviction will be strengthened by the high 30-day developmental activity. STRK selling waves might be weakening if the mean coin age metric continues to ascend in the coming weeks, and age consumed remains low.

Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.

Bulls have an eye on some key targets for Ethereum's price.

Trader Plan C recently surfaced a chart indicating a production-cost model placing Bitcoin's marginal mining expense at approximately $67,000, with historical price action showing repeated bounces off that red line.

He added that “commodities rarely trade below their cost of production.” The hook is clean, the logic is intuitive, but the reality beneath Bitcoin's latest volatility is messier and more instructive than any single line can capture.

Bitcoin printed an intraday low near $60,000 on Feb. 6 before clawing back to fight around the $70,000 level as of press time, slicing through the widely watched $63,000 threshold that had anchored recent bottom-calling narratives.

However, the questions of whether the market is transitioning from forced deleveraging into genuine spot-led price discovery and what confluence of signals would confirm that shift remained.

Four zones that matterRather than seeking a single magic number, analysts are combining several frameworks into a demand ladder. Each rung represents a different valuation anchor, and together they map where buying pressure might actually materialize.

Zone A ranges from $70,600 to $66,900. Glassnode identifies this as a dense cost-basis cluster using its UTXO Realized Price Distribution model, indicating a high concentration of coins last moved in this price range.

After Bitcoin lost its True Market Mean around $80,200, this cluster became the nearest on-chain absorption zone.

Glassnode cautions that spot volumes remain structurally weak, meaning any relief rally risks being corrective noise unless real spot demand returns.

The implication: bounces off this zone, driven purely by leverage flush, won't stick.

Zone B centers on $63,000 and is significant from a behavioral rather than an on-chain perspective.

Galaxy Digital's research arm notes that a 50% drawdown from Bitcoin's October 2025 all-time high near $126,296 lands almost exactly at $63,000, forming a clean, round-trip threshold that mirrors prior bear-market capitulation points.

The sweep below $63,000 can be read two ways: either support broke, or the market executed a classic capitulation probe before finding genuine demand.

Which interpretation proves correct depends on what happens next with flows and derivatives.

Zone C spans $58,000 to $56,000, where two major cycle-bottom anchors converge.

Galaxy explicitly identifies the 200-week moving average at approximately $58,000 and the Realized Price near $56,000 as levels that have historically marked durable cycle floors.

Glassnode independently places Realized Price at approximately $55,800. Both frameworks agree: if the current rebound fails and BTC drifts lower, this is the magnet zone where long-term capital has traditionally re-engaged.

Zone D introduces production-cost models, and this is where Plan C's chart lives, but only as one estimate among several.

Other models place the average production cost around $87,000, implying that spot has been trading materially below that estimate and putting miners under stress.

Meanwhile, the difficulty-per-issuance model Plan C amplified pegs the cost proxy in the high $60,000s. The nuance matters: “commodities don't trade below cost” is directionally useful but not a hard floor for Bitcoin.

Miners can operate at a loss in the short term by selling treasuries, deploying hedges, or simply hashing through the pain until the difficulty adjusts downward and lowers marginal cost.

Production cost functions less as guaranteed support and more as a stress gauge that catalyzes supply responses, such as miner capitulation or treasury liquidation, before equilibrium resets.

Bitcoin price chart displays demand zones and key technical anchors including the True Market Mean, production-cost proxies, and the recent intraday low near $60,000.What rebound confirmation actually looks likeDeclaring a local bottom demands more than holding a level. The best signals span derivatives, on-chain stress, institutional flows, and mining dynamics.

Derivatives markets are screaming fear. Deribit data show a 25-delta risk-reversal skew of approximately -13%, an inverted implied-volatility term structure, and negative funding rates. These are classic protection-bid conditions.

A rebound gains credibility when skew backs off from extreme negatives, IV normalizes, and funding flips sustainably positive.

On-chain realized losses remain elevated. Glassnode reports the seven-day moving average above $1.26 billion per day, consistent with forced deleveraging.

A bullish shift would see realized losses peak and begin to decline while price stabilizes within the $66,900-$70,600 range, indicating seller exhaustion rather than a temporary pause.

Institutional flows are a headwind. Farside Investors' data shows nearly $690 million in monthly net outflows as of Feb. 5, adding to the $1.6 billion in net outflows registered in January.

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Flow reversals don't need to turn dramatically positive, as even deceleration to flat would matter in a thin-liquidity environment where allocators drove much of the prior rally.

Mining stress is reaching an inflection. TheMinerMag noted that the hash price fell below $32 per petahash per second, with difficulty projected to drop by approximately 13.37% at the next adjustment.

That relief could stabilize hashrate and ease miner sell pressure, but only if the price holds long enough for the adjustment to take effect.

Signal bucketMetricLatest reading / regime (as of press time)Bullish confirmation (what change you need)Bearish continuation (what to fear)SourceDerivatives25D risk reversal (skew)Short-dated skew as low as ~-13% (puts bid / downside protection in demand)Skew lifts toward 0 (less demand for downside hedges) and stays there for multiple sessionsSkew stays deeply negative (continued demand for protection)Deribit Insights / Block Scholes “Crypto Derivatives: Analytics Report – Week 6” (Feb 4, 2026). (Deribit Insights)DerivativesPerp funding ratesFunding below 0% / BTC funding pushed negative (bearish positioning)Funding turns sustainably positive (not just a one-day flip)Funding stays negative or whipsaws (fragile bounce / short pressure persists)Deribit Insights / Block Scholes (Week 6, 2026). (Deribit Insights)VolatilityIV term structureATM IV term structure inverted (near-term fear priced above longer tenors)Structure normalizes upward-sloping as spot stabilizes and panic premium fadesStructure stays inverted (market keeps pricing near-term stress)Deribit Insights / Block Scholes (Week 6, 2026). (Deribit Insights)On-chain stressRealized losses (7D SMA)7D SMA > $1.26B/day (elevated forced selling / stress)Realized losses peak then trend down while price holds Zone A ($66.9K–$70.6K)Losses keep rising into bounces (supply still hitting bid; “relief rallies” vulnerable)Glassnode “The Week On-chain – Bears In Control” (Feb 4, 2026). (insights.glassnode.com)FlowsUS spot BTC ETF net flows (month-to-date)Feb MTD (Feb 2–5): -$689.2M (~-$690M) net (561.8 – 272.0 – 544.9 – 434.1)Outflows decelerate to flat/positive (even “less bad” helps in thin liquidity)Outflows accelerate (allocator selling overwhelms spot bid)Farside Investors daily flow table (Feb 2–5, 2026). (farside.co.uk)MiningHashpriceHashprice fell below $32/PH/s (profitability stress)Hashprice stabilizes/improves after difficulty relief and price holdsHashprice falls further (higher likelihood of miner selling/treasury drawdowns)TheMinerMag (Feb 5, 2026). (TheMinerMag)MiningNext difficulty adjustmentProjected difficulty drop ~13.37% (protocol-side relief, near-term)Difficulty relief + stable hashrate (less capitulation; reduced forced selling)Continued hashrate drop / sustained stress despite adjustmentTheMinerMag (Feb 5, 2026). (TheMinerMag)Three forward scenariosThe first potential scenario is the formation of a local bottom. Support ranges from $66,900 to $70,600 as the on-chain cluster absorbs supply. Derivatives normalize, flows stop bleeding, and realized losses cool.

Upside would first target reclaiming the True Market Mean around $80,200 before facing overhead supply from underwater holders.

The second scenario consists of a choppy drift lower. Galaxy sees a meaningful probability that BTC ranges near $70,000 before testing the $56,000-$58,000 zone in the coming weeks or months.

This fits a market where leverage has flushed, but spot demand remains absent, which is Glassnode's central warning. Volatility persists, and relief rallies fail to sustain themselves.

The last scenario is a deeper capitulation. Another leg of forced selling, potentially triggered by continued ETF outflows or macro risk repricing, pulls BTC through the current zones.

Here, $56,000- $58,000 is less a target and more the level at which long-term capital has historically stepped in with conviction.

The real transitionThe core narrative is whether Bitcoin is shifting from leverage-driven pricing back to spot-led price discovery.

Glassnode frames the market as vulnerable until spot participation returns, and that participation won't materialize from derivatives normalization alone. Production-cost models offer a useful lens on miner economics, but they describe a supply-response mechanism rather than a price floor.

The commodity comparison breaks down when difficulty can adjust, and miners can finance operations through drawdowns.

Bitcoin derivatives chart shows 25-delta risk reversal skew reaching negative 13 percent and funding rates turning negative during the February washout, indicating extreme fear conditions.ETF behavior now carries macro weight. Flows are large enough that capitulation increasingly manifests as regime shifts in allocator sentiment rather than just funding rate flips on offshore exchanges.

The January outflows weren't retail panic, but rather institutional de-risking, and reversing that requires catalysts beyond technical bounces.

Bitcoin reclaimed much of the ground lost in the washout, but turning those levels into sustained demand is a different process.

The data provide a ladder of zones where demand could emerge, a checklist of confirming signals, and a reminder that production cost is the primary stress indicator rather than a floor.

Whether $60,297 marks a capitulation low or just another step in a deeper correction depends on what happens next with flows, derivatives, and the willingness of spot buyers to step in amid persistent fear.

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Cardano just got hammered. The ADA token plunged to $0.2650 yesterday, marking its worst price since February 2021 and capping off a brutal 80% collapse from December’s highs that has crypto traders scrambling for cover.

But here’s where things get interesting – the Chicago Mercantile Exchange plans to roll out ADA futures contracts on February 9, just days away. The timing couldn’t be more dramatic, with Cardano bleeding value while Wall Street’s biggest derivatives exchange prepares to offer institutional-grade betting on its future. CME’s move puts ADA in the same league as Bitcoin and Ethereum futures, but whether that’s good or bad news remains pretty unclear. The exchange didn’t respond to requests for comment about their launch timeline or expected trading volumes.

Market conditions are brutal right now.

Charles Hoskinson, who founded Cardano, tried to calm nerves during a recent Twitter Spaces session. “We’re building for the long term, not the daily price swings,” Hoskinson said, though he admitted the current market “tests everyone’s resolve.” His comments came as ADA holders watched their portfolios shrink by double digits in a single trading session. And the pain isn’t limited to Cardano – Bitcoin dropped below $40,000 while Ethereum shed 15% in the past week.

The crypto world can’t seem to catch a break. Regulatory pressure keeps mounting from Washington, with Treasury officials hinting at stricter oversight rules. That’s spooked institutional money that was just starting to warm up to digital assets. Trading volumes across major exchanges fell 30% last month, according to CoinGecko data, making price swings even more violent when they happen.

Not everyone sees doom ahead.

Sarah Thompson, a crypto analyst at Digital Asset Research, thinks the futures launch might actually help stabilize ADA’s wild price swings. “Institutional investors have been waiting for proper hedging tools,” Thompson said in a phone interview. “CME futures give them that.” She pointed to how Bitcoin’s volatility decreased after CME launched BTC futures back in 2017, though that took several months to materialize. Thompson estimates institutional demand could push ADA trading volumes up 40% within the first quarter.

Binance jumped on the bandwagon fast. The exchange announced it’ll list CME’s ADA futures immediately after launch, potentially doubling the available liquidity for traders. Binance CEO Changpeng Zhao tweeted that “more institutional products mean more mainstream adoption,” though he didn’t specify expected trading volumes. The exchange has been pushing hard into derivatives lately, with futures trading now representing 60% of its total volume.

Recent data paints a mixed picture for Cardano’s underlying health. Glassnode reported that active ADA addresses dropped 12% last month, suggesting fewer people are actually using the network. But transaction fees remained stable, indicating that existing users aren’t abandoning the platform entirely. Input Output Global, the company behind Cardano, plans a developer summit for March 15 where they’ll showcase new projects and network upgrades.

The February 9 date looms large for ADA traders. Futures contracts can cut both ways – they provide hedging opportunities but also attract speculators who can amplify price swings. Bitcoin’s experience offers some guidance, though every crypto behaves differently. One thing’s certain: trading desks across Chicago and New York are already positioning for what could be a volatile debut.

Social media buzz around the futures launch has been intense, with Reddit forums and Twitter threads dissecting every possible scenario. Some retail traders are betting on a “buy the rumor, sell the news” pattern, while others think institutional demand will provide a floor under ADA’s price. The reality probably lies somewhere in between, but crypto markets rarely follow conventional wisdom.

Cardano’s developer activity remains strong despite the price carnage. GitHub commits for the project increased 25% over the past quarter, with teams working on scaling solutions and smart contract improvements. Whether that technical progress can offset broader market headwinds remains to be seen, but it suggests the project isn’t going anywhere despite the current bloodbath.

CME’s ADA futures launch represents a watershed moment for the fourth-largest cryptocurrency by market cap. The contracts will trade alongside Bitcoin and Ethereum futures, giving institutional investors another way to bet on crypto’s future. Trading starts at 5 PM CT on February 9, with initial margin requirements set at 35% of contract value.

The derivatives market has been eyeing Cardano for months. Goldman Sachs and JPMorgan both filed regulatory paperwork last quarter indicating interest in ADA exposure, though neither bank confirmed specific trading strategies. Institutional custody solutions from Coinbase Prime and BitGo added ADA support in December, laying groundwork for larger allocations.

CME’s futures contracts will use a cash settlement model based on CF Benchmarks’ ADA-USD reference rate. The exchange processed over $2.1 trillion in crypto futures volume last year, with Bitcoin contracts accounting for 75% of that activity. Early market makers including Jump Trading and DRW Cumberland have already signed up for ADA futures access, potentially providing the liquidity needed for smooth launches.

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On Friday, the price of Bitcoin on the South Korean exchange Bithumb crashed by approximately 10% of global markets. This happened after an airdrop error in which Bithumb distributed 620,000 Bitcoin to 695 users who were winners of a promotion. The crypto exchange has already promised to reimburse customers who suffered losses from the crash, along with a 10% promotion.

Details Of The Bithumb Bitcoin Airdrop Error According to a Yonhap News report, the issue occurred during a promotional airdrop on the exchange. One Bithumb employee was to distribute 2,000 Korean won (KRW) in prizes, but instead chose BTC.

The mistake resulted in the transfer of approximately 2,000 BTC to each of these users. Some of these users immediately sold these coins, causing an immediate downward effect on the BTC/KRW price on Bithumb.

Following the airdrop error, the BTC price on Bithumb crashed to around $55,000. However, its value was also down on other crypto platforms, yet it stayed over $66,000 at the time of the incident.

The company subsequently issued an official statement acknowledging the mistake. Bithumb claimed that it identified the airdrop error in a few minutes and acted swiftly to mitigate the harm, recovering almost all the coins it mistakenly distributed.

The exchange blocked the accounts and prevented further sales of these coins. The exchange confirmed that customers’ assets were not affected and that normal trading has now been reinstated.

Exchange To Reimburse Users In a company announcement, Bithumb said it will reimburse customers who suffered losses, pledging to use corporate assets to cover any shortfall and fully restore balances. The exchange estimates total customer losses at around 1 billion won and said affected users will receive full compensation for their losses, plus an additional 10% bonus.

South Korea’s Financial Services Commission (FSC) confirmed it is reviewing the incident. The sell-off was linked to what authorities described as a large-scale misdelivery of Bitcoin on the exchange.

In response, financial authorities convened an emergency inspection meeting on Friday at the Government Complex in Seoul, chaired by FSC Vice Chairman Kwon Dae-young, with officials from the Financial Supervisory Service and the Financial Intelligence Unit in attendance.

Bithumb CEO Lee Jae-won issued a public apology, outlining the firm’s compensation plan. Kwon said regulators are treating the incident seriously, calling it an example of the risks and vulnerabilities inherent in virtual assets, and ordered a complete assessment of user damage alongside close monitoring of Bithumb’s compensation efforts.

Crypto Prices Recover After the remedial actions, the price of Bitcoin on Bithumb rallied sharply. The BTC/KRW price rose to above 100 million won, bringing it in line with other global crypto platforms.

Source: Bithumb BTC price stood at about $68,800, increasing by over 5% in the last 24 hours at the time of writing, according to data on CoinMarketCap. Ethereum was up nearly 7% to trade at more than 2,000, XRP went up more than 9%, and Solana increased by more than 7%.

Notably, Bitcoin surged past $70 000 yesterday, providing optimism that the market meltdown could be ending. Moreover, there is a recent analysis by Galaxy Research and Bitwise that the market might be at a late stage of its correction.

As CoinGape reported, the rise in XRP price was also accompanied by several bullish fundamentals. These include the growth in whale accumulations and an increase in unique addresses on the XRP Ledger (XRPL).

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Cardano price has experienced a 3% increase, reaching $0.267 in the past 24 hours. This movement follows the broader market’s recovery, largely driven by Bitcoin’s 3% price rise. 

The recent lows have been reversed as ADA stayed above short-term support levels showing a change in the market sentiment towards the positive. Buyers have moved back into the market and are interested in pushing the price upwards, potentially continuing the upward trend.

Midnight NIGHT Soars 15% as Market Optimism Grows Midnight (NIGHT) has surged by 15%, reaching $0.0535 within 24 hours, following a strong breakout with increased trading volume. The sudden NIGHT revival has brought new hope to investors, particularly as the wider crypto market cap has increased by 2.73% and is currently standing at $2.33 trillion. This increase is after a low reached on February 6.

Should NIGHT be able to sustain above the $0.05 support level and the entire market is solid, it may encounter resistance at the $0.055 level. A fall to less than $0.05 would bring us back to lows.

Grayscale Increases Cardano’s Allocation in Its Smart Contract Fund Grayscale has increased investments in the native cryptocurrency of Cardano, ADA, in the Smart Contract Fund. This growth is a credit to Grayscale still being confident in the future of Cardano.

As of February 5, 2026, Cardano has increased its ADA to 19.50% of the fund, compared to 18.55%. Though it is increasing, ADA is still ranked as the third-largest holding in the fund after Solana (SOL) with 29.40% and Ethereum (ETH) with 29.10%.

BREAKING NEWS

GRAYSCALE SIGNALS STRONG CONFIDENCE IN CARDANO 😱😱😱

Grayscale has increased its $ADA allocation in the Smart Contract Fund from 18.55% to 19.50%, reaffirming strong conviction in Cardano.

As of 05-02-2026, $ADA remains the third-largest holding in the fund pic.twitter.com/LMQI60di8u

— Mintern (@MinswapIntern) February 6, 2026

Other prominent cryptocurrencies in the fund are Avalanche (AVAX) at 7.75%, Sui (SUI) at 7.18%, and Hedera (HBAR) at 7.07%. This is an indication that the company is increasingly confident in the potential of Cardano, furthering its place in the Grayscale portfolio.

Is Cardano Price Ready to Test $0.30 Resistance? The ADA price surged to $0.2697, reflecting a 0.94% increase over the past 24-hours.

The Relative Strength Index (RSI) of the ADA market lies in a neutral position, having a value of 44. Moreover, the Moving Average Convergence Divergence (MACD) is indicating a bullish divergence.

Source: ADA/USDT 4-hour chart: Tradingview The MACD histogram is registering a rising green color. This indicates that the upward trend can persist in the short term.

The MACD line also nears the signal line, which could signal a buying opportunity in case the lines cross.

Looking ahead, the future Cardano outlook for the short-term target is $0.30, and a breakout above this level could drive it toward $0.35. 

In the event that the Cardano price is stopped at $0.30, a pullback to the area of $0.25 may put the existing support into test.

Frequently Asked Questions (FAQs) Grayscale increased Cardano's ADA allocation in its Smart Contract Fund, signaling growing confidence in its long-term potential.

Short-term target for Cardano is $0.30, with a potential breakout pushing it toward $0.35.

The Bitcoin price displayed a staggering show of bearish pressure over the week. As the premier cryptocurrency lost its footing around the $84,000 support level, it entered a slippery slide, reaching approximately $60,000. Currently, the market is in recovery mode, with its price rising again to $70,000. Interestingly, a recent on-chain evaluation has emerged, lending more credence to expectations of a price rebound.

MVRV Data Reveals Bitcoin Market Is Under ‘Severe Stress’ In a QuickTake post on CryptoQuant, popular market analyst Darkfost postulates that the recent Bitcoin price action has given an apparently strong buy signal. This is based on data from the Bitcoin: MVRV Percentile – Current Cycle (0-100%) indicator. For context, this metric shows where Bitcoin’s current MVRV ratio ranks in the ongoing cycle, relative to all past values. This serves as a means to identify whether the market is historically undervalued or overheated.

According to Darkfost, the MVRV sits within the 0 to 10 % percentile. This is a notably low level for the present Bitcoin cycle, seeing as the MVRV has held higher levels than the current value for more than 90% of this cycle’s period.

Source: CryptoQuant Practically, readings around this level indicate that the majority of Bitcoin holders are doing so with minimal unrealized profits, or even outright losses, compared to their cost bases. This is often a telltale sign that the Bitcoin market has experienced a period of extreme stress, accompanied by multiple liquidations and investor exhaustion. However, this period is only part of a broader cyclical trend. Darkfost explains that the Bitcoin market (like other big assets) tends to enter overheated phases, followed by corrections, and then overstressed phases, which have often preceded bullish recoveries.

Notably, transitions out of the 0–10% MVRV range have often been followed by price stabilization and eventual upwards movement. On the other hand, the 90% zone often represents overheated market conditions, which precedes heavy profit-taking activity and subsequent correction.  Although MVRV data alone does not singularly confirm that the Bitcoin price would achieve a full-scale recovery, it indicates strong potential for a positive momentum boost to reclaim key valuation levels.

Bitcoin Price Overview  As of press time, Bitcoin trades for approximately $67,855. According to CoinMarketCap data, the world’s leading cryptocurrency has recovered by more than 4.00% over the past 24 hours. Meanwhile, the daily trading volume is down by 38.16% and valued at $88.37 billion. 

BTC trading at $67,983 on the daily chart | Source: BTCUSDT chart on Tradingview.com Featured image from Pexels, chart from Tradingview

3 mins mins

Key Insights:

Vitalik urges L2s to shift focus as Ethereum mainnet handles higher speed and lower fees. ENS scraps Namechain L2, confirms ENSv2 will run fully on Ethereum’s secure main network. MetaMask now supports tokenized stocks and ETFs; Perp DEX trading surges past $70 billion. Ethereum Shake-Up: Vitalik, MetaMask & $70B DEX Surge Vitalik Buterin says Ethereum’s main network can now scale well on its own. With faster speeds and lower fees, he believes the old plan of relying on Layer 2 networks for most scaling may no longer be needed. He pointed out that gas limits will likely rise in 2026, which could further reduce the load on L2s.

He shared that L2s should move toward offering new features instead of just focusing on scaling. He named areas like privacy, custom virtual machines, ultra-fast transactions, and built-in data tools. He also called for Ethereum to add tools that let L2s verify their own systems on-chain. “Users should know exactly what level of security they’re getting,” he said.

ENS Cancels Its Own L2, Returns Fully to Ethereum Mainnet Ethereum Name Service announced it will not move forward with its in-house L2, called Namechain. Instead, all new development will stay on Ethereum’s mainnet. The team explained that the need for a custom L2 has dropped as Ethereum L1 has become faster and cheaper to use.

The next version, ENSv2, is moving forward. Its contracts, app, and tools are already in public testing. According to the team, keeping ENS on the mainnet means they can rely on Ethereum’s built-in security. They also said that what they learned while building Namechain will help them connect with other networks in the future.

MetaMask Adds Real-World Assets Through Ondo MetaMask has partnered with Ondo Finance to bring tokenized U.S. stocks, ETFs, and commodities into its wallet. This gives users access to traditional financial products inside a crypto wallet. The assets are available through Ondo Global Markets.

The new feature works inside the existing MetaMask app. Users can now hold both crypto and tokenized real-world assets in one place. This marks a step toward blending traditional and blockchain-based finance.

Perp DEX Volume Passes $70B in One Day On February 5, perpetual decentralized exchanges saw $70 billion in total trades. This was their second-highest day ever. The only higher day was during the October 2025 flash crash.

The top trading platforms were Hyperliquid with $24.7 billion, Aster at $10 billion, edgeX with $8.7 billion, and Lighter at $7.5 billion. These high numbers show the continued rise of decentralized trading and how active the market has become.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Will Solana’s Price Recovery Be Challenging? Here’s What On-Chain Signals SuggestSolana rebounds 12% as aggressive dip buying offsets recent selling pressure.Long term holder accumulation slows, challenging sustainability of Solana price recovery.Oversold momentum signals suggest short term stabilization remains possible ahead.Solana has staged a sharp intraday recovery after recent losses pressured the price earlier this week. SOL bounced strongly as the broader crypto market added nearly $200 billion in value. 

Aggressive dip buying prevented deeper losses, helping Solana stabilize and post a 12% daily gain despite lingering market uncertainty.

Solana LTHs Are Not So Bullish YetOn-chain data shows long-term holder buying momentum is slowing. The HODLer Net Position Change has declined, indicating reduced accumulation from investors who typically support prices during downturns. This shift followed SOL’s sharp pullback over the past week, which appears to have dampened long-term conviction.

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A sustained recovery depends on whether long-term holders resume accumulation. If buying momentum remains weak, Solana may struggle to build durable upside. Reduced support from this cohort limits demand absorption, increasing the risk that short-term rallies fade without broader participation from long-term investors.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Solana HODLer Net Position Change. Source: GlassnodeMomentum indicators suggest selling pressure may be nearing exhaustion. The Money Flow Index is approaching the oversold threshold below 20.0. A move into this zone typically signals selling saturation, often preceding periods of stabilization or short-term rebounds in price.

Historically, Solana has entered oversold territory only three times in the past two and a half years. Each instance coincided with notable price stabilization or reversal. If the indicator slips further, it may help SOL pause its decline and attract renewed dip-buying interest from traders.

Solana MFI. Source: TradingViewSOL Price Recovery Still LikelySolana price is trading near $88 at the time of writing after climbing 12% in the past 24 hours. Earlier in the session, SOL dropped roughly 13% to an intraday low. Strong dip buying prevented a close near $67, highlighting active demand at lower levels.

Support from the broader market could allow SOL to push above $90 in the near term. A recovery rally would require reclaiming $100 as support. Securing that level would confirm improving momentum and open the path toward a move near $110 as confidence returns.

Solana Price Analysis. Source: TradingViewDownside risk persists if long-term holder selling continues. Failure to reclaim $100 could cap upside and leave SOL range-bound near $90. Under weaker conditions, the price may retreat toward $78. Such a move would invalidate the bullish thesis and extend Solana’s corrective phase.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

In Bitcoin news today, BTC is flashing a warning signal that market participants rarely ignore. On-chain data shows selling pressure concentrating on Coinbase, an exchange closely associated with US institutional flows.

According to recent CryptoQuant data, the Coinbase Premium Index has fallen to its most negative level in months, signaling that Bitcoin changes hands at a discount on Coinbase relative to offshore exchanges. Notably, this pattern has historically been linked to net selling by US-based whales.

The timing sharpens the risk. Bitcoin has now slipped below its 365-day moving average for the first time since March 2022, a rare long-term technical break that previously marked the start of extended bearish phases. CryptoQuant noted that market demand remains weak, reinforcing concerns that current liquidity is skewed toward sellers rather than dip buyers.

Coinbase Premium Index Signals US-Led Selling CryptoQuant CEO Ki Young Ju flagged the shift directly in an X post, stating that Bitcoin selling pressure is originating from Coinbase. He pointed to a sustained red zone in the Coinbase Premium Index, the metric that tracks price differences between Coinbase and Binance. When it turns decisively negative, it typically reflects aggressive selling by US participants, including funds and high-net-worth market users.

Bitcoin has already retraced sharply from recent highs, and the renewed Coinbase-led selling suggests that long-term holders or institutional allocators may be reducing exposure rather than rotating positions internally. “This is not just derivatives-driven volatility,” CryptoQuant analysts said, adding that spot market behavior is now reinforcing downside momentum.

Technical Breakdown Raises $60,000 Bitcoin Risk Separately, CryptoQuant Head of Research Julio Moreno reported that Bitcoin could revisit the $60,000 level over the coming months if demand conditions fail to recover. His analysis cited weakening on-chain accumulation metrics and the loss of key moving averages as signals that the market is transitioning from consolidation into a deeper corrective phase.

While no single indicator determines price direction, the convergence of a negative Coinbase premium, fading spot demand, and a long-term technical breakdown is drawing close attention. Historically, sustained selling from Coinbase has preceded periods of muted recovery attempts, as US liquidity often plays a decisive role in trend confirmation.

Analysts are currently monitoring whether the Coinbase premium stabilizes, as further deterioration could indicate that institutional selling pressure is not yet exhausted.

Emerging Projects: Minotaurus (MTAUR) Market Performance Amidst the Bitcoin volatility, some segments of the market are focusing on emerging ecosystems. Minotaurus (MTAUR) has gained attention during the recent market correction, showing a different momentum compared to major assets.

The token has moved from 0.000040 USDT to approximately 0.00012658 USDT, representing a technical increase of over 215%. Market participants are observing MTAUR as the broader altcoin market continues to seek stabilization.

Minotaurus (MTAUR) is a Binance Smart Chain-based token powering a blockchain-integrated gaming platform. Unlike speculative assets without a clear use case, Minotaurus focuses on functional gameplay and token-based mechanics. The token allows users to interact with in-game features, customize avatars, and access platform-specific incentives within its mobile gaming ecosystem.

Market Positioning and Utility Minotaurus is positioning itself within the casual gaming niche, leveraging the low-cost infrastructure of the BNB Chain. Currently trading at 0.00012658 USDT, the project aims to integrate real-world utility with blockchain rewards. While the project is in its early stages, its community growth and focus on gaming mechanics have placed it under the radar of those looking for diversification during the current Bitcoin drawdown.

learn more at minotaurus.io.

The information presented in this article is for informational purposes only and should not be construed as investment advice. Crypto Economy is not affiliated with the project. The cryptocurrency market is highly volatile and can involve significant risks. We recommend that you conduct your own analysis.

Bitcoin (BTC) experienced on of the biggest sell-offs over the past month, sliding more than 40% to reach a year-to-date low of $59,930 on Friday. It is now down over 50% from its October 2025 all-time high near $126,200.

Key takeaways:

Analysts are pointing to Hong Kong hedge funds and ETF-linked U.S. bank products as possible drivers of BTC’s crash.

Bitcoin could slip back below $60,000, putting the price closer to miners’ break-even levels.

BTC/USD daily price chart. Source: TradingViewHong Kong hedge funds behind BTC dump?One popular theory suggests that Bitcoin’s crash this past week may have originated in Asia, where some Hong Kong hedge funds were placing substantial, leveraged bets that BTC would continue to rise.

These funds used options linked to Bitcoin ETFs like BlackRock’s IBIT and paid for those bets by borrowing cheap Japanese yen, according to Parker White, COO and CIO of Nasdaq-listed DeFi Development Corp. (DFDV).

They swapped that yen into other currencies and invested in risky assets like crypto, hoping prices would rise.

This was the highest volume day on $IBIT, ever, by a factor of nearly 2x, trading $10.7B today. Additionally, roughly $900M in options premiums were traded today, also the highest ever for IBIT. Given these facts and the way $BTC and $SOL traded down in lockstep today (normally…

— Parker (@TheOtherParker_) February 6, 2026 When Bitcoin stopped going up, and yen borrowing costs increased, those leveraged bets quickly went bad. Lenders then demanded more cash, forcing the funds to sell Bitcoin and other assets quickly, which exacerbated the price drop.

Morgan Stanley caused Bitcoin selloff: Arthur HayesAnother theory gaining traction comes from former BitMEX CEO Arthur Hayes.

He suggested that banks, including Morgan Stanley, may have been forced to sell Bitcoin (or related assets) to hedge their exposure in structured notes tied to spot Bitcoin ETFs, such as BlackRock's IBIT.

Source: XThese are complex financial products where banks offer clients bets on Bitcoin's price performance (often with principal protection or barriers).

When Bitcoin falls sharply, breaching key levels like around $78,700 in one noted Morgan Stanley product, dealers must delta-hedge by selling underlying BTC or futures.

This creates “negative gamma,” meaning that as prices drop further, hedging sales accelerate, turning banks from liquidity providers into forced sellers and exacerbating the downturn.

Miners shifting from Bitcoin to AILess prominent but circulating is the theory that a so-called “mining exodus” may have also fueled the Bitcoin downtrend.

In a Saturday post on X, analyst Judge Gibson said that the growing AI data center demand is already forcing Bitcoin miners to pivot, which has led to a 10-40% drop in hash rate.

Source: XFor instance, in December 2025, Bitcoin miner Riot Platforms announced its shift toward a broader data center strategy, while selling $161 million worth of BTC. Last week, another miner, IREN, announced its pivot to AI data centers.

Meanwhile, the Hash Ribbons indicator also flashed a warning: the 30-day hash-rate average has slipped below the 60-day, a negative inversion that historically signals acute miner income stress and raises the risk of capitulation.

BTC Hash Riboon vs. price. Source: GlassnodeAs of Saturday, the estimated average electricity cost to mine a single Bitcoin was around $58,160, while the net production expenditure was approximately $72,700.

BTC/USD daily chart vs. production and electrical cost. Source: Capriole InvestmentsIf Bitcoin drops back below $60,000, miners could start to experience real financial stress.

Long-term holders are also looking more cautious.

Data shows wallets holding 10 to 10,000 BTC now control their smallest share of supply in nine months, suggesting this group has been trimming exposure rather than accumulating.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.

If you're searching for value in this expensive market, consider these two value stocks today.

By historical standards, the stock market has gotten incredibly expensive. The Shiller price-to-earnings ratio, also known as the cyclically adjusted price-to-earnings ratio (CAPE), shows that we're in one of the priciest markets in history.

This steep valuation could make investors nervous, but there are still deals to be found. If you're on the hunt for solid value in this historically expensive market and have $2,000 to invest, here are two stocks that deserve a spot in your portfolio today.

Image source: Getty Images.

This oil and gas giant has high-quality assets Chevron (CVX +0.91%) operates in the historically volatile oil and gas industry, which is always vulnerable to declining oil and gas prices. However, it operates an integrated oil and gas business model that helps smooth out its earnings. Its upstream business, which explores and produces oil, benefits from rising oil and gas prices. Meanwhile, its downstream operations focused on refining crude oil into fuels, lubricants, and petrochemicals.

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Chevron has done a really good job of focusing on efficient operations and creating a mix of short-cycle and long-cycle assets. The company's acquisition of the Stabroek Block in Guyana (as part of its 2025 Hess acquisition) provides it with huge, low-cost, multidecade production capabilities and has a low break-even price of $30 per barrel. Meanwhile, the company's presence in the Permian Basin allows it to quickly ramp up production if oil prices rise.

Chevron is trading at about 25 times this year's projected earnings. This appears expensive, but analysts see strong growth ahead, with earnings per share projected to reach $9.09 in 2027 and $11.01 in 2028. Chevron's stake in Stabroek gives it a low break-even cost, which should help it generate strong free cash flow, while its other assets provide upside potential should oil and gas prices rise from here.

This blue chip stock is down despite stellar results Progressive (PGR 2.54%) is a rock-solid automotive insurance company that consistently outperforms its peers in underwriting profitability. The company has long been committed to generating a consistent underwriting profit of at least 4% of its total premiums written, and its approach has helped it stay ahead of the competition for decades.

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In the past year, Progressive stock has struggled and is now down 30% from its all-time high. The main concern among investors is that the broader insurance market is seeing heightened competition. After years of inflation, the insurance market is softening, and premiums are rising more slowly as competition heats up.

That said, Progressive's business is still firing on all cylinders. Last year, the company earned $11.3 billion on $83 billion of net premiums written. Meanwhile, its combined ratio was a stellar 87.4% for the full year. Not only that, but the company's strong performance enabled it to pay a special dividend of $13.50 per share in December, yielding about 6.5% based on its recent closing price.

Today, Progressive trades at 12.9 times its forward earnings, making this solid blue chip stock a bargain for long-term investors.

This volatile stock moves with other big tech trends, but its future is tied to bringing its solid state batteries to the market.

In this video, Motley Fool contributor Jason Hall breaks down the latest with QuantumScape (QS +9.28%), and what investors should know about the stock and the business for 2026.

*Stock prices used were from the afternoon of Feb. 3, 2025. The video was published on Feb. 7, 2025.

Jason Hall has positions in QuantumScape and has the following options: short January 2027 $5 puts on QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

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SummaryAllot Ltd. is rated Buy, driven by a structural shift from legacy hardware to high-margin Security-as-a-Service (SECaaS) with a Zero-CAC distribution model.ALLT’s SECaaS ARR is growing over 60% year-over-year, driving operating leverage, gross margins above 72%, and a non-linear expansion in free cash flow margins.Sum-of-the-Parts analysis indicates 42% upside, with intrinsic equity value at $12.94/share versus the current $9.14, if SECaaS multiples re-rate.Key risks include technological obsolescence in legacy DPI and channel concentration with Tier-1 CSPs, requiring close monitoring of SECaaS ARR growth and gross margins. Just_Super/E+ via Getty Images

Based on my assessment, I rate Allot Ltd. (ALLT) stock is a Buy based on a structural advantage within its business model shift from low-multiple hardware DPI to high-margin Security-as-a-Service (SECaaS). I do not consider Allot

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Elon Musk's journey to becoming the world's first trillionaire will likely be powered by rockets rather than cars, as SpaceX now accounts for nearly two-thirds of the Tesla CEO's wealth.

Musk became the first person ever to top the $800 billion mark this week, with his net worth now around $845 billion, according to Forbes. He's worth more than the next three richest people – Google co-founders Larry Page and Sergey Brin and Meta CEO Mark Zuckerberg – combined.

The tech magnate's unprecedented wealth surged after his aerospace and defense company, SpaceX, acquired his artificial intelligence and social media company, xAI, this week in a deal that valued the merged entity at $1.25 trillion, according to financial documents reviewed by CNBC.

With Musk's ownership estimated at around 43% in the combined company, his stake would be valued at over $530 billion, marking a rapid shift in his fortunes.

Musk's priorities are also likely shifting his focus more to SpaceX than Tesla, a reality that the EV company acknowledged in its latest proxy filing, where it noted that "a majority of Mr. Musk's wealth is now derived from other business ventures."

Last year, Musk confirmed he wants to take SpaceX public in 2026, which would make Tesla a less prevalent component of his liquid wealth. But he still has to get buy-in from public market investors, who may be reluctant to pay up for a company that combines a defense contractor and satellite business with a cash-burning AI model developer that's trying to take on Google, OpenAI and Anthropic.

SpaceX has received more than $20 billion from contracts with the federal government, according to research from FedScout, with more lucrative contracts on the way, and Musk has framed the acquisition as the next step towards "orbital data centers."

"You've muddied up your story a little bit as a pure-play SpaceX shareholder, but the opportunity has gotten a lot bigger," said Greg Martin, managing director at Rainmaker Securities, which works on transactions for pre-IPO companies. "It makes sense for them to access a much larger capital market, especially with xAI, which does have insatiable need for capital."

XAI is currently being investigated by authorities in Europe, Asia, Australia and California, after the company's Grok image generator let users create and share "deepfake" explicit images of children and women.

It's not clear whether Musk's merger will require any regulatory review. Democratic senators this week called for the Pentagon to investigate SpaceX over undisclosed Chinese investors in the company.

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Musk still has a major incentive to stay focused on Tesla. Late last year, shareholders voted to approve a new pay package that could be worth $1 trillion, paid out in 12 tranches, if Tesla hits certain milestones, including market cap gains and operational achievements, over the next decade. The first tranche of stock gets paid out if Tesla hits a market cap of $2 trillion, about $460 billion more than the current valuation.

Tesla said in the proxy filing detailing the plan that the structure aims to "prevent him from prioritizing those other ventures."

However, Columbia Law professor Dorothy Lund, a corporate and securities law expert, told CNBC in an email that the strategy may not work.

Musk is now "negotiating comp packages at each company, with each board trying to induce him to pay attention via comp," Lund wrote. "If SpaceX/xAI gives him more money and a bigger share, that Tesla package may look less appealing." 

Before the xAI acquisition, Musk owned about 42% of SpaceX and controlled 80% of the votes, according to FCC reports. His current ownership in Tesla is between 11% and 15% of shares outstanding, depending on what's included in his stake, according to public filings.

With Tesla's brand value and core auto sales in decline, and its long-promised robotaxis and humanoid robots still in development, the company's stock price is down about 9% this year.

Based on Musk's ownership in SpaceX, and assuming Tesla shares are flat, the rocket and AI company would have to reach a valuation of about $1.6 trillion for the world's richest person to reach trillionaire status.

Ross Gerber, CEO of investment firm Gerber Kawasaki, is betting that Musk won't ever want to take SpaceX public as a standalone entity. Rather, he expects to see a merger of SpaceX and Tesla, and he speculated this week it would list on the New York Stock Exchange under ticker symbol X, which formerly belonged to U.S. Steel.

Gerber is a long-time Tesla investor and now holds shares in SpaceX after his firm previously backed Musk's leveraged buyout of Twitter in 2022. Musk rebranded Twitter as X, and merged the social network with xAI last year.

Consolidating his empire makes sense, Gerber said, because it would allow Musk to fulfill his dream of running one big company under the brand name X. Following Alphabet's announcement this week that it will spend up to $185 billion on capex this year, Gerber said Musk is going to have to be able to bring in massive sums of cash.

"This huge entity would make it easier for them to raise money and borrow," he said. "How else is Musk supposed to compete and become a major AI player?"

Musk didn't respond to a request for comment.

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American Airlines' promised turnaround is off to a rocky start this year.

Pilot and flight attendant unions have called CEO Robert Isom's leadership into question as the airline's performance has trailed its rivals by a wide margin, a trend that has translated to lower profit-sharing for American's more than 130,000 employees. Adding to employee frustration, the airline struggled to recover from major winter storms in recent weeks and crews were left stranded — some without a place to sleep beside the airport.

Late Friday, the pilots' union wrote to the airline's board, seeking a meeting to discuss the carrier's financial and operational challenges.

"Our airline is on an underperforming path and has failed to define an identity or a strategy to correct course," the board of directors of the Allied Pilots Association wrote. The union called for "leaders who are willing, equipped, and empowered to get the house in order."

American made $111 million last year, an amount eclipsed by profits from Delta Air Lines and United Airlines, which brought in $5 billion and more than $3.3 billion, respectively, even though American flew similar capacity in 2025.

"I know that it is a meager profit-sharing, a very small profit-sharing pool this year. Again, when you break even, that's the kind of profit-sharing you have," Isom told employees after releasing earnings results on Jan. 27, according to a recording of the event that was reviewed by CNBC. "I'm disappointed in that."

'2026 can't just feel different'American is trying to catch up to rivals with premium products that bring in higher fares, a bright spot in the industry as coach cabin revenue growth has been elusive. It has also worked to reverse the damage from a failed direct-to-traveler business-travel strategy, whose architect American ousted in May 2024.

2026 is crucial for the carrier.

The Fort Worth, Texas-based airline issued an upbeat outlook for the year on Jan. 27, and Isom told crews that he was optimistic about improvement this year. He also noted that many staff, like flight attendants, make more than their counterparts at United, where cabin crews and other employees are in contract negotiations.

Isom is leading what he has pitched as a major transformation of American. The strategy includes improving customer service, the network and revenue management.

This week, he took his message to about 6,000 leaders at a conference the airline held at Globe Life Field in Arlington, Texas.

"We've had conversations as a senior leadership team about how we can't pass up any opportunity ... how we need to hold ourselves accountable," Isom said at the event, according to a transcript which was seen by CNBC. "It starts with us at the top, but it's all of us here today and how you lead your teams. 2026 can't just feel different. It has to be different."

American issued its 2026 outlook as it was juggling the aftermath of a late January winter storm that walloped much of the U.S. with snow, ice and sleet and preparing for another storm that ended up hitting its major hub of Charlotte, North Carolina, while competitors dug out faster.

The financial results, coupled with the slow storm recovery, drew anger from both pilot and flight attendant union leaders, which together represent about 40,000 crew members.

This week, two American Airlines flight operations leaders met with the union and discussed recent problems, with the union telling members that "our pilots will not accept platitudes, empty words, and the absence of decisive action any longer." 

Association of Professional Flight Attendants President Julie Hedrick said on Jan. 27 that Isom, who became CEO in 2022, "is missing the human factor" and that "many of us have been here for a very long time, and we don't see an ending that puts us in a better place."

Isom acknowledged the trouble American's crew members faced during the late January storm that paralyzed a large swath of the United States and called the weather "probably the most impactful" during his decades-long tenure at the airline.

Tale of two Texas airlinesAmerican had an especially difficult 2025, which started with the collision of an Army Black Hawk helicopter into one of the carrier's regional jets that was arriving at Washington, D.C.'s Ronald Reagan Washington National Airport, killing all 67 people on both flights. The airline, and its rivals, were also hit by the U.S. government shutdown late last year.

"We're off to a fast start based on the booking trends we've observed in January, all-time records for the first three weeks of the year," Isom told analysts on the Jan. 27 earnings call.

But investors also want to the airline to prove its progress.

American's stock is roughly flat this year. Its competitor 20 miles away in Dallas, Southwest Airlines, is also trying to remake itself, and its stock is up more than 30% in 2026. Shares of United and Delta are up more than 3% and more than 8%, respectively, for the year.

Southwest's forecast that it could quadruple earnings this year has had investors in a bullish frenzy. That carrier recently sealed its biggest transformation in its nearly 55 years of flying (to some travelers' chagrin): assigning seats last month for the first time, adding its first-ever bag fees, and rolling out basic economy tickets and other changes. Investors' confidence boosted Southwest's stock to a nearly four-year high last month after it reported results.

All U.S. carriers are investing heavily in higher-end travel over standard coach, and even Southwest is considering opening its first airport lounge, its CEO told CNBC last year.

American likewise is revamping its wide-body planes with larger, single business-class cabins, putting in a three-class cabin on new Airbus narrow-bodies and expanding its airport lounges. The airline has also refreshed its food and beverage options, including offering Lavazza coffee and Champagne Bollinger. For its 100th anniversary this spring, it's also adding caviar and beef Wellington for long-haul premium cabins.

Isom has said he expects half of American's revenue to come from "premium offerings" toward the end of the decade.

Fight over ChicagoOne major battle for American is at Chicago O'Hare International Airport, where United CEO Scott Kirby, whom American fired in 2016, has vowed to keep his old employer at bay.

Both carriers are ramping up their schedules there next summer. Deutsche Bank estimated in a note Monday that United generates about $10 billion in revenue at O'Hare and that American generates more than $5 billion.

Around the time American reported earnings, United posted a digital billboard in Chicago that read "More on time, less canceled flights. Aadvantage, United," using the same spelling as American's AAdvantage loyalty program. Bankrupt Spirit Airlines is also seeking to transfer two gates at Chicago O'Hare to United for $30 million, which would give United more ground at the airport.

But from Chicago to Charlotte, questions still remain for American.

"It's unclear if the current strategy will close the margin gap to its peers," Melius Research airline analyst Conor Cunningham said about American. "It will take a lot of time to execute. You can't just turn premium revenue on."

Cunningham added, "It took Delta over a decade to cultivate a premium image," pointing to the U.S. profit leaders' transformation.

Read more CNBC airline newsBoeing outsold Airbus last year for first time since 2018, deliveries rise to 600Allegiant to buy rival budget airline Sun Country in $1.5 billion cash and stock dealWhy airline class wars will intensify in 2026American Airlines no longer lets basic economy flyers earn miles

Sometimes, you need to know when to quit.

It's been nearly a decade since Canada legalized recreational cannabis (marijuana), helping set off a boom in cannabis stocks. Today, roughly half of U.S. states have legalized cannabis for recreational use, and most states at least permit it for medicinal purposes.

Canopy Growth Corp. (CGC +1.85%) was among a class of cannabis stocks that surged from 2017 through 2019, peaking at a market cap of nearly $18 billion. The investment results have been disastrous since then, despite cannabis use continuing to rise to the point that it has pressured the alcohol industry.

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So, what has gone wrong, and should investors finally dump Canopy Growth stock? Here is what you need to know.

How overly ambitious plans ruined the stock Canopy Growth's storyline would probably be about a company that tried doing too much, too soon.

After beginning in Canada, the company expanded into the United States and Europe. It also moved beyond cannabis flower and into related products, such as cannabis creams and beverages. Canopy Growth tried to be everywhere all at once, buying up competitors and other cannabis-related businesses over the past decade.

CGC Revenue (TTM) data by YCharts.

Canopy Growth made two catastrophic mistakes. First, it misread the cannabis market. Legalizing cannabis didn't prevent illicit sales, which put pricing pressure on legal suppliers due to the various taxes and regulations tied to legal retail sales. It also rushed its expansion efforts. Instead of funding deals with profits, Canopy Growth continuously issued stock and debt.

As a result of that and poor business execution, Canopy Growth's business isn't growing, and it's still losing money. Meanwhile, the share count has increased by more than 3,700%. The stock's enormous dilution is why the share price has collapsed.

Why investors can probably dump their shares at this point The company recently announced yet another acquisition, buying MTL Cannabis for $125 million, funded with cash and stock. MTL Cannabis has earned $84 million in revenue over the past year, generating $11 million in operating cash flow. Once again, Canopy Growth doesn't seem able to resist acquisitions it cannot afford.

Image source: Getty Images.

It may not have a choice. Thus far, the legalized cannabis market doesn't seem very easy to survive in. There haven't been many cannabis stocks that have actually performed well for investors. Many companies have been acquired after heavy losses or have gone under. Ultimately, not every growing industry is a slam-dunk investment opportunity.

Time will tell whether Canopy Growth can at least sustain its business. Regardless, shareholders probably won't benefit. The stock is down 99.8% from its all-time high, a massive hole it's unlikely to dig itself out of.

Cipher Mining's Bitcoin revenue is surging, but the big story is its AI data centers.

Cipher Mining (CIFR +16.10%) makes most of its revenue from crypto mining, but that's about to change. The company has been signing long-term deals with tech giants that need artificial intelligence (AI) data centers. Amazon (AMZN 5.49%) is one of Cipher Mining's largest customers after it agreed to a 15-year lease worth $5.5 billion.

Cipher Mining should continue to win more contracts with tech companies as it brings more gigawatts online. Cipher Mining still has a 3.4 gigawatt pipeline, and most of that energy hasn't been allocated to customers yet, which makes it a compelling stock to watch.

Image source: Getty Images.

Cipher Mining grows its crypto footprint Although most of Cipher Mining's story is about its AI pivot, the company's crypto mining operations are also gaining market share. Cipher Mining's crypto mining revenue almost tripled year over year to $71.7 million. The crypto mining segment remains unprofitable, but a $37.6 million operating loss compared to a $91.4 million operating loss in the same quarter last year shows progress toward profitability.

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Cipher Mining also holds $170 million in Bitcoin (BTC +2.53%), giving it direct exposure to any Bitcoin rallies. Other crypto miners immediately sell the Bitcoin that they mine, which limits their future upside from rising Bitcoin prices. In the near term, however, Bitcoin's volatility and declining value may not contribute further to Cipher's bottom line.

An expanding crypto mining business with lower operating losses will make it easier for the company to scale into artificial intelligence, which is the bigger long-term story for Cipher Mining's rally.

Multi-GW pipeline, many tech deals Cipher Mining wrapped up 2025 by announcing it had acquired a 200 megawatt site in Ohio. This site is expected to energize in 2027 and bring Cipher Mining's total pipeline to 3.4 gigawatts across eight sites.

This move broadens Cipher Mining's geographical footprint, as it represents its first site outside of Texas. It can help the company quickly build its energy pipeline as it works to secure more deals with tech companies, but the company already has plenty of gigawatts to spare.

The Amazon deal demonstrates that Cipher Mining doesn't need the gigawatts energized right away to secure deals. Amazon will receive part of the promised 300 megawatts in July 2026, with the full delivery expected to be completed in fourth-quarter 2026. Rent will commence in August, so it will take several months before the Amazon deal translates into annual recurring revenue.

Cipher Mining will gradually energize more gigawatts, but 2028 is the big year when it is expected to energize 2.5 gigawatts. All those gigawatts translate into substantial recurring revenue, based on the lucrative Amazon deal.

Grandview Research projects that the artificial intelligence market will maintain a 30.6% compound annual growth rate (CAGR) through 2033. The tailwinds in this market should drive greater demand for Cipher Mining's AI data centers. Any Bitcoin rallies serve as nice bonuses for the company's crypto mining business, but AI is the bigger tailwind that makes Cipher Mining a growth stock to watch.

HomeDividends AnalysisDividend Quick Picks

SummaryThis article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms.We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks.In addition to the primary list that yields 4.2%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8% plus.Looking for a portfolio of ideas like this one? Members of High Income DIY Portfolios get exclusive access to our subscriber-only portfolios. Learn More » Olivier Le Moal/iStock via Getty Images

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Author's Note: This is our monthly series on Dividend Stocks, usually published in the first week of every month. We scan the universe of roughly 7,500 stocks listed and traded on U.S. exchanges and use our

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ABT, ABBV, CI, JNJ, PFE, NVS, NVO, AZN, UNH, CL, CLX, UL, NSRGY, PG, TSN, ADM, BTI, MO, PM, KO, PEP, EXC, D, DEA, DEO, ENB, MCD, BAC, PRU, UPS, WMT, WBA, CVS, LOW, AAPL, IBM, CSCO, MSFT, INTC, T, VZ, CVX, XOM, VLO, ABB, ITW, MMM, LMT, LYB, RIO, O, NNN, WPC, ARCC, ARDC, AWF, CII, CHI, TLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: The information presented in this article is for informational purposes only and in no way should be construed as financial advice or a recommendation to buy or sell any stock. The author is not a financial advisor. Please always do further research and do your own due diligence before making any investments. Every effort has been made to present the data/information accurately; however, the author does not claim 100% accuracy. The stock portfolios presented here are model portfolios for demonstration purposes. For the complete list of our LONG positions, please see our profile on Seeking Alpha.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses in Picard Medical to Contact Him Directly to Discuss Their Options

If you purchased or acquired securities in Picard Medical between September 2, 2025 and October 31, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

New York, New York--(Newsfile Corp. - February 7, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Picard Medical, Inc. ("Picard" or the "Company") (NYSE American: PMI) and reminds investors of the April 3, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that Picard was the subject of a fraudulent stock promotion scheme involving social media-based misinformation and impersonated financial professionals; (2) that insiders and/or affiliates used offshore or nominee accounts to facilitate the coordinated dumping of shares during a price inflation campaign; and (3) that Picard's public statements and risk disclosures omitted any mention of the false rumors and artificial trading activity driving the stock price.

On October 24, 2025, Picard Medical, Inc. (NYSE: PMI) shares closed at $5.31, a steep decline from the prior trading session's close of $13.20 on October 23, 2025. This represents a drop of $7.89 per share, or approximately a 59.8% decrease in value in a single session, marking one of the most significant one-day declines since the company's recent IPO.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Picard Medical's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Picard Medical class action, go to www.faruqilaw.com/PMI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283031

Source: Faruqi & Faruqi LLP

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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Rezolute To Contact Him Directly To Discuss Their Options

If you suffered significant losses in Rezolute stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

, /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rezolute, Inc. ("Rezolute" or the "Company") (NASDAQ: RZLT).

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

James (Josh) Wilson, Faruqi & Faruqi Senior Partner (PRNewsfoto/Faruqi & Faruqi, LLP) Rezolute, Inc. shares tumbled sharply on December 11, 2025, as investors reacted to disappointing topline results from its Phase 3 sunRIZE clinical trial for ersodetug, its lead drug candidate for treating congenital hyperinsulinism. The study failed to meet both its primary and key secondary endpoints, with the highest dose showing reductions in hypoglycemia events that were not statistically significant versus placebo.

During intraday trading, RZLT collapsed from levels near its prior day close of around $10.94 to an intraday low near $0.90, representing an approximate 85–90% drop as markets opened and halted trading under Nasdaq's volatility controls.

To learn more about the Rezolute investigation, go to www.faruqilaw.com/RZLT or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

SOURCE Faruqi & Faruqi, LLP

Also from this source

Bloom Energy Today

BE

Bloom Energy

$143.48 +6.88 (+5.04%)

As of 02/6/2026 03:59 PM Eastern

52-Week Range$15.15▼

$176.49Price Target$127.42

Bloom Energy NYSE: BE has been advancing for months due to its exposure to data center and industrial power needs.

While not completely green, its easily deployable, ready-to-scale, chemically based fuel cells are as green as they come for carbon-based energy and are in high demand.

Data centers are the headline; the monstrous build-out of AI compute, inference, and cloud-related capacity drives an unquenchable thirst for electricity that Bloom Energy is only too happy to fill.

Get Bloom Energy alerts:

Bloom Energy’s technology is validated, applicable to on-site power needs across industries, and the upswing in price action driven by its rapidly accelerating outlook has yet to end. 

Bloom Energy: The Technical Outlook Is Bullish The technical outlook is very bullish for Bloom Energy. The early February price action confirms support at a critical target, the top of a trading range that had been providing resistance.

The base-case scenario is a movement equal to the trading range’s dollar value, approximately $72, while the bull-case is a percentage movement relative to the same.

In those scenarios, Bloom Energy stock could rise by $72 to $220 at the low end of the range and by as much as 95% at the high end, approaching $290 before peaking. 

Analyst trends align with the bullish outlook; however, they set the market up for volatility as the consensus price target lags the price action. The market could correct to retest the consensus price target for market support, but it is not a guarantee.

The post-release activity includes several price target increases, pointing to the high end of the range, suggesting the stock still has some upside potential. As it stands, the high-end range is near $207, just shy of the technical base-case projection. 

Institutional activity suggests the market is supported at early February trading levels. The group sold for most of 2025 but reverted to accumulation in Q4, sustaining the trend to start 2026. Institutions provide a solid support base, owning more than 75% of the stock, and a market tailwind, accumulating in early 2026. Assuming this trend continues, a move to the technical base case is inevitable; the only question is how long it will take the market to get there.

Bloom Energy Blows Past Consensus, Wows With Guidance Bloom Energy’s Q4 2025 results highlight its position in the datacenter ecosystem. The company’s revenue surged by 35.9% to $777.7 million, outpacing the consensus estimate by $132.4 million or approximately 2000 basis points. Strength was driven by products and services, with product and service revenue up by more than 33%. 

Bloom Energy Stock Forecast Today12-Month Stock Price Forecast:
$127.42
-11.20% Downside

Hold
Based on 26 Analyst Ratings

Current Price$143.48High Forecast$207.00Average Forecast$127.42Low Forecast$10.00Bloom Energy Stock Forecast Details

Margins were another area of strength. The company experienced margin contraction as expected; however, the impact was less than analysts feared. Critical details included a triple-digit basis-point decline in gross margin, with adjusted earnings of 45 cents, up marginally from the prior year but 5000 basis points above forecasts. 

Guidance was likewise bullish, with backlogs up by 150% YOY across the system, driven by products and services, with services margins forecasted to improve as the installed base expands.

The driving force behind market action is the 2026 revenue target of $3.1 billion, which is $500 million better than expected and potentially cautious, given the trends.

The likely outcome is that Bloom, which is actively expanding and scaling production, outperforms its guidance, extending the bullish trends and stock price action. 

Short interest is among the risks. The short interest isn’t at record highs, but it spiked in early January to about 10%. This presents a headwind for price action that may cap gains. The silver lining is that the solid 2026 outlook suggests short covering will begin soon, even if it wasn’t triggered by the Q4 release. 

Should You Invest $1,000 in Bloom Energy Right Now?Before you consider Bloom Energy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bloom Energy wasn't on the list.

While Bloom Energy currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

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(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)

Berkshire Hathaway's stock outperformed the benchmark S&P 500 stock index this week as investors sought safety from a sell-off for technology stocks sparked by concerns that AI spending is outpacing revenues.

Those declines are making Berkshire's more than $350 billion in cash look more like a blessing than a curse.

The company's A shares were up 5.6% and the B shares gained 5.7%.

Despite a rebound Friday that put the Dow above 50,000 for the first time, the S&P fell 0.1% on the week.

Berkshire shares are near even with the S&P year-to-date, recovering from a deficit of almost 8 percentage points last week.

DaVita shares rally on strong earnings after Berkshire trims stakeThat's good news for Berkshire, which has a 44% stake of more than 30 million shares that are currently valued at $4.2 billion.

The not so good news, though, is that it was obliged to sell almost 1.7 million DVA shares at a pre-surge price of $120.56 each last Thursday, for a total of just under $200 million.

In a 2024 agreement with DaVita, Berkshire promised to keep its stake at or below 45% of the company's outstanding shares, which declined last quarter as DaVita bought back its own stock.

Borsheims' golden renovationBerkshire Hathaway subsidiary Borsheims is planning what it calls a "major architectural transformation" of its flagship Omaha jewelry store to signify its entry into a "new Golden Era."

In a news release, President and CEO Karen Goracke is quoted as saying the goal is to "reimagine the customer's experience" with an "elevated luxury environment" that "reinforces Borsheims as a destination."

Discounts offered to shareholders help make the store a destination during Berkshire's annual meeting weekend. 

Renovations will begin after this May's gathering. The store will remain open during the construction work.

The design is by HDR with construction by Kiewit. Both are based in Omaha.

BUFFETT & BERKSHIRE AROUND THE INTERNETHIGHLIGHTS FROM CNBC'S BUFFETT ARCHIVE'Figure out what makes sense and follow your own course' (2016)Warren Buffett explains his philosophy on how people should look at the stock market, especially when other people appear to be making a lot of fast money.

watch now

AUDIENCE MEMBER: My question is for my children watching at home today and children in the audience.

How should they look at stocks when every day in the media they see companies that have never made a dime in their life go IPO?

WARREN BUFFETT: You don't really have to worry about, you know, what's going on in IPOs, or people making money.

People win lotteries every day, but there's no reason to have that affect you at all. You shouldn't be jealous about it.

I mean, you know, if they want to do mathematically unsound things, and one of them occasionally gets lucky, and they put the one person on television, and the million that contributed to the winnings with the big slice taken out for the state, you know, don't get on there — it's nothing to worry about.

Just — all you have to do is figure out what makes sense. And you don't — and you look at buying — when you — when you buy a stock, you get yourself in the mental frame of mind that you're buying a business, and if you don't look at a quote on it for five years, that's fine...

Let the rest of the world go its own way. You don't — you don't want to get into a stupid game just because it's available...

A lot of problems are, as Charlie would say, are caused by envy. You don't want to get envious of somebody that won the lottery or bought an IPO that went up.

You have to figure out what makes sense and follow your own course.

BERKSHIRE STOCK WATCHFour weeks

Twelve months

BRK.A stock price: $762,569.63

BRK.B stock price: $508.09

BRK.B P/E (TTM): 16.25

Berkshire market capitalization: $1,096,347,710,921

Berkshire Cash as of September 30: $381.7 billion (Up 10.9% from June 30)

Excluding Rail Cash and Subtracting T-Bills Payable: $354.3 billion (Up 4.3% from June 30)

No Berkshire stock repurchases since May 2024.

(All figures are as of the date of publication, unless otherwise indicated)

BERKSHIRE'S TOP EQUITY HOLDINGS - Feb. 6, 2026Berkshire's top holdings of disclosed publicly traded stocks in the U.S. and Japan, by market value, based on the latest closing prices.

Holdings are as of September 30, 2025, as reported in Berkshire Hathaway's 13F filing on November 14, 2025, except for:

Mitsubishi, which is as of August 28, 2025Mitsui, which is as of September 30, 2025The full list of holdings and current market values is available from CNBC.com's Berkshire Hathaway Portfolio Tracker.

QUESTIONS OR COMMENTSPlease send any questions or comments about the newsletter to me at [email protected]. (Sorry, but we don't forward questions or comments to Buffett himself.)

If you aren't already subscribed to this newsletter, you can sign up here.

Also, Buffett's annual letters to shareholders are highly recommended reading. There are collected here on Berkshire's website.

-- Alex Crippen, Editor, Warren Buffett Watch