1. Market Observations 

February 2, 2026 to February 8, 2026

NCI Performance (Weekly): The Nasdaq CME Crypto Index^TM declined 8.6%, extending losses across major constituents BTC (-8.2%), ETH (-9.2%), and SOL (-14.5%). The move coincided with a broader risk-off shift driven by weaker-than-expected U.S. jobless claims and rising geopolitical tensions following an increased U.S. military presence near Iran. While crypto-specific selling was amplified by over $2.1bn in forced liquidations in a single day, simultaneous weakness in software and technology stocks suggests macro and cross-asset forces — rather than digital-asset fundamentals — seem to be the primary drivers for the drawdown.  

Markets drop after jobless claims rise

Financial markets in the U.S retracted amid jobless claims rising more than what was expected, increasing the worry about the economic and labor health.¹

U.S escalates tensions with Iran

President Donald Trump sent a massive army, including warships and aircrafts near Iran, mirroring a recent military buildup in the Caribbean and increasing geopolitical tensions.²

Another wave of liquidations impacts crypto markets

Over $2.14 billion in positions, including BTC, ETH and SOL derivatives got liquidated in 24 hours last week, which ranks as the top 10 largest single-day liquidation in crypto^.3