February 6, 2026, Friday☀ Good morning, crypto friends! After the global financial markets experienced "Black Monday" turbulence in early February, market panic has escalated again. U.S. stocks and precious metals markets have suffered consecutive declines, and risk aversion has quickly spread to the crypto markets, causing mainstream coins to collectively dip. Bitcoin remains under pressure at the $60,000 key level, Ethereum's support at $1500 is precarious, and global risk assets are facing a new liquidity test. Currently, market operations should focus on risk control; avoid blindly bottom-fishing.

Yesterday, U.S. stocks closed with another sharp decline. The three major indices all weakened, with the Dow dropping 1.2%, the S&P 500 and Nasdaq Composite falling 1.2% and 1.59% respectively. The S&P 500 and Nasdaq experienced three consecutive days of decline, with the Nasdaq's weekly decline approaching 4%. The continued weakness in tech stocks further suppressed market risk appetite. The ongoing decline in U.S. stocks sets a bearish tone for global risk assets, and the demand for safe-haven assets has surged significantly.

The precious metals market has become the core area of this panic. On February 5, local time, the Chicago Mercantile Exchange (CME) issued a major notice, announcing an increase in margin requirements for key futures contracts such as gold and silver. The new margin requirement for gold has risen to 9%, and silver's margin requirement has been sharply increased to 18%. The new rules will take effect after the close on February 6. The margin increase directly raises the capital cost of trading precious metals, triggering a rapid withdrawal of speculative funds. The precious metals market experienced a rapid collapse at the close, with spot silver plunging sharply by 20%, breaching the critical $71/ounce level, a significant retreat from previous highs. Spot gold also fell over 4%, to $4,766.8 per ounce, once again breaking below the $4,800 mark. Previously, funds aggressively bottom-fished during the decline, but this time they faced a second deep cut, with market long positions being liquidated further accelerating the decline and severely damaging confidence in safe-haven assets.

The panic in global financial markets is highly contagious. The collapse of the precious metals market quickly spread to the crypto market, causing mainstream coins to crash collectively and increasing market selling pressure. As a market indicator, Bitcoin's price continues to be under pressure, approaching the critical psychological level of $60,000. This level has become the focal point of short-term bulls and bears; if broken, it could trigger a new downward trend. Ethereum's performance is even weaker, following the market decline, with its price continuing to fall and nearing the critical support at $1500. Short-term rebound momentum is lacking. Overall, the total market capitalization of cryptocurrencies has recently shrunk continuously, leveraged positions are being liquidated frequently, and the fear and greed index remains low, indicating cautious investor sentiment.

The recent global market weakness is not caused by a single factor but results from multiple negative factors resonating together. The core reason is the shift in the Federal Reserve's monetary policy expectations. After President Biden nominated hawkish candidate Kevin Woorh as the next Fed Chair, market expectations for future "interest rate cuts + balance sheet reduction" have increased. The tightening of global dollar liquidity has intensified, with precious metals and high-risk cryptocurrencies being the first to be affected as zero-yield assets. Meanwhile, CME's margin hikes for precious metals further exacerbated market liquidity tensions, triggering cross-market fund withdrawals. Additionally, valuation adjustments in U.S. tech stocks, institutional capital fleeing risk assets, and multiple factors creating a "decline - stop-loss - further decline" vicious cycle have ultimately led to a collective adjustment of global risk assets.

Regarding the future trend of the crypto market, three key signals are crucial for judgment: First, the pace of Fed policy implementation, especially after Woorh's nomination, and changes in expectations regarding interest rates and balance sheet reduction, will directly determine the direction of global liquidity. Second, real-time institutional capital flows, focusing on Bitcoin spot ETF inflows and outflows, large institutional holdings changes, will directly impact market selling pressure and buying strength. Third, on-chain key data changes, including large transfers, exchange net fund inflows, and leverage positions, will visually reflect the trading behavior of major market players and retail investors.

I will continue to closely monitor these core signals and update everyone on market strategies and key targets promptly, capturing critical turning points. Here, I also remind all crypto friends that the current global financial market volatility is intensifying, and the linkage between the crypto market, U.S. stocks, and precious metals has strengthened significantly. Market uncertainty remains high. In trading, always strictly control positions, reduce leverage, and set proper stop-loss and take-profit levels. Be highly alert to the key support levels of $60,000 for Bitcoin and $1500 for Ethereum. Do not blindly bottom-fish before these supports stabilize. Be patient and wait for clear signs of market stabilization. The primary goal is to "stay alive," and in the volatility, seize genuine opportunities for strategic positioning.

The market is never short of opportunities; what is lacking is patience to preserve capital. Follow Yibo ShuoBi to track market dynamics in real-time and grasp core trading opportunities in the crypto market!