Bithumb Flags Blosseri (BLY) for Investment Warning Amid Extreme Fear Market

VADODARA, February 6, 2026 — South Korean cryptocurrency exchange Bithumb has flagged the Blosseri (BLY) token for an investment warning, suspending deposits effective 7:00 a.m. UTC today. This Daily crypto analysis examines the event within a broader market context of extreme fear, where Bitcoin trades at $64,960, down 8.94% in 24 hours. Market structure suggests this action reflects heightened regulatory oversight and risk aversion, mirroring patterns from the 2021 correction.

Investigation: Bithumb's Regulatory Move Against Blosseri (BLY)

According to the official announcement from Bithumb, the exchange identified Blosseri (BLY) as requiring an investment warning. Deposits for the token will halt starting at 7:00 a.m. UTC on February 6, 2026. This decision typically follows internal risk assessments or regulatory guidance, aiming to protect investors from potential volatility or compliance issues. Bithumb, as a major South Korean exchange, operates under strict Financial Services Commission (FSC) guidelines, which mandate proactive measures against tokens deemed high-risk. The move signals a liquidity grab, potentially redirecting capital toward more established assets like Bitcoin.

Market Context & Historical Precedent

Historically, exchange warnings on altcoins precede broader market corrections. Similar to the 2021 cycle, where platforms like Binance and Coinbase delisted tokens amid regulatory pressure, such actions often correlate with increased volatility. In contrast, the current environment features extreme fear, with the Crypto Fear & Greed Index at 9/100. This sentiment echoes the March 2020 crash, where fear-driven sell-offs created buying opportunities for institutional players. Underlying this trend, on-chain data indicates rising exchange outflows for Bitcoin, suggesting accumulation despite price declines.

Related developments in this extreme fear market include Bitcoin breaking below $61,000 support and TrendResearch depositing 20,000 ETH to avoid liquidation. These events highlight systemic stress across crypto assets.

Technical Architecture & Price Action

Market structure suggests Bitcoin's current price of $64,960 tests critical support levels. A Fibonacci retracement from the 2025 all-time high places the 0.618 level at $62,000, a key zone for institutional buyers. , the Relative Strength Index (RSI) on daily charts hovers near 30, indicating oversold conditions. Volume profile analysis shows increased selling pressure, but order blocks near $60,000 may provide a bounce. For altcoins like Blosseri (BLY), exchange warnings often lead to sharp declines due to reduced liquidity, creating fair value gaps (FVGs) that attract speculative trades.

By The Numbers

Why It Matters

Bithumb's warning matters because it reflects tightening regulatory frameworks in key markets like South Korea. According to the Financial Services Commission (FSC), exchanges must enhance investor protection measures, as outlined in their official guidelines. This action could trigger a domino effect, prompting other exchanges to review altcoin listings. Consequently, institutional liquidity may shift toward Bitcoin and Ethereum, reinforcing their status as core holdings. Retail market structure, however, faces increased risk from altcoin volatility, potentially leading to capitulation events similar to 2021.

Expert Commentary

Exchange warnings often precede regulatory crackdowns, creating headwinds for speculative altcoins. In extreme fear markets, these events amplify sell-offs, but they also weed out low-quality projects, strengthening the ecosystem long-term. Historical cycles suggest that such scrutiny leads to healthier market conditions post-correction.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on current data. First, if Bitcoin holds the $62,000 Fibonacci support, a relief rally toward $70,000 is plausible, driven by oversold RSI conditions. Second, a break below this level could trigger further declines, testing the $58,000 order block. For Blosseri (BLY), the investment warning likely results in continued depreciation unless fundamental developments reverse sentiment.

• Bullish Invalidation Level: $70,000 resistance. A break above this level confirms trend reversal, invalidating the bearish structure and signaling institutional accumulation.
• Bearish Invalidation Level: $62,000 support. A sustained break below this Fibonacci level invalidates the current bullish outlook, indicating deeper correction phases.

On-chain data indicates a 12-month institutional outlook remains positive, with Bitcoin's UTXO age bands showing long-term holder accumulation. This aligns with a 5-year horizon where regulatory clarity may drive mainstream adoption, despite short-term volatility from events like Bithumb's warning.