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Bitcoin starts the second week of February under pressure as traders broadly expect further downside despite prices holding above recent lows. Market sentiment remains cautious, with several analysts anticipating a retest of lower levels and some projecting a potential macro bottom around 50,000 dollars or below. Short-term price action is seen as unstable, with low volatility near the weekly close and expectations that any upward moves could be temporary and driven by liquidation dynamics rather than renewed bullish conviction. Many traders believe Bitcoin may enter a ranging phase after recent sharp swings, allowing volatility to cool before the next decisive move.
Macro conditions are driving much of the uncertainty, with upcoming US inflation data and fading expectations of near-term Federal Reserve rate cuts weighing on risk assets. A strong or resurgent US dollar remains a potential headwind for Bitcoin, although some analysts argue the current dollar-bitcoin relationship resembles early 2021, when Bitcoin continued to rally despite dollar strength. Japan’s political shift toward aggressive fiscal stimulus and a weaker yen is also raising concerns about global capital flows and short-term pressure on crypto markets. At the same time, Bitcoin miners have sent unusually large amounts of BTC to exchanges following the recent price drop, suggesting elevated selling risk in the near term, even as on-chain data indicates this activity may reflect redistribution rather than the start of a prolonged bear trend. Source
Quantum computing does pose a theoretical long-term risk to Bitcoin, but current technology is nowhere near capable of threatening the network in practice. CoinShares argues that breaking Bitcoin’s cryptography would require quantum machines with millions of qubits, far exceeding today’s most advanced systems, which are estimated to be between 10 and 100,000 times too weak. As a result, meaningful risk is likely pushed into the 2030s or later, giving the industry substantial time to prepare. Experts note that post-quantum cryptographic standards already exist, with international bodies having finalized several quantum-resistant algorithms in 2024, supporting the view that mitigation is an engineering challenge rather than an emergency.
The research also highlights that Bitcoin’s exposure is limited in scope, as most modern addresses do not reveal public keys until coins are spent, making real-time quantum attacks impractical for the foreseeable future. While around 1.7 million BTC remain in older address formats that could be vulnerable over long timeframes, CoinShares estimates that even in an extreme scenario only a small fraction could realistically be compromised quickly, limiting potential market impact. The firm cautions against rushed protocol changes, arguing that aggressive fixes could introduce new risks and undermine trust, and instead recommends gradual, voluntary upgrades as quantum technology evolves. Source
Tether froze more than 544 million dollars in cryptocurrency at the request of Turkish authorities as part of an investigation into an alleged illegal online betting and money-laundering network. Turkish prosecutors said the assets were linked to Veysel Sahin, accused of running unlawful betting platforms, with total seizures in the wider investigation exceeding 1 billion dollars. Tether confirmed it was the firm involved, saying it reviewed information provided by law enforcement and acted in line with local laws, consistent with its cooperation with agencies such as the US Department of Justice and the FBI.
The case highlights the growing role of stablecoin issuers in law enforcement actions, with analytics data showing Tether and Circle had blacklisted around 5,700 wallets holding about 2.5 billion dollars by late 2025, most of them containing USDT. Tether says it has assisted in more than 1,800 investigations across 62 countries, freezing 3.4 billion dollars in tokens tied to suspected crime, even as USDT continues to face scrutiny over its use in money laundering and sanctions evasion. Despite this, USDT’s market presence has continued to expand, reaching a record market capitalisation of about 187 billion dollars in late 2025 alongside strong growth in wallet usage and transaction volumes. Source
Bitcoin has rebounded about 12% from its recent low near 62,800 dollars, recovering to just under 71,000 dollars as U.S. investor activity picked up. The move coincided with a sharp rise in the Coinbase Premium index, which narrowed significantly after plunging deeper into negative territory during last week’s sell-off, signalling renewed buying interest from U.S.-based traders. Despite the rebound, sentiment indicators remain deeply depressed, suggesting the market is reacting to extreme oversold conditions rather than a clear shift back to optimism.
Analysts broadly characterise the rally as a relief bounce driven largely by short covering and forced buying rather than fresh long-term demand. Derivatives data shows declining open interest alongside positive volume dynamics, a pattern typically associated with traders closing bearish positions after capitulation. While some regional pressure eased following Japan’s election and a surge in Asian equities, experts say a sustained recovery will depend on stronger structural demand and supportive U.S. macroeconomic data, including inflation, employment, and growth trends. Source
US economic data releases are set to dominate market attention as delayed retail sales figures, labor market reports, and inflation data arrive amid ongoing macroeconomic uncertainty and a partial government shutdown. December retail sales data is expected to provide insight into consumer spending, followed by the January jobs report and jobless claims, which are seen as especially influential for Federal Reserve policy expectations. Investors are closely watching whether softer employment data or easing inflation could reinforce expectations for further interest rate cuts, which would likely support risk assets, including cryptocurrencies.
Crypto markets have remained subdued following last week’s sharp sell-off, with total market capitalisation hovering near its lowest level since November 2024. Bitcoin has rebounded from its recent lows but remains deep in bear market territory, while Ether and most altcoins have struggled to recover meaningfully after heavy losses. With traditional markets reacting to shifting rate expectations and economic signals, upcoming macro data could inject renewed volatility into digital assets as traders reassess risk and monetary policy outlooks. Source
The US Commodity Futures Trading Commission updated its definition of payment stablecoins to explicitly include national trust banks as eligible issuers, aligning its guidance with the GENIUS stablecoin regulatory framework. By revising Staff Letter 25-40, originally issued in December 2025, the CFTC clarified that national trust banks, which operate across all US states and primarily provide custodial and asset management services, were not meant to be excluded from issuing fiat-pegged tokens. The move reflects the broader regulatory shift following the enactment of the GENIUS Act, signed into law in July 2025, which established comprehensive rules for US dollar stablecoins.
The updated guidance reinforces that only fully backed stablecoins qualify under the GENIUS Act, requiring one-to-one backing with cash deposits or short-term government securities such as Treasury bills. Algorithmic stablecoins and synthetic dollar models are excluded from this framework. The change also complements parallel efforts by other regulators, including the Federal Deposit Insurance Corporation, which proposed allowing banks to issue stablecoins through regulated subsidiaries that meet strict collateral, redemption, and financial health standards. Together, these developments signal increased regulatory clarity and acceptance of bank-issued stablecoins within the US financial system. Source
The Federal Deposit Insurance Corporation agreed to pay $188,440 in legal fees and revise its transparency practices to settle a Freedom of Information Act lawsuit tied to claims of coordinated efforts to restrict crypto firms’ access to banking services. The settlement concludes a multi-year dispute initiated after records revealed the FDIC had sent dozens of so-called pause letters to banks, urging them to halt or limit crypto-related activities. A federal court ruled that the agency violated FOIA by categorically withholding the documents instead of reviewing them individually, forcing the regulator to release the letters after repeated court orders.
As part of the agreement, the FDIC committed to changes in how it handles public records requests, including instructing staff to interpret FOIA requests more broadly and clarifying that it does not automatically withhold all bank supervisory materials. The case reinforced allegations that crypto oversight during the prior administration relied on informal regulatory pressure rather than transparent, risk-based supervision. The settlement will be formally finalised once payment is made, closing a case that has become central to the broader debate over regulatory accountability and crypto debanking practices in the United States. Source
Veretekk played a foundational role in early digital marketing by introducing powerful traffic and lead generation tools that enabled entrepreneurs to scale online businesses efficiently during the 1990s. Its technology empowered users to generate large volumes of legitimate leads and helped shape expectations for what automated digital systems could achieve. Markethive positions itself as the natural evolution of that legacy, aiming to recreate and vastly expand Veretekk’s impact by adapting its core principles of innovation, usability, and empowerment to the modern digital environment.
Markethive’s current vision extends beyond lead generation to focus on acquiring real, paying customers through an integrated ecosystem that includes promo codes, Supergroups, decentralised publishing via Hivepress, and a blockchain-based marketplace powered by Hivecoin. The platform emphasises decentralisation, privacy, resilience against censorship, and sustainable revenue generation, while continuing to innovate in broadcasting, publishing, and customer acquisition. Guided by its leadership and long-term mission, Markethive seeks to build a global entrepreneurial infrastructure that supports freedom, growth, and digital independence in an increasingly restrictive online world. Source
A public debate has emerged among prominent crypto venture capitalists over whether non-financial applications of crypto and Web3 have fundamentally failed or are simply early and constrained by external factors. Chris Dixon of a16z crypto argues that regulatory uncertainty, scams and hostile conditions have slowed progress in areas such as decentralised social media, digital identity, media platforms and gaming, rather than a lack of long-term potential. He maintains that building new industries takes time and that non-financial crypto use cases should be judged on a longer horizon, especially as clearer regulation could unlock adoption.
Others strongly disagree, with Dragonfly’s Haseeb Qureshi contending that these products failed because users did not want them and that poor product-market fit, not regulation or bad actors, explains their lack of traction. Nic Carter of Castle Island Ventures added that venture capital timelines do not allow firms to wait a decade to be proven right, emphasising the need to identify viable markets during short fund deployment windows. The dispute comes as recent crypto investment has concentrated heavily on financial use cases such as tokenized real-world assets, reflecting differing portfolio strategies, with Dragonfly focused on financial infrastructure while a16z continues to back a broader mix that includes gaming, community projects and digital identity. Source
Polymarket has filed trademark applications in the United States for POLY and $POLY, covering digital tokens, cryptocurrency trading services and blockchain-based payment systems, marking its first formal public step toward launching a native token. The applications were submitted by its parent company, Blockratize Inc., and describe the use of a digital token within an online community alongside services such as crypto trading, financial exchanges and portfolio management. Company executives have previously confirmed plans for a POLY token and a potential airdrop designed around long-term utility, though insiders have indicated the launch would likely wait until Polymarket has firmly re-established its presence in the U.S. market.
The move comes as Polymarket faces growing legal pressure while navigating its return to the United States. Although the platform received approval from the CFTC in November, nearly four years after paying a 1.4 million dollar fine and exiting the market, it is now dealing with state-level challenges, including a temporary restraining order in Nevada blocking its event-based contracts. Polymarket has since shifted that case to federal court, arguing state action conflicts with federal oversight, while traders on prediction markets currently assign relatively low odds to a token launch in the near term. Source
The Federal Reserve is considering a proposal to create “skinny master accounts,” which would give fintech and crypto firms limited access to its payments infrastructure, prompting a mix of support and caution in public comments. Crypto companies and industry groups have largely backed the idea, arguing that these accounts could strengthen U.S. payments, promote innovation, and reduce concentration risk among traditional banks. Stablecoin issuer Circle and the Blockchain Payments Consortium highlighted that the accounts would support Congress’ vision under the GENIUS Act and help level the playing field, while Anchorage Digital Bank noted some technical aspects, like balance limits and lack of access to the Fed’s clearing system, require refinement.
Banking associations and financial reform advocates have expressed concerns about extending central bank access to entities with limited supervisory histories. The American Bankers Association emphasised that potential account holders may not meet consistent federal safety and soundness standards, and the Wisconsin Bankers Association suggested eligibility should depend on demonstrated governance and risk management capabilities. Better Markets described the proposal as a risky expansion of the Fed’s mandate that could expose the financial system to significant threats. The Fed will review all feedback before finalising the rule, a process that may take several months. Source
Coinbase users experienced significant losses this week as Bitcoin and Ethereum plunged, triggering record liquidations through the exchange’s crypto-backed lending product. Over the past week, approximately 2,000 users lost $90.7 million on a single day, with total liquidations reaching $170 million—the largest in the product’s one-year history. The platform allows users to borrow against Bitcoin and Ethereum holdings, and as crypto prices fell 17% and 26% respectively, many loans became unhealthy, enabling third parties to repay them and claim the collateral at a discount. Some users tried to mitigate losses by adding collateral or repaying in USDC, while roughly 3,300 users saw their collateral liquidated entirely.
Since its debut, the product has originated $1.8 billion in loans, with further potential losses if collateral values continue to drop. Coinbase emphasises that loans are over-collateralised and monitored closely, notifying users frequently when liquidation risks arise. While the exchange does not earn fees from liquidations, it generates revenue as a technology provider through performance fees collected by risk managers. The episode highlights both the risks of crypto-backed lending and Coinbase’s broader strategy of integrating DeFi into its platform to provide flexible financial tools without requiring personal information for lending. Source
ENS has decided to cancel its planned layer-2 Namechain as part of its ENSv2 upgrade, choosing instead to deploy the updated protocol directly on Ethereum. This decision comes after a 99% drop in ENS registration gas fees over the past year, largely due to Ethereum network upgrades like the Fusaka upgrade, which doubled the gas limit to 60 million. Ethereum core developers are now targeting a 200 million gas limit in 2026, further enhancing L1 scalability. The original L2 plan aimed to reduce costs and simplify domain registration, but improved L1 performance has made building directly on Ethereum more practical.
Despite dropping Namechain, ENS will continue to focus on major improvements with ENSv2, including a new registry architecture, enhanced ownership models, better name expiration handling, and increased flexibility with per-name registries. The protocol will remain interoperable with L2s, allowing cross-chain interactions, while the new registration flow abstracts complexity for users. ENS emphasises that staying on L1 does not eliminate future L2 possibilities but reflects the network’s unexpectedly fast scaling. Source
Bitfarms is exiting Bitcoin mining and rebranding as Keel Infrastructure as it relocates to the United States to focus on building AI and high-performance computing (HPC) infrastructure. The company aims to leverage the shift to AI as a more stable revenue source, moving away from the volatility of cryptocurrency markets. CEO Ben Gagnon emphasised that the new name reflects the company’s focus on infrastructure-first development for AI data centres across North America. A shareholder vote is scheduled for March 20 to approve the transition, with the U.S. redomiciliation expected to be completed by April 1, after which shares are anticipated to trade on Nasdaq under the ticker KEEL.
Following the announcement, Bitfarms’ shares jumped nearly 27% amid a broader rebound in crypto equities and tokens, trading around $2.17. The shift aligns with a growing trend among Bitcoin miners like Riot Platforms, MARA Holdings, and CleanSpark, which are exploring AI-related ventures, with some partnering with major tech firms to build AI data centres. The move reflects an industry-wide pivot toward AI as a way to stabilise revenues, particularly as Bitcoin prices remain volatile, recently dipping to just over $60,000 before recovering slightly. Source
Japan’s snap election has placed the crypto industry in a state of close observation, as Prime Minister Sanae Takaichi seeks to convert high approval ratings into a parliamentary majority that could accelerate reforms. Lawmakers and industry stakeholders are particularly focused on the timing of tax reductions, stablecoin regulations, and the reclassification of cryptocurrencies as financial assets. Proposed reforms aim to cut crypto taxes from 55% to 20% by 2028, allow losses to offset gains, and launch crypto ETFs, moving digital assets closer to parity with traditional financial products. The outcome of the election could determine whether these reforms proceed quickly or more slowly through negotiation and fiscal trade-offs.
Industry leaders emphasise that continuity under Takaichi’s coalition would pose little risk, while a fragmented or populist-driven government could stall progress, creating a “silver democracy” scenario where crypto is treated more as a tax source than strategic infrastructure. Japan is increasingly leveraging its institutional capital, with major banks piloting stablecoins and tokenized assets, and policymakers embedding crypto within formal study groups and regulatory frameworks. While the global crypto hub race may be shifting toward the U.S., Japan’s focus is on using crypto rails for large-scale capital deployment, making the election outcome critical for maintaining momentum and securing the country’s place in the evolving digital finance landscape. Source
Tether’s USDT stablecoin added 35.2 million users in Q4 2025, bringing its total user base to 534.5 million across on-chain wallets and centralised platforms, despite a broader crypto market crash that saw total capitalisation drop by more than one-third. On-chain wallet holders grew by 14.7 million, the largest quarterly increase ever, with savers—who retain most or all of their USDT—making up over a third of these accounts. Monthly active on-chain users averaged 24.8 million, representing the highest share of stablecoin activity recorded to date. USDT’s market capitalisation reached 187.3 billion, maintaining steady growth even as other top stablecoins declined.
Tether’s total reserves rose to 192.9 billion, including 96,184 BTC, 127.5 metric tons of gold, and 141.6 billion in U.S. Treasuries, marking the company as one of the largest treasury purchasers globally. Centralised exchanges held the largest share of USDT, while DeFi and decentralised exchanges saw a decline in holdings. Tether also scaled back fundraising plans after investor pushback, now considering around 5 billion rather than the initially discussed 15 to 20 billion. CEO Paolo Ardoino emphasised that the company does not urgently require outside capital, and discussions on fundraising remain in early stages. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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