Bitcoin and Ethereum slip in early 2026 as investors pivot to scalable projects
Crypto markets opened February 2026 on shaky ground, with Bitcoin and Ethereum retreating from late-2025 peaks. Bitcoin traded near $66,805 while Ethereum hovered around $1,895, reflecting a broader pullback. Despite the downturn, some projects like Bitcoin Hyper have drawn attention with strong presale activity and ambitious technical goals.
The market slowdown has shifted investor focus toward infrastructure and distribution themes. Capital now flows more cautiously, avoiding high-risk bets like memecoins and smaller-cap tokens. This trend has led to wider spreads and fragmented liquidity, as traders prioritise established projects over speculative plays.
Bitcoin Hyper, a new layer-2 solution, has raised over $31 million in its presale, with tokens priced at $0.0136751. The project aims to combine Bitcoin's settlement layer with fast smart contract execution and low-latency processing. Its goals include supporting high-speed payments, DeFi tools, NFTs, and gaming applications, alongside high-yield staking rewards available immediately after its token generation event.
The project has also attracted large investors, with two whale wallets accumulating $116,000 worth of tokens. The biggest single purchase, $63,000, took place on 15 January 2026. However, Bitcoin Hyper initially faced criticism over its centralised sequencer, which risked transaction censorship and manipulation. Developers have framed this as a temporary measure, planning to introduce rotating sequencers and auction-based systems for gradual decentralisation.
Broader market trends show institutional caution, with U.S. spot Bitcoin ETFs recording $1.33 billion in net outflows—the largest since February 2025. Analysts link this to ongoing deleveraging and renewed regulatory scrutiny, which has dampened speculative trading since late 2025.
Bitcoin Hyper's presale success highlights enduring interest in scalable Bitcoin infrastructure, even as markets cool. The project's focus on speed, DeFi integration, and staking rewards contrasts with the wider trend of reduced risk appetite. Meanwhile, institutional outflows and tighter liquidity suggest a more selective approach to crypto investments in early 2026.
