Bitcoin briefly fell below $77,000 on Feb. 1, trading at $77,011 with a 24-hour decline of 5.32%, HTX data show. Ethereum also slipped under $2,300, last quoted at $2,301.07 with a 24-hour drop of 9.28%.

A whale address known as "BTC OG" transferred 3,000 ETH worth approximately $7.05 million to Binance on Feb. 1, Onchain Lens data show. The deposit followed a 100,000 ETH transfer to the exchange roughly four hours earlier.

On February 1, the address labeled as ZEC's largest short (0xd475) closed part of its ETH short position by taking profit on 967.68 ETH worth roughly $3.11M, Hyperinsight data cited by BlockBeats show. The address retains about $53.55M in ETH short exposure with unrealized profit of around $18.43M. The same address previously built a large short position in ZEC that began at $184 and once showed a $21M unrealized loss before turning profitable.

An address linked to Bhutan's sovereign wealth fund Druk Holdings sold about 25,816 ETH (stETH) on Feb. 1 around 2:30 a.m. to reduce leverage and avoid liquidation, on-chain data show. The sale occurred as Ethereum briefly touched $2,243, with the proceeds used to repay a loan on Aave. As of the report, the address held a health factor of 1.10 on Aave, 78,245.7949 stETH, and an outstanding loan of 137.8 million USDT.

Tom Lee said during podcast "The Compound" on Feb. 1 that the current bear market was sparked by the largest deleveraging event in crypto history last October, which he believes exceeded the FTX collapse in scale, BlockBeats reports. He attributed the event to an automated cascade of liquidations triggered by a pricing flaw at a centralized exchange, saying more than 2 million accounts were liquidated, around one-third of market makers were wiped out and the platform's balance sheet was severely damaged. Lee added that selling pressure has not fully subsided and compared the situation to 2022, when recovery took 8–12 weeks, noting he has yet to see a clear rebound signal.

Crypto market liquidations totaled $2.5615 billion on Jan. 31, the highest single-day figure since the Oct. 11 crash, Coinglass data show. Long positions accounted for $2.4068 billion of the liquidations, while short positions totaled $154.7 million.

ARK Invest CEO Cathie Wood said on Feb. 1 that Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and HYPE may serve as diversification options for investors weighing portfolio allocations following a pullback in gold, BlockBeats reports. Wood said the relationship between Bitcoin and gold prices has remained persistently low since early 2020, citing a price correlation of 0.14 over that period as evidence the two assets have not closely tracked each other in recent years. She also said that in the past two Bitcoin bull cycles, gold led Bitcoin's rise, with gains in the metal preceding subsequent advances in the cryptocurrency. Wood emphasized her stance diverges from prevailing market consensus and presented the remarks as her personal view in response to investor questions.

Trend Research deposited 10,000 ETH into Binance on Feb. 1, on-chain analyst Ai 姨 (@ai_9684xtpa) reports. Five minutes later on the same day, it withdrew 6,411 ETH ($15.41 million) from Binance.

Trend Research transferred 10,000 ETH worth approximately $24.35 million to Binance on February 1, OnchainLens data show. The transfer may be linked to a sale intended to repay loans.