Market Signal Briefing

Ripple integrates Hyperliquid for its prime brokerage solution.

Hyperliquid seems to be the talk of the town lately, and Ripple just announced that its Ripple Prime brokerage platform will support Hyperliquid. In other words, the firm’s institutional clients will be able to access on-chain derivatives while cross-margining their exposure to decentralized finance with all other assets that are supported by Ripple Prime.

These include cleared derivatives, OTC swaps, fixed income, forex, and other digital assets.

According to the official release, “clients can access Hyperliquid liquidity while benefiting from a single counterparty relationship.”

Speaking on the matter was Michael Higgins, the international CEO of Ripple Primer, who said:

“At Ripple Prime, we are excited to continue leading the way in merging decentralized finance with traditional prime brokerage services, offering direct support to trading, yield generation, and a wider range of digital assets. This strategic extension of our prime brokerage platform into DeFi will enhance our clients’ access to liquidity, providing the greater efficiency and innovation that our institutional clients demand.”

Ripple continues to expand its product offering while also working on licensing and regulatory issues worldwide. Recently, they secured a preliminary electronic money institution license in Luxembourg.

The move to integrate Hyperliquid into their prime brokerage solution also comes at a time when the decentralized perpetual futures exchange is attracting billions in daily volumes across a variety of assets, providing the deepest on-chain liquidity order book in the industry.

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Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over 8 years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping.

Ethereum has seen a sharp sell-off that sent the price straight into a major demand zone near $2,150, which is now acting as the market’s last line of defense. Whether buyers step in here or fail to hold the line could determine if this move becomes a temporary liquidity flush or the start of a deeper trend shift.

ETH Loses Key Support As Short-Term Momentum Turns Bearish Michael Van De Poppe noted that Ethereum has slipped below a crucial support zone, signaling increased short-term pressure. On the lower timeframes, price action has turned clearly bearish. However, zooming out to the higher timeframes, the broader structure remains intact, with ETH still trading within a larger uptrend.

He pointed out that Ethereum likely marked its cycle low back in April 2025, suggesting the current weakness may be corrective rather than the start of a sustained bearish phase. At this stage, ETH appears to be searching for a higher-timeframe support level that could act as a base for a renewed move to the upside.

Source: Chart from Michael Van De Poppe on X Van de Poppe highlighted the 0.025–0.0265 BTC region as a key support zone on the ETH/BTC pair. Importantly, the recent correction has already retraced more than half of the move toward this level, increasing the likelihood that demand could step in around that range.

On the upside, he added that a recovery above the 0.0325 BTC level. While less likely in the near term, it would be a strong signal that bullish momentum has returned and a continuation of the broader uptrend. Despite ongoing volatility, Van de Poppe remains confident that Ethereum will significantly outperform Bitcoin over time. Thus, he will continue to accumulate ETH at these levels.

Sharp Sell-Off Drives Ethereum Into Major Demand Near $2,150 In a more recent update, Dami-DeFi pointed out that Ethereum failed to hold the rising support line near the $2,800 level, which he had previously identified as critical. This breakdown was confirmed on the daily timeframe, triggering a sharp sell-off that pushed the price swiftly into the next major demand zone around $2,150.

If buyers manage to defend this level, the recent drop could be interpreted as a liquidity sweep followed by a market reset, rather than the start of a deeper downtrend. In that case, price action would likely shift into a choppy consolidation phase, with ETH rebuilding structure between $2,150 and $2,700.

According to Dami-DeFi, a meaningful bullish shift only comes into play if Ethereum can reclaim $2,700 and then establish acceptance above $2,850. Until those levels are recovered and held, any upside attempts are likely to remain corrective, with the market still focused on whether demand can firmly step in at current levels.

ETH trading at $2,260 on the 1D chart | Source: ETHUSDT on Tradingview.com Featured image from Pxfuel, chart from Tradingview.com

In brief Tether has scaled back plans for a $15-$20 billion raise after investor pushback, with advisers now discussing as little as $5 billion. CEO Paolo Ardoino says the company is highly profitable and insiders are reluctant to sell equity, limiting how much could be raised. The pullback reflects valuation sensitivity, regulatory uncertainty, and lingering questions around institutional legitimacy, observers told Decrypt. The world’s largest stablecoin issuer Tether has pulled back from earlier ambitions to raise as much as $20 billion in new funding after encountering investor resistance to its valuation.

It comes roughly two months after Tether explored a raise to the tune of $15-$20 billion that would have placed it among the world’s most valuable private companies. Advisers have since discussed raising as little as $5 billion after pushback from investors, according to a Financial Times report on Wednesday.

Tether CEO Paolo Ardoino reportedly downplayed the earlier figures, characterizing the numbers as a misunderstanding of the company’s intent.

“That number is not our goal. It’s our maximum we were ready to sell,” Ardoino said in an interview cited in the report. “If we were selling zero, we would be very happy as well.”

The fundraising effort has been viewed as a move to strengthen Tether’s credibility and investor relationships, despite the company saying it does not need fresh capital. Tether remains highly profitable and has attracted interest at a $500 billion valuation, Ardoino said.

Ardoino also acknowledged that insiders remain reluctant to sell shares, limiting how much equity could be offered even if investor demand materializes.

Tether issues USDT, a U.S. dollar-pegged token with about $185 billion in circulation that serves as the reserve currency of global crypto markets. The company has said it generated roughly $10 billion in profit last year, largely from interest earned on assets backing USDT, including U.S. Treasuries.

Decrypt has reached out to Tether for comment and will update this piece should they respond.

Legitimacy and credibilityIndustry observers say the pullback points to unresolved questions around valuation, regulatory durability, and whether institutional backing can be secured on terms that align with Tether’s broader ambitions.

The decision reflects “broader institutional scrutiny rather than immediate capital needs,” Andrew Gibb, CEO of Twinstake, told Decrypt.

“Investor focus increasingly centers on transparency, governance, and regulatory durability,” Gibb said. “This reflects a wider pattern across digital asset infrastructure, where market position alone is increasingly insufficient to support premium valuations without clear regulatory and operational credibility.”

Given that Ardoino has spoken about Tether’s “plans around energy in developing nations and its AI strategy,” the decision to step back would likely “retain greater flexibility as the company expands into other ventures,” Christian Walker, chairman & co-Founder at stablecoin industry body Stablecoin Standard, told Decrypt.

Walker said Tether could be seen moving “into more and more business sectors in 2026,” with USDT helping serve those prospects.

“Scaling back the raise doesn't materially change Tether's position in the market, but it does underline how sensitive investors remain to valuation expectations and regulatory uncertainty,” he added.

Some industry observers highlighted Tether’s framing that it does not need the capital.

“That's true on paper—Tether is enormously profitable from Treasury yields on $140 billion+ in reserves. But the raise was never really about capital. It was about legitimacy,” Neil Staunton, CEO and co-founder of stablecoin liquidity network Superset, told Decrypt.

Tether’s decision to scale back suggests “they couldn't get that on terms they liked,” Staunton said. “The irony is that Tether's profitability is partly a function of the regulatory ambiguity they operate in. A more institutional structure might actually compress those margins.

Not raising “might be the rational choice, but it does leave the legitimacy question unanswered,” he added.

Others point to broader crypto market sentiment as another factor behind the decision.

“In addition to their association with blockchains, Tether's exposure to recently volatile markets like Gold might have been another driver to this scaling back in investment,” Francesco Mosterts, co-founder of Chainbound and Umia, told Decrypt.

Considering how Tether is “confident on their profits” in crypto, their pullback shows confidence on “the long-term outlook of the ecosystem,” Mosterts added.

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PEPE holds critical support near $0.0000043 while trading sideways, with mixed momentum signaling potential consolidation or a breakout.

Newton Gitonga2 min read

4 February 2026, 02:40 PM

PEPE is currently trading at around $0.000004126, with mild intraday volatility, holding near the dotted baseline at $0.000005419. The price previously climbed toward $0.00000544 before dropping close to $0.00000540, marking an approximate 0.7% price fluctuation during the session. Currently, PEPE appears to be consolidating within this narrow range, suggesting balanced buying and selling pressure with no strong breakout momentum yet.

PEPE Price Holds Critical Support as Bulls Eye Momentum ShiftAccording to data from Pepe Whale, PEPE continues to hold the $0.0000040–$0.0000043 support zone. This level has acted as a demand base for weeks. Price is stabilizing after extended downside pressure. Sellers are struggling to push below this area. A daily close under this range would signal weakness. That scenario increases the risk of a liquidity sweep lower.

Market structure remains neutral but fragile. Lower highs still limit upside momentum. Buyers need to defend current levels to avoid another downtrend leg. Volume remains relatively muted. This suggests hesitation from both sides.

On the upside, $0.0000058–$0.0000070 remains the first key resistance. This zone previously triggered sharp rejections. A clean break above it would shift the short-term structure bullish. That move would likely attract momentum traders. Follow-through buying could then open a path toward 0.000010.

Until resistance is reclaimed, PEPE remains in consolidation. Price is coiling for a larger move. Direction will depend on how the price reacts at support. Holding support favors accumulation. Losing it favors volatility and a deeper downside.

PEPE Consolidates Around $0.00000418 While Indicators Signal Ongoing WeaknessOn the 1-day PEPE price chart, the broader trend remains bearish, with the price trading around $0.00000418 after a prolonged decline. PEPE has consistently formed lower highs and lower lows, confirming sustained downside pressure. Recent price action shows consolidation just above the $0.00000410 support zone, which has so far prevented a deeper breakdown. However, the failure to reclaim the $0.00000430–$0.00000450 area suggests the move higher is corrective rather than a trend reversal.

The MACD is still below the zero line, with the MACD line under the signal line, signaling weak momentum and ongoing bearish control. The histogram has turned slightly negative, indicating fading bullish attempts near current prices. Meanwhile, the RSI is hovering around 35–40, suggesting bearish momentum dominates. 

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PEPE

XRP has come under intense selling pressure over the past week, shedding more than $20 billion in market value as broader risk aversion sweeps through the cryptocurrency market.

By press time, XRP’s market capitalization had fallen to $97.31 billion, down from $117.32 billion a week earlier.

Price action has been equally severe, with the token trading near $1.59, marking a decline of more than 17% over the past seven days.

XRP one-week market cap chart. Source: CoinMarketCap At current levels, XRP is firmly entrenched in a bearish trend, trading well below its 50-day Simple Moving Average (SMA) of $1.94, signaling short-term weakness and sustained downward momentum in recent weeks.

The gap widens further against the 200-day SMA at $2.44, pointing to a prolonged long-term decline and a lack of bullish conviction.

However, the 14-day Relative Strength Index (RSI) at 29.27 sits in oversold territory, suggesting the asset may be undervalued and potentially ripe for a rebound if market sentiment shifts from its current state of extreme fear, despite elevated volatility.

Why XRP is down  It is worth noting that XRP’s sell-off does not stem from a single project-specific catalyst but rather from a convergence of broader market pressures.

In this context, a crypto-wide downturn set the tone after Bitcoin (BTC) fell below the key $75,000 and $80,000 support levels, triggering a risk-off shift that disproportionately hit higher-volatility tokens like XRP. The resulting selling reflected position unwinds across major cryptocurrencies and altcoins, rather than any deterioration in XRP’s fundamentals.

At the same time, geopolitical tensions in the Middle East further unsettled global markets, pushing investors away from risk assets and sending XRP to its weakest levels since late 2024.

Sentiment was also weighed down by supply concerns tied to Ripple’s routine February escrow release of 1 billion XRP, despite most tokens typically being re-locked.

XRP growth potential  On the other hand, XRP’s long-term growth case received a fundamentals boost after Billiton Diamond and Ctrl Alt tokenized more than $280 million worth of certified polished diamonds on the XRP Ledger using Ripple Custody. 

Ripple is proud to support Billiton Diamond and @CtrlAltCo who have tokenized over AED 1 billion ($280m) of certified polished diamonds on the XRPL.

This initiative shows how @Ripple's technology can bridge the gap between physical assets and the digital economy, utilising our…

— Reece Merrick (@reece_merrick) February 3, 2026 The initiative brings real-world assets onto XRPL with on-chain records for ownership, origin, and grading, reinforcing the network’s role in institutional-grade tokenization. 

While broader rollout awaits regulatory approval in Dubai, the deployment highlights rising adoption of XRPL for regulated, high-value asset settlement—supporting demand for the network and strengthening the underlying utility narrative around XRP.

Indeed, this adds to the institutional interest factor, where attention has shifted to the asset through the spot exchange-traded funds (ETFs).

Featured image via Shutterstock

Coinbase delisted Ripple’s token just two weeks after the SEC filed a case against the issuer. However, according to social media chatter, Jeffrey Epstein could have pushed the exchange to let go of XRP.

In the documents released by the US Justice Department last Friday, disgraced financier Jeffrey Epstein had financial ties to Coinbase. Epstein reportedly invested $3 million in the US-based crypto trading platform in 2014, as part of a $75 million round. Several other Silicon Valley firms also took part in the funding, including DFJ and Andreessen Horowitz. 

The revelations resurfaced the battle Ripple had with regulators, whose XRP token was delisted by Coinbase in January 2021, shortly after the US Securities and Exchange Commission (SEC) sued Ripple. 

The regulator, then led by former commissioner Gary Gensler, alleged the company conducted a $1.3 billion unregistered securities offering through XRP sales.

Epstein’s Coinbase investment opens Ripple vs SEC wounds According to the latest chatter on Crypto Twitter, the opposition to Ripple could have come from a group of elitists influenced by the convicted sex trafficker. Some users on X suggest that the opposition XRP faced from crypto firms in 2014 influenced regulators to go after Ripple and exchanges that delisted its token. 

No evidence in the documents directly links Epstein to Coinbase’s decision to delist. However, the emails seen in the latest stash of files show he held an investment allocation in Blockstream in 2014. In an email dated July 31 that year, then-chief executive Austin Hill wrote about reducing or removing Epstein’s allocation.

According to the correspondence, Hill said Ripple and Stellar were “bad for the ecosystem we are building,” and that backing them could undermine Blockstream’s strategic direction. 

However, attorney Bill Morgan propounded that the email “implicating Epstein’s desire to harm Ripple and by extension XRP/XRPL” came years before the US watchdog started its query into the stablecoin issuer, between April and June 2018.

“The SEC investigation did not commence until sometime between April and June 2018, just before or about the time of the Ethereum free pass speech of Bill Hinman,” Morgan explained.

Morgan also referenced another disclosed email between Epstein and former SEC chair Gensler in May 2018, which Cryptopolitan covered earlier this week. The message allegedly noted Gensler’s links to Elizabeth Warren and an anti-crypto faction within Democratic circles, but did not provide any link between Epstein and Hill’s messages and the probe into Ripple six years later.

Ripple’s former chief technology officer, David Schwartz, said the 2014 email is only a small part of the opposition the crypto company faced. Schwartz suggested the correspondence is just the tip of a giant iceberg.”

The sad part is, we really are all in this together and this kind of attitude hurts everyone in the space.

— David 'JoelKatz' Schwartz (@JoelKatz) January 31, 2026

He wrote on X that the email showed Austin Hill telling Epstein that support for Ripple or Stellar made someone an adversary. The sad part is, we really are all in this together, and this kind of attitude hurts everyone in the space,” Schwartz wrote on X. 

Crypto exchanges’ XRP delisting caused a massive selloff  When Coinbase halted XRP trading in January 2021 after the SEC filed a complaint against Ripple, several other platforms, including Crypto.com and OKCoin, followed suit. One X user, who claimed to have joined Coinbase during its debut days, said Coinbase removed XRP transaction data from South Korean markets when prices on those venues were reportedly higher.

The user wrote that XRP had surpassed Ethereum as the second-largest crypto by market value. They claimed the data removal made XRP appear to fall sharply. According to the post, a panic-selling phase for the token helped Ether regain the number two position, leaving XRP in third place by a wide margin.

These claims are unverified, and Coinbase has not publicly addressed the specific allegations about the Korean market data. The exchange insisted the reason for suspending XRP was because of the regulatory concerns it had been facing from the SEC.

According to the Washington Post, Epstein still held his Coinbase stake in 2017, which was later confirmed by the Justice Department. A January 2018 email revealed that Stephens at Blockchain Capital offered to purchase half the holding.

In February 2018, Epstein sold half his Coinbase stake and received $15 million. That amount is ten times what he paid for that portion in 2014, as confirmed by Blockchain Capital.

Join a premium crypto trading community free for 30 days - normally $100/mo.

Bitcoin’s (BTC) recent volatility has put the cryptocurrency at risk of an imminent 25% crash, unless it can reclaim a critical price threshold above $80,000, according to one respected blockchain analyst.

Specifically, the very end of January and start of February inaugurated a period of instability for Bitcoin (BTC), with the world’s premier cryptocurrency making intraday swings almost as large as 10% in a single direction relatively regularly. 

Additionally, despite the late February 3 swing being positive and seeing BTC bounce up from yearly lows close to $73,000 and to its press time price of $75,985, many observers, including the popular blockchain analyst Ali Martinez, believe the worst is yet to come.

Bitcoin price one-week chart. Source: Finbold Specifically, Martinez explained that the selling pressure affecting the world’s premier cryptocurrency is likely to only increase as, at its press time price, Bitcoin is below the exchange-traded fund (ETF) cost basis of $82,600.

Bitcoin at risk of imminent crash to $57,000 Such a situation, paired with the recent spot BTC outflows, signals that the latest price rebounds are corrections and not trend-changers, thus indicating a heightened need for caution, according to the X article the expert published on February 4.

Furthermore, historical patterns demonstrate that, once the price of the underlying asset falls below the average ETF purchase price, selling pressure tends to mount with investors seeking to protect what capital remains.

Thus, Ali Martinez warned that, unless spot Bitcoin ETFs see a rapid rise in inflows, BTC is likely to fall toward its next target price near $57,000.

Bitcoin price targets $50,000 by March Elsewhere, the on-chain expert’s latest analysis is consistent with an opinion published one day earlier in which Martinez explains that, historically, a Bitcoin fall below the 100-week simple moving average (SMA) tends to lead to a drop to the 200-week SMA within about 30 days.

In the context of the February 2026 market, the 100-week SMA stands at $87,500 – more than $10,000 above the press time levels, and $5,000 higher than the ETF cost basis – and the 200-week figure is at $57,600.

Under the circumstances, Ali Martinez predicted Bitcoin is likely to crash to $50,000 by March or April at the latest, before continuing its drop to a probable cycle low near $38,000 in October.

Featured image via Shutterstock

TL;DR

Tether scaled back a $15,000–$20,000 million funding plan after doubts emerged around a valuation close to $500,000 million. Advisers are now assessing a round of roughly $5,000 million, aligned with the current appetite of the crypto market. Paolo Ardoino clarified that the $15,000–$20,000 million range stemmed from a misunderstanding rather than a formal target set by Tether. Tether significantly scaled back a funding plan that initially circulated in the market within a range of $15,000 million to $20,000 million. Preliminary discussions linked that amount to a valuation close to $500,000 million, a figure that triggered immediate questions from institutional investors and financial advisers.

According to information cited by the Financial Times, the original proposal raised doubts about the viability of the transaction in the current crypto market environment. Following those objections, the company’s advisers began evaluating a much smaller round, closer to $5,000 million, aligned with actual market interest.

Paolo Ardoino, Tether’s CEO, stated that the $15,000 to $20,000 million range did not represent a formal objective of the company, but rather an erroneous interpretation that arose during preliminary exchanges with market participants. His clarification became public after the figure gained traction and sparked widespread debate over the implied valuation.

Tether Is Always Under Scrutiny The industry is showing increased demands on stablecoin issuers. Institutional investors now prioritize clear capital structures, revenue visibility, and defined governance standards. Companies tied to the core infrastructure of the market face a higher-than-usual level of scrutiny.

Tether plays a central role in the liquidity of the crypto ecosystem. USDT supports a significant share of global trading volume and serves as a reference asset across multiple markets and platforms. For that reason, any change in its capital strategy has a direct impact on perceptions within the stablecoin market.

Strengthening Reserves and Operational Capacity The company has long remained under the scrutiny of regulators and analysts due to the composition and transparency of the reserves backing the issuance of USDT, even as Tether publishes periodic reports and partial audits.

The $5,000 million round aims to strengthen reserves and operational capacity without creating broad dilution or a financing structure that is difficult to execute. The figure aligns with recent transactions in the market and with the level of risk investors are willing to assume in the current market cycle

The cryptocurrency is trading below key ETF cost levels and nearing its pre-election price floor as inflows to these vehicles fade and headwinds build, the bank said. Feb 4, 2026, 12:57 p.m.

Crypto markets are approaching important inflection points after weeks of declines, according to Wall Street bank Citi (C).

Bitcoin BTC$76,085.74 fell to around $73,000 before stabilizing, extending a drawdown that has pushed prices below the bank's estimated average U.S. spot bitcoin exchange-traded fund (ETF) entry price of $81,600. The largest cryptocurrency was trading around $76,100 at publication time.

STORY CONTINUES BELOW

The report noted that ETF inflows, a major source of new demand, have slowed materially, while futures markets continue to see pockets of long liquidations.

"Crypto markets have exhibited the volatility similar to precious metals but without the upside," analyst Alex Saunders wrote in the Tuesday report.

Bitcoin is often framed as “digital gold,” but it has yet to mirror the recent strength seen in precious metals. While gold has rallied amid geopolitical risk and macro uncertainty, BTC has remained under pressure, highlighting its continued sensitivity to liquidity conditions and risk sentiment rather than haven demand.

Regulation remains the key potential catalyst, Saunders said, but progress on a U.S. digital asset market structure bill has been slow and uneven. While Senate negotiations continue, delays and mixed political support have dampened sentiment, with market-implied odds of passage slipping.

The analyst also pointed to macro risks, including concerns over a shrinking Federal Reserve balance sheet, which historically weighs on crypto through reduced bank liquidity. While concerns of a prolonged crypto winter are rising, Citi said that remains a tail risk rather than its base case.

With average ETF holders now underwater and bitcoin nearing the roughly $70,000 it held before the U.S. presidential election, the report said markets are approaching levels that could prove decisive for near-term direction.

Read more: Bitwise argues crypto is near the end of a brutal winter

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The XRP Ledger has taken a major step toward regulated blockchain adoption with the activation of a new feature called Permissioned Domains. The update went live on February 4, after receiving strong support from network validators, and is designed to help institutions use blockchain technology while staying compliant with regulations.

What Are Permissioned Domains on XRP Ledger?Permissioned Domains allow users to create a restricted area on the public XRP Ledger where only approved accounts can take part. This allows developers, banks, and regulated companies to build apps where only verified users can access certain services.

This feature works with the Credentials system, which helps confirm things like KYC and AML checks directly on the blockchain. Together, they make it possible to run secure financial activities on a public network while keeping access limited and controlled.

The amendment was activated at ledger index 102,017,953, and the first Permissioned Domain appeared on the network immediately after launch.

Strong Validator Support Drove the UpgradeThe amendment, known as XLS-80, needed at least 80% validator approval for two consecutive weeks to go live. That threshold was reached in late January, and by the time activation occurred, more than 90% of validators had voted in favor.

This level of support shows broad agreement within the XRP Ledger community that controlled access features are important for the network’s future growth.

Another related upgrade, called Permissioned DEX, is also approaching activation and is expected to go live around February 18 if voting continues at current levels.

Why This Matters for Banks and EnterprisesRipple’s CTO explained that compliance has long been a barrier for institutions wanting to use public blockchains. Permissioned Domains help solve that problem by allowing liquidity pools, trading features, and payment flows to operate only among verified participants.

This makes it easier for institutions to safely use blockchain technology for stablecoins, foreign exchange trades, tokenized assets, and cross-border payments, without violating regulatory rules.

With Permissioned Domains now live, the XRP Ledger is positioning itself as a network that can support both open innovation and regulated financial use cases. 

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Journalist

Posted: February 4, 2026

On the 4th of February 2026, Bitcoin [BTC] came under pressure. At press time, BTC was down 3.14% over the past 24 hours, trading at $76,246.31 and testing levels many analysts believed had already been left behind.

In a recent interview with Bloomberg Crypto, Galaxy Digital CEO Mike Novogratz observed,

“Bitcoin was not supposed to act like this. Something went wrong. I think we’re getting close to the bottom, but we’ll see.”

Crypto community reacts The crypto community also reacted to Novogratz’s analysis, with one user on X noting,

“Absolutely. When big players like Novogratz start signaling “bottom territory,” it’s worth paying attention. BTC’s volatility isn’t broken — it’s just shaking out weak hands before the next leg up.”

Joining the fray, another X user emphasized the four-year market cycle and added,

“Based on the good ol 4 year cycle, it’s absolutely supposed to do this.”

Factors responsible for BTC’s downfall That said, this market downturn isn’t random. It’s part of Bitcoin’s usual cycle that follows each halving. After the April 2024 halving, 2025 brought strong growth, just as it has in past cycles.

Bitcoin surged to a record $126,000 in October 2025.  But now, about 22 months after the halving, the market has entered the correction phase.

During this period, early investors often take profits, driving prices lower. At roughly $76K, Bitcoin now sits nearly 40% below its peak, mirroring past post‑boom corrections.

Broader economic pressures have added to the decline. Ongoing tensions in the Middle East have unsettled global markets, prompting investors to favor safer assets like gold and reducing demand for riskier holdings such as Bitcoin.

Compounding this, the U.S. Federal Reserve’s firm stance on interest rates, particularly following Kevin Warsh’s nomination as Fed Chair, has further tightened liquidity.

Amidst this uncertainty, another X user popped up a question, asking, 

“Is a rebound really imminent?”

What are technical indicators hinting at? As Bitcoin moves through this volatile phase, technical indicators offer some cautious optimism. Although the MACD still showed a bearish trend, the RSI has fallen to deeply oversold levels near 27, as of writing.

Source: Trading View

In the past, this often came before a short-term bounce.

This sharp sell‑off may have gone too far, too quickly, opening the door for a potential relief rally toward $80,000.

Bitcoin’s dominance, holding near 60%, is another encouraging signal, suggesting investors are keeping capital in Bitcoin rather than exiting the crypto market entirely.

Still, experts remain split on the outlook, with opinions divided over whether the rebound can sustain or if further downside lies ahead.

Analysts’ mixed expectations for Bitcoin Tom Lee of Fundstrat believes the market is close to a bottom and expects a recovery later this year. Alex Thorn from Galaxy Research is more cautious. He warns that if current levels break, Bitcoin could fall toward $56,000.

Aurelie Barthere of Nansen adds that future price moves may depend on changes in U.S. monetary policy. Overall, 2026 is becoming a test of patience for investors.

Now, whether this is just a temporary shakeout or the start of a longer downturn is still unclear.

Much depends on how Bitcoin holds the $74,000 support level in the coming weeks, which could shape the market’s direction for years ahead. 

Final thoughts Bitcoin’s current pullback closely mirrors past post-halving corrections seen in previous market cycles. Oversold RSI levels suggest selling pressure may be easing, even as MACD continues to signal weakness.

TL;DR

Specialization Shift: Vitalik Buterin said L2s should move beyond being cheaper versions of Ethereum, arguing that the base layer is becoming more capable and that many rollups still rely on multisig bridges instead of inheriting full security. Diverging L2 Responses: Optimism highlighted hurdles such as long withdrawal windows and the lack of production-ready Stage 2 proofs, while Arbitrum insisted scaling remains central. Ecosystem Repositioning: Base and Starknet embraced differentiation, with leaders saying application focus, privacy features, and ZK-native designs align with Buterin’s vision.
Ethereum’s layer 2 ecosystem is recalibrating after Vitalik Buterin questioned whether L2s should remain the network’s primary scaling engine, arguing that the original vision “no longer makes sense.” His comments sparked immediate reactions from major rollup teams, who broadly agreed that L2s must evolve but differed on how central scaling should remain to their mission.

Vitalik Buterin’s Call for Specialization Reshapes the L2 Conversation In his Wednesday X post, Buterin said many L2s have not fully inherited Ethereum’s security because they still rely on multisig bridges. He added that Ethereum’s base layer is becoming more capable through gas-limit increases and future native rollups. This shift, he argued, means L2s should move toward specialization rather than simply offering cheaper execution. The remarks triggered debate across the ecosystem, with builders acknowledging the need for differentiation while assessing how much scaling should remain part of their identity.

Optimism Highlights Technical Hurdles and Modular Ambitions Karl Floersch of the Optimism Foundation welcomed the challenge of building a modular L2 stack that supports “the full spectrum of decentralization.” Still, he pointed to significant obstacles. These include long withdrawal windows, the absence of production-ready Stage 2 proofs, and limited tooling for cross-chain applications.

CHALLENGE ACCEPTED.

Not a challenge related to drama farmers saying "L2s bad, Ethereum dumb."

But instead the challenge of creating a modular L2 Stack that supports and enables customization and the full spectrum of decentralization. And you know — we're already closer to that… https://t.co/s6mDG9KOk8

— karl.floersch.eth (✨🔴_🔴✨) (@karl_dot_tech) February 3, 2026

Floersch reiterated that “Stage 2 isn’t production-ready,” noting that current proofs are not secure enough for major bridges. He also backed native Ethereum precompile support for rollups, a feature that Buterin recently emphasized.

Arbitrum Defends Scaling as a Core L2 Value Arbitrum co-founder Steven Goldfeder responded more forcefully, arguing that scaling remains fundamental to the rollup model. He said Arbitrum was not created as a “service to Ethereum,” but because Ethereum offers a high-security, low-cost settlement layer that enables large-scale rollups.

1. Arbitrum is not Ethereum. It’s a core part of the ecosystem, a close-knit ally, and has enjoyed a symbiotic relationship for the last half-decade. But it is not Ethereum. And the notion that a scaled L1 and a thriving L2 ecosystem are somehow at odds is wrong.

— Steven Goldfeder (@sgoldfed) February 3, 2026

Goldfeder disputed the idea that a scaled Ethereum L1 could replace L2 throughput, citing periods when Arbitrum and Base exceeded 1,000 transactions per second while Ethereum processed fewer. He warned that hostility toward rollups could push institutions toward independent layer 1 chains.

Base and Starknet Embrace Differentiation Base head Jesse Pollak agreed that L2s cannot be “Ethereum but cheaper,” calling L1 scaling “a win for the entire ecosystem.” He said Base is focused on onboarding users and developers while advancing toward Stage 2 decentralization.

Pollak added that application-driven differentiation, account abstraction, and privacy features align with Buterin’s direction. StarkWare CEO Eli Ben-Sasson offered a pointed reaction, suggesting that ZK-native systems like Starknet already embody the specialized model Buterin described.

In brief Users of prediction market Myriad put a 36% chance on Bitcoin treasury firm Strategy selling some of its BTC holdings—up from 22% at the start of the week. The company's multiple to net asset value (mNAV) currently sits at 1.08; if it falls below 1, Strategy may be forced to pause Bitcoin purchases. Analysts argued that Strategy’s “long-term accumulation thesis remains intact.” Strategy's Bitcoin conviction is facing its toughest test yet as the crypto market enters a prolonged downturn.

On prediction market Myriad, owned by Decrypt’s parent company, DASTAN, users now see a 36% likelihood that the Bitcoin treasury firm will sell some of its BTC holdings before year-end, up from 22% at the start of the week.

The bearish shift comes as Bitcoin plunged below key support levels to trade at $76,039—just below the average purchase price of Strategy’s Bitcoin holdings. The cryptocurrency is down 2.9% in the past 24 hours, 15.4% over the past week, and 18.1% over the past month, according to CoinGecko data.

Bitcoin is now down about 40% from its October peak of $126,080, with Myriad users assigning a greater than 72% chance that it falls to $69,000 rather than rebounds to $100,000.

Strategy’s ability to keep buying, or avoid selling, partly hinges on its multiple to net asset value (mNAV), which compares the firm’s enterprise value to the value of its Bitcoin holdings.

An mNAV above 1 means the stock trades at a premium to its BTC, allowing the company to issue shares via at-the-market offerings to fund further purchases.

That ratio currently sits near 1.08; a drop below 1 could slow or pause new buying.

On Myriad, users place a near-90% chance on Strategy’s mNAV dropping to 0.85 rather than ticking up to 1.5, a figure that’s largely unchanged from a month ago.

Will Strategy buy or sell BTC?Despite the bearish sentiment, analysts remain skeptical that Strategy will liquidate holdings.

"I don't think the drop in the Bitcoin prices changes anything for Strategy," Nic Puckrin, digital asset analyst and co-founder of Coin Bureau, told Decrypt.

He argued that the firm’s co-founder and chair, Michael Saylor, has “always been prepared for a downturn, as any Bitcoin investor with experience would be,” adding that, “He's not facing any forced liquidations, and the first tranche of the convertible bonds isn't due until early next year."

“In the near term, I do not expect Strategy to buy more BTC because the BTC spot price-to-average Strategy's purchase price ratio is 1, which could be dilutive,” Aurelie Barthere, Principal Research Analyst at Nansen, told Decrypt.

The firm has, to date, continued to buy Bitcoin, announcing a further purchase of 855 BTC on February 2. Saylor continued to strike a bullish note, tweeting, “1. Buy Bitcoin 2. Don’t Sell the Bitcoin” Tuesday.

The Rules of Bitcoin
1. Buy Bitcoin
2. Don't Sell the Bitcoin

— Michael Saylor (@saylor) February 3, 2026

“Will Strategy sell BTC? It will depend on whether they have set aside a cash reserve to meet their cash obligations, mainly for preferred stock dividends,” Barthere added.

The world's largest publicly traded Bitcoin holder faces mounting pressure as its stock bleeds value for an eighth consecutive month, with the company currently holding 713,502 BTC, worth over $52 billion at current prices.

MSTR has cratered from its November 2024 peak of $540 to around $133, a drop of over 75%, according to Yahoo Finance data. According to the firm’s website, it holds a cash reserve of $2.25 billion, enough to cover 30 months of dividend payments.

“While their long-term accumulation thesis remains intact, any decision to sell would likely reflect opportunistic pricing or capital reallocation needsnot a fundamental shift in their conviction,” Marcin Kazmierczak, co-founder of RedStone, told Decrypt.

The key variable, Kazmierczak said, isn’t whether the firm could sell, but “whether the risk-reward at current levels justifies their allocation strategy.”

Decrypt has reached out to Strategy for comment.

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On-chain data revealed that Monday and Tuesday saw the largest Bitcoin inflows to Binance since the beginning of the year. The surge in BTC inflows also coincided with Bitcoin’s continued downward momentum and triggered FUD, driven by selling pressure building on Binance.

Binance saw between 56,000 and 59,000 BTC flowing into the exchange over those two days. The inflows also occurred at a key moment, when Bitcoin was trading near a critical level of $74,000.

Bitcoin enters a capitulation phase Dear Binance FUDers, great job. You triggered a $600M net outflow rush, a whopping 0.3% of their total reserves. https://t.co/9JWgjrmKE8 pic.twitter.com/pXPUyC4aSz

— Ki Young Ju (@ki_young_ju) February 3, 2026

One analyst argued that a break below that level would technically call the long-term trend into question. The analyst noted that as BTC approaches such a critical level, it creates panic among some investors, causing them to move their digital assets to Binance.

Short-term BTC holders also contributed to the inflows sent to Binance. On-chain data showed that the cohort of holders sent around 54,000 BTC to Binance, incurring a loss, on February 2 alone.

Large BTC inflows to Binance have historically represented real selling pressure on the spot market. The analyst suggested that, despite the FUD that usually accompanies such panic phases, the current selling pressure is not abnormal given the scale of the recorded flows.

The analyst stated that the current flows into Binance suggest that the market is entering a phase of capitulation and panic as BTC becomes oversold. He also noted that such context has historically enabled the formation of a bottom, both in the short-term and over longer horizons. Glassnode data also showed that Bitcoin’s Realized Profit/Loss Ratio is nearing 1, a level that’s historically been linked to market capitulation.

At the time of publication, Bitcoin is trading around $75,630, down more than 3.3% in the previous 24 hours. BTC has also dropped by nearly 15.4% over the last 7 days and 18.55% in the last 30 days. Bitcoin has already entered its 5th consecutive month of correction.

“Bitcoin is dropping as selling pressure persists, with no fresh capital coming in. Selling pressure is still ongoing, so the bottom isn’t clear yet, but this bear market will likely form a wide-ranging sideways consolidation.”

–Kim Young Ju, Founder of CryptoQuant.

On-chain data showed that BTC spot volumes have dropped by more than 50% since the October 10 event, which led to a massive liquidity drain. Binance still holds the largest share of BTC spot volumes at $104 billion. 

The analyst argued that the contraction in volumes has brought the market back to levels among the lowest observed since 2024. He also suggested that the contraction in volumes indicates apparent disengagement by investors in the crypto market and, consequently, weaker demand. 

Bitcoin funding rates on Binance drop below 0.01% BTC funding rates on Binance have moved deeply into negative territory, currently at -0.0045, suggesting that short dominance in the market is surging. Binance applies a 0.01% interest rate in its funding rate formula, meaning the neutral funding rate when analyzing market dominance is 0.01% and not 0. 

On-chain data suggests that shorts are currently dominating since the funding rate is below 0.01%. The analyst argued that funding rates on Binance are entering an extreme zone, signaling an accumulation of short positions and bearish momentum among investors. He also believes that the current market position has historically preceded trend reversals.

Young stated on Tuesday that the Binance FUDers triggered a $600 million net outflow, representing 0.3% of their total reserves. On-chain data showed that many users were closing their Binance accounts, triggering a withdrawal crisis on the crypto exchange. Binance acknowledged that it has observed some technical difficulties affecting withdrawals on the platform, and its team is working on a fix.

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Bitcoin is defending the mid-$70,000 zone as traders watch a potential flush-and-reclaim setup, a fresh ISM New Orders crossover, and a chart pattern that mirrors Nvidia’s pre-breakout structure. Together, the signals point to volatility first, then a possible push back toward $100,000 if Bitcoin reclaims the broken range on a weekly close.

Bitcoin tests mid $70,000 support as IncomeSharks flags break-and-reclaim riskBitcoin traded near $76,332 on the weekly Coinbase chart as price pushed into a long watched support zone around the mid $70,000 area. The level sits inside a prior consolidation band from 2024 that later flipped into a launch point, so the market now treats it as a decision zone.

Bitcoin / U.S. Dollar 1W Chart. Source: IncomeSharks via X

IncomeSharks said traders may focus too much on how strong that support looks. When a level becomes crowded, price often breaks it to trigger stops and force exits. That kind of move can print a single, sharp capitulation candle, while bearish targets like $20,000, $40,000, or $50,000 spread across social feeds.

After the flush, the post expects a quick reversal. The chart projection shows a dip below the support box, then a rebound back into the range, followed by a climb toward $100,000. In that setup, Bitcoin regains strength only after it reclaims the broken level and holds it on a weekly close, because that shift signals sellers lost control and buyers regained the range.

Bitcoin tracks ISM New Orders signal again as AO_btc_analyst points to past bull-run setupsBitcoin sits on the weekly chart as AO_btc_analyst highlighted a recurring macro signal tied to the ISM New Orders Index. In a Feb. 3 post, the analyst said Bitcoin rallied into bull runs each time the ISM crossed the same threshold and added that the index crossed it again.

Bitcoin / U.S. Dollar 1W Chart with ISM New Orders Index. Source:  AO_btc_analyst via X

The chart plots Bitcoin’s long-term uptrend against the ISM New Orders line and marks several prior crossings with “bullish breakout” labels. Those past signals line up with periods that later saw strong upside extensions in Bitcoin, including the 2013–2014 cycle, the 2017 run, and the 2020–2021 cycle. The latest circle appears near early 2026, where the ISM measure sits around 57.1 on the chart.

This setup frames the ISM crossing as a risk-on trigger that can coincide with improving demand conditions. Still, the signal does not guarantee timing or magnitude, because markets can lag macro data and react to other shocks. Even so, the post argues that the repeat crossing increases the odds that Bitcoin attempts another sustained upside phase from current levels.

Bitcoin and Nvidia show similar channel breaks and rebounds on weekly charts, JamesEastonUK saysMeanwhile, JamesEastonUK compared its recent structure to Nvidia’s pre-rally setup. In a Feb. 3 post on X, the analyst said Bitcoin’s price action looks similar to Nvidia’s pattern before its sharp upside move.

Bitcoin / U.S. Dollar 1W Chart and Nvidia Corporation 1W Chart. Source: JamesEastonUK via X

The side-by-side charts show both assets trading inside a rising channel, then breaking below the lower boundary before snapping back. On the Bitcoin chart, price tested the lower purple trendline twice, marked by white arrows, and then rebounded into a strong recovery leg. On the Nvidia chart, price also dipped below the lower channel line, then reversed higher and later pushed toward the upper boundary.

The comparison focuses on structure, not price level. Both charts highlight the same sequence: rising channel, downside deviation, then reclaim. Still, the setup remains a visual analog, because Bitcoin and Nvidia trade under different drivers, liquidity conditions, and news cycles.

Dogecoin’s on-chain activity accelerated sharply over the past week, with Active Addresses rising 36% to above 71,400, data showed.

The increase signaled renewed participation across the Dogecoin network, even as broader market conditions remained uncertain.

However, activity growth alone did not guarantee upside. Instead, it highlighted rising interest near compressed price levels.

That shift left traders watching whether network usage could translate into sustained demand.

Historically, similar participation spikes preceded consolidation or inflection phases, depending on how leverage and price reacted next.

Dogecoin price stays trapped inside descending pressure Dogecoin [DOGE] continued trading inside a clearly defined descending channel, reflecting persistent lower highs since late 2025.

The price slipped below the $0.117 support, briefly testing the $0.108 region before stabilizing above the $0.10 psychological level.

The structure showed sellers retained control, even as volatility compressed.

Even so, repeated defenses near channel lows often weakened downside momentum over time.

Overhead resistance near $0.156 and $0.20 continued capping recovery attempts, limiting upside extension.

That left Dogecoin trading in a compression zone rather than an active breakdown phase.

Source: TradingView

Momentum indicators showed early stabilization signs. The daily RSI hovered near 35 after weeks of sustained weakness. The reading reflected oversold-adjacent conditions without signaling capitulation.

In fact, RSI stopped printing aggressive lower lows, suggesting selling pressure had slowed.

However, momentum had not turned constructive. RSI remained below the neutral 50 level.

As the price held above $0.10, this behavior pointed toward consolidation rather than reversal.

Dogecoin top traders crowd longs despite weak structure Derivatives positioning revealed aggressive optimism among Binance’s top traders. Long Accounts rose to about 75%, while the Long/Short Ratio climbed near 3.0.

This imbalance signals strong directional conviction, even as price remains structurally weak. Typically, such skewed positioning increases sensitivity to volatility. 

However, long dominance does not automatically imply imminent downside. Instead, it reflects expectations of a rebound from current levels. 

At the same time, crowded longs raise liquidation risk if the price fails to stabilize. Therefore, leverage now plays a critical role in DOGE’s next move. 

The market watches closely whether price can reward this positioning or force a reset through volatility.

Source: CoinGlass

Negative funding hints at leverage strain OI-Weighted Funding Rates has recently flipped negative, with readings around -0.0002% at press time, despite heavy long positioning. 

This divergence suggests traders continue holding longs while the price struggles to attract follow-through. 

Besides, negative funding often reflects stress among leveraged participants rather than outright bearish control. In this context, funding pressure hints at vulnerability rather than collapse. 

However, prolonged negative funding alongside long dominance can trigger forced deleveraging if price drifts lower.

Therefore, funding dynamics now sit at a critical juncture. 

Either price stabilizes and relieves pressure, or leverage unwinds abruptly. This balance adds complexity to DOGE’s near-term outlook.

Source: CoinGlass

Can participation offset leverage risk? Dogecoin reached an inflection point where rising network activity and stabilizing momentum clashed with weak structure and elevated leverage.

If the price held above $0.10, participation-led support could absorb selling pressure gradually.

Even so, crowded longs and negative Funding Rates left little margin for error.

DOGE’s next phase now depended less on hype and more on whether demand could outpace leverage-driven fragility.

Final Thoughts Dogecoin’s network activity picked up meaningfully. Active Addresses climbed 36% over the past week, crossing above 71,400. DOGE remained stuck inside a descending channel, with lower highs controlling the trend since late 2025.

Ethereum was cheaper than expected in 2020, and rollup decentralization was slower than promised in 2021. Those two realities are forced the ecosystem to rewrite what “a layer-2” is for.

Vitalik Buterin's recent post on Ethereum Research bluntly frames the shift: the original vision of layer-2 (L2) blockchains as “branded shards” of Ethereum is no longer viable, and the ecosystem requires a new path.

However, this isn't abandonment. Instead, it is a re-tiering of expectations and a sharper definition of what different types of rollups are actually building.

The question now is the new job description, since the premise underlying the rollup-centric roadmap has weakened.

Stage 2 is scarceL2BEAT provides the clearest framework for understanding rollup decentralization through its Stages system.

Stage 0 denotes that training wheels remain in place, with meaningful trust assumptions persisting.

Stage 1 represents partial decentralization with stronger escape hatches and proof guarantees, but still meaningful upgrade or governance trust.

Stage 2 is the “no training wheels” milestone, in which critical safety properties are enforced by code rather than by discretionary actors.

The current distribution of value secured across the L2 ecosystem indicates this. According to L2BEAT's rollup scaling summary, approximately 91.5% of the listed value sits in Stage 1 rollups, 8.5% in Stage 0, and roughly 0.01% in Stage 2.

The top three rollups by value account for roughly 71% of the total, indicating that “Stage 2 progress” largely depends on the decisions of the largest few projects, rather than on what smaller experimental chains attempt.

The core blocker is whether the proof systems can be overridden and whether upgrades face strong delays and constraints.

Upgrade discretion remains common among the largest rollups, and moving beyond it has proven slower and more difficult than anticipated by the 2020-2021 optimism.

Some projects have explicitly stated that they may not wish to proceed beyond Stage 1, citing not only technical constraints related to zkEVM safety but also regulatory requirements that require absolute control.

That's a legitimate product decision for certain customer bases, but it clarifies that those chains are not “scaling Ethereum” in the sense the rollup-centric roadmap originally meant.

ProjectStageTVS ($)Proof typeUpgrade key / security council present?NotesArbitrum One116.16BOptimisticYesEmergency path can skip delaysBase Chain110.99BOptimisticYesUpgrades approved by multiple parties; no delayOP Mainnet11.88BOptimisticYesSecurity council instant upgrade powerLighter0 (Appchain)1.27BValidityYes21d delay, emergency can go to 0Starknet1676.17MValidityYesSecurity council can upgrade with no delayInk1523.71MOptimisticYesSecurity council + foundation approvals; no regular delayLinea0492.93MValidityYesMultisig can upgrade with no delayZKsync Era0417.07MValidityYesEmergency board can bypass upgrade delaysKatana0297.94MValidityYessecurity council can remove the upgrade delayUnichain1168.81MOptimisticYesno exit window for regular upgrades; instant powersWhy the constraints changedThe Oct. 2, 2020, post “A rollup-centric Ethereum roadmap” on the Fellowship of Ethereum Magicians laid out the original thesis.

Gas prices were climbing, some applications were being forced to shut down, and the conclusion was that the ecosystem would be “all-in on rollups” for the near and medium term.

Base-layer scaling should prioritize data capacity for rollups, and users would increasingly live on L2.

Two hard facts have shifted since then. First, L1 is substantially cheaper at present. Etherscan shows a seven-day average transaction fee of around $0.35 and gas snapshots in the fractions of a gwei.

On Jan. 16, Ethereum recorded an all-time high of 2,885,524 transactions in a single day. The narrative is “busier and cheaper,” exactly the opposite of the 2020 crisis that motivated the rollup-centric roadmap.

Second, L1 execution capacity is rising. Ethereum's block gas limit was raised to approximately 60 million after broad validator signaling in late 2025, up from the long-standing 30 million limit.

At roughly 12-second blocks, 60 million gas translates to approximately 5 million gas per second.

Aspirational community discussions have mentioned targets as high as 180 million gas, which would represent a threefold increase, though that remains directional rather than committed.

The clean interpretation: the 2020 premise that “L1 can't scale for most users” is weaker in today's fee regime. This creates room for L2s to be a spectrum of security and sovereignty trade-offs rather than all being near-identical “shards” competing solely on price.

Ethereum mainnet transaction costs declined from peaks above $0.50 in early 2025 to near-zero levels by February 2026, reflecting sustained low fee pressure.L2s as a spectrum, not clonesButerin's proposed reframing treats L2s as occupying a full spectrum.

On one end are chains backed by the full faith and credit of Ethereum, with unique properties, not just EVM clones but also privacy-focused systems, non-EVM execution environments, or ultra-low-latency sequencers.

At the other end are options with varying levels of Ethereum connectivity that users and applications can choose based on their specific needs.

The new minimum bar is straightforward: if you handle ETH or Ethereum-issued assets, reach at least Stage 1.

Otherwise, you're a separate L1 with a bridge, and should call yourself that. The differentiation bar is harder: be the best at something other than “cheap EVM.”

Examples Buterin cites include privacy, efficiency specialized to a particular application, truly extreme scaling beyond even an expanded L1, fundamentally different designs for non-financial applications such as social or identity systems, ultra-low-latency sequencing, or features such as built-in oracles or decentralized dispute resolution that aren't computationally verifiable.

The mechanism that might facilitate this is still under investigation. A “native rollup precompile” would enable Ethereum to verify a standard zkEVM proof within the protocol.

For rollups that are “EVM plus extras,” this means the canonical EVM verification occurs trustlessly at the protocol level, and the rollup only needs to prove its custom extensions separately.

This could enable stronger interoperability and pave the way for synchronous composability, in which contracts across different rollups can interact within the same transaction. Yet, it remains a research trajectory, not a deployed feature.

The Jan. 16 post “Combining preconfirmations with based rollups for synchronous composability” and the Feb. 2 post “Synchronous composability between rollups via realtime proving” lay out the design space but don't represent shipped protocol changes.

Three buckets emergingIf this reframing takes hold, expect rollups to split into clearer categories.

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The first bucket is Stage 2-chasing settlement rollups that maximize Ethereum security inheritance.

These projects aim to achieve code-enforced guarantees with minimal discretionary governance, treating “scaling Ethereum” as their core mandate.

The second bucket is regulated or controlled execution environments.

These optimize for compliance, permissioning, or specific institutional requirements. They may never progress beyond Stage 1 by design, and they should market that control honestly as a feature rather than pretending to offer full decentralization.

The third bucket is specialized chains optimized for latency, privacy, app-specific execution, or non-financial use cases.

Privacy rollups using zkProofs to hide transaction details, ultra-low-latency sequencers for trading applications, or social and identity systems with fundamentally different state models all fall within this category.

These don't need to be EVM-compatible or even financial to justify their existence, they need to provide value that their users can't get elsewhere.

Projects such as Arbitrum One, Optimism, Base, zkSync Era, and Starknet will each need to decide which category they're pursuing. The ecosystem is large enough to support all three, but the assumption that every L2 performs the same function is fading.

The L2 spectrum framework maps rollups across security inheritance and specialization axes, from general-purpose chains with weak inheritance to highly specialized Stage 2 systems.What changes for users and buildersFor users, the burden shifts to understanding guarantees. Escape hatches, upgrade delays, proof systems, and censorship resistance become product differentiators rather than assumed properties.

Wallets and interfaces will need to label trust assumptions more explicitly, and the L2BEAT Stages framework aims to make these assumptions legible.

For builders, “cheap EVM” is commoditized. Differentiation moves to privacy and custom virtual machines, ultra-low-latency sequencing, app-specific throughput optimizations, non-financial applications in social, identity, or AI contexts, or compliance and permissioning as an explicit product, without claiming it's “Ethereum scaling.”

For the broader market narrative, expect a louder debate about whether L2s “inherit Ethereum security” in practice rather than as an aspiration.

The critique is already a talking point among rival L1 proponents, and the ecosystem's acknowledgment that many large rollups remain at Stage 1 with discretionary governance gives that critique greater traction.

Is an L2 revolution about to start?Ethereum is unlikely to see an L2 revolution. Instead, it will witness a re-tiering.

The rollup-centric roadmap assumed that L2s would be near-identical “branded shards” competing primarily on cost, while L1 would remain expensive and capacity-constrained.

That assumption no longer holds. L1 is cheaper and expanding, whereas L2s are diverging faster than they are converging in their security models and use cases, despite Stage 2 decentralization.

The new path acknowledges that reality. L2s that custody ETH or Ethereum-issued assets should meet a minimum security bar, Stage 1 at least. And beyond that, they should compete on specialization and explicit guarantees rather than pretending to be interchangeable.

Native verification primitives and research on synchronous composability signal where Ethereum aims to make that easier, but these are trajectories, not deployed features.

The job description changed.

The minimum bar is to offer credible security when handling Ethereum assets. The differentiation bar is being the best at something, and being honest about the trust model.

The rollup-centric roadmap got upgraded to accommodate the reality that L1 is scaling and L2s are more diverse than the original vision anticipated.

Mentioned in this articlePosted in

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TMUS 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.

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.

RENO, Nev., Feb. 04, 2026 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) (“Dragonfly Energy” or the “Company”), an industry leader in energy storage and battery technology and maker of Battle Born Batteries®, won both the Sustainable Innovation Award and the Sustainable Product Award at the 2026 SEAL (Sustainability, Environmental Achievement, Leadership) Business Sustainability Awards. The honors recognize Dragonfly Energy’s Battle Born® DualFlow Power Pack, a lithium power solution designed to significantly reduce diesel engine idling in long-haul trucking, one of the industry’s most persistent sources of fuel waste and carbon emissions.

In real-world fleet use, Dragonfly Energy’s Battle Born® DualFlow Power Pack, a lithium-powered Auxiliary Power Unit (APU) system, has demonstrated idle-hour reductions of nearly 70%, preventing an estimated 10–12 metric tons of CO₂ emissions per vehicle annually when deployed at scale.

The SEAL Business Sustainability Awards honor companies demonstrating measurable environmental impact through innovation and leadership. Dragonfly Energy received the Sustainable Innovation Award for introducing a breakthrough approach to reducing diesel idling, and the Sustainable Product Award for delivering a purpose-built solution that translates sustainability goals into real-world operational benefits.

The DualFlow Power Pack enables truck drivers to power essential hotel loads during mandatory rest periods without running the engine. Installed inside the sleeper cab without requiring vehicle modifications, the system is powered by Battle Born® LiFePO4 batteries and Wakespeed® charge control technology, helping reduce idle time while supporting starting battery health and lowering overall engine wear and maintenance.

“Dragonfly Energy is honored to receive the SEAL Sustainable Innovation and Product Awards for the Battle Born DualFlow Power Pack,” said Wade Seaburg, chief commercial officer at Dragonfly Energy. “This recognition reinforces our belief that sustainability and performance are not mutually exclusive. It is rewarding to see practical, deployable innovation recognized alongside broader sustainability leadership.”

The DualFlow Power Pack is designed to deliver measurable environmental benefits while improving day-to-day fleet operations, offering drivers greater comfort and helping fleets reduce maintenance demands without disrupting existing vehicle platforms.

For more information about Dragonfly Energy and the Battle Born DualFlow Power Pack, visit Dragonflyenergy.com.

About Dragonfly Energy
Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) is a comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries® brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy’s patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company’s overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells.

To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit investors.dragonflyenergy.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company's intent, belief, or expectations, including, but not limited to, statements regarding the Company’s recognitions at the 2026 SEAL Business Sustainability Awards, the Company's future results of operations and financial position, planned products and services, business strategy and plans, market size and growth opportunities, competitive position and technological and market trends. Some of these forward-looking statements can be identified by the use of forward-looking words, including "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "plan," "targets," "projects," "could," "would," "continue," "forecast" or the negatives of these terms or variations of them or similar expressions.

These forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the Company's control) which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Such factors include those set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in the Company's subsequent filings with the SEC available at www.sec.gov. If any of these risks materialize or any of the Company's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Investor Relations
Eric Prouty
Szymon Serowiecki
AdvisIRy Partners
[email protected]

Media Relations
Margaret Skillicorn
RAD Strategies Inc.
[email protected]

Source: Dragonfly Energy Holdings Corp.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/791cd367-99c8-4383-9885-39612cc7a1bd

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PHILADELPHIA--(BUSINESS WIRE)--Aramark’s (NYSE: ARMK) Board of Directors approved a quarterly dividend of $0.12 cents per share of common stock payable on March 4, 2026 to stockholders of record at the close of business on February 18, 2026.

About Aramark
Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 16 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of OCUL 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.

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Gold’s recent dramatic selloff resulted from a convergence of factors following a surge in prices above $5,500 per ounce. The immediate catalyst was President Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, who is viewed as hawkish on monetary policy. This sent the dollar higher and undercut investors who had bet on currency weakness, while expectations of tighter policy raised the opportunity cost of holding non-yielding gold. The selloff intensified amid extremely crowded positioning following gold’s 66% surge in 2025. Heavily leveraged investors faced rising margin requirements, followed by margin calls that triggered liquidations, creating a self-reinforcing downward spiral. A record wave of call option purchases had mechanically pushed prices higher, setting up conditions for a sharp reversal once momentum shifted and liquidity deteriorated.

Gold remains a compelling investment despite the recent substantial price declines because its fundamental value drivers remain intact. Central banks worldwide continue adding gold to their reserves as a hedge against currency instability and geopolitical uncertainty. Unlike paper assets, gold carries no counterparty risk and has preserved purchasing power across centuries of economic upheaval. The recent selloff presents an attractive entry point for long-term investors, as gold typically performs well during periods of monetary expansion, inflationary pressures, and market volatility—all factors that remain relevant in today’s economic environment.

Additionally, gold serves as a portfolio diversifier, often moving inversely to stocks and bonds during periods of stress. While short-term price movements can be volatile, gold’s role as a store of value and safe-haven asset makes it a prudent allocation for investors seeking stability and protection against potential economic disruptions ahead.

Market veteran Ed Yardeni, the veteran market strategist and president of Yardeni Research, and one of the most respected voices on Wall Street, noted this when discussing the potential for gold at $10,000 per ounce, after already calling the precious metal hitting $5,000. 

Ed Yardeni stated that if gold continues on its current path, it could reach $10,000 before the end of the decade. More specifically, Yardeni’s key predictions included $5,000 per ounce by 2026 and $10,000 per ounce by 2029. In the long term, analysts expect gold to trade between $10,000 and $16,150 over the next 10 years.

Mr. Yardeni believes gold prices will rise dramatically for several reasons. Since Russia’s reserves were frozen in 2022, central banks worldwide have been buying more gold. This event has made countries such as China and India concerned about holding too many dollars, prompting them to buy more gold instead. Yardeni calls gold “physical bitcoin” and argues that gold is more reliable than Bitcoin when countries face political tensions, sanctions, or concerns about their banking systems. He sees gold not just as a hedge against inflation, but as a safeguard against broader problems in the global financial system as power spreads among more countries.

The bottom line for investors is this: the reason to own gold has not changed; a heavily leveraged trade exploded, which is why investors saw the massive, swift price decline. Here are two safe ways to own either physical gold or gold miners without picking individual stocks.

The SPDR Gold Shares ETF (NYSE: GLD) is one of the best pure-play gold ETFs for investors. The fund holds physical gold bullion and some cash. Each share represents one-tenth of an ounce of gold. The fund does not pay dividends.

GAMCO Global Gold, Natural Resources & Income Trust is an appropriate investment for investors seeking to add gold and energy stocks.  NYSE: GGN) is a non-diversified, closed-end management investment company. The investment objective is to provide a high level of current income through a monthly dividend of 6.91%.

The fund’s secondary investment objective is to seek capital appreciation consistent with the fund’s strategy and primary purpose. Under normal market conditions, the fund will attempt to achieve its objectives by investing 80% of its assets in equity securities of companies principally engaged in the gold and natural resource industries and by writing covered call options on those securities.

This popular Gabelli fund invests at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution, or trading of gold, or in the financing, management, control, or operation of companies engaged in gold-related activities.

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, /PRNewswire/ -- V2X, Inc., (NYSE: VVX), a leading provider of global mission solutions, will report fourth quarter and full year 2025 financial results on Monday, February 23, 2026, after market close. Senior management will conduct a conference call at 4:30 p.m. ET that same day.

U.S.-based participants may dial in to the conference call at 877-300-8521, while international participants may dial 412-317-6026. A live webcast of the conference call as well as an accompanying slide presentation will be available at https://app.webinar.net/3do4py9pnRx and on the Investors section of the V2X website at https://gov2x.com/.

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through March 9, 2026, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10206521.  

About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission's lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today's toughest challenges across all operational domains.

Investor Contact
Mike Smith, CFA
Vice President, Treasury, Corporate Development and Investor Relations
[email protected]
719-637-5773

Media Contact
Angelica Spanos Deoudes
Director, Corporate Communications
[email protected]
571-338-5195

SOURCE V2X, Inc.

LIMERICK, Ireland, Feb. 04, 2026 (GLOBE NEWSWIRE) -- kneat.com, inc. (TSX: KSI, OTCQX: KSIOF) (“Kneat” or the “Company”), a leader in digitizing and automating validation and quality processes, announced today that the Company will release its financial results for the quarter ended December 31, 2025, after TSX market close on February 25, 2026.

Eddie Ryan, Chief Executive Officer and Dave O’Reilly, Chief Financial Officer, will host a conference call and Q&A for sell side analysts via webcast on February 26 at 09:00 ET (14:00 GMT).

Interested parties can register for the live webcast via the following link:

Register Here

Kneat’s fourth-quarter and full-year financial results will be available from the Financial Information section of the Investors page on the Kneat Solutions website, at: https://kneat.com/investors/ 

About Kneat
Kneat Solutions provides leading companies in highly regulated industries with unparalleled efficiency in validation and compliance through its digital validation platform Kneat Gx. As an industry leader in customer satisfaction, Kneat boasts an excellent record for implementation, powered by our user-friendly design, expert support, and on-demand training academy. Kneat Gx is an industry-leading digital validation platform that enables highly regulated companies to manage any validation discipline from end-to-end. Kneat Gx is fully ISO 9001 and ISO 27001 certified, fully validated, and 21 CFR Part 11/Annex 11 compliant. Multiple independent customer studies have shown that Kneat Gx reduces man-hours associated with validation documentation by up to 50%, accelerates review and approval cycles by up to 50%, and consistently supports higher standards of regulatory compliance. For more information visit www.kneat.com.

For further information:

Katie Keita, Investor Relations Lead, +902-706-9074, [email protected]

Operational review confirms technical readiness as EVTV transitions from planning to field execution HOUSTON, TX / ACCESS Newswire / February 4, 2026 / Envirotech Vehicles, Inc. (NASDAQ:EVTV) ("EVTV" or the "Company"), a U.S.-based manufacturer of purpose-built electric vehicles and specialty infrastructure platforms, today announced a significant operational advancement in its previously disclosed modular data and power infrastructure initiative in collaboration with AZIO AI Corporation ("AZIO AI"), following the completion of an on-site engineering and technical validation review. The on-site working session marked a transition from design and feasibility into execution, with EVTV and AZIO AI teams completing comprehensive technical assessments across fuel, power, and compute systems and establishing confirmed pathways for deployment.