Crypto Market Update: Bitcoin Drops to $98K While MELANIA Defies the Trend

Introduction:

The crypto market once again showcased its volatility on Wednesday, reversing recent signs of recovery. Bitcoin (BTC) slipped back to the $98K level, while major altcoins like Ethereum (ETH), Solana (SOL), and XRP followed suit with a downward trajectory. However, one token stood out—MELANIA, the meme coin, defied the broader market trend and traded strongly in the green.

Let’s dive into the biggest crypto movers of the day and how they performed.

Market Overview: A Sudden Dip Amid Recovery Hopes

Despite optimism from the temporary pause on Trump’s tariffs and signs of recovery yesterday, the crypto market took a sharp turn on February 5. Prices dropped across the board, with the global crypto market cap shrinking by 2.84% to $3.22 trillion. Additionally, total market volume saw a significant decline of 24.46%, settling at $193.74 billion.

Bitcoin (BTC) Drops Near $98K Amid Volatility

As of reporting, Bitcoin’s price dipped nearly 3%, trading at $98,054. The leading cryptocurrency hit a 24-hour low of $96,208.11 and a high of $100,826.91. According to Coinglass data, Bitcoin recorded $123.44 million worth of liquidations intraday. However, its market dominance slightly increased by 0.07%, reaching 60.40%.

Ethereum (ETH) Sinks Over 3%

Ethereum mirrored the broader market downturn, slipping over 3% to $2,721. The token’s daily low and high stood at $2,636.17 and $2,869.51, respectively. Interestingly, ETH recorded $146.76 million worth of liquidations in the past 24 hours, aligning with its price decline.

XRP Plunges 8% Amid Network Issues

Ripple’s XRP saw a steep drop, losing 7% in value over the last 24 hours and landing at $2.51. The token’s daily range fluctuated between $2.44 and $2.73. Reports suggest that network issues related to consensus running and validation contributed to the drop, as highlighted by Ripple CTO David Schwartz on X.

Solana (SOL) Dips 4% In Sync With Market Trends

Solana also followed the broader market trend, shedding nearly 4% to trade at $207. The cryptocurrency’s 24-hour low and high were $202.85 and $218.30, respectively.

Meme Coins Take a Hit

The meme coin sector wasn’t spared from the market dip. Popular tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE all saw significant losses:

DOGE fell over 6% to $0.2642.
SHIB declined by 2%, trading at $0.00001593.
PEPE dropped over 4%, settling at $0.00001.

Top Crypto Market Gainers Today

While most cryptocurrencies struggled, a few managed to rise above the bearish wave:

1. Official Melania Meme (MELANIA)

Price: $1.68
24-Hour Gains: +16%

2. Sui (SUI)

Price: $3.67
24-Hour Gains: +4%

3. Pudgy Penguins (PENGU)

Price: $0.01343
24-Hour Gains: +4%

4. Hyperliquid (HYPER)

Price: $25.58
24-Hour Gains: +3%

Top Crypto Market Losers Today

On the flip side, these tokens saw the most significant losses:

1. Ethena (ENA)

Price: $0.5962
24-Hour Loss: -9%

2. Aerodrome Finance (AERO)

Price: $0.8903
24-Hour Loss: -8%

3. Jito (JTO)

Price: $2.89
24-Hour Loss: -7.5%

4. Kaspa (KAS)

Price: $0.09811
24-Hour Loss: -7%

Looking Ahead: Is a Bitcoin Reserve on the Horizon?

Despite the short-term turbulence, optimism remains for the crypto market’s long-term outlook. A major development gaining traction is the possibility of a U.S. Bitcoin reserve. According to Crypto Czar David Sacks, the U.S. government is actively evaluating the creation of a strategic Bitcoin reserve, as reported by CoinGape. If this materializes, it could potentially stabilize and boost crypto prices in the future.

For now, market watchers are keeping a close eye on price movements and upcoming regulatory developments to gauge the next big move in the sector.

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