Bitcoin’s price slump that started on Sunday morning only worsened on Monday as the asset plunged to a three-week low of around $91,000 on most exchanges.

The altcoins were obliterated within the past 36 hours or so, with massive double-digit price dumps coming from many of them.

BTC Dominance on the Rise

It was just three days ago when the primary cryptocurrency stood above $106,000 despite the US Fed’s decision to keep the interest rates unchanged. It cooled off on Saturday and slipped to $102,000, but that was just the start of a more severe correction.

Sunday morning turned red after US President Donald Trump imposed taxes on Canada, Mexico, and China, and the subsequent retaliation didn’t take long. BTC slumped from $102,000 to $97,000 but maintained within those levels for most of the day.

However, the bears took complete control of the market on Monday morning, and they pushed BTC south hard. Within a few hours, the cryptocurrency plunged by six more grand and dumped to under $92,000, thus losing $10,000 since Sunday morning.

It bounced off after that low and now sits above $95,000. Still, its market cap has plunged to under $1.9 trillion. However, its dominance over the alts has gone up to almost 59% on CoinGecko, which is a nearly 3% increase in a day.

Altcoins Bleet Out

As BTC’s rising dominance suggests, the altcoins were battered a lot harder. Ethereum went from over $3,000 to under $2,300 before settling at close to $2,600 as of now. Solana and Tron are among the few altcoins with a single-digit price drop on a 24-hour scale now.

At the same time, BNB, XRP, DOGE, ADA, LINK, AVAX, XLM, TON, SUI, HBAR, and SHIB have plummeted by double-digits, with losses of up to 23% in the case of ADA.

The total crypto market cap lost over $400 billion from top to bottom at one point and now sits just inches above $3.2 trillion on CG.

Ethereum’s price has experienced a massive crash today, sending shockwaves throughout the crypto market.

Many investors are now wondering whether this is the beginning of a new bear market or a substantial short-term liquidation event.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

As the daily chart suggests, the Ethereum price dropped all the way back to the $2,100 level before experiencing a rebound. The $3,000 level and 200-day moving average, located around the same price mark, has been broken to the downside yesterday.

This has been one of the primary contributing factors to today’s crash, at least on the technical side of events, as the 200-day moving average is a key trend indicator, and if the market fails to climb back above it soon, a longer and even deeper correction could be expected.

The 4-Hour Chart

On the 4-hour chart, it is evident that the price has recently tried to break above the large falling wedge pattern, but the breakout was a fake one.

This bull trap has led to a considerable drop, as the $2,800 level is also lost and can now be seen as a resistance zone. Therefore, if a quick recovery does not occur, a consolidation between the $2,800 and $2,400 levels is likely for the upcoming weeks.

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Ethereum Open Interest

While Ethereum’s price action indicated some clues that were pointing to today’s market crash, more research has to be done on the underlying market dynamics. Analyzing the futures market metrics can provide a distinct picture of the current situation.

This chart presents the ETH price and the 7-day exponential moving average of the open interest metric, which measures the total number of open perpetual futures contracts on centralized exchanges.

As the chart demonstrates, while the asset has experienced a massive drop, the open interest is still not showing a significant decline. Therefore, if the crash is to be seen as a liquidation cascade, the futures market has not cooled down yet, and there could be more liquidations and drops in the short term in case the current selling pressure persists.

[PRESS RELEASE – Kingstown, Saint Vincent and the Grenadines, February 3rd, 2025]

The rise of artificial intelligence (AI) has led to notable advancements, with rapid advancements in AI models – such as Deepseek – driving innovation across industries, improving automation, decision-making, and predictive analytics. In parallel, Web3 continues to redefine ownership and finance through decentralization, making the convergence of these two technologies inevitable. However, integrating AI with blockchain and decentralization has remained a challenge—until now.

AIvalanche DeFAI Agents (AVAXAI) is pioneering this intersection by launching the first-ever Deepseek-powered DeFAI product on the Avalanche blockchain, bridging the gap between the best AI models and decentralized ownership. The platform empowers anyone to create, manage, launch, and trade tokenized AI and DeFAI agents powered by Deepseek while leveraging Avalanche’s unmatched scalability, low-latency transactions, and eco-friendly infrastructure. By combining decentralized ownership with the growing AI and DeFAI agents market, AIvalanche DeFAI Agents unlocks new opportunities for innovation and value creation in the Web3 ecosystem.

AVAXAI Enables Decentralized AI Agents Ownership and Monetization

Deepseek is a newly developed AI model optimized for decision-making, data analysis, and autonomous operations, while AIvalanche DeFAI Agents is designed to bring the power of tokenized AI and DeFAI agents to the Avalanche C-Chain. The platform combines the scalability, speed, and security of Avalanche with cutting-edge AI capabilities to create a seamless environment for anyone to easily create, manage and launch tokenized AI an DeFAI agents in a few clicks.

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Backed by Top Leading Avalanche Players Avalaunch and AVenturesDAO

AIvalanche DeFAI Agents have also garnered support from some of the most prominent players in the Avalanche ecosystem. The platform is backed by Avalaunch, the premier launchpad for projects building on Avalanche, and AVenturesDAO, a community-driven investment collective.

This foundation of support reflects the interest of leading Web3 innovators in AIvalanche DeFAI Agents’ goal of addressing the growing demand for decentralized AI and DeFAI agents. With a network of strategic backers, AIvalanche DeFAI Agents aims to expand adoption and develop its platform on a broader scale.

Public Sale and Exchange Listings Driving Momentum

AIvalanche DeFAI Agents is already making waves with its ongoing public sale across multiple high-profile launchpads, including Ape Terminal, Polkastarter, Avalaunch, and Seedify. These platforms provide a broad reach to retail investors, enabling the community to actively participate in the growth of the Web3 AI agent economy.

Following the public sale, AIvalanche DeFAI Agents plans to expand with upcoming listings on centralized exchanges such as Gate.io and MEXC. These listings aim to enhance accessibility to the AVAXAI token, increasing liquidity and supporting the platform’s ecosystem.

With strong institutional support, an evolving platform, and ongoing public sales and exchange listings, AIvalanche DeFAI Agents aims to strengthen its position at the intersection of AI and DeFi.

About AIvalanche DeFAI Agents

AIvalanche DeFAI Agents is the first AI and DeFAI agent hub allowing anyone to create, launch and trade tokenized AI and DeFAI agents powered by Deepseek and other top AI models on the Avalanche C-Chain. The platform’s innovative approach combines the power of artificial intelligence with blockchain technology, allowing for co-ownership and revenue generation through tokenized AI and DeFAI agents.

For more information about AIvalanche DeFAI Agents, users can visit https://www.avaxai.org