Singapore, February 10, 2026, 19:42 (SGT)
- Traders and analysts are flagging that bitcoin’s usual reflexive “buy the dip” strategy is losing steam.
- Investors are parking more cash in stablecoins, dialing back risk and choosing to wait things out.
- Analysts can’t agree: some see a pause here, others warn it could be the start of another drop.
Bitcoin couldn’t reclaim $70,000 on Tuesday. Fresh research and trader talk kept circling, with consensus shifting: instead of buying the dips, the crowd is now unloading into strength.
This is significant at the moment, as spot bitcoin exchange-traded funds—designed as a more stable way for institutions to get exposure—ended up not providing much shelter. The recent selloff funneled additional cash toward stablecoins, which are tied to currencies like the U.S. dollar, while leverage traders have stayed on the sidelines.
Kaiko reported that last week’s correction led to roughly $9 billion in liquidations—forced unwinding of leveraged trades—and slashed open interest by 55%. Stablecoin dominance climbed to around 10.3% of the total crypto market cap, according to the firm, with investors shifting into cash-like tokens. 1
Bitcoin ticked 0.2% higher to $68,977, with ether dipping 0.4% to $2,018, market pricing data showed. BlackRock’s iShares Bitcoin Trust ETF (IBIT) gained 1.2%, changing hands at $40.11.
According to a January report flagged by crypto.news, bitcoin’s slip under the closely-watched $84,000 mark has flipped the script for traders, pushing earlier buyers underwater and creating what analysts call “overhead resistance.” “We are no longer in a ‘buy the dip’ environment; until proven otherwise, we have entered a ‘sell the rip’ structure,” the report said. Professional managers, meanwhile, have upped stablecoin holdings to roughly 28%, treating $84,000 as the next hurdle before they’re ready to dial up risk again. 2
On Tuesday, a CaptainAltcoin column highlighted a viral social-media thread by trader Hanzo, who claimed that “90% of the traders I know” exited their positions between $100,000 and $120,000, opting for stablecoins instead. The column also referenced a single-day outflow for BlackRock’s IBIT, though it noted that not every figure was “perfectly timed.” 3
Wall Street analysts differ on the roots of the recent slide. Gautam Chhugani at Bernstein described the pullback as “the weakest Bitcoin bear case in its history,” framing bitcoin as a liquidity-driven asset, per Investing.com. He argues it’s a blow to sentiment, not something deeper.
Still, if ETF-driven selling drags on and traders pare back leverage, the bearish scenario hasn’t gone away. Compass Point’s Ed Engel warned bitcoin “may still revisit the $60,000 range” and sees potential for it to dip as far as $55,000. He also pointed to support near the average entry price and the 200-day moving average. 4
Timing remains the question mark here. Stablecoin reserves might serve as dry powder, yet they can just as easily reflect a lack of appetite for risk. When that money sits idle, it makes any bounce in the market more vulnerable to selling.
Trader Dom Nguyen took to Binance’s Square feed, telling followers he wasn’t “emptying the clip” just yet. He’d stick to buying only if bitcoin “drops below $60K and stays there.” Nguyen warned that a more severe washout isn’t just about price; it’s the sort of thing that “kills confidence — not just price.” 5
