Tether has introduced open-source mining libraries aimed at improving efficiency for WhatsMiner, Avalon, and Antminer rigs, making Bitcoin hashrate optimization more accessible. At the same time, Bitcoin Hyper is presenting itself as a Bitcoin Layer 2 using the Solana Virtual Machine, combining Bitcoin settlement with high-speed execution. The project's presale has surpassed $31M, and large on-chain purchases suggest growing interest, though participation in such tokens involves significant risk.

After a sharp weekend drop below $75,000, Bitcoin bounced back toward $79,000 on Tuesday, supported by renewed net inflows of about $561.9 million into US spot ETFs. Despite this short-term relief and broader altcoin gains, on-chain indicators showing roughly 44% of supply in loss suggest mounting structural weakness and the risk of an extended bear phase.

Arizona officials have intensified alerts over cryptocurrency ATM fraud after losses reached more than $177 million in 2024. A 2025 state law mandates multilingual warnings, 24/7 live support, and daily caps of $2,000 for new users and $10,500 for existing users. Nationwide figures indicate rising losses and complaints, with older adults heavily affected.

On February 2, Bitcoin spot ETFs drew $561.8 million in net inflows, indicating renewed institutional demand, according to the report. Ethereum ETFs posted a $2.9 million net outflow, while Solana products added $5.5 million and XRP saw about $404,690 in redemptions as prices for all four assets advanced.

The Institute for Supply Management said on Monday its Manufacturing PMI rose to 52.6 for January, the highest reading since August 2022. Some analysts view the stronger print as a potential tailwind for Bitcoin, which hovered near $78,000 after touching $75,442 on Monday and remains down almost 38% from its October peak.

On Monday, US President Donald Trump said he did not know about a reported $500 million investment by an Abu Dhabi royal into the crypto venture World Liberty Financial. The deal would involve a 49% stake and an initial $250 million tranche; Trump noted his sons handle the business and said they receive investments from various parties.

According to Bitwise's latest Weekly Crypto Market Compass, Bitcoin's price slump driven by heavy crypto ETP outflows and widespread futures liquidations has pushed key valuation metrics into rarely seen discount territory. The report notes that BTC briefly dropped to about $74,700, with nearly 78% of invested capital estimated to be underwater, while sentiment and positioning indicators suggest an increasingly contrarian setup for the broader crypto market.

In a Feb. 1 analysis, CryptoQuant CEO Ki Young Ju argued that Bitcoin’s recent decline is driven by persistent selling pressure and a lack of new capital, as signaled by a flat Realized Cap and weakening liquidity. He said a full-cycle style 70% crash would likely require MicroStrategy to shift from aggressive accumulation to substantial selling, while other on-chain data from CryptoQuant contributors show stablecoin market growth has reversed since December and exchange inflows have faded. At press time, BTC was trading at $78,280 amid what Ki expects could become a broad sideways consolidation phase rather than an immediate capitulation.