Why Is Crypto Down? DeepSnitch AI on a Bullish Trajectory With $1.5M Raised, ETH Recovers and HYPE Declines

The crypto market had a brutal week. Bitcoin falling to as low as $60K sparked bear market concerns and left many traders wondering why is crypto down. 

One of the main reasons crypto is down was the market cycle pullbacks stemming from Donald Trump nominating Kevin Warsh as the individual in charge of the Federal Reserve.

While the situation did recover on February 7, short-term volatility is still expected. As a result, DeepSnitch AI presale saw continued inflows as traders switched to early-entry projects as a hedge against price swings. 

Raising $1.50M, the community expects to see 100x following the launch, with the latest exclusive bonuses fueling bullish projections. 

Main reasons crypto is down

Crypto markets experienced significant pullbacks after investors’  fears grew over stagnant US liquidity after Trump nominated Kevin Warsh for Fed Chair. 

Warsh, a former Fed governor, is seen continuing rate cuts but signaling “stabilize rather than expand” liquidity, per Kraken economist Thomas Perfumo.

Amid the crash, Bitcoin ETFs saw three straight days of outflows, with $431M leaving on February 5 alone. BTC briefly plunged to $60K on February 6 before bouncing back above $64.9K. 

The short-term volatility spiked on January 31 when the market suffered its 10th-largest liquidation event, with $2.56B in leveraged positions wiped out. This represented a massive flush of overleveraged long positions. 

The sell-off reflects broader macro uncertainty and risk-off sentiment gripping investors.

Despite the sentiment shifting slightly on February 6, the change barely registered. And as everyone wondered why is crypto down, presale projects extended their solid performance. 

Crypto to watch in 2026

1. DeepSnitch AI: Why are traders aping DSNT?

Scared of short-term volatility? With presale projects, you don’t need to scratch your head about why is crypto down because your investment will be safely locked away until listing. 

Riding on this philosophy, DeepSnitch AI raised $1.50M as the rest of the market collapsed. This is nothing new, as the project also experienced a massive peak after the October 10 crash. 

So, what’s so special about it?

For starters, the DSNT token is priced at $0.03830, ensuring everyone gets an equal chance at the projected 100x upside. More importantly, the community is showing peak conviction about DeepSnitch AI’s retail-first AI platform, powered by five agents.

The tech allows traders to get straightforward, AI-fueled risk scoring, contract audits, real-time sentiment tracking, and predictive FUD detection. The fun part is, you get to do all this through an LLM interface where you can simply paste the CA and receive a detailed audit – major DYOR timesaver. 

High demand for these tools is the main reason why degens and whales are already aping the project. The community also expects DeepSnitch AI to drop another major update soon, which could push it to even higher levels. 

1. Ethereum: Will Ether recovery continue?

On February 6, ETH pumped by around 11%, and settled above $2.05K, according to CoinMarketCap. 

Bulls are trying to kick off a recovery from the recent lows, and while they are showing conviction, sellers are likely to enter at $2.1K.

A sharp rejection at this level would confirm bears have flipped it into resistance, raising the risk of breaking lower and opening the door to $1.5K support.

In the bullish scenario, a strong thrust above $2.1K would clear the path toward the 20-day EMA at around $2.5K. 

1. Hyperliquid: HYPE pullback?

According to CoinMarketCap, HYPE dropped by 7% on February 6 and reached $32. 

If you looked only at the HYPE chart, you’d probably ask why crypto is down. However, HYPE finally dropped after having a solid week amid the wider market collapse. 

The buyers are still in control, evidenced by the upsloping 20-day EMA ($29.78) and RSI staying in positive territory. If price turns up from current levels or bounces off the 20-day EMA, bulls will take another shot at clearing $35.50. Surging past $35.50 will likely send HYPE toward $44.

Yet, breaking below the 20-day EMA would show bulls giving up, likely leading to sideways consolidation between $35.50 and $20.82 for a while.

Final words: Play it safe

While the small recovery is a hopeful sign for the market, riding the hype could be dangerous. Instead, keeping an eye on DeepSnitch is a much safer play considering the project is expected to launch once everything blows over.

The AI trading suite alone could be a lifesaver in a bear market, and if the 100x projections hit, you’d be set even through the longest winter.

Plus, the exclusive codes make this the best time to jump into the presale. Case in point: DSNTVIP50 gives 50% extra on $5K+ investments. Going whale mode? DSNTVIP300 unlocks 300% extra on $30K+, adding roughly $90K in tokens at current pricing.

Why is crypto down? Who cares? Lock down your gains in the DeepSnitch AI presale now. Follow X or Telegram for the latest updates.

FAQs

1. Why is crypto down? 

Crypto markets dropped after Trump nominated Kevin Warsh for Fed Chair, raising fears of tighter liquidity and “stabilize rather than expand” policy. Bitcoin hit $60K, ETFs saw $431M outflows on Feb 5, and $2.56B in leveraged positions liquidated on Jan 31. 

1. Why are traders moving into DeepSnitch AI during the downturn? 

DeepSnitch AI raised $1.50M at $0.03830 despite the crash, offering five AI agents for real-time risk scoring, contract audits, scam detection, sentiment tracking, and FUD prediction, all of which provide genuine utility and strong 100x upside as a volatility hedge. 

1. What is the current market sentiment and recovery outlook? 

Sentiment remains bearish after heavy liquidations and ETF outflows, but ETH recovered 11% to above $2.05K, and some altcoins show resilience. Short-term volatility persists, pushing interest toward presales like DeepSnitch AI for asymmetric upside. 

DISCLAIMER: CAPTAINALTCOIN DOES NOT ENDORSE INVESTING IN ANY PROJECT MENTIONED IN SPONSORED ARTICLES. EXERCISE CAUTION AND DO THOROUGH RESEARCH BEFORE INVESTING YOUR MONEY. CaptainAltcoin takes no responsibility for its accuracy or quality. This content was not written by CaptainAltcoin’s team. We strongly advise readers to do their own thorough research before interacting with any featured companies. The information provided is not financial or legal advice. Neither CaptainAltcoin nor any third party recommends buying or selling any financial products. Investing in crypto assets is high-risk; consider the potential for loss. Any investment decisions made based on this content are at the sole risk of the readCaptainAltcoin is not liable for any damages or losses from using or relying on this content.

The post Why Is Crypto Down? DeepSnitch AI on a Bullish Trajectory With $1.5M Raised, ETH Recovers and HYPE Declines appeared first on CaptainAltcoin.