Which Ring of Hell Have We Entered? This Week in Crypto Feb 1 2026

February 1, 2026

Don't Panic!!!

Epstein files, Ai agents creating their own social media to chat and pondering their existence, possible attacks on Iran and the markets cratering. Just another day around here. I’ve spent weeks talking about the options expiry ending on Jan 30th. Closing above $96.5k would have blown the top off that would have launched Bitcoin. Below $90k and we hit max pain. Didn’t play out how we wanted.

Saturday was an absolute bloodbath. $BTC tumbled from $90k on Wednesday to $75k, a cascade of liquidations so thorough it felt like falling through Dante’s rings of Hell, but with fewer poets and more margin calls.

$90k Gravity: The Max Pain anchor worked. Market makers have the money, and the over-leveraged have their memories.

$84k Trapdoor: We blew past the local support like it didn’t exist. If $75k doesn't hold, the floor is a long, dark walk away.

If the floor at $69,000 gives way, we are no longer "correcting", we are imploding.

$60,000 - $65,000: This is the next structural landing. Analysts call it a "Weekly Demand Zone," which is a fancy way of saying it's where people might stop crying and start buying again.
Capitulation ($45,000): If $60k fails, the doomsday clocks start ticking toward $45k. This would be a 70% crash from the highs, a "cleansing of the dead weight" that usually leaves only the HODLers or people who forgot their passwords and couldn’t sell.

Over 400,000+ traders were liquidated yesterday (including my $SOL longs)

So it goes.

Ethereum (ETH): Led with ~$1–$1.14 billion liquidated (including a massive single $222–$223 million ETH position on Hyperliquid).
Bitcoin (BTC): ~$700–$780 million.

Liquidation Events

Covid: $1.2 billion
May 2021 correction: $2.4 billion
FTX (Nov 22): $1.6 billion
10/10 crash: $19 billion
1/31/26: $2.5 billion

The Senate Agriculture Committee PASSED the CLARITY market structure legislation out of committee with every Democrat voting against it, barely passing 12-11. At what point do Democrats recognize this is not a partisan issue. We are talking about a new framework for the updated financial system that affects everyone. Wake up.

10/10 is the Epstein files of crypto. Release the docs! Reports and blame came out this week about 10/10. It’s clear our industry straight up broke that day and hasn’t recovered. Binance (@binance) released their report claiming Macro triggered it, which then hit market makers, network congestion, etc. You can read their full report - https://www.binance.com/en/blog/community/8791765134688155261

Star (@star_okx), the CEO of OKX said 10/10 was caused by irresponsible marketing campaigns by certain companies (aka Binance and Ethena with USDe incentives on Binance.)
Haseeb (@hosseeb) calls bs on $USDe being the main cause as it depegged only on Binance and 30 mins after $BTC bombed. In his opinion, Trump spooked markets with tariff threats on a Friday evening which caused markets to sell off dramatically because crypto was the only thing to trade
Dave W (@daveweisberger) laid out how "momentum ignition" works and how this is intentional.

It doesn't take much to change around here. CZ (@cz_binance) had been calling for a supercycle for $BTC just a few weeks ago, but is turning bearish. I’m convinced Binance, Wintermute, etc have been manipulating markets for a long time, but the one side of this I do agree with is that we are guilty of spreading our own FUD. The moment things go down, or one token outperforms another, CT turns into a FUD fest and negativity becomes the currency of choice. We need to be better and leave our poison pens at home. I'm not defending CZ or Binance at all. I'm zooming out and talking about how we talk to each other on CT.

Toly (@toly), who is clearly in his wizard phase, was on @impact_theory talking shop and Solana’s goals. “Our ultimate goal is that as soon as you see that signal, you can submit a transaction and its ordering becomes immutable in that moment.”

Kraken (@krakenfx) joined Coinbase and grew a DeFi mullet this week. They launched DeFi Earn, powered by @Veda_labs, @SentoraHQ and @ChaosLabs. Earn up to 8% APY on your assets from within the app. No leaving to get access to DeFi yields.

As if we needed more pain this week, the shitstorm continues. Step Finance (@StepFinance_) had a breach of security for some of their treasury wallets. Around $30 million dollars drained out from their wallets.

Sunrise (@Sunrise_DeFi) continues to bring everything to @solana. This week it was introducing $HYPE (@HyperliquidX,), Mantle and $INX from @infinex natively on Solana to trade. Their mission is clear. Trade everything on Solana.

Moonbirds (@moonbirds) did their TGE claim on the 29th and it was a total disaster. If you expect a lot of traffic, you may want to get more bandwidth. Seems like a logical step to take. It got so bad, they password protected the site. Did you collect SBT’s? Each one is worth 11 $BIRB ($2-3). It’s been a few days and the claim site still has problems. The only way I got it to work was doing each wallet that qualified on its own vs linking all. I got a whopping 88 $BIRB and instantly swapped to $SOL. You can check your claim here: claim.moonbirds.com

Tether (@tether) announced the launch of USA₮, a Federally Regulated, Dollar-Backed Stablecoin, Made in America. Can they gain market share in the USA against $USDC? The market cap of $USDT is 2.5x larger than $USDC and dominates outside of the USA.

Jupiter (@JupiterExchange) is hosting CATLUMPURR and the announcements are flying out. Jupiter ships. You can’t deny that. The announcement that I’m most interested in as someone who accepts card payments is Jupiter Global.

Crypto cards currently spend fiat, so fees when you accept a payment in them are not like they would be onchain in USDC with 0 fees. Can they change that? Jupiter Global is for real world payments onchain globally. QR Pay: First ever onchain scan to pay across APAC merchants & friends. 0% fees, instant, on local rails.
They also announced they are bringing @polymarket into Jupiter. They’d integrated Kalshi not that long ago, but I guess when it comes down to it, Polymarket wins. The majority of Kalshi’s activity is based around sports.
Jupiter also opened up claims for the final season of ASR. The problem? You can only claim using Jupiter wallet and it claims into staking. Don’t have your wallet in Jup wallet? They want you to import it. It’s kinda bs in my opinion to force people into it. When asked, @weremeow said they’d make it claimable in other wallets in a week or two. It’s never been an issue to claim with any Solana wallet before. Forcing me into your wallet? No thanks. It does the opposite of what you intended.

DATs are in trouble. Tom Lee’s (@fundstrat) Bitmine $BMNR (@BitMNR) $ETH holdings are down over $5.5 Billion! I know he said $ETH to over $7000 by the end of Jan, but it missed by a country mile. $MSTR's average price of $BTC is $76K. Things are not good.

If you need a Seeker phone (@Solanamobile), you can buy one for ½ off if you pay using $SKR! Then you can go download the DeFi the System app (ver 1.2) from the dapp store of course.