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The Commodity Futures Trading Commission revised its guidance on payment stablecoins eligible as collateral in derivatives markets. The agency expanded the definition to include stablecoins issued by federally chartered national trust banks.

The technical update comes two months after the CFTC launched a pilot program allowing bitcoin, ether, and payment stablecoins as margin collateral.

The Market Participants Division reissued Staff Letter 25-40 on Friday to clarify that national trust banks qualify as permitted issuers.

The original letter, issued December 8, 2025, had defined payment stablecoins as those issued by state-regulated money transmitters or trust companies.

Staff realized the narrower definition inadvertently excluded national trust banks that may issue qualifying stablecoins.

What Changed

The revised definition now explicitly permits stablecoins issued by national trust banks alongside existing categories. Under the GENIUS Act framework enacted in July 2025, both national trust banks and state-regulated trust companies can serve as permitted payment stablecoin issuers.

The Office of the Comptroller of the Currency approved five national trust bank charters for cryptocurrency-focused firms in December 2025.

Those institutions plan to offer digital asset custody and stablecoin issuance services under federal supervision.

The no-action letter allows futures commission merchants to accept payment stablecoins as customer margin collateral during a three-month pilot phase. FCMs must apply haircuts determined by derivatives clearing organizations and provide weekly reports on digital asset holdings.

Why It Matters

The clarification removes a potential obstacle for stablecoins issued by federally chartered banks seeking recognition under CFTC rules. National trust banks benefit from federal preemption of state money transmitter laws while operating under OCC oversight.

"During President Trump's initial term, the Office of the Comptroller of the Currency made history by chartering the first national trust banks with authority to custody and issue payment stablecoins," Chairman Michael S. Selig said Friday. "These national trust banks continue to play an important role in the payment stablecoin ecosystem."

The update aligns CFTC guidance with the GENIUS Act's framework for stablecoin regulation.

That legislation established requirements for reserve assets, attestations, and federal supervision of stablecoin issuers. The act's provisions take effect by January 2027 at the latest.

a16z crypto managing partner Chris Dixon defended the blockchain industry's persistent focus on financial applications, arguing that infrastructure and mass adoption must precede breakout non-financial use cases.

Dixon stated crypto requires "hundreds of millions of people onchain through financial applications" before categories like media or gaming gain meaningful traction.

The argument comes as criticism grows that blockchain has failed to produce consumer applications beyond speculation. Dixon manages over $7 billion across four a16z crypto funds with portfolio companies including Coinbase, Uniswap, Compound and Morpho.

Current data shows approximately 559 million global crypto users, with daily active Web3 wallets reaching 24.3 million.

Policy Credit and Legislative Context

Dixon credited years of policy work for what he described as stablecoins' rapid legitimization following passage of the GENIUS Act in July 2025. The legislation established federal oversight for payment stablecoins, requiring 100% reserves and implementing disclosure standards.

President Trump signed the bill into law July 18, 2025 after bipartisan passage.

Dixon positioned the pending CLARITY Act as extending similar regulatory clarity to other token categories beyond stablecoins.

The market structure bill remains stalled in Senate negotiations over stablecoin yield provisions and ethics requirements, with no current timeline for passage.

Read also: SEC And CFTC Plan Digital Asset Rule Harmonization Under Paul Atkins

Infrastructure Thesis and Timeline

Dixon compared blockchain development to internet evolution, noting social media and streaming emerged only after hundreds of millions gained connectivity.

He argued crypto faces similar sequencing requirements, with payments, stablecoins and DeFi serving as necessary foundation layers.

Trust erosion from "years of scams, extractive behavior, and regulatory attacks" has complicated community building around token ownership. a16z crypto structures its funds with 10-year horizons specifically for this timeline.

Dixon stated the firm expected finance to come first and other categories to develop alongside it, though he provided no specific projections for when non-financial breakout applications might emerge.

Read next: Russian Man Arrested For Allegedly Sending $310,000 In Crypto To Ukrainian Forces

Russian authorities detained a 26-year-old Barnaul resident for allegedly transferring 24 million rubles ($310,000) in cryptocurrency to wallets used by Ukrainian armed forces.

The man faces terrorism financing charges under Russian law, which classifies financial support for Ukraine's military as a criminal offense.

Russia's Investigative Committee stated the suspect collected funds in April 2025 and purchased cryptocurrency that was deposited into wallets "used to finance units of the Ukrainian Armed Forces."

Authorities claimed the funds were intended for attacks within Russian territory. The suspect's identity was not disclosed.

Pattern of Crypto-Related Arrests

This arrest continues a pattern of Russian prosecutions targeting cryptocurrency transfers to Ukraine.

In November 2025, the FSB arrested a Tula resident on treason charges for similar transfers, with potential life imprisonment.

A January 2025 case resulted in a seven-year sentence for a Yakutia resident convicted of funding Ukrainian forces through cryptocurrency.

Russian courts have imposed sentences ranging from seven to 13 years for donations as small as $54 to organizations supporting Ukraine's military operations. Charges typically fall under terrorism financing or high treason statutes in the Russian criminal code.

Read also: SEC And CFTC Plan Digital Asset Rule Harmonization Under Paul Atkins

Cryptocurrency in Conflict

Both sides of the Russia-Ukraine conflict have utilized cryptocurrency for military funding. Ukraine has received millions in crypto donations since February 2022, including official government channels accepting over 70 different digital assets.

The country recorded a 362% increase in large decentralized finance transactions by October 2024.

Russian authorities banned WhiteBIT exchange in January 2026 after the platform facilitated over $160 million in donations to Ukrainian forces.

The exchange exited the Russian market in early 2022 following the invasion.

Read next: China Bans RWA Tokenization, Names Bitcoin, Ethereum, Tether In Sweeping Crypto Crackdown

SEC Chair Paul Atkins stated the agency is working to harmonize digital asset regulations with the CFTC "so that people can develop their products in the United States rather than feel that they have to go offshore."

The remarks came as Congress continues negotiating the stalled CLARITY Act, which would establish federal oversight jurisdiction for crypto markets.

Atkins made the comments during a Fox Business interview while the White House hosted banking and crypto industry representatives to resolve disputes over stablecoin provisions in pending legislation.

The February meetings produced no immediate agreement between traditional banks and crypto firms on key regulatory questions.

Joint Project Crypto Initiative

The SEC and CFTC announced January 29 they would pursue Project Crypto as a joint interagency initiative.

CFTC Chairman Michael Selig agreed with Atkins' position that most crypto assets trading in secondary markets are not securities, including digital commodities, collectibles and tools "even when sold as part of an investment contract."

Both agencies directed staff to draft a taxonomy clarifying jurisdictional boundaries as interim guidance while Congress finalizes market structure legislation.

Selig indicated the CFTC would codify standards for tokenized collateral, perpetual derivatives products and leveraged retail crypto trading.

Read also: China Bans RWA Tokenization, Names Bitcoin, Ethereum, Tether In Sweeping Crypto Crackdown

Legislative Stalemate Continues

The CLARITY Act passed the House in July 2025 but remains stalled in the Senate. The Banking Committee postponed its markup amid disagreements between banking groups seeking restrictions on stablecoin yields and crypto firms opposing such limits.

The Agriculture Committee advanced its version of the bill with narrow Republican support in late January.

White House crypto adviser Patrick Witt described the administration's legislative push as the "crown jewel" of current crypto policy priorities.

Industry sources indicate the White House directed participants to develop compromise language by the end of February, though the timeline faces challenges from Democratic demands for ethics provisions.

Read next: Crypto.com CEO Launches AI Agent Platform Ahead Of Super Bowl Commercial

China's central bank issued comprehensive regulations on February 6 banning real-world asset tokenization and offshore issuance of yuan-pegged stablecoins.

The People's Bank of China explicitly named Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) as lacking legal tender status in Notice No. 42, signed by eight government agencies including financial regulators and law enforcement.

The directive replaces China's 2021 crypto ban with expanded restrictions targeting both domestic entities and their offshore subsidiaries.

Chinese companies and the overseas vehicles they control cannot issue virtual currencies or conduct RWA tokenization without prior government approval. The ban extends to foreign entities providing crypto or RWA services to Chinese residents.

What Changed

Real-world asset tokenization joins cryptocurrency trading, mining, and exchanges on China's list of prohibited financial activities. The notice defines RWA tokenization as converting ownership or income rights into tokens for issuance and trading.

Any such activities without explicit approval on designated infrastructure constitute illegal financial activity.

The regulations prohibit financial institutions from providing accounts, payments, custody, or insurance for crypto-linked products. Internet platforms cannot host crypto services or provide marketing for virtual currency activities.

Provincial governments must shut down all existing mining operations and block new projects.

Read also: Tether Invests In USDT-Powered t-0 Network For Institutional Cross-Border Payments

Enforcement Scope

The "same business, same risk, same rules" principle applies extraterritorially. Chinese citizens working for offshore crypto platforms face legal liability.

Authorities warned that service providers who "knowingly or should have known" about illegal activities will be prosecuted, regardless of offshore company registration.

The regulations forbid any entity from issuing yuan-pegged stablecoins offshore without authorization. Stablecoins are described as "performing functions of legal tender" when used in circulation. The ban explicitly covers activities even when conducted through foreign subsidiaries controlled by Chinese entities.

Notice No. 42 takes immediate effect and simultaneously repeals the 2021 framework. Bitcoin traded around $66,000 following the announcement, down approximately 8% in 24 hours.

The directive requires coordination among financial regulators, telecommunications authorities, law enforcement, courts, and prosecutors to maintain what officials termed "economic and financial order and social stability."

Read next: Bithumb Bitcoin Error: Internal Payout Glitch Triggers Price Crash On South Korean Exchange

Crypto.com CEO Kris Marszalek announced the February 8 launch of ai.com, a consumer platform for creating autonomous AI agents.

The announcement coincides with a planned commercial during Super Bowl LX on NBC.

The company did not disclose pricing tiers or technical specifications for the agent capabilities.

ai.com allows users to generate personal AI agents that can execute tasks across applications, including calendar management, messaging, and workflow automation.

The platform claims agents can autonomously develop missing features to complete tasks, with improvements shared across the network of users.

Platform Details

Users access the service through a profile system with free and paid subscription tiers.

The company states agents operate in isolated environments with user-specific encryption and permission-based controls. Marszalek described the platform as requiring no technical knowledge, with agent generation taking approximately 60 seconds.

The platform promises future capabilities including stock trading, financial services integrations, and agent marketplaces. No timeline was provided for these features.

Marszalek will continue as CEO of both ai.com and Crypto.com, which reports over 150 million users.

Read also: Galaxy Digital Stock Surges 17% On $200 Million Buyback Days After Q4 Loss

Domain Acquisition Questions

The announcement claims Marszalek acquired the ai.com domain in 2025 in "the single largest domain purchase in history." No purchase price was disclosed. Voice.com holds the documented record for largest all-cash domain sale at $30 million in 2019.

AI.com was previously owned by OpenAI, which reportedly acquired it in 2023 for approximately $11 million.

The ai.com domain was listed for sale at $100 million in March 2025, though no completed transaction at that price has been independently confirmed. The company did not respond to questions about the acquisition price or timeline.

Read next: Tether Invests In USDT-Powered t-0 Network For Institutional Cross-Border Payments

Galaxy Digital announced a $200 million share repurchase program on February 6, sending the stock up nearly 17% to $19.70.

The buyback comes three days after the company reported a $482 million fourth-quarter loss that drove shares down more than 13%.

The board-approved program allows Galaxy to repurchase Class A common stock over 12 months through open market purchases, private transactions, or Rule 10b5-1 trading plans.

The company faces no obligation to buy back any specific amount and retains flexibility to suspend the program at any time.

Recent Performance Context

Galaxy reported a $241 million net loss for full-year 2025 on February 3, driven by declining digital asset prices and approximately $160 million in one-time charges. The fourth quarter captured Bitcoin's 23% decline and Ethereum's 28% drop during the period.

Galaxy's digital asset holdings decreased 22% quarter-over-quarter as the total crypto market capitalization fell 24%.

The company ended 2025 with $2.6 billion in cash and stablecoins, up $700 million from the third quarter following a $1.3 billion exchangeable note issuance and $325 million equity investment. CEO Mike Novogratz described crypto markets as "in a bear phase" during the earnings call, noting Bitcoin had traded near the lower end of its recent range.

Read also: Tether Invests In USDT-Powered t-0 Network For Institutional Cross-Border Payments

Buyback Mechanics

Galaxy can purchase up to 5% of outstanding common stock on Nasdaq at program commencement. Repurchases on the Toronto Stock Exchange require separate TSX approval through a normal course issuer bid.

The company stated it will balance share repurchases against continued investment in data center infrastructure, which recently doubled approved power capacity to over 1.6 gigawatts.

Analysts maintain an average price target of $44 for Galaxy shares, suggesting potential upside from current levels. Morgan Stanley holds an Overweight rating with a $36 target, while Goldman Sachs rates the stock Neutral at $24.

The stock trades approximately 36% below its 100-day moving average following recent declines.

Read next: Bithumb Bitcoin Error: Internal Payout Glitch Triggers Price Crash On South Korean Exchange

Tether (USDT) announced an investment in t-0 network on February 6, targeting a USDT-based settlement system for licensed financial institutions. The stablecoin issuer did not disclose the investment amount.

The deal comes within 48 hours of announcing $250 million in separate investments into Gold.com and Anchorage Digital.

t-0 network operates as a back-end settlement layer connecting banks, money service businesses, and fintech companies. Institutions use the platform to coordinate cross-border payments through USDT, with the system settling net balances rather than individual transactions.

The platform claims to support over 1,200 payment corridors using stablecoin infrastructure.

Investment Context

Tether generated approximately $10 billion in profits during 2025, primarily from interest earned on U.S. Treasury holdings backing its $185 billion USDT supply.

The company has accelerated deployment of these profits through its investment arm, which targets sectors including financial services, commodities, and infrastructure.

The t-0 network investment follows Tether's $150 million stake in precious metals platform Gold.com and $100 million equity investment in Anchorage Digital.

Anchorage serves as the issuer of USAT, Tether's federally regulated stablecoin launched in January for the U.S. market.

Read also: Bithumb Bitcoin Error: Internal Payout Glitch Triggers Price Crash On South Korean Exchange

Operational Questions

t-0 network functions as a non-custodial infrastructure layer that records transactions across a global ledger before settling balances between member institutions. Each institution pays or receives funds in local currencies while USDT handles the cross-border settlement component.

The platform claims near-instant settlement with reduced foreign exchange exposure compared to traditional correspondent banking networks.

Limited public information exists about t-0 network's operational history, member institutions, or transaction volumes. The company's website lists general capabilities but provides minimal detail about existing partnerships or regulatory licenses across jurisdictions.

Tether CEO Paolo Ardoino described the investment as supporting "infrastructure that is fast, transparent, and globally scalable" for international payments.

"The t-0 network directly addresses the complexity of international payments by combining real-time settlement, cost efficiency, FX transparency, and global reach," he said.

The company framed the deal within its broader strategy to expand real-world use cases for USDT beyond cryptocurrency trading and remittances.

Read next: Congress Probes $500M UAE Investment In Trump Crypto Firm World Liberty Financial

South Korea's second-largest cryptocurrency exchange confirmed an internal error on February 6 that mistakenly credited hundreds of users with 2,000 Bitcoin (BTC) each during a promotional payout.

Staff intended to distribute 2,000 Korean won - approximately $1.50 - but accidentally selected Bitcoin instead. The error triggered concentrated selling that drove Bitcoin down roughly 16% on Bithumb within minutes.

The glitch occurred during a "lucky box event" promotional distribution. Recipients who discovered the unexpected balances immediately began liquidating the Bitcoin.

Trading data shows concentrated selling overwhelmed Bithumb's order book between 19:30 and 19:51 UTC, pushing the BTC/KRW pair from approximately 97 million won down to 81 million won.

What Happened

Bithumb's internal control systems detected the abnormal transactions and restricted affected accounts. The exchange's statement emphasized no external hacking or security breach occurred.

Market prices stabilized within five minutes according to Bithumb, though the flash crash created what crypto analysts termed a "reverse Kimchi premium" - Korean prices falling below global levels rather than trading at the typical premium.

The price dislocation remained isolated to Bithumb's platform. Other major exchanges including Binance and Coinbase showed no similar drops, as the selling pressure stayed confined to Bithumb's order book. The exchange confirmed all customer assets remain secure and trading operations continued normally throughout the incident.

Read also: Congress Probes $500M UAE Investment In Trump Crypto Firm World Liberty Financial

Why It Matters

The operational failure adds pressure to Bithumb amid existing regulatory scrutiny. South Korea's Fair Trade Commission is currently investigating the exchange over potentially misleading marketing claims about liquidity.

A separate probe examines a failed promotional campaign that left over 30,000 users without promised rewards.

Bithumb maintains approximately 2.42 million monthly active users and handles hundreds of millions in daily trading volume.

The exchange trails only Upbit in the South Korean market.

Read next: Treasury Secretary Bessent Blasts Crypto "Nihilists" Resisting Market Structure Bill

South Korean cryptocurrency exchange Bithumb accidentally distributed 2,000 Bitcoin (BTC) worth approximately $133 million to hundreds of users after a staff member entered the wrong currency code during a rewards payout, according to multiple reports.

Fat Finger Error Causes Immediate Market Selloff

A staff member tried to distribute 2,000 Korean won worth less than $2 as a random box prize but entered BTC by mistake, according to Dumpster DAO core member Definalist, who first reported the incident on February 6.

The error triggered immediate sell pressure as recipients dumped the Bitcoin on the exchange.

Bitcoin's price on the Bithumb platform plummeted by 10% compared to other markets Phemex, with the asset briefly trading around $56,000 on Bithumb while maintaining levels above $66,000 on global exchanges.

Price Impact Contained To Single Exchange

The price crash was largely confined to Bithumb due to the exchange's isolated order book, with users selling massive amounts of BTC directly on the platform and overwhelming its liquidity.

Bitcoin's price on Bithumb has rebounded to above $66,000, up from a low of around $56,000 Crypto Briefing following the incident.

Bithumb Remains Silent On Recovery Plans

Bithumb has not publicly confirmed the details of the alleged transfer error or the exact amount of Bitcoin involved.

It also remains unclear whether the funds were successfully withdrawn, frozen, or reversed, or whether affected trades will be rolled back.

Also Read: Why Michael Saylor Says Acting Too Fast On Quantum Threats Could Destroy Bitcoin Instead Of Save It

Regulatory Scrutiny Intensifies Amid Operational Failures

The operational error comes at a sensitive time for Bithumb.

On February 4, the South Korean Fair Trade Commission sent investigators to Bithumb's headquarters to probe whether advertisements claiming the exchange has the highest level of liquidity in the domestic crypto exchange sector were potentially misleading or exaggerated.

Bithumb has a checkered history with security and operational issues.

In 2017, a data breach exposed customer information, and in a 2020 ruling, the exchange was found partially liable in one case in which a user lost $27,200

Read Next: Why The World's Biggest Stablecoin Issuer Just Invested $150M In Gold During A Market Crisis

Crypto markets are showing early signs of stabilization after one of the sharpest liquidation-driven drawdowns in recent months, but analysts say the selloff marks a deeper transition rather than a simple volatility spike, as Bitcoin (BTC) and Ethereum (ETH) increasingly trade as macro-sensitive risk assets. Bitcoin rebounded toward $67,000 after briefly slipping close to $60,000, while Ethereum clawed back ground near $1,900 following a steep decline that erased roughly 40% from its early-January highs.

The bounce followed a wave of forced deleveraging that wiped out $2.4 billion in leveraged positions in just 24 hours, placing the event among the largest liquidation episodes on record, according to CoinGlass data.

Market participants say the scale of the unwind suggests capitulation dynamics may be approaching exhaustion, even as risks tied to macroeconomic data and policy uncertainty remain elevated.

Leverage Reset Dominates Price Action

Much of the recent downside has been driven by leverage rather than a fundamental reassessment of crypto’s long-term prospects.

Ethereum, in particular, has borne the brunt of the adjustment, with derivatives positioning shrinking sharply as open interest fell to roughly 61% of end-December levels.

Jake Kennis, a research analyst at Nansen, said Ethereum’s decline below $2,000 reflects sustained selling pressure amplified by leverage unwinds and liquidity constraints.

He noted that when psychologically important levels break, larger holders and structured products can accelerate downside moves, pushing prices lower than fundamentals alone would suggest.

Ethereum is now trading roughly 60% below its all-time high reached just five months ago, while Bitcoin is hovering near long-term technical support levels not seen since before its 2023 breakout.

Kennis said markets are now watching closely for signs of a local bottom forming, particularly in Bitcoin, after the asset tested its 200-week exponential moving average.

Macro Forces Take the Lead

Analysts agree that the selloff is being driven less by crypto-specific stress and more by a broader risk-off environment.

Higher real rates, tighter liquidity, and renewed focus on Federal Reserve balance-sheet restraint have weighed on high-beta assets across markets.

According to Nexo Dispatch analyst Dessislava Ianeva, Bitcoin’s drawdown coincided with capital rotating into safer and more liquid assets such as U.S. Treasuries and cash.

Also Read: Why Michael Saylor Says Acting Too Fast On Quantum Threats Could Destroy Bitcoin Instead Of Save It

She noted that U.S. spot Bitcoin ETFs recorded $43.4 million in net outflows on February 5, reflecting short-term defensive positioning rather than a structural exit by institutions.

Despite the outflows, ETF holdings still account for about 6.3% of Bitcoin’s total market capitalization, suggesting that institutional exposure remains meaningful even as near-term flows fluctuate.

Ethereum and major altcoins have moved increasingly in lockstep with Bitcoin, with correlations across large-cap tokens rising well above 2025 averages.

Ianeva said this points to a macro- and liquidity-driven market, where individual narratives matter less than broader financial conditions.

Signs Of Stabilization Beneath The Surface

While prices remain volatile, some indicators suggest market structure may be improving.

Funding rates in Ethereum have turned marginally positive, open interest has stabilized, and derivatives positioning appears more orderly after the recent flush.

Bitcoin’s implied volatility has eased from recent peaks, even as uncertainty remains elevated.

Put-call ratios and funding rates are beginning to normalize, signaling that the most aggressive speculative positioning may already have been cleared.

Abra founder and CEO Bill Barhydt described the current environment as an “anti-everything trade,” driven by policy uncertainty, delayed crypto legislation, and a lack of government-provided liquidity.

However, he said the conditions now resemble one of the most oversold Bitcoin setups in years.

“We believe this is mostly played out at this point,” Barhydt said, adding that while a final capitulation move below $60,000 cannot be ruled out, “the bottom is likely in or very close to being in.”

From Cyclical Trade To Macro Asset

Analysts caution that any sustained recovery will likely depend on macro catalysts rather than technical rebounds alone.

Upcoming U.S. inflation data, labor market indicators, and central bank guidance are expected to shape risk appetite across asset classes in the coming weeks.

Read Next: Why The World's Biggest Stablecoin Issuer Just Invested $150M In Gold During A Market Crisis

Arbitrum (ARB) is trading at $0.12 with its relative strength index at 19.86 — deep in oversold territory — as analysts project a potential recovery to the $0.19-$0.25 range within the next four to six weeks.

What Happened: Oversold Token Draws Forecasts

Analyst Darius Baruo projected on Feb. 4 that ARB could reach $0.19-$0.25 in the medium term, with short-term targets of $0.14-$0.15. Separately, analyst Felix Pinkston suggested the token could see 56-75% gains, targeting the $0.25-$0.28 range despite current bearish momentum.

The token's technical indicators reinforce the case for a potential bounce.

The MACD histogram sits at neutral, suggesting bearish momentum may be fading, while Bollinger Bands analysis shows ARB hugging its lower band at $0.11, with the middle band at $0.17 as an initial recovery target.

Moving averages remain bearish across all timeframes. The 7-day simple moving average at $0.14 serves as immediate resistance, and the 200-day SMA at $0.33 indicates how far the token has fallen from longer-term trends.

A break below the critical $0.11 support level would undermine the recovery thesis and could push ARB toward $0.10.

Also Read: Analysts Eye $730 As BNB's Last Stand Before Mid-$600s

Why It Matters: Layer 2 Under Pressure

On-chain data from major analytics platforms shows Layer 2 scaling solutions like Arbitrum continue to post strong fundamental metrics despite the price decline, according to the report. That disconnect between network activity and token price is what underpins the bullish forecasts.

Still, the broader cryptocurrency market remains volatile. Risk factors include potential Bitcoin (BTC) weakness, regulatory concerns affecting Layer 2 solutions and technical issues within the Arbitrum network itself.

Read Next: Can U.S. Government Bail Out Falling Bitcoin? Bessent Says No

Bitget emerged as the sixth-largest centralized cryptocurrency exchange by trading volume at the close of 2025, capturing 6.4% of global market share with a 45.5% year-over-year growth rate, according to CoinGecko's latest Market Share of Centralized Crypto Exchanges report.

What Happened: Market Share Growth

The CoinGecko report ranks exchanges based on annual trading volume and market share within the centralized exchange landscape. Bitget's growth came as the platform expanded beyond cryptocurrency-native markets into multi-asset trading throughout 2025.

The exchange launched Bitget TradFi in beta, enabling users to trade commodities, indices, foreign exchange and metals alongside crypto derivatives. It also expanded tokenized stock futures, which gained traction during global earnings cycles.

Also Read: Bitcoin Price Holds Above $96K Amid Dollar Weakness

Why It Matters: Platform Diversification

Gracy Chen, CEO of Bitget, attributed the market share gains to security infrastructure and platform scalability. "The trust community has placed in us is attributed to the security we've built over the years," Chen said.

CoinGecko's analysis positions the growth within a broader industry trend toward platforms offering depth, flexibility and cross-asset trading capabilities.

The report suggests exchanges supporting convergence between crypto, macro assets and on-chain products are gaining market attention as trading activity spans multiple asset classes.

Read Next: Ethereum Price Tests Key Support As Analyst Eyes $2,300 Target

Ethereum (ETH) plunged below $2,000 for the first time since May to hit an eight-month low of $1,934 on Thursday, with analysts warning the second-largest cryptocurrency could slide further toward the $1,400-$1,500 range last seen in Apr. 2025 if it fails to reclaim key support levels.

What Happened: ETH Loses Support

The drop brought ETH below what multiple market observers have called a critical zone. Daan Crypto Trades noted that while "overall price action has been awful this cycle," the technical levels on Ethereum's chart "have been very clean."

"These horizontal areas are all you need to be watching for the Ethereum price, in my opinion," he wrote. "Break one, target the next."

He highlighted $1,800 as the next area of interest if ETH cannot reclaim $2,000-$2,100, calling it "the breakout level from before the large rally driven primarily by Tom Lee/Bitmine." Altcoin Sherpa echoed that view, describing Ethereum's position as a "do-or-die region" similar to Bitcoin (BTC), and said the chart "looks bleak" after the price lost the 200-Week Exponential Moving Average.

The selloff has hammered large-scale holders. BitMine, described as the second-largest crypto treasury in the world, saw unrealized losses balloon past $8 billion after ETH broke below $2,000, up from $6.6 billion earlier in the week. BitMine chairman Tom Lee said the company still views the pullback as "attractive, given the strengthening fundamentals," adding that "the price of ETH is not reflective of the high utility of ETH and its role as the future of finance."

Spot ETH exchange-traded funds bled nearly $80 million on Wednesday alone, with $68 million in total net outflows across the first three trading days of the week, while ETH liquidations hit $326.6 million over 24 hours — roughly $245.5 million of which came from long positions.

Also Read: Analysts Eye $730 As BNB's Last Stand Before Mid-$600s

Why It Matters: Key Levels Broken

ETH has now declined more than 60% from its cycle high over the past five months. The cryptocurrency had traded in a $2,100-$4,400 macro range for roughly two years, only breaking below the lower boundary during the current correction.

If the $2,000 level is not reclaimed soon, analysts say the next major support sits near $1,400-$1,500 — Apr. 2025 lows that would represent a further 25% decline from current prices. With institutional treasury losses mounting and ETF flows turning negative, the burden of proof now rests on buyers.

Read Next: Can U.S. Government Bail Out Falling Bitcoin? Bessent Says No

Cryptocurrency markets shed $2.65 billion in liquidations over the past 24 hours as a structural downturn that began in October erased $2.2 trillion in total market capitalization, though some analysts now see signs that forced selling may be approaching exhaustion.

What Happened: Record Liquidation Wave

CoinGlass data showed 586,053 traders were liquidated in a 24-hour period, with long positions accounting for more than $2.2 billion of the $2.65 billion total. The figures place the event near the threshold for the Top 10 Crypto Liquidation Events of All Time — the smallest entry on that list, recorded Jan. 31, totaled $2.56 billion.

Market analysis account The Kobeissi Letter attributed the selloff to weak liquidity, negative sentiment and cascading liquidation pressure rather than a single short-term catalyst.

Bitcoin (BTC) market depth currently sits at just 30% of its October peak, a condition the account compared to the post-FTX collapse environment in 2022.

Intraday Bitcoin price swings reached as much as $10,000 due to the reduced depth. A BeInCrypto report noted that panic selling pushed several crypto treasuries toward rising bankruptcy risk, with Bitcoin's drop to $60,000 moving MicroStrategy's holdings below cost basis.

Veteran technical analyst Peter Brandt suggested Bitcoin could find support near $42,000 based on the "Bitcoin Power Law" model. "If Bitcoin digs into the banana peel as deeply as in past bear market cycles, then the bulls should not need to suffer too far south of $42,000," Brandt wrote.

Also Read: Analysts Eye $730 As BNB's Last Stand Before Mid-$600s

Why It Matters: Capitulation Signal Emerging

Glassnode reported that Bitcoin's capitulation index recorded its second-largest spike in two years, a metric that tracks supply distribution across price levels and measures market stress to identify potential local bottoms. Large-scale liquidations reduce overall market leverage, a process that historically shifts activity from leveraged speculation toward spot accumulation.

"Bitcoin deleveraging may create a strong opportunity soon," economist Daniel Lacalle noted.

These stress events often coincide with rapid de-risking and heightened volatility as lower-conviction holders exit. The observations suggest a buying opportunity may be forming, though they offer little clarity on when a recovery might begin.

Read Next: Can U.S. Government Bail Out Falling Bitcoin? Bessent Says No

Ethereum (ETH) has seen its Coinbase Premium Index on a 30-day moving average fall to its lowest reading since Jul. 2022, signaling that U.S. institutional demand has weakened to levels last observed during the deepest stretch of the previous bear market as the asset tests the $2,100 support zone.

What Happened: Coinbase Premium Hits 2022 Low

The Coinbase Premium Index compares ETH pricing on Coinbase — widely regarded as a proxy for U.S. institutional activity — against global benchmarks such as Binance.

The 30-day moving average of that metric has now dropped into deeply negative territory not seen since the worst phase of the 2022 downturn.

Sustained negative readings indicate that American investors are either actively selling or staying out of the market relative to global participants. The last time this indicator reached comparable levels, crypto markets were in full capitulation mode.

From a technical perspective, ETH's breakdown below $2,300 accelerated bearish momentum. Short-term moving averages have crossed below medium-term lines, and price remains well under the long-term trend indicator.

If the $2,100 level fails, the next meaningful support sits near $1,800 to $1,900.

Also Read: Analysts Eye $730 As BNB's Last Stand Before Mid-$600s

Why It Matters: Institutional Retreat Deepens

The absence of U.S. institutional buying carries weight because American flows have historically played a central role in past crypto rallies. Without that demand, the probability of a sustained near-term recovery diminishes.

However, the signal is not entirely one-directional. Extreme negative premiums have historically appeared during capitulation phases, when aggressive sellers exhaust available supply and the market eventually stabilizes as selling pressure fades.

A normalization of the Coinbase Premium — or an eventual return to positive territory — would indicate renewed institutional participation. Until that shift occurs, rallies into the $2,400 to $2,600 range are more likely to function as relief bounces than genuine trend reversals.

Read Next: Can U.S. Government Bail Out Falling Bitcoin? Bessent Says No

Strategy, formerly MicroStrategy, saw its stock fall sharply after Bitcoin (BTC) slid over the weekend, with MSTR dropping faster than the underlying asset due to the company's debt-funded accumulation of more than 250,000 BTC — a position that makes it the largest corporate holder of the cryptocurrency.

What Happened: Strategy Stock Drops

The selloff followed a broader Bitcoin pullback that dragged MSTR lower at an amplified rate.

Strategy has used convertible notes and other financing instruments to build its Bitcoin treasury over time, meaning even a modest percentage decline in BTC can translate into steeper losses for shareholders who are exposed to both asset depreciation and leverage risk.

The company signaled during the downturn that it continues to acquire more Bitcoin.

Michael Saylor, Strategy's chairman, has publicly stated the company can keep purchasing Bitcoin for 100 years and will not face liquidation, framing the dip as a long-term buying opportunity.

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Why It Matters: Amplified Volatility

Strategy's structure functions as a leveraged bet on Bitcoin, which attracts traders seeking crypto exposure through a standard brokerage account but carries risk that exceeds holding BTC directly.

When Bitcoin falls by a few percent, MSTR tends to fall further because investors price in the company's debt obligations and concentrated position.

Public companies now hold a significant share of total Bitcoin supply, with Strategy dominating that group. The model amplifies outcomes in both directions — rallies can push the stock higher quickly, while rapid declines compound losses, making position sizing critical for investors who treat MSTR as a Bitcoin proxy rather than holding the asset itself.

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Dogecoin (DOGE) has fallen below the $0.10 threshold, with technical indicators suggesting the meme cryptocurrency could test lower support levels around $0.08 as bearish momentum intensifies.

What Happened: Price Decline

The token dropped beneath the $0.10 mark after failing to hold above $0.1120, matching broader declines seen across major cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH). DOGE briefly touched $0.080 before recovering slightly above $0.0840.

The price now trades below its 100-hour simple moving average. A bearish trend line has formed with resistance at $0.0950 on the hourly chart of the DOGE/USD pair, according to data from Kraken.

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Why It Matters: Technical Outlook

Any recovery attempt faces immediate resistance near $0.090, with the first major barrier at $0.0950. The 61.8% Fibonacci retracement level of the downward move from $0.1007 to $0.080 sits at $0.0985, representing a critical technical threshold.

A failure to reclaim $0.10 could push DOGE toward $0.0850 support, with the main support zone at $0.080. The hourly MACD indicator shows increasing bearish momentum, while the Relative Strength Index has dropped below 50, confirming selling pressure remains dominant in the near term.

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XRP (XRP) maintains positive social media sentiment even as investor mood around Bitcoin (BTC) and Ethereum (ETH) has deteriorated during recent market declines.

What Happened: Sentiment Divergence

Analytics firm Santiment reported on X that social media sentiment has diverged sharply among major cryptocurrencies during the latest downturn.

The firm's Positive/Negative Sentiment indicator, which measures the ratio of bullish to bearish comments across major social platforms using machine learning classification, shows XRP's ratio reached nearly 2.2 as of early February.

Bitcoin's sentiment ratio dropped to 0.79, indicating bearish dominance, while Ethereum recovered to a neutral 1.0. All three assets saw their sentiment ratios fall below 1 at the end of January as prices crashed, but only XRP has rebounded to notably positive territory.

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Why It Matters: Contrarian Signals

Digital asset markets have historically moved contrary to retail trader expectations. Extreme fear can precede price rebounds, while excessive optimism often marks market tops.

"There remains a strong argument for a short-term relief rally as long as the small trader crowd continues to show disbelief toward cryptocurrency as a whole," Santiment stated.

The firm's analysis suggests Bitcoin and Ethereum may be better positioned for recovery given their bearish sentiment readings. XRP's unusually positive sentiment during continued price declines could signal limited near-term upside potential, though the divergence makes broader market predictions uncertain.

At press time, XRP traded near $1.27 after declining over 30% in the previous week.

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Pantera Capital CEO Dan Morehead predicted at Ondo's conference that a "global arms race" for Bitcoin (BTC) could begin within three years as countries adopt new reserve strategies amid shifting geopolitical alliances.

What Happened: Sovereign Bitcoin Competition

Morehead told conference attendees he expects three or four regional blocs to each attempt acquiring 1 million Bitcoin within two or three years. "Countries like the United States are establishing strategic Bitcoin reserves," Morehead said. "Countries that are aligned with us like the UAE are acquiring cryptocurrencies, Bitcoin."

He argued the larger shift would come when adversarial blocs decide it's strategically reckless to warehouse national savings in assets seen as vulnerable to U.S. pressure.

"The big one though is… countries that are antagonistic to the United States will realize like China, super crazy to have a thousand years of your life savings stored in an asset that Scott Bessent can't cancel," Morehead said. "That is crazy. It's way smarter to buy Bitcoin."

The Pantera Capital chief executive called his sovereign competition thesis his "one very out of consensus view."

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Why It Matters: Long-term Structural Demand

Morehead maintained his bullish long-term outlook despite 2025 market weakness, which saw crypto fall 9% despite what he described as favorable policy conditions. He said the pattern fits crypto's established hype cycles rather than representing a broken narrative.

The Pantera chief pointed to the firm's projection that Bitcoin would reach $117,452 on Aug. 11, 2025, which he said occurred "literally that day."

He attributed recent demand to publicly listed ETFs and digital treasury companies that "collectively bought over a hundred billion of crypto."

Morehead argued monetary debasement at 3% annually makes fixed-supply assets structurally attractive, adding that "in 10 years from now, Bitcoin will massively outperform gold." He said institutional skepticism remains bullish because "the median holding for institutional investors is literally 0.0."

Bitcoin (BTC) plunged below $64,000 on Thursday during a brutal selloff that erased post-election gains. The cryptocurrency hit a session low of $63,149, down 5.55% over 24 hours.

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