Bitcoin Flashes Bear Market Signal, As Binance Pledges To Buy $1 Billion BTC 📉

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Investor sentiment sank into “extreme fear” this week after Bitcoin flashed a historic bear market signal and closed January with a loss, marking the 4th consecutive red monthly close for BTC 📉.
Binance, the world’s largest crypto exchange, stepped in to buy the dip for $100 million, pledging to buy a total of $1 billion in Bitcoin for its emergency reserve fund 💰.
Meanwhile, Ether’s correction to sub-$2,200 has placed significant pressure on Ethereum treasury companies, which are facing mounting unrealized losses as they seek out more funds.
Yet, in a silver lining to the situation, BitMine, the largest Ether treasury company, bought tens of millions of Ether to add to its warchest, treating the market correction as a discount buying opportunity, rather than a structural breakdown 🛡️.
For crypto investors, it shows that the fundamental demand drivers for digital assets haven’t changed, but it will take time until confidence returns and more institutional buyers are ready to step in at these new valuations.

In this week’s CoinStats Scoop, you’ll find:

📊 Crypto Market Analysis And The Most Important News In Web3
🟢 Bitcoin bear market signal: BTC closes 4th month in the red
🏦 Binance buys $100 million Bitcoin, pledges $1 billion BTC investment for reserve
📉 BitMine faces $7 billion paper loss after Ether correction
🚀 Worldcoin soars 40% after OpenAI rumours of social network, biometric features
🔮 Analysis And Key Events That Will Shape The Crypto Market Next Week

Bitcoin Bear Market Signal: BTC Closes 4th Month In The Red 🐻

Bitcoin’s price flashed a concerning bear market sign seen only twice in the history of the first cryptocurrency, as it closed its 4th consecutive month in the red.
Bitcoin’s price fell 10.1% during January, marking the 4th consecutive month of decline in a row, which only occurred in the 2014 and 2018 bear market cycles before, data from Coinglass shows 📉.
Considering Bitcoin’s lack of demand since November, most crypto analysts and traders have flipped bearish, expecting more consolidation or downside in markets.
🗣️ “Looks like that was the top,” wrote crypto analyst Rekt Capital, following the bearish monthly close.
Bitcoin’s red monthly close inspired a new wave of concern among crypto investors, as the Fear & Greed index sank to 18, or “extreme fear,” once again on Feb.1, as digital assets were unable to catch a significant bid, losing $250 billion in market capitalization over the weekend 💸.

Binance Buys $100 Million Bitcoin, Pledges $1 Billion BTC Investment For Reserve 🏦

Binance, the world’s largest cryptocurrency exchange, acquired $100 million worth of Bitcoin, marking the first instalment of its pledged $1 billion investment amid the current crypto market downturn.
On Feb. 3, Binance bought $100 million worth of Bitcoin for its Secure Asset Fund for Users (SAFU) wallet, which holds the exchange’s emergency reserves 💰.
Binance’s $100 million Bitcoin investment came shortly after the exchange pledged to buy a total of $1 billion Bitcoin for its emergency fund during the next 30 days.
This marks the first time a crypto exchange adopted a Bitcoin-based emergency reserve, in a historic moment that may set the precedent for other crypto-native and traditional companies.
The strategic move underlines Binance’s conviction in Bitcoin’s long-term potential and may inspire more exchanges to adopt a Bitcoin-based reserve fund rather than a US dollar-based reserve subject to monetary inflation 📊.

BitMine Faces $7 Billion Paper Loss After Ether Correction 📉

BitMine Immersion Technologies is sitting on a multi-billion-dollar paper loss, as the world’s largest corporate Ether holder is pressured by the past weekend’s brutal market downturn.
Ether’s price briefly fell below $2,200 at the beginning of the week, taking BitMine’s position deep in the red to over $7 billion in unrealized losses.
In a positive signal for the treasury firm, BitMine continued holding these assets with no selling registered, despite Ether falling below its average cost basis of $3,883 per ETH coin 🛡️.
The development shows corporate confidence despite volatile market downturns, here to reap the long-term benefits of holding digital assets, offering a more robust, structural demand basis for the market’s steady recovery.
Despite the market crash, crypto’s fundamental on-chain metrics remain intact, and BitMine remains in a strong position to ride out the storm, said BitMine’s Chairman, Tom Lee 💪:
🗣️ “Moreover, as we discussed this am, BitMine is in a strong financial position to ride out the languishing $ETH price as the company has no debt and earns daily interest/staking rewards on its $586mm of cash and 4.3 million ETH holdings 💰.”

Worldcoin Soars 40% After OpenAI Rumours Of Social Network, Biometric Features 🌐

OpenAI-linked cryptocurrency, Worldcoin, registered a 40% intraday rally after insider rumours surfaced of the AI company working on its own social media platform with biometric features 🚀.
ChatGPT maker OpenAI is working on the development of a “humans only” social media platform with biometric features, insider sources familiar with the matter told news outlet Forbes.
While the company has yet to confirm the platform's development, insiders said that CEO Sam Altman has been privately seeking feedback on the matter 🤔.
The news brought significant interest towards OpenAI, as its generative AI model, ChatGPT, was the world’s most downloaded mobile app in December 2025 📱.
The report triggered renewed interest in Worldcoin (WLD), as the token’s price rallied 40% after the news hit the press 💹. The token briefly topped $0.63 before reverting to the $0.50 mark, according to CoinStats data.
Worldcoin is the utility token of the World blockchain, the crypto project co-founded by OpenAI’s CEO, Altman. The project uses the World Orb to scan a person’s face and iris to create a unique proof of personhood to join the Worldcoin ecosystem and build towards a World ID.
The solution previously received burning criticism for its implications on personal data privacy 🔒.”

Market Overview: Crypto Markets Wipe Out $250B, Analyst Calls Bitcoin Correction To Sub-$70,000 ⚠️

Cryptocurrency markets saw a brutal correction that wiped out $250 billion in market capitalization over the weekend, leading to $2.56 billion in leveraged liquidations.
The correction came after an abrupt sell-off in equities, gold and silver, which some analysts attributed to President Trump’s pick for the new Federal Reserve Chairman, Kevin Warsh, who previously stated the central bank’s balance sheet is “trillions” larger than it should be, creating liquidity concerns.
In a concerning sign for investor sentiment, Bitcoin’s price is now trading below the average cost basis of US 🇺🇸 spot Bitcoin ETF holders, after seeing the 2nd and 3rd biggest weekly outflows since launch, wrote Galaxy Research lead analyst, Alex Thorn.
This setup may bring more sales from ETF holders with low risk tolerance who seek to exit even at a loss. However, ETF holders with long-term perspectives will likely hold their positions and prove that US ETF inflows are more institutional and price-agnostic.

Looking ahead, Bitcoin is now retesting the macro range low seen during last April, a decisive factor for short-term price action, wrote analyst and founder of IntoTheCryptoVerse, Benjamin Cowen:
🗣️ “Bitcoin is now testing the April 2025 lows, a critical level for this market. Losing this level would likely result in a quick drop to the 200W SMA.”

However, the percentage of Bitcoin supply in loss has sunk to levels last seen during the 2022 market drawdown, flashing an early technical signal for bear market conditions ahead, wrote CryptoQuant analyst Woo Minkyu:
🗣️ “Historically, this shift has marked the early phase of bear markets, when losses begin to spread beyond short-term holders and gradually reach longer-term participants.”

For crypto investors looking to buy the current dip, patience may be the best trading decision during the current market structure ⏳.
This is because the ongoing weakness may still invite a near-term Bitcoin retrace below the 200-week moving average, which may result in BTC revisiting the $58,000 price level before a meaningful rebound, as predicted by Galaxy Digital’s lead researcher, Alex Thorn.

Tweets & Memes

The average Bitcoin investor is now deep underwater 🌊.

How far away are we from the crypto market bottom? We only need LTHs to start carrying losses now ⚠️.

The Ether treasury trade is not looking great at the bottom of the retracement 📉.

As with every market correction, large whales are eating up the retail supply 🐋.

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