Extreme Fear at Record Levels

DAILY MARKET OVERVIEW

Extreme Fear New Lows

👋 Hey, Crypto Enthusiasts! Bitcoin is still struggling, fear is at extremes, and somehow even good news can’t catch a bid.

Bitcoin has recently tested the $60k level, and so far it’s holding up reasonably well. It will likely spend some time consolidating in this area, with possible rallies that could push price back above $70k.

Crypto sentiment is currently at extreme lows. The Fear & Greed Index is sitting around 5 (Extreme Fear), levels not seen since the Luna and FTX collapses.

Historically, this kind of fear often marks local bottoms. That means we could see some short-term relief rallies over the next few weeks before the broader bearish trend resumes.

The problem is the lack of urgency from buyers. Institutional money, which was aggressive in 2024, has rotated into other trades. Retail is exhausted. ETF flows are flat to negative.

⏳️ Until something changes, this is mostly a waiting game.

If you’re playing the multi year long-term holding game, the $60k area isn’t a bad place to start dollar-cost averaging. Just keep in mind that Bitcoin could still drop toward $40k this year, so position sizing and patience matter.

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SOCIAL SENTIMENT

Uniswap & BlackRock partnership

🐎 BlackRock, the world’s largest asset manager, announced it’s building institutional products on Uniswap and buying UNI tokens. That’s massive news. Legitimacy. Institutional adoption. Exactly what bulls have been waiting for.

And what happened ❓️ 

UNI pumped briefly, retraced the entire move, and then kept falling.

A few months ago, Uniswap announced revenue-funded token buybacks, a huge fundamental upgrade, and yet the token still couldn’t hold its gains.

🐻 This is what a bear market looks like.

In a bear market, good news doesn’t matter. Fundamentals don’t matter. Price action is dictated by the trend, and the trend is down. In a bull market, that BlackRock headline would have sent UNI vertical. In a bear market, it gets sold into.

People holding altcoins keep shouting, “But the fundamentals!” The fundamentals are the same. The trend is different. And the trend is what determines whether you make or lose money.

Coins that are down 90% can still go down another 90%.

“Cheap” can always get cheaper. Just because something is down a lot doesn’t mean it’s done falling. In a bear trend, you don’t catch knives. You wait for the trend to flip.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Coinbase Launches Agentic Wallets for Autonomous AI Payments
Coinbase unveiled Agentic Wallets, enabling AI agents to hold funds, trade, and transact onchain autonomously using x402-powered crypto payments.

Binance Completes $1B SAFU Conversion Into Bitcoin
Binance finalized its $1 billion SAFU reserve shift into 15,000 BTC, reinforcing bitcoin as its long-term emergency reserve asset.

Thailand Moves to Bring Crypto Into Regulated Derivatives Market
Thailand’s SEC approved plans to allow digital assets as derivatives underlyings, paving the way for crypto-linked futures and options.

Trump-Linked World Liberty Financial Plans Remittance Platform
World Liberty Financial announced World Swap, a cross-border remittance service aimed at lowering FX fees amid ongoing political scrutiny.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – How low will Bitcoin go? (12.02.2026 Summary)

In this video, Benjamin Cowen explains that Bitcoin bear markets usually follow a repeatable pattern, especially in midterm years. Instead of guessing one exact bottom, he focuses on two price zones Bitcoin has historically dropped below before a real recovery starts, and why many people tend to turn bearish only when the bottom is already close.

Key Points

• Benjamin says Bitcoin bear markets often drop below two key on-chain levels: the realized price and then the balance price

• Historically, Bitcoin tends to bottom near or below the balance price, after first breaking below realized price

• He notes this cycle topped on apathy (people stopped caring), not euphoria, similar to 2019

• Current reference levels he mentions: realized price around 55K, balance price around 40K (and both move over time)

• He suggests a common midterm-year rhythm: weakness early in the year, a counter-trend rally, then another drop later, sometimes in Q4

• He warns bear markets often have strong rallies that make bears look wrong, but then price can still fall again

• His view is that many influencers stay bullish early, then flip bearish late, which often happens near bottoms

• He also argues Bitcoin has been bleeding against gold in midterm years, so gold can look stronger in this phase

Final Takeaway
Benjamin’s outlook is cautious and data-driven: Bitcoin can still go lower, and he thinks it would not be unusual to see it dip below realized price and possibly toward the balance price before a durable bull market returns. He is less focused on one exact number and more focused on the cycle pattern, patience, and not getting fooled by bear market rallies.

CoinBureau – Banks Just Made Coinbase Public Enemy #1 (12.02.2026 Summary)

In this video, Nick from Coin Bureau breaks down a growing fight between US banks and Coinbase. Community banks have launched an aggressive campaign to ban stablecoin yields, calling Coinbase CEO Brian Armstrong “public enemy number one.” Nick argues this is not just about regulation, but about banks protecting their profits as crypto starts offering better returns to everyday savers.

Key Points

• The Independent Community Bankers of America claims stablecoins could drain $1.3 trillion in deposits and reduce lending by $850 billion

• Banks argue that if people move money into stablecoins earning 5% yield, local lending could suffer

• Traditional savings accounts pay around 0.39%, while platforms like Coinbase offer up to 5% or more on USDC

• Nick says banks are scared of losing their “spread,” earning high interest while paying customers very little

• The battle centers around the CLARITY Act, where banks are pushing to ban stablecoin yield entirely

• Coinbase has pulled support for the bill if yield is banned, while other crypto firms are willing to compromise

• The White House has set a deadline, but negotiations between banks and crypto groups are tense

• If yield is banned, users may lose access to competitive returns and be pushed back into low-paying bank accounts

Final Takeaway
Coin Bureau’s outlook is clear: this fight is about competition. Banks are framing stablecoins as a threat to financial stability, but Nick believes the real issue is profit protection. If stablecoin yields survive, crypto could reshape savings and banking. If banks win, innovation may stall and consumers could lose access to better returns.

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