The U.S. Treasury has clarified it does not have the legal authority to bail out Bitcoin or the wider crypto market, underscoring the absence of a government safety net for digital assets. Against this backdrop, investors are pivoting toward infrastructure projects like Bitcoin Hyper ($HYPER), which uses the Solana Virtual Machine to bring high-speed smart contracts to Bitcoin and has raised over $31.2M in its presale with notable whale participation.

The Royal Government of Bhutan has sold more than $22 million worth of Bitcoin mined through its state-run program to QCP Capital as the asset's price falls and mining becomes less profitable. Bhutan's BTC reserves have reportedly declined from an October peak of 13,295 BTC to about 5,700 BTC, while the 2024 halving has pushed up marginal production costs and reduced new coin output. Analysts say the combination of weaker Bitcoin prices and broader economic uncertainty is driving both Bhutan and global investors toward safer assets such as gold and silver.

Bitcoin fell below $70,000 on Thursday, touching $69,100 on Bitstamp during the Asia session, according to TradingView. CoinGlass showed about $130 million in long liquidations over four hours as traders watched the 200‑week EMA near $69,000 and discussed potential downside toward $50,000, while the Coinbase Premium hit its lowest in more than a year.

Bitcoin’s slide back to the $70,000 support level sparked about $775M in leveraged liquidations and sharply reduced overheated open interest. As capital rotates away from high-beta speculative assets, investors are favoring infrastructure projects such as BMIC, which focuses on post-quantum wallet security and has raised over $432K at a token price of $0.049474. This divergence between Bitcoin’s price action and BMIC’s presale inflows suggests some market participants are hedging volatility through early-stage, utility-driven plays.

On 5 February 2026, investment bank Stifel warned that Bitcoin could retreat toward $38,000 if past market cycles play out under tightening liquidity and restrictive monetary policy. As Bitcoin trades just above $72,000, Michael Burry argues it is behaving like a speculative asset, with further declines potentially triggering forced selling and broader stress across the crypto market.

Heading into the mid‑2025 to 2026 window, analysts map potential paths for Bitcoin toward $180K–$200K if $70k holds and adoption broadens, while risks include a sustained break below $80K or <$85k structures. Meanwhile, Bitcoin Hyper's presale page reports $31.2M raised at $0.0136751 as it pursues SVM-enabled Layer 2 throughput on Bitcoin.

On February 4, 2026, Arkham reported that Bhutan moved $22.4M in Bitcoin from sovereign wallets over the past week, including a transfer five days earlier to QCP Capital-labeled addresses. The country's crypto portfolio has fallen from $1.4B to $412M, and it remains the seventh-largest government BTC holder.

ETF analyst James Seyffart said in an X post on Wednesday that US spot Bitcoin ETF holders are staying the course through a four‑month slide, even as paper losses approach around 42% with Bitcoin below $73,000. Preliminary Farside Investors data indicate net inflows eased from roughly $62.11 billion before the October downturn to about $55 billion.