Coinbase Premium Reversal Signals Shift as Bitcoin Breaks Below $71,000 Amid ETF Outflows

On February 6, 2026, the cryptocurrency market experienced a significant downturn, led by Bitcoin's sharp decline below the $71,000 threshold. The premier digital asset recorded a 7.5% loss within a 24-hour period, catalyzing a broader sell-off across the crypto landscape. This movement coincided with a global retreat from risk-sensitive assets, resulting in a substantial $128 billion reduction in the total cryptocurrency market capitalization, which now stands at approximately $2.41 trillion. A pivotal development in this correction was the notable shift in U.S. spot Bitcoin Exchange-Traded Funds (ETFs), which transitioned to net sellers for the first time in several months. This reversal in ETF flows represents a critical change in institutional sentiment and contributed significantly to the market's downward pressure. Concurrently, the derivatives market witnessed considerable turmoil, with leveraged long positions facing liquidations totaling around $283 million, exacerbating the price drop. The market dynamics were further highlighted by the behavior of the Coinbase premium—the price difference between Bitcoin on the Coinbase exchange and other platforms. The reported reversal or significant change in this premium is a key indicator often watched by professional traders, as it can reflect shifts in buying pressure, particularly from U.S. institutional investors. This event underscores the heightened sensitivity of cryptocurrency valuations to macroeconomic trends, institutional fund flows, and derivatives market mechanics. The interplay between spot ETF activity, leverage unwinding, and exchange-specific premiums paints a complex picture of the current market structure, suggesting a period of consolidation and reevaluation following a prolonged bullish phase.

Bitcoin Leads Crypto Market Decline Amid Global Tech Sell-Off

Bitcoin plunged below $71,000, shedding 7.5% in 24 hours as cryptocurrency markets faced intensified selling pressure. The drop mirrors a broader retreat from risk assets, with the total crypto market capitalization losing $128 billion to stand at $2.41 trillion.

U.S. spot Bitcoin ETFs turned net sellers for the first time in months, while Leveraged long positions suffered $283 million in liquidations. The Coinbase premium remained negative for the third consecutive month, signaling weakening institutional demand.

Global tech stocks tumbled on AI spending concerns, dragging crypto markets lower. Asian equities posted their fifth decline in six sessions, with South Korea's Kospi index dropping 4% on AI-related selloffs. bitcoin now tests critical support at $70,000 - a level that has historically triggered accumulation.

Base Network Restores Stability After Misconfiguration Disrupts Transactions

Base Network experienced temporary congestion and transaction delays after a misconfigured update affected its propagation pipeline. The issue emerged during peak demand periods, creating a feedback loop that slowed processing speeds. Engineers swiftly rolled back the faulty change, restoring normal throughput within hours.

The disruption stemmed from a block builder repeatedly fetching transactions incompatible with rising base fees. While the chain continued producing blocks, users faced noticeable inclusion delays. Base has confirmed network stability post-rollback and is preparing comprehensive safeguards to prevent recurrence.

This incident occurs amid Base's month-long upgrade initiative targeting enhanced transaction reliability. The network maintains its position as a growing ethereum L2 contender, processing over 15 transactions per second at peak capacity.

Crypto Firms Propose Stablecoin Compromise to Revive Stalled Senate Bill

Crypto companies are making strategic concessions to banks in an effort to break the deadlock on key digital asset legislation. The proposed solution focuses on stablecoin reserves, with some firms suggesting issuers hold funds at community banks—a MOVE designed to address concerns about deposit flight from traditional financial institutions.

The Senate bill, which cleared the House last year, remains stalled over banking sector objections to stablecoin yield programs. Major platforms like Coinbase argue these incentives are crucial for adoption, while banks warn they could undermine their deposit base—particularly at smaller community lenders that depend on customer funds for operations.

A recent WHITE House meeting failed to produce consensus, leaving the legislation in limbo. The impasse highlights the growing tension between innovative crypto models and traditional banking safeguards as policymakers grapple with how to regulate dollar-pegged digital assets.

Bitcoin Core Developer Calls for Blockstream CEO's Resignation Over Epstein Links

Luke Dashjr, a prominent Bitcoin Core developer, has demanded Adam Back step down as Blockstream CEO following revelations in newly released Epstein documents. The U.S. Department of Justice files contain 19 references to Back and over 1,800 mentions of crypto figure Brock Pierce.

Back confirmed Epstein had been an indirect investor in Blockstream, though the nature of their relationship remains unclear. The documents also reference Coinbase and Tether's Pierce, revealing Epstein's broader cryptocurrency connections.

Dashjr cited these disclosures as context for past conflicts with Back, including disputes over Blockstream's founding history. The developer's public call for resignation highlights ongoing tensions within Bitcoin's technical community.