{"id":94019,"date":"2026-02-06T16:53:30","date_gmt":"2026-02-06T13:53:30","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=94019"},"modified":"2026-02-06T16:55:51","modified_gmt":"2026-02-06T13:55:51","slug":"kaiko-analysts-elucidate-causes-of-cryptocurrency-market-plunge","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/kaiko-analysts-elucidate-causes-of-cryptocurrency-market-plunge\/","title":{"rendered":"Kaiko Analysts Elucidate Causes of Cryptocurrency Market Plunge"},"content":{"rendered":"<p>The price of the leading cryptocurrency has fallen below $70,000\u2014a level unseen <a href=\"https:\/\/forklog.com\/en\/news\/whales-adl-and-the-end-of-the-bull-what-really-happened-on-cryptos-black-saturday-2\">in the past two years<\/a>. Analysts at Kaiko have recorded a systemic decline in market indicators.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zxx\" dir=\"ltr\"><a href=\"https:\/\/t.co\/8JroMN566o\">https:\/\/t.co\/8JroMN566o<\/a><\/p>\n<p>\u2014 Kaiko (@KaikoData) <a href=\"https:\/\/twitter.com\/KaikoData\/status\/2019723341964210311?ref_src=twsrc%5Etfw\">February 6, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The decline in prices is accompanied by reduced liquidity, a surge in volatility, and a decrease in investors&#8217; risk appetite.<\/p>\n<p>The bearish trend, which began back in October 2025, accelerated at the end of January. In just one week, from January 29 to February 4, the market lost a significant portion of its capitalization.<\/p>\n<h2 class=\"wp-block-heading\">Causes of the Collapse<\/h2>\n<p>Experts identified several pressure factors. Bitcoin failed to become a &#8220;safe haven&#8221; amid the weakening dollar. The situation was exacerbated by geopolitical uncertainty and a fragile macroeconomic environment.<\/p>\n<p>The trigger for the accelerated sell-off was the actions of the <span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\">Fed<\/span>. The regulator&#8217;s decision to keep rates unchanged and the potential <a href=\"https:\/\/forklog.com\/en\/news\/trump-nominates-crypto-friendly-kevin-warsh-to-lead-the-fed\">appointment<\/a> of financier Kevin Warsh, known for his hawkish stance, dashed investors&#8217; hopes for monetary policy easing. The market reacted by fleeing to fiat.<\/p>\n<p>Analysts noted a deterioration in market microstructure:<\/p>\n<ol class=\"wp-block-list\">\n<li><strong>Increased volatility. <\/strong>The indicator for Bitcoin exceeded 30%, returning to levels seen during market shocks.<\/li>\n<li><strong>Correlation with stocks. <\/strong>During times of stress, cryptocurrencies once again began moving in sync with the S&#038;P 500 and NASDAQ indices.<\/li>\n<li><strong>Liquidity decline.<\/strong> Market depth is shrinking. For instance, liquidity in pairs with DOGE fell from $12 million to $10 million in just a month.<\/li>\n<\/ol>\n<p>The derivatives market is witnessing a classic capitulation scenario. Trading volumes are rising, while open interest is plummeting. This indicates mass deleveraging\u2014forced closure of leveraged positions, rather than the opening of new trades.<\/p>\n<h2 class=\"wp-block-heading\">Bitcoin&#8217;s Bottom Level<\/h2>\n<p>CryptoQuant analyst known as GugaOnChain suggested a drop in the leading cryptocurrency&#8217;s price to $54,600. According to the expert&#8217;s calculations, it is at this level that the market will transition from the capitulation phase to the accumulation stage.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The Indicator That Mapped the Bottom of the Last Bear Market<\/p>\n<p>\u201cThe current price convergence toward the band signaling the start of the accumulation phase, situated around $54.6K, suggests we are in the critical transition.\u201d \u2013 By <a href=\"https:\/\/twitter.com\/GugaOnChain?ref_src=twsrc%5Etfw\">@GugaOnChain<\/a> <\/p>\n<p>Link \u2935\ufe0f<a href=\"https:\/\/t.co\/IWvzP3620Q\">https:\/\/t.co\/IWvzP3620Q<\/a> <a href=\"https:\/\/t.co\/VarhjZSMTL\">pic.twitter.com\/VarhjZSMTL<\/a><\/p>\n<p>\u2014 CryptoQuant.com (@cryptoquant_com) <a href=\"https:\/\/twitter.com\/cryptoquant_com\/status\/2019700341332439472?ref_src=twsrc%5Etfw\">February 6, 2026<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The forecast&#8217;s author highlighted key pressure factors on prices: a 17% price drop since the beginning of the year, a $12 billion outflow from crypto-<a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETFs<\/a> over three months, and a general retreat from risk by investors. However, massive sell-offs by major players often precede a trend reversal.<\/p>\n<p>To determine the bottom, the analyst used the Market Cycle Signals indicator, based on monthly <a href=\"https:\/\/forklog.com\/en\/news\/bollinger-bands-using-the-indicator-in-crypto-trading\">Bollinger Bands<\/a>. The tool divides the market cycle into three stages:<\/p>\n<ol class=\"wp-block-list\">\n<li><strong>Distribution<\/strong> \u2014 the price touches the upper band (euphoria zone).<\/li>\n<li><strong>Capitulation <\/strong>\u2014 prices fall below the 20-month moving average to the lower boundary (panic zone).<\/li>\n<li><strong>Accumulation<\/strong> \u2014 conditions most favorable for opening positions.<\/li>\n<\/ol>\n<p>According to the analysis, the chart is now moving towards the $54,600 level. GugaOnChain considers this zone a &#8220;critical transition point&#8221; and the main candidate for a local bottom, where selling pressure will abate.<\/p>\n<h2 class=\"wp-block-heading\">What&#8217;s Happening with DEX?<\/h2>\n<p>On February 5, daily trading volume on <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-decentralised-exchange-dex\">DEX<\/a> reached $70 billion. This is the second-largest figure in recorded history, according to DeFiLlama.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-f06d95cad0f2fc86-5602155979394497-1024x576.png\" alt=\"perps_2026-02-06\" class=\"wp-image-274782\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-f06d95cad0f2fc86-5602155979394497-1024x576.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-f06d95cad0f2fc86-5602155979394497-300x169.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-f06d95cad0f2fc86-5602155979394497-768x432.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-f06d95cad0f2fc86-5602155979394497-1536x864.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-f06d95cad0f2fc86-5602155979394497-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/defillama.com\/pro\/5ihtclotvwsswau\">DeFiLlama<\/a>.<\/figcaption><\/figure>\n<p>According to CoinMarketCap, the total market capitalization has fallen to $2.27 trillion. The downward trend has continued since January 14, 2026.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-9ae4daa89aa0af81-5602184370762836.webp\" alt=\"Screenshot 2026-02-06 162859\" class=\"wp-image-274783\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/coinmarketcap.com\/charts\/\">CoinMarketCap<\/a>.<\/figcaption><\/figure>\n<p>In the past 22 days, the industry has lost over $1 trillion, shrinking by an average of $45 billion daily.<\/p>\n<p>On February 6, the price of the leading cryptocurrency <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-tests-60000-support-triggering-billion%e2%80%91dollar-liquidations\">dropped<\/a> to $60,000, marking a new low since September 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The price of Bitcoin has fallen below $70,000\u2014a level unseen in the past two years. Analysts at Kaiko have recorded a systemic decline in market indicators.<\/p>\n","protected":false},"author":1,"featured_media":94020,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Bitcoin's price fell below $70,000, a two-year low, as Kaiko analysts report systemic market declines.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,1205,1261,1138],"class_list":["post-94019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-cryptoquant","tag-kaiko","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"186","promo_type":"1","layout_type":"1","short_excerpt":"Bitcoin's price fell below $70,000, a two-year low, as Kaiko analysts report systemic market declines.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=94019"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94019\/revisions"}],"predecessor-version":[{"id":94021,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94019\/revisions\/94021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/94020"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=94019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=94019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=94019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}