Bitcoin and Ethereum prices faced speculative analysis amidst a downturn on February 5, 2026, with Bitcoin at $38K and Ethereum at $2.1K, followed closely by crypto leaders.
Market volatility reflects macroeconomic factors, impacting investor sentiment and liquidity, as key industry figures suggest potential recovery amid retail panic and institutional accumulation trends.
The cryptocurrency market is witnessing significant declines in Bitcoin and Ethereum prices. Both assets have seen considerable downturns, with Bitcoin now hovering around $38,000 and Ethereum around $2,100. These shifts have caught the attention of key figures.
Prominent leaders including Vitalik Buterin and Michael Saylor have commented on the situation. Vitalik Buterin emphasized Ethereum’s long-term potential, while Michael Saylor viewed the drop as a buying opportunity amid market volatility.
Bitcoin Drops to $38,000; Ethereum at $2,100
The cryptocurrency market is witnessing significant declines in Bitcoin and Ethereum prices. Both assets have seen considerable downturns, with Bitcoin now hovering around $38,000 and Ethereum around $2,100. These shifts have caught the attention of key figures.
Prominent leaders including Vitalik Buterin and Michael Saylor have commented on the situation. Vitalik Buterin emphasized Ethereum’s long-term potential, while Michael Saylor viewed the drop as a buying opportunity amid market volatility.
“Ethereum’s long-term value isn’t in spot price volatility—focus on L2 scaling and restaking primitives. Short-term dips are noise.”
Market Volatility Influenced by Federal Reserve Policy
The downturn is attributed to various macroeconomic factors, such as the US Federal Reserve’s monetary policy. Changpeng Zhao highlighted that while retail investors may panic sell, whales are accumulating, indicating potential future price recoveries.
The current situation echoes similar market drops. According to Arthur Hayes, the drop tests Bitcoin miners’ capacity, while Raoul Pal projects potential bottoms for Bitcoin and Ethereum. Historical bear phases suggest possible future rebounds.
Historical Parallels to 2022 FTX Collapse
Bitcoin and Ethereum’s recent price changes resemble past crypto market corrections, such as the 2022 FTX collapse. Past events have seen significant value loss but eventual recoveries, offering some reassurance to investors.
Experts indicate that ongoing fluctuations could bring opportunities. The focus remains on long-term development and technological improvements, such as Ethereum’s Layer 2 solutions, which are still viewed positively despite recent setbacks.
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