Bitcoin Slumps in February, Yet HODLers and Miners Signal Support

The opening weeks of February have delivered a stark prognosis for Bitcoin’s well being, with almost 43% of its circulating provide in a state of loss and quarterly value efficiency standing at slightly below -26%, in response to analyst GugaOnChain.

According to them, there’s little prospect for restoration earlier than April.

On-Chain Metrics Show Widespread Capitulation

In their newest evaluation of the Bitcoin market, CryptoQuant contributor GugaOnChain painted a grim image for holders of the OG cryptocurrency. Per the analyst, 42.85% of Bitcoin’s circulating provide is now underwater, whereas the Net Unrealized Profit/Loss (NUPL) indicator has slumped to 21.30%, which is firmly in worry territory.

GugaOnChain’s evaluation was backed by specialists at XWIN Research, who noted that the latest studying of 8 on the Fear and Greed Index was one which has hardly ever been seen, solely showing in earlier stress occasions, together with the 2018 bear market backside, the March 2020 COVID crash, and the FTX collapse in November 2022.

The analysts identified that from a behavioral finance perspective, this displays loss aversion and herd habits, with traders decreasing danger publicity after vital losses.

Looking on the quarterly value efficiency, it stands at -25.8%, with GugaOnChain seeing little prospect for restoration earlier than Q2 2026. Additionally, spot Bitcoin ETF flows inform the same story of institutional exhaustion. Since the beginning of the month, the merchandise have seen internet outflows of $2.17 billion, with the exodus accelerating as costs tumbled towards $60,000 on February 6.

Price Action Reflects Volatility

Other latest analysis offers context for the circumstances described above. For occasion, analytics agency Santiment reported that funding charges throughout exchanges had turned deeply damaging, that means merchants had been closely positioned for value drops.

BTC’s value motion is reflecting the strain, with information from CoinGecko exhibiting the asset had fallen about 3% in the final seven days, 10% over two weeks, and 28% throughout the previous month, whereas buying and selling roughly 46% under its October 2025 all-time high when it went previous $126,000.

The development contraction extends past Bitcoin itself, with GugaOnChain’s evaluation exhibiting the broader crypto financial system shrinking, as mid-cap and small-cap altcoins contracted by 18.3% whereas the expansion price of the highest 20 belongings folded by -12.48%.

However, even with costs collapsing, demand from accumulator addresses has stayed robust at 380,104 BTC over the past 30 days. Furthermore, miners seem like holding their BTC relatively than promoting, with their operations supported in half by AI income streams.

Taken all collectively, the circumstances described in GugaOnChain’s evaluation body the present part as one outlined by worry, defensive positioning, and selective accumulation with little broad market confidence. According to them, “the flip towards restoration now relies on investor resilience.”

The put up Bitcoin Slumps in February, Yet HODLers and Miners Signal Support appeared first on CryptoPotato.