Cointelegraph

Ether (ETH) traded back above $2,000 on Friday, and its gains extended after the US Consumer Price Index (CPI) print came in cooler than expected.

The recovery put ETH/USD on track for its first bullish weekly candle close since mid-January, fueling speculation for a rally toward $2,500. 

Key takeaways:

Ethereum futures’ open interest fell by 80 million ETH in 30 days, and funding rates hit three-year lows, indicating a weakening bearish trend.

ETH price has established strong support around $2,000, a level that must hold to secure the recovery. 

ETH/USD hourly chart. Source: Cointelegraph/TradingView

Ethereum open interest falls by 80 million ETH

CryptoQuant data shows Solana’s futures open interest (OI) across all major exchanges has dropped by over 80 million ETH in the past 30 days. 

Binance, the world’s largest cryptocurrency exchange by trading volume, recorded the largest decline of about 40 million ETH (50%) over the last 30 days. 

Related: ETH ETF holders in ‘worse position’ than BTC ETF peers as crypto market looks for bottom

Ether’s OI on Gate exchange fell by more than 20 million ETH (25%), while Bybit and OKX saw declines of 8.5 million ETH and 6.8 million ETH, respectively. Cumulatively, the four major platforms saw a total decline of approximately 75 million ETH, while other platforms accounted for the remaining 5 million ETH, confirming that the phenomenon is widespread and not limited to a single exchange.

This suggests that leverage traders are “reducing their exposure rather than opening new positions,” CryptoQuant analyst Arab Chain said in a Quicktake analysis.

This significant drop in OI amid dropping prices can be “viewed as a clean-up of weaker positions, thereby reducing the likelihood of sharp forced liquidations later on,” the analyst said, adding:

“This environment may pave the way for a period of relative stability or the formation of a more solid price base for Ethereum in the near future.”

ETH open interest 30-day change. Source: CryptoQuant

Ethereum futures funding rates on Binance have plunged deep into negative territory at -0.006, marking the lowest value recorded since early December 2022. 

“It indicates that the bearish sentiment has reached an extreme peak not seen in the last three years,” CryptoQuant contributor CryptoOnchain said in a Thursday Quicktake analysis.

Historically, extreme negative funding rates at major price support levels often precede a short squeeze. 

“When the crowd is this convinced that prices will fall further, the market tends to move in the opposite direction to liquidate late bears,” the analyst said, adding:

“Current data suggests we may be witnessing a classic capitulation event, mirroring the bottom formation of late 2022, potentially setting the stage for a sharp recovery.”

Ethereum futures finding rates. Source: CryptoQuant

As Cointelegraph reported, Ethereum’s surging network activity and rising institutional investor inflows are significant tailwinds for any short-term ETH price gains.

ETH price technicals: Bulls must keep Ether above $2,000

The ETH/USD pair broke out of a falling wedge on the four-hour chart, to trade at $2,050 at the time of writing. 

The measured target of the falling wedge, calculated by adding the wedge's maximum height to the breakout point at $1,950, is $2,150.

Higher than that, the price could rise to retest the 100-period simple moving average (SMA) at $2,260 and later toward $2,500.

ETH/USD four-hour chart. Source: Cointelegraph/TradingView

On the downside, a key area to hold is the $2,000 psychological level, embraced by the 50-period SMA, as shown in the chart below.

The Glassnode cost basis distribution heatmap reveals a significant support area recently established between $1,880 and $1,900, where investors acquired approximately 1.3 million ETH.

ETH cost basis distribution heatmap. Source: Glassnode

As Cointelegraph reported, Ethereum accumulation addresses witnessed a surge in daily inflows as ETH dropped below $2,000 last week, signalling strong investor confidence in its long-term potential.

Key points:

Bitcoin is attempting a comeback, which is expected to face stiff resistance at the breakdown level of $74,508.

Several major altcoins are attempting a recovery, signaling that lower levels are attracting buyers.

Bitcoin (BTC) has risen above $68,500, as buyers attempt to form a higher low near $65,000. According to Glassnode, BTC is stuck between the true market mean at $79,200 and the realized price near $55,000. The on-chain data provider expects the range-bound action to continue until a major catalyst either pushes the price above or below the range.

Standard Chartered also had a muted forecast for BTC. It lowered BTC’s target to $100,000 from $150,000 for 2026. The bank expects BTC to fall to $50,000 over the next few months, followed by a recovery for the remainder of the year.

Crypto market data daily view. Source: TradingView

Several analysts also believe that BTC has not yet bottomed out. Crypto analyst Tony Research said in a post on X that BTC will bottom in the $40,000 to $50,000 zone, possibly “between mid-September and late November 2026.”

Could BTC and the major altcoins start a recovery? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC turned up from $65,118 on Thursday, indicating demand at lower levels. The bulls will try to push the price to the breakdown level of $74,508.

BTC/USDT daily chart. Source: Cointelegraph/TradingView

If the Bitcoin price turns down sharply from the $74,508 level, it suggests that the bears remain active at higher levels. That may keep the BTC/USDT pair between $74,508 and $60,000 for a few days. On the downside, a break below the $60,000 support may sink the pair to $52,500.

Alternatively, if buyers thrust the price above $74,508, it suggests that the selling pressure is reducing. The pair may then rally to the 50-day simple moving average ($85,046).

Ether price prediction

Buyers are attempting to push and maintain Ether (ETH) above the $2,000 level, but the bears have kept up the pressure.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

If the price turns down from the current level or the $2,111 resistance, it suggests that the bears are aggressively defending the level. The Ether price may then retest the critical support at $1,750. If the level cracks, the ETH/USDT pair may extend the decline to the next major support at $1,537.

On the upside, buyers will have to swiftly push the price above the 20-day EMA ($2,297) to signal a comeback. If they manage to do that, the pair might ascend to the 50-day SMA ($2,800).

BNB price prediction

BNB (BNB) continues to gradually slide toward the strong support at $570, which is a vital level to watch out for.

BNB/USDT daily chart. Source: Cointelegraph/TradingView

If the BNB price plunges below the $570 support, it signals the start of the next leg of the downtrend toward the psychological level of $500. 

However, the RSI is in the oversold territory, indicating that a relief rally is possible in the near term. If the price turns up from the current level, the bulls will attempt to push the BNB/USDT pair above the $669 level. If they can pull it off, the pair may march toward the 20-day EMA ($710).

XRP price prediction

XRP (XRP) has been clinging to the support line of the descending channel pattern, increasing the risk of a breakdown.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

If that happens, the XRP price may drop to the $1.11 level. This is a critical level for the bulls to defend, as a break below it may resume the downtrend. The XRP/USDT pair may then fall to $1 and subsequently to $0.75.

Contrarily, if the price turns up from the current level and breaks above the20-day EMA ($1.55), it suggests that the pair may remain inside the channel for some more time. Buyers will have to achieve a close above the downtrend line to signal a potential trend change.

Solana price prediction

Solana (SOL) is trying to find support at the $77 level, but the bears are likely to sell on rallies.

SOL/USDT daily chart. Source: Cointelegraph/TradingView

The SOL/USDT pair might reach the breakdown level of $95, where the bears are expected to pose a strong challenge. If the price turns down sharply from the $95 level, it suggests that the bears have flipped the level into resistance. The Solana price may then plummet to the $67 level.

Conversely, if buyers push the price above the $95 level, the pair may rally to the 50-day SMA ($119). That suggests the break below the $95 level may have been a bear trap.

Dogecoin price prediction

Dogecoin (DOGE) is attempting to bounce off the $0.09 level, but the bears continue to sell on minor rallies.

DOGE/USDT daily chart. Source: Cointelegraph/TradingView

If the Dogecoin price turns down and breaks below $0.09, the DOGE/USDT pair might drop to the $0.08 level. This is a crucial level for the bulls to defend, as a break below it may extend the downtrend to $0.06.

The first sign of strength will be a break and close above the 20-day EMA ($0.10). The pair may then rally to the breakdown level of $0.12, which is likely to act as stiff resistance. A break above the $0.12 level opens the doors for a rally to $0.16.

Bitcoin Cash price prediction

Bitcoin Cash (BCH) broke below the $497 support on Thursday, but the bulls failed to sustain the lower levels.

BCH/USDT daily chart. Source: Cointelegraph/TradingView

The bulls are attempting to push the price above the 20-day EMA ($536) but are expected to face significant resistance from the bears. If the price turns down from the 20-day EMA and breaks below $493, the BCH/USDT pair may plunge toward the $443 level.

On the contrary, if the price breaks and closes above the 20-day EMA, it suggests demand at lower levels. The Bitcoin Cash price may then rally to the 50-day SMA ($581), where the bears are again expected to mount a strong defense.

Hyperliquid price prediction

Hyperliquid (HYPE) has risen back above the 20-day EMA ($30.18) on Thursday, indicating buying on dips.

HYPE/USDT daily chart. Source: Cointelegraph/TradingView

The flattish 20-day EMA and the RSI just above the midpoint suggest a balance between supply and demand. Buyers will have to propel the Hyperliquid price above the $35.50 level to indicate that the corrective phase may have ended. The HYPE/USDT pair may then ascend to $44.

Contrary to this assumption, if the price turns down and breaks below the 50-day SMA ($27.25), it signals that the bears have an edge. The pair may then slump to the $20.82 support.

Cardano price prediction

Cardano (ADA) remains inside the descending channel pattern, indicating that the bears remain in charge.

ADA/USDT daily chart. Source: Cointelegraph/TradingView

The bears will attempt to strengthen their position by pulling the price below the support line and the $0.22 level. If they manage to do that, the ADA/USDT pair may descend to $0.20 and later to $0.15.

Instead, if the Cardano price turns up from the current level and breaks above the 20-day EMA ($0.29), it signals that the pair may remain inside the channel for some more time. Buyers will seize control on a close above the channel.

Monero price prediction

Monero (XMR) is facing resistance at the breakdown level of $360, but the bulls have not ceded much ground to the bears.

XMR/USDT daily chart. Source: Cointelegraph/TradingView

That increases the likelihood of a break above $360. If that happens, the bears will again try to halt the recovery at the 20-day EMA ($385). However, buyers are likely to have other plans. They will try to pierce the 20-day EMA, clearing the path for a rally toward the 50-day SMA ($460).

This positive view will be negated in the near term if the Monero price continues lower and breaks below $309. The XMR/USDT pair may then plummet to $276, which is likely to attract buyers.

The Netherlands’ House of Representatives advanced a legislative proposal on Thursday to introduce a 36% capital gains tax on savings and most liquid investments, including cryptocurrencies.

The legislation reached the 75-vote threshold required to advance, with 93 lawmakers voting in favor of it, according to the House tally.

Under the proposal, savings accounts, cryptocurrencies, most equity investments and gains made from interest-bearing financial instruments are subject to the tax, whether or not the assets are sold.

The vote tally for the 36% capital gains tax bill. Source: Dutch House of Representatives

Critics say the bill will drive capital out of the Netherlands and into jurisdictions with more favorable tax laws, as investors seek a flight to safety from confiscatory taxation.

The Dutch Senate must also pass the bill before it is signed into law, which will take effect in the 2028 tax year, if it is passed, but many investors in the crypto community are already sounding the alarm and predicting capital flight from the country.

Related: European Commission calls on 12 countries to implement crypto tax rules

Investors say the tax is out of touch and will backfire

“France did this in 1997 and saw a massive exodus of entrepreneurs leaving the country,” Denis Payre, co-founder of logistics company Kiala said.

Crypto market analyst Michaël van de Poppe said the proposal is “the dumbest thing I've seen in a long time.”

“The number of people willing to flee the country is going to be bananas,” he added, echoing the calls of other industry analysts and executives.

An investor starting with 10,000 euros ($11,871) who contributes 1,000 euros per month over 40 years would end up with about 3,320,000 euros by the end of the 40 years, according to Investing Visuals.

However, the new 36% tax reduces the total amount after 40 years to about 1,885,000 euros, a difference of 1,435,000 euros, Investing Visuals said. 

A comparison of an investment compounded over 40 years without the 36% unrealized gains tax and with the tax. Source: Investing Visuals

Crypto industry and tech executives in the United States voiced similar concerns about California’s proposed wealth tax on billionaires.

The proposal outlined a 5% tax on an individual’s net worth above the $1 billion threshold, igniting a torrent of backlash and tech entrepreneurs announcing that they were leaving the state of California.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

Bitcoin (BTC) was once pitched as digital gold — a hedge against monetary instability and market turmoil. But recent price action tells a different story.

As institutional participation has grown, particularly through exchange-traded funds and other traditional vehicles, Bitcoin has increasingly traded in lockstep with risk assets. The latest downturn in software stocks, fueled by renewed uncertainty around AI’s impact on the sector, has been mirrored in crypto markets, raising fresh questions about Bitcoin’s evolving identity.

That changing dynamic sets the tone for this week’s Crypto Biz. New research from Grayscale examines Bitcoin’s growing correlation with growth equities, while one Ether (ETH) treasury company is doubling down despite multibillion-dollar paper losses. Elsewhere, BlackRock is expanding its tokenization push through a Uniswap integration, and Polymarket is taking its fight over state regulation to federal court.

Grayscale: Bitcoin is trading like a growth asset, not digital gold

New research from Grayscale suggests that Bitcoin’s store-of-value narrative has recently taken a back seat, with the digital asset behaving more like a growth stock.

In the report, author Zach Pandl said that while Grayscale continues to view Bitcoin as a long-term store of value due to its fixed supply and independence from central banks, its short-term trading patterns resemble those of high-growth equities.

The analysis found a strong correlation between Bitcoin and software stocks over the past two years. That relationship has become more apparent as software companies face renewed selling pressure amid concerns that artificial intelligence could disrupt parts of the industry.

Against that backdrop, Bitcoin’s recent pullback appears less surprising, as its price has closely tracked the software sector’s movements.

Bitcoin’s recent price performance tracks closely with software stocks. Source: Grayscale

BitMine adds 40,613 ETH during market sell-off

Ether treasury company BitMine Immersion Technologies added 40,613 ETH to its holdings during the recent market sell-off, reinforcing its long-term bet on Ether even as prices plunge and paper losses reach billions of dollars. 

The purchase raised BitMine’s total Ether stash to more than 4.326 million ETH, worth about $8.8 billion at current levels. According to DropsTab data, the company is now sitting on around $8.1 billion in unrealized losses on its ETH position, reflecting a significant gap between its cost basis and today’s market price.

Despite investor criticism and pressure on its stock price, which has fallen sharply over recent months, BitMine chairman Tom Lee said the company’s strategy is designed to track Ether’s long-term trajectory and benefit from future recoveries. The company’s broader crypto and cash portfolio is valued at roughly $10 billion.

BitMine’s paper losses now exceed $8.1 billion. Source: DropStab

BlackRock buys UNI, brings BUIDL to Uniswap

BlackRock is deepening its push into decentralized finance by listing its tokenized money market fund on Uniswap, a significant step for institutional DeFi adoption.

The asset manager’s USD Institutional Digital Liquidity Fund (BUIDL) is now available on the decentralized exchange, giving whitelisted institutional investors the ability to trade the tokenized Treasury product onchain. As part of the move, BlackRock is also purchasing Uniswap’s governance token, UNI.

BUIDL is the largest tokenized money market fund, with more than $2.1 billion in assets. The fund is issued across multiple blockchains, including Ethereum, Solana and Avalanche. In December, it surpassed $100 million in cumulative distributions generated from its US Treasury holdings.

BlackRock’s BUIDL has more than $2.1 billion in assets. Source: RWA.xyz

Polymarket sues Massachusetts over state regulation of prediction markets

Decentralized prediction market Polymarket has filed a federal lawsuit against the state of Massachusetts, challenging state authorities’ efforts to restrict or shut down its event-based trading products. 

Polymarket’s chief legal officer, Neal Kumar, confirmed the filing on Monday, saying unresolved legal questions around jurisdiction should be settled at the federal level rather than through state enforcement. The lawsuit is preemptive, aimed at blocking any action by Massachusetts Attorney General Andrea Campbell that Polymarket contends would unlawfully interfere with federally regulated markets.

The company argues that the Commodity Futures Trading Commission (CFTC), not individual states, has exclusive authority over event contracts like those offered on its platform, and that state actions risk fragmenting national markets.

Source: Neal Kumar

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Bitcoin (BTC) rallied to $69,482 on Friday, and the rally coincided with data showing steady accumulation from smaller-sized holders in February.

Analysts say the breakout may evolve into a broader bullish trend, although other data suggest that a longer period of price consolidation will underlie the emerging bull trend.

Key takeaways:

BTC broke above the $69,000 resistance and its descending channel, triggering $92 million in short liquidations within four hours.

Small wallets added $613 million in February, while the whale wallets stalled with $4.5B billion in outflows.

Short-term holder profit-ratio indicator hit its lowest level since November 2022, underscoring weak sentiment over the past few weeks. 

Will the Bitcoin relief rally last?

Bitcoin has pushed above the upper boundary of its descending channel and retested $69,000. The move marks a potential bullish break of structure (BOS), if BTC holds above $68,000.

Bitcoin one-hour chart. Source: Cointelegraph/TradingView

If BTC holds above this reclaimed level, the next internal liquidity zones sit near $71,500 and $74,000. The 50 and 100-period exponential moving averages (EMAs) are now compressing beneath the price on the one-hour chart, reinforcing the possibility of the short-term momentum continuing.

The latest price surge triggered roughly $96 million in futures liquidations over the past four hours, with nearly $92 million coming from short positions, signaling a short squeeze on bearish traders.

BTC liquidations were primarily concentrated on Bybit (22.5%), Hyperliquid (22%), and Gate (15%), suggesting these platforms account for a significant share of active leveraged positioning in the market.

Related: Multi-day negative Bitcoin funding signals ‘overcrowded’ short trade: Reversal coming?

BTC retail investor demand backs the breakout

The breakout is supported by the steady buying from the smaller-sized investors. Order flow data from Hyblock shows that the small wallets ($0–$10,000) have accumulated roughly $613 million in cumulative volume delta (CVD) in February, consistently bidding during the price correction.

The mid-sized wallets ($10,000–$100,000) remain around -$216 million for the month, but the cohort added roughly $300 million since BTC fell below $60,000, suggesting selective accumulation during discounted periods.

Bitcoin CVD data across different wallet sizes. Source: Hyblock Capital

Whale wallets ($100,000 and above) saw their CVD bottom near -$5.8 billion earlier in February and have since moved sideways. This stabilization implies that the aggressive distribution has paused, though a clear accumulation trend from the large holders has yet to emerge.

For the rally to continue, whale buying may need to return, and the short-term holder spent output profit ratio (SOPR) may need to move back above 1, signaling that the recent buyers are no longer selling at a loss.

Notably, the short-term holder SOPR recently fell to its lowest level since November 2022, indicating that many recent buyers have been realizing losses, a sign that conviction may remain fragile despite the rebound.

Bitcoin short-term holder SOPR. Source: CryptoQuant

Related: Bitcoin passes $69K on slower US CPI print, but Fed rate-cut odds stay low

BlackRock made its first formal move into decentralized finance this week, listing its tokenized Treasury fund on Uniswap, with Bitcoin and Ether staging only modest rebounds amid heavy ETF outflows.

Bitcoin (BTC) and Ether (ETH) each rose about 2.5% during the past week but were unable to cross key psychological levels due to mixed exchange-traded fund (ETF) flows and crypto investor sentiment sinking to record lows.

Bitcoin ETFs started the week with two consecutive days of inflows, but they quickly reversed with $276 million in outflows on Wednesday and $410 million on Thursday.

Ether ETFs saw similar flows, with two modest days of inflows, followed by $129 million in outflows on Wednesday and $113 million on Thursday, according to Farside Investors data.

In a silver lining to the correction, Bitcoin’s sharp drawdown to $59,930 may have marked a critical “halfway point” in the current bear market, as markets are now sitting at a critical inflection point that will determine the relevance of the four-year cycle theory, according to Kaiko Research.

Despite sliding crypto valuations, large institutions continue exploring cryptocurrency adoption, including the world’s largest asset manager, BlackRock, which announced its first foray into decentralized finance (DeFi) on Wednesday.

Bitcoin ETF inflows, in USD million. Source: Farside Investors

BlackRock enters DeFi, taps Uniswap for institutional token trading

Asset management giant BlackRock is making its first formal move into decentralized finance by bringing its tokenized US Treasury fund to Uniswap, marking a milestone moment for institutional adoption of DeFi.

According to a Wednesday announcement, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) will be listed on the Uniswap decentralized exchange, allowing institutional investors to buy and sell the tokenized security. 

As part of the arrangement, BlackRock is also purchasing an undisclosed amount of Uniswap’s native governance token, UNI, the announcement said.

The collaboration is being facilitated by tokenization company Securitize, which partnered with the world’s biggest asset manager on the launch of BUIDL.

According to Fortune, trading will initially be limited to a select group of eligible institutional investors and market makers before expanding more broadly.

“For the first time, institutions and whitelisted investors can access technology from a leader in the decentralized finance space to trade tokenized real-world assets like BUIDL with self-custody,” said Securitize CEO Carlos Domingo.

Source: Securitize

BUIDL is the biggest tokenized money market fund, with more than $2.18 billion in total assets, according to data compiled by RWA.xyz. The fund is issued across multiple blockchains, including Ethereum, Solana, BNB Chain, Aptos and Avalanche. 

In December, BUIDL reached a key milestone, surpassing $100 million in cumulative distributions from its Treasury holdings.

BlackRock’s BUIDL metrics. Source: RWA.xyz

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Trump family’s WLFI plans FX and remittance platform: Report

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform backed by the family of US President Donald Trump, announced on Thursday that it will launch foreign currency exchange (FX) and remittance services for its users.

The planned foreign exchange and remittance platform, called World Swap, seeks to challenge traditional remittance and FX service providers with lower fees and a simplified user interface, according to Reuters.

Daily global FX trading volume surpassed $9.6 trillion in April 2025, according to a report from the Bank for International Settlements (BIS), and the personal remittances market topped $892 billion in annual volume in 2024, according to data from the World Bank.

Annual remittances volume from 1970 to 2024. Source: World Bank

No exact timeline was given for the rollout. Cointelegraph reached out to World Liberty Financial but did not receive a response by the time of publication.

The expansion into FX and remittances follows WLFI's application for a national trust bank charter in January and the launch of World Liberty Markets, a lending platform, as WLFI continues to grow while attracting scrutiny from Democratic lawmakers in the US.

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Uniswap scores early win as US judge dismisses Bancor patent suit

A New York federal judge dismissed a patent infringement lawsuit brought by Bancor-affiliated entities against Uniswap, ruling that the asserted patents claim abstract ideas and are not eligible for protection under US patent law.

In a memorandum opinion and order on Tuesday, Judge John G. Koeltl of the US District Court for the Southern District of New York granted the defendant’s motion to dismiss the complaint filed by Bprotocol Foundation and LocalCoin Ltd. against Universal Navigation Inc. and the Uniswap Foundation. 

The court found that the patents are directed to the abstract idea of calculating crypto exchange rates and therefore fail the two-step test for patent eligibility established by the US Supreme Court. 

The ruling marks a procedural win for Uniswap, but it is not final. The case was dismissed without prejudice, giving the plaintiffs 21 days to file an amended complaint. If no amended complaint is filed, the dismissal will convert to one with prejudice.

Shortly after the ruling, Uniswap founder Hayden Adams wrote on X, “A lawyer just told me we won.”

“Uniswap Labs has always been proud to build in public — it’s a core value of DeFi,” a Uniswap Labs spokesperson told Cointelegraph. “We’re pleased that the court recognized that this lawsuit was meritless.”

Source: Hayden Adams

Cointelegraph reached out to representatives of Bprotocol Foundation for comment but had not received a response by publication.

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Binance completes $1 billion Bitcoin conversion for SAFU emergency fund

Binance completed the $1 billion Bitcoin conversion for its emergency fund, committing to holding Bitcoin as its core reserve asset.

Binance purchased another $304 million worth of Bitcoin (BTC) on Thursday, completing the conversion of $1 billion in Bitcoin for its Secure Asset Fund for Users (SAFU) wallet, according to Arkham data.

The fund now holds 15,000 Bitcoin, worth over $1 billion, acquired at an average aggregate cost basis of $67,000 per coin, Binance said in a Thursday X post.

 “With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset.”

The last tranche of BTC came three days after Binance’s previous $300 million acquisition on Monday.

Binance SAFU Fund wallet. Source: Arkham

The exchange first announced it would convert its $1 billion user protection fund into Bitcoin on Jan. 30, initially pledging a 30-day window for the acquisitions, which were completed in less than two weeks.

The exchange said it would rebalance the fund if volatility pushes its value below $800 million.

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Vitalik draws line between “real DeFi” and centralized yield stablecoins

Ethereum co-founder Vitalik Buterin drew a clear boundary around what he considers “real” decentralized finance (DeFi), pushing back against yield-driven stablecoin strategies that he says fail to meaningfully transform risk. 

In a discussion on X, Buterin said that DeFi derives its value from changing how risk is allocated and managed, not simply from generating yield on centralized assets. 

Buterin’s comments come amid renewed scrutiny over DeFi’s dominant use cases, particularly in lending markets built around fiat-backed stablecoins like USDC (USDC). 

While he did not name specific protocols, Buterin took aim at what he described as “USDC yield” products, saying they depend heavily on centralized issuers while offering little reduction in issuer or counterparty risk.

Source: Vitalik Buterin

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.

The Pippin (PIPPIN) token rose 195% as the week’s biggest gainer in the top 100, followed by the Humanity Protocol (H) token, up 57% during the past week.

Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

Anchorage Digital has partnered with Kamino and Solana Company to roll out a structure that allows institutions to borrow against staked Solana without moving assets out of regulated custody, potentially addressing a key friction between traditional finance and decentralized lending markets.

In a Friday announcement, Anchorage said the initiative expands its Atlas collateral management platform by integrating with Kamino, a Solana-based decentralized lending protocol.

The effort is being carried out in collaboration with Solana Company, a publicly traded Solana (SOL) treasury created in partnership with Pantera Capital and Summer Capital. 

Under the structure, institutions can use natively staked SOL as collateral for onchain borrowing while the assets remain held at Anchorage Digital Bank, a federally chartered crypto bank. That means investors can continue earning staking rewards while accessing liquidity through Kamino’s lending markets.

Anchorage acts as collateral manager, overseeing loan-to-value ratios, margin requirements and, if necessary, liquidations. Because the collateral remains in segregated custody, institutions do not need to move assets into smart contracts, a requirement that has historically limited participation by regulated entities.

Solana Company is the second-largest SOL-based digital asset treasury, holding 2.3 million SOL. Source: CoinGecko

Related: Solana treasuries sitting on over $1.5B in paper SOL losses

DeFi legislation hangs in the balance

The integration between Anchorage Digital, Kamino and Solana Company underscores growing institutional interest in decentralized finance. However, that momentum is unfolding against an uncertain regulatory backdrop in the United States, where lawmakers are still debating how to oversee digital assets and DeFi platforms.

At the center of the debate is the proposed CLARITY Act, which aims to establish clearer jurisdictional boundaries and regulatory standards for digital assets, including DeFi protocols. 

While the bill is intended to reduce uncertainty for market participants, some DeFi advocates argue that it falls short of addressing how decentralized protocols, developers and governance structures should be treated under the law.

Source: Yahoo Finance

Industry groups have raised concerns that earlier draft language, including amendments introduced in January, does not sufficiently distinguish between centralized intermediaries and decentralized systems.

Amid the deadlock over the CLARITY Act’s future, the Trump administration convened a meeting with industry representatives earlier this month to break the impasse and gather feedback on outstanding provisions related to DeFi oversight and market structure.

Related: Who gets the yield? CLARITY Act becomes fight over onchain dollars

Bitcoin (BTC) charged above $69,000 on Friday as US CPI data showed cooling inflation, leading traders to hope for a short-term BTC price recovery.

Key takeaways:

Traders favor a short-term BTC price relief rally, but bulls must first take out the resistance at $68,000 to $70,000. 

Bitcoin market analysis forecasts a short squeeze toward $80,000 if bulls succeed in confirming the $65,000 level as support.

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

Bitcoin price must take out resistance at $68,000

Bitcoin attempted a breakout on Thursday but “got slammed back down at the $68K level,” said analyst Daan Crypto Trades in a Friday post on X, adding:

“That's the area to watch if BTC wants to see another leg up at some point.”

An accompanying chart showed the BTC/USD pair consolidating within a falling wedge in the one-hour time frame. 

Related: Bitcoin ETFs bleed $410M as Standard Chartered slashes BTC target

The pattern projected a short-term rally to $72,000 once the price breaks above the wedge’s upper trendline at $68,000.

BTC/USD 1-hour chart. Source: Daan Crypto Trades

Fellow Ted Pillows said that the “chances of a deeper correction would increase” if the $65,000-$66,000 support does not hold.

 “To the upside, if Bitcoin reclaims the $70,000 level, it could rally 8%-10% really quickly.”

BTC/USD two-day chart. Source: Ted Pillows

From a technical perspective, BTC’s price action has been forming a V-shaped recovery chart pattern on the four-hour chart, as shown below.

The BTC/USD pair is retesting a key area of resistance defined by the 20-period EMA at $67,500 and the 200-week exponential moving average (EMA) at $68,000. 

Bulls need to push the price above this level to increase the chance of a rally to the pattern’s neckline at $72,000.

BTC/USD four-hour chart. Source: Cointelegraph/TradingView

As Cointelegraph reported, if Bitcoin breaks $72,000, it will revive the hopes of a recovery toward the 20-day EMA at $76,000 and eventually, the 50-day simple moving average above $85,000, bringing the total gains to 26%.

Liquidation risk builds near $80,000

Exchange order-book liquidity data from CoinGlass showed Bitcoin’s price pinned below two walls of asks centered just below $75,000 and around $80,000.

“$BTC liquidations are stacking well above $72K, and around the area from $77K to $80K,” Bitcoin analyst ZordXBT said in his latest post on X.

Below the spot price, bid orders were lying down to $64,500, “where I have my limit orders placed,” the analyst said, adding:

“If the market holds itself here, it can very easily eat those liquidity bubbles.” 

Bitcoin liquidation heatmap. Source: CoinGlass

The chart above suggests that if the $72,000-$75,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $80,000, which is the next major liquidity cluster.

Zooming in, Ted Pillows highlighted significant bid clusters at $65,000 and ask orders around $68,000, saying that the price is likely to revisit these areas to wipe out the liquidity.

“I think a revisit of $65,000 and a pump to $68,000 will both happen soon.”

Bitcoin exchange liquidation map. Source: CoinGlass

Passing the CLARITY crypto structure bill could improve market sentiment amid the ongoing downturn, according to United States Treasury Secretary Scott Bessent.

The stalling of the CLARITY bill over concerns voiced by crypto industry executives has negatively impacted the industry, Bessent told CNBC on Friday. He said:

“In a time when we are having one of these historically volatile sell-offs, I think some clarity on the CLARITY bill would give great comfort to the market, and we could move forward from there. 

I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” Bessent continued.

Bessent discusses the importance of passing the CLARITY crypto market structure bill ahead of the 2026 US midterm elections. Source: CNBC

He said that getting the bill passed “as soon as possible” and sent to US President Donald Trump for signature by spring, which occurs between late March and late June in the US, is important, given the potential shift in the balance of power in the 2026 midterm elections. 

Related: White House officials met with crypto, banking reps to discuss stablecoins

The 2026 midterm elections could throw a wrench in Trump’s crypto agenda

The balance of power typically shifts in US midterm election years, Joe Doll, the former general counsel at non-fungible token (NFT) marketplace Magic Eden, told Cointelegraph.

“President Trump has a two-year unimpeded mandate that can be weakened greatly in the 2026 mid-term elections and reversed in the 2028 elections,” economist Ray Dalio said in January.

This potential political shift could reverse the Trump administration’s pro-crypto policies, if they are not codified into law, Dalio warned.

The Republican Party holds a slim four-seat majority in the US House of Representatives, with 218 seats compared to 214 seats held by the Democratic Party, according to data from the US House.

Polymarket 2026 US midterm election odds. Source: Polymarket

47% of traders on the prediction market Polymarket project that power will be split in the 2026 midterms, with each political party taking control of one chamber of Congress.

The Polymarket odds of a full sweep by the Democratic Party, meaning they claim a majority in both chambers, is 37% at the time of this writing.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Bitcoin (BTC) is approaching “undervalued” territory for the first time in three years as a classic indicator nears its inflection point.

Key points:

Bitcoin has not been so “undervalued” versus its market cap since March 2023, research shows.

The MVRV ratio is approaching its key breakeven level for the first time in over three years.

MVRV analysis sees Bitcoin in the process of reversing its downtrend.

Bitcoin value metric echoes $20,000 price

Research from onchain analytics platform CryptoQuant released on Friday reveals key developments on Bitcoin’s market value to realized value (MVRV) ratio metric.

A classic BTC price gauge, the MVRV ratio compares Bitcoin’s market cap to the price at which the supply last moved, also known as its “realized cap.”

Values below 1 imply that the supply is undervalued at current prices. Last week, as BTC/USD dropped below $60,000, MVRV hit 1.13 — its lowest reading since March 2023, when it traded at just $20,000.

“Following its all-time high in October 2025, Bitcoin has been in a downtrend for approximately four months and is now approaching what can be considered an undervalued zone,” CryptoQuant contributor Crypto Dan commented. 

“Generally, when the MVRV ratio falls below 1, Bitcoin is regarded as undervalued. At present, the indicator stands at around 1.1, suggesting that price levels are nearing the undervaluation range.”

Bitcoin MVRV ratio (screenshot). Source: CryptoQuant

MVRV last registered below 1 at the start of 2023. At the time of Bitcoin’s latest all-time high last October, the ratio peaked at 2.28.

Crypto Dan questioned the validity of Bitcoin’s 52% drop from all-time highs. Neither the top nor the bottom, he argued, was characteristic of typical MVRV behavior.

“However, unlike previous cycles, Bitcoin did not experience a sharp rise into a clearly overvalued zone during the recent bull cycle,” the research post continued. 

“This distinction is important to recognize. As a result, the current decline may also differ from past market bottoms, and it appears necessary to respond with this possibility in mind.”

Bitcoin MVRV ratio. Source: CryptoQuant

Bitcoin price bottom “being forged right now”

In January, Cointelegraph reported on early signs that BTC price action may be preparing a trend reversal.

On two-year rolling time frames, the Z-score of the MVRV ratio, which divides its readings by the standard deviation of market cap, recently fell to historic lows.

“The current Z-Score of $BTC is lower than during the bear market bottom in 2015, 2018, COVID crash 2020 and 2022,” crypto trader, analyst and entrepreneur Michaël van de Poppe observed at the time.

This week, CryptoQuant contributor GugaOnChain used another Z-score iteration to show that BTC/USD was in a "capitulation zone.”

“The indicator suggests that we are approaching the historical accumulation phase,” he wrote in an accompanying post. 

“The statistical deviation of the Z-Score screams opportunity, signaling that the bottom of this downtrend is being forged right now.”

Bitcoin MVRV adaptive Z-score data (screenshot). Source: CryptoQuant

Bitcoin (BTC) gained at Friday’s Wall Street open as a fresh US inflation surprise boosted the mood.

Key points:

Bitcoin price action heads toward key resistance after US CPI inflation data cools beyond expectations.

Crypto becomes a standout on the day as macro assets see a cool reaction to slowing inflation.

Traders stay wary on overall BTC price strength.

Bitcoin spikes on soft January CPI data

Data from TradingView showed up to 4% daily BTC price gains at the time of writing, with BTC/USD reaching $69,190 on Bitstamp.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The renewed upside came after the January print of the US Consumer Price Index (CPI) fell short of expectations.

As confirmed by the Bureau of Labor Statistics (BLS), core CPI matched estimates of 2.5%, while the broader reading was 2.4% — 0.1% lower than anticipated.

US CPI 12-month % change. Source: BLS

Reacting, trading resource The Kobeissi Letter noted that CPI inflation was now at multiyear lows.

“Core CPI inflation is now at its lowest level since March 2021,” it wrote in a post on X. 

“Odds of further interest rate cuts are back on the rise.”

Fed target rate probabilities for March FOMC meeting (screenshot). Source: CME Group

Kobeissi referred to the prospects of the Federal Reserve cutting interest rates at its next meeting in March. As Cointelegraph reported, market expectations of such an outcome were previously at rock bottom, not helped by strong labor-market performance.

After the CPI release, odds of a minimal 0.25% cut remained at less than 10%, per data from CME Group’s FedWatch Tool.

Continuing, Andre Dragosch, European head of research at crypto asset manager Bitwise, argued that when viewed through the lens of Truflation, an alternative inflation meter, the CPI drop was “not really a surprise.”

📌RE: CPI Release

Not really a surprise there if you have been following the @truflation CPI number which has plummeted sub-1% already...

IYKYK pic.twitter.com/GPEUqaSNZI

— André Dragosch, PhD⚡ (@Andre_Dragosch) February 13, 2026

Elsewhere on macro, gold attempted to reclaim the $5,000 per ounce mark, while the US dollar index (DXY) sought a recovery after an initial CPI drop to 96.8.

US stocks, on the other hand, failed to copy Bitcoin’s enthusiasm, trading modestly down on the day at the time of writing.

Analyst eyes current range for BTC price higher low

Considering the outlook for BTC price action, market participants had little reason to alter their cautious positions.

“$BTC Still consolidating in this falling wedge,” trader Daan Crypto Trades wrote in his latest X update. 

“Attempted a break out yesterday but got slammed back down at the $68K level. That's the area to watch if this wants to see another leg up at some point.”

BTC/USDT perpetual contract one-hour chart. Source: Daan Crypto Trades/X

Earlier, Cointelegraph reported on the significance of the $68,000-$69,000 zone, which plays host to both the old 2021 all-time high and Bitcoin’s 200-week exponential moving average (EMA).

“Whether you like it or not: Bitcoin remains to be in an area where I think that we'll see a higher low come in,” crypto trader, analyst and entrepreneur Michaël van de Poppe predicted in his own forecast. 

“It's fragile, for sure, but it doesn't mean that we're not going to be seeing some momentum coming in from the markets.”

BTC/USDT 12-hour chart. Source: Michaël van de Poppe/X

Opinion by: Fraser Edwards, co-founder of Cheqd

Governments are quietly racing to redefine identity documents for the digital era.

China enacted new legislation called the National Network Identity Authentication, commonly referred to as internet ID. Citizens receive a unique digital ID code from real name and face scans. The system is designed to link online activity to verified real-world identities across participating platforms, according to publicly available descriptions of the pilot. As of May 2025, around six million people had already enrolled during the pilot phase.

Bhutan has a blockchain-based national identity for its 800,000 citizens. The infrastructure that determines how people prove their identity is being rebuilt from the ground up.

Many are choosing between the rollout of centralized digital identity systems and those based on blockchain technology.

How these systems are designed will determine whether they empower citizens or extend state control.

The promise and the pitfalls

Digital identity sits at the intersection of privacy, security and control. At its best, it can simplify life by eliminating repetitive checks, reducing fraud and giving individuals control over their personal data. At its worst, it can become the connective tissue of a global monitoring system, linking every financial transaction, online interaction and movement to a permanent record.

Digital identity is neither intrinsically virtuous nor nefarious. Its outcome, however, depends on the principles that shape it. Built well, it can restore trust, transparency and security across digital life.

Built poorly, it risks placing every aspect of identity, movement and behavior under permanent observation.

The technology to build either outcome already exists. Blockchain and cryptographic proofs can make identity portable, verifiable and private. If centralized models prevail, where data is stored, queried and monitored by a single authority, however, the same systems could hard-code surveillance into everyday life. The real contest is not over whether digital ID arrives, but which version of it the world adopts.

Centralized models create single points of failure. One breach or policy shift can simultaneously expose or restrict millions of people. When everything from financial access to travel depends on a single database, identity itself becomes a potential lever of control.

Some identity systems already include background “phone home” functions that report when and where credentials are used. While often designed for analytics or fraud prevention, this capability introduces the technical potential for surveillance. Once that switch exists, experience shows it rarely stays off for long. This does not mean its solution should be abandoned; rather, it should be built with privacy and security in mind.

Digital identity around the world

Countries that have implemented national digital identity systems reveal both the benefits and the risks associated with them.

Estonia, often cited as a digital pioneer, illustrates both the promise and the danger of a centralized digital ID. In 2017, it had to revoke nearly 1 million digital ID “cards” after cybersecurity experts found vulnerabilities in the cryptography. Despite that failure, the same system has enabled citizens to file taxes in minutes, sign contracts remotely and access almost all public services online.

Switzerland offers a different path. Its first national identity proposal was rejected in a 2021 referendum. Support grew after a redesigned model was introduced, featuring clearer safeguards. The difference was trust — its new e-ID is voluntary and stores data on users’ own devices rather than government servers, in software that only shares the necessary information and can be audited independently.

India’s Aadhaar program illustrates the scale and risks associated with a system that becomes unavoidable. With near-universal penetration, it has shifted how millions access welfare, healthcare and finance, and was praised for reducing fraud by $10 billion. But it has also faced repeated breaches that have compromised the personal details of more than 1.1 billion people, according to WEF reports, and has been criticized as a form of "digital coercion" due to citizens’ dependency on this ID to access essential services.

The global pattern is consistent. Digital identity is not inherently harmful nor beneficial; its influence and power comes from its architecture. Centralized models, even successful ones, carry the inherent risk of misuse. Decentralized control creates systems that can empower citizens instead of monitoring them.

Decentralized identity as the way forward

Bhutan shows how digital identity can work differently in practice. The country has become one of the first to implement a public blockchain for its national ID system, utilizing Decentralized Identifiers (DIDs) on Ethereum, which enables citizens to hold and control their own credentials.

Instead of a single central database, verification occurs through cryptographic proofs that confirm only the necessary information without exposing it. By distributing control across a network of participants, decentralization reduces reliance on the good faith of a single operator deciding unilaterally how identity is used.

A 15-hour Amazon Web Services outage that halted Coinbase, Robinhood and MetaMask brought the issue of centralized servers to the surface.

At the core of this approach are DIDs and Self-Sovereign Identity (SSI). Allowing individuals to store their own credentials from a digital wallet, deciding what to share and when, without storing all their personal data into one silo or honeypot. For example, a user can prove they are over 18 using their driving license without disclosing their address or demonstrate their right to work without sharing every passport detail.

Zero-knowledge proofs can further extend this by allowing facts to be verified mathematically without sharing the underlying details or data, providing a simple “yes” or “no” response to verification requests. Together, forming a decentralized framework for digital identity that works on a global scale while still keeping privacy and control in your hands.

The architecture of freedom

Every digital identity system reflects who holds power and who defines trust.

Adding decentralization to the mix can make it more complicated. You have to wonder who actually controls the data and who holds accountability. This can become especially tricky in a brand-new industry of decentralized groups.

Yet the advantages remain clear. Distributed systems remove single points of failure, return control to individuals and build transparency through shared verification rather than enforced trust. Offering a model where digital identity strengthens security and trust without reducing citizens to data points.

Digital identity is inevitable. The question is not whether it arrives, but which model prevails. Centralized systems, no matter how carefully built, will always carry the looming risk of misuse. Decentralized identity offers a way forward that enhances both privacy and practicality, embedding freedom into the infrastructure of trust.

Opinion by: Fraser Edwards, co-founder of Cheqd.

This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance, Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.

Three suspects were arrested in France after a reported break-in targeting the home of a senior figure at Binance’s French unit, with the company confirming to Cointelegraph that one of its employees was the victim of a home invasion.

Local outlet RTL, citing anonymous police sources, reported that three hooded individuals attempted to enter an apartment in Val-de-Marne around 7:00 am CET Thursday and were carrying weapons.

RTL said the suspects first forced their way into the apartment of another resident, forcing them to direct them to the home of the head of Binance France. RTL reported the suspects searched the apartment and stole two mobile phones before fleeing.

Two hours later, the three suspects were reportedly arrested during a second home invasion attempt in Hauts-de-Seine after residents alerted authorities, RTL said. Authorities recovered the stolen phones and a vehicle that RTL said linked the suspects to the earlier break-in.

Related: 22 Bitcoin worth $1.5M vanish from Seoul police custody

Binance confirms a break into an employee’s home

Binance confirmed the incident to Cointelegraph but declined to identify the employee involved.

“We are aware of a home break-in involving one of our employees. There is an ongoing investigation with the local police,” a Binance spokesperson said. “The safety and well-being of our employees and their families is our absolute priority. We are working closely with law enforcement and further enhancing appropriate security measures.”

David Prinçay is the President of Binance France, but Cointelegraph was unable to independently verify the identity of the employee targeted in the break-in. Binance declined to provide further details, citing the ongoing investigation and safety concerns.

Crypto wrench attacks rise 75% in 2025, as France sees most attacks

Physical attacks targeting cryptocurrency investors, also known as “wrench attacks,” have risen over the past year.

Wrench attacks increased by 75% during 2025, to 72 verified cases worldwide recorded last year alone, according to cybersecurity platform CertiK.

Wrench attacks accounted for at least $40.9 million in confirmed losses in 2025, but the value could be much larger due to unreported incidents, according to CertiK.

France recorded the largest number of attacks last year, with 19 confirmed incidents, while Europe accounted for about 40% of all attacks globally in 2025.

Magazine: Meet the onchain crypto detectives fighting crime better than the cops

Cryptocurrency wallet makers and security companies are pushing out post-quantum products even though large-scale quantum computers capable of breaking Bitcoin do not exist yet.

The US National Institute of Standards and Technology (NIST) finalized its first post-quantum cryptography standards in 2024 and called for migrations before 2030.

As standards bodies plan for a gradual cryptographic transition, parts of the wallet market are already monetizing that future.

“I do feel that it is a bit of a fear tax. We know that quantum computers are far away — still five to 15 years away,” Alexei Zamyatin, co-founder of Build on Bitcoin (BOB), told Cointelegraph.

Bitcoin is trading roughly 50% below its October 2025 all-time high. Among the handful of theories attempting to explain crypto’s recent decline is a growing concern that quantum computing risks may be deterring institutional capital from Bitcoin.

Bitcoin’s 2026 decline pulled the cryptocurrency below $70,000. Source: CoinGecko

The quantum risk is not zero, and it is not sudden

The quantum vulnerability often discussed is Bitcoin’s Elliptic Curve Digital Signature Algorithm, which authorizes transactions. In theory, a powerful quantum computer could derive a private key from an exposed public key and claim the coins sitting in an address.

Today’s quantum hardware isn’t capable of breaking the elliptic curve signatures. But that doesn’t mean threat actors are waiting around for a technical breakthrough.

“Many users expect a single ‘Q-Day’ in the future when cryptography suddenly fails. In reality, risk accumulates gradually as cryptographic assumptions weaken and exposure increases,” Kapil Dhiman, CEO and co-founder of Quranium, told Cointelegraph.

“Harvest now, decrypt-later strategies are already active, meaning data and signatures exposed today are being collected against future capability,” he said.

Related: What if quantum computers already broke Bitcoin?

In Bitcoin’s case, the concern is for older exposed public keys. Once a public key appears onchain, it remains permanently visible. Modern address formats obscure public keys until coins are spent.

CoinShares Bitcoin researcher Christopher Bendiksen said that just 10,230 Bitcoin (BTC) sit in addresses with publicly exposed public keys that would be vulnerable to a sufficiently powerful quantum attack.

The CoinShares researcher said 1.62 million BTC is in wallets holding under 100 BTC, which would take too long to unlock. Source: CoinShares

The quantum fear business

While the Bitcoin community debates how far away quantum computing is, crypto wallet makers are operating on their own clock.

Trezor’s Safe 7 is marketed as a “quantum-ready” hardware wallet. Separately, qLabs recently introduced the Quantum-Sig wallet, which it claims embeds post-quantum signatures directly into its signing process.

Crypto wallet makers are already rolling out quantum-ready hardware. Source: Trezor

BOB’s Zamyatin argued that wallet-level defenses would not solve Bitcoin’s quantum risk. Bitcoin transactions are authorized using a signature scheme embedded in the protocol itself. If that cryptography were ever broken, the fix would require a protocol-level change.

“I personally wouldn’t invest a lot of money into a quantum wallet right now because I don’t even know what protection it gives me for Bitcoin. It can’t really give me any protection, in my opinion, because Bitcoin doesn’t have a quantum-resistant signature scheme yet.”

Ada Jonušė, executive director at qLabs, agreed that full quantum resilience requires protocol-level defense. However, brushing off modern infrastructure as a fear tax overlooks the transitional nature of security upgrades.

“Quantum risk is not binary. Even before a protocol-level migration occurs, there is a real ‘harvest now, decrypt later’ threat,” she told Cointelegraph, claiming that qLabs’ approach reduces exposed key surface.

“Quantum readiness is about proactive infrastructure planning, not fear monetization,” Jonušė said.

Related: Bitcoin’s quantum countdown has already begun, Naoris CEO says

Trezor also admitted that blockchains themselves need to change their cryptography and protocol. But Tomáš Sušánka, the company’s chief technology officer, told Cointelegraph that wallets can implement protections right away instead of waiting for protracted blockchain upgrades.

“Once the blockchains upgrade, wallets must also support the same algorithms to remain compatible,” Sušánka said. He added that Trezor Safe 7 uses a post-quantum algorithm to protect against future quantum computers forging digital signatures and signing malicious firmware updates.

Market incentives and Bitcoin’s governance hurdle

Unlike iPhones, which are released almost every year, hardware wallets and other security products typically have multi-year product lifecycles. Introducing post-quantum features in a new product gives a reason for customers to buy a new device, even if the threat is distant.

“Yes, parts of the crypto industry do have incentives to amplify quantum risk, but that incentive is increasingly driven by regulatory and institutional alignment, not short-term sales alone,” said Dhiman, whose Quranium powers the Qsafe wallet.

“For most users, quantum-secure wallets today function as long-term insurance. The responsible approach is to acknowledge the transition ahead, avoid urgency driven by fear and choose systems designed to evolve without forcing abrupt replacements.”

Several blockchains are advancing with post-quantum strategies, but Bitcoin has been relatively hesitant. Some of the network’s most influential voices have brushed off the threat as a problem for the future.

Unlike Bitcoin, Ethereum has a widely recognized figurehead. Co-founder Vitalik Buterin has advocated for post-quantum preparations, and the network has been steering in that direction.

For Bitcoin, the issue is social consensus, coordination and the willingness to act, according to Zamyatin.

“It’s not like [Bitcoin has] one person that everyone will follow. It will require a broad social consensus, which is very hard to achieve,” he said.

Wallet makers agree that full quantum protection has to come from the protocol. But even if the risk is years away, they can act as insurance to help investors sleep better at night, though some argue they amount to a fear tax.

Magazine: Is China hoarding gold so yuan becomes global reserve instead of USD?

A US federal judge in Virginia sentenced the chief executive of Praetorian Group International to 20 years in prison for running a $200 million cryptocurrency investment scheme that defrauded tens of thousands of investors.

According to the Department of Justice, 61-year-old Ramil Ventura Palafox, a dual US and Philippine citizen, was convicted of wire fraud and money laundering for what prosecutors described as a Ponzi scheme that falsely promised daily returns of up to 3% from Bitcoin trading. 

The US Attorney’s Office for the Eastern District of Virginia said investors poured over $201 million into PGI between December 2019 and October 2021, including at least 8,198 Bitcoin (BTC) valued at about $171.5 million at the time. According to prosecutors, victims suffered losses of at least $62.7 million. 

The sentencing concludes the criminal case brought by the DOJ and follows a parallel civil action by the Securities and Exchange Commission, marking one of the larger crypto-related fraud cases in recent years by investor count and funds involved. 

PGI founder Ramil Ventura Palafox. Source: PGI Global Trade

Fake trading claims and luxury spending

Court filings said Palafox told investors PGI was engaged in large-scale Bitcoin trading capable of generating consistent daily profits. 

However, prosecutors said the company was not trading at a level sufficient to support the promised returns. Instead, new investor funds were used to pay earlier participants. 

Authorities said Palafox operated an online portal that falsely displayed steady gains, giving investors the impression their accounts were growing. He also used a multilevel marketing structure, offering referral incentives to recruit new members. 

The DOJ said Palafox spent millions in investor funds on personal expenses, including $3 million on luxury vehicles, over $6 million on homes in Las Vegas and Los Angeles, and hundreds of thousands of dollars on penthouse suites and high-end retail purchases.

Authorities said he also transferred at least $800,000 and 100 BTC to a family member. 

Related: Sam Bankman-Fried claims Biden DOJ silenced witnesses during FTX trial

Civil charges and international reach

The scheme began to unravel as regulators scrutinized PGI’s trading claims and fund flows.

In April 2025, the Securities and Exchange Commission filed a civil complaint alleging that Palafox misrepresented PGI’s Bitcoin trading activity and used new investor money to pay earlier participants.

The complaint said PGI promoted an AI-powered trading platform and guaranteed daily returns despite lacking trading operations capable of generating those profits.

Federal prosecutors in the Eastern District of Virginia later unsealed criminal charges accusing Palafox of wire fraud and money laundering arising from the same conduct. 

Authorities had seized the company’s website in 2021, and related operations were shut down in the United Kingdom, signaling cross-border enforcement scrutiny before the US criminal case advanced.

The DOJ said victims may be eligible for restitution and directed them to the US Attorney’s Office website for information on filing claims.

Magazine: Hong Kong stablecoins in Q1, BitConnect kidnapping arrests: Asia Express

South Korean authorities are investigating after 22 Bitcoin seized in a 2021 case disappeared from a cold wallet at a Seoul police station, according to local media reports.

The 22 Bitcoin (BTC), worth about $1.5 million at current prices, were held by the Gangnam Police Station and were discovered missing during a nationwide audit of digital asset custody practices, the Seoul Economic Times reported Friday.

Authorities reportedly said the 22 Bitcoin had been transferred externally, though the cold wallet storing the tokens was not stolen.

The investigation follows a separate case at the Gwangju District Prosecutors’ Office, where 320 BTC, worth about $21.3 million at current prices, disappeared in August 2025. Prosecutors in that case blamed a leaked password as part of a phishing attack.

The cases are drawing scrutiny over the authorities’ ability to handle confiscated Bitcoin and the safekeeping practices of digital assets.

Related: South Korean crypto CEO stabbed in court during Haru Invest fraud trial

Audit uncovers broader custody failures

The National Police Agency reportedly initiated a review of seized cryptocurrency holdings across the country following the 320 Bitcoin case. During that review, officials discovered that the 22 Bitcoin previously submitted to the Gangnam station in November 2021 were no longer in custody.

The 22 Bitcoin was voluntarily submitted to authorities during an investigation in November 2021. However, the case is now suspended without a clear conclusion after the BTC disappeared from the cold wallet.

The Gyeonggi Northern Provincial Police Agency is investigating the circumstances and potential individuals involved in the Bitcoin transfer.

Related: Google Cloud flags North Korea-linked crypto malware campaign

In January, South Korea’s Supreme Court ruled that Bitcoin held in centralized exchanges can be seized by investigators.

Supreme Court Ruling. Source: Court of Korea

Bitcoin is now an “object of seizure” under the Criminal Procedure Act because it is electronic information with independent manageability, tradability and economic value. 

The ruling means Korean users holding their Bitcoin on exchanges can have their holdings frozen if linked to alleged criminal proceedings.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Boerse Stuttgart Group, operator of one of Europe’s largest stock exchanges, said it will merge its cryptocurrency business with Frankfurt-based digital asset trading firm Tradias in a strategic move to expand its presence in institutional crypto markets.

The transaction will consolidate roughly 300 employees under a joint management team from both companies, according to a Friday announcement.

The combined unit aims to cover multiple digital asset services, including brokerage, trading, custody, staking and tokenized assets. It will serve banks, brokers, and other financial institutions across Europe, providing fully regulated crypto infrastructure, the announcement states.

Financial terms of the deal were not disclosed. Boerse Stuttgart and Tradias representatives declined to comment to Cointelegraph on the deal’s terms. Bloomberg reported the transaction could value Tradias at around 200 million euros ($237 million) and the combined entity at more than 500 million euros ($593 million).

MiCA-compliant crypto custodian joins forces with BaFin-licensed bank

Boerse Stuttgart has been developing its regulated crypto infrastructure through its Boerse Stuttgart Digital arm, which provides trading, brokerage and custody services in accordance with the European Union’s Markets in Crypto-Assets Regulation (MiCA).

In 2025, Boerse Stuttgart reported tripling crypto trading volumes, accounting for a quarter of its total revenues in 2024. CEO Matthias Voelkel expressed a bullish stance on crypto and disclosed personal Bitcoin (BTC) holdings at the time.

The platform’s existing footprint in regulated digital assets positions the exchange group to expand offerings by combining technology with Tradias’ execution capabilities.

Operating as the digital assets arm of Bankhaus Scheich, Tradias is licensed as a securities trading bank by the German Federal Financial Supervisory Authority (BaFin).

“With the planned merger of Boerse Stuttgart Digital and Tradias, Boerse Stuttgart Group is driving the development and consolidation of the European crypto market,” CEO Voelkel said.

“We have built strong growth momentum in recent years. By merging with Boerse Stuttgart Digital, we will take the next logical step in our corporate development,” Tradias founder Christopher Beck noted, adding:

“Together, we will cover the entire value chain for digital assets and create a new European champion with significantly greater reach, strategic depth, and creative power for further market consolidation.”

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Aave Labs has asked tokenholders to approve a funding package worth roughly $50 million in exchange for redirecting all revenue from Aave-branded products to the Aave DAO treasury.

The proposal includes up to $42.5 million in stablecoins — $25 million as a primary grant and $17.5 million tied to product milestones. It also includes 75,000 Aave (AAVE) tokens, worth about $8 million at the time of writing. The stablecoin grants, if approved, will be streamed over time, and milestone payments will be released upon product launches. 

In return, Aave Labs would route 100% of product-level revenue to the DAO. That includes fees generated by aave.com, the planned Aave App and Aave Card, Aave Pro, Aave Kit and Aave Horizon. The framework also asks tokenholders to ratify Aave V4 as the protocol’s long-term technical foundation and outlines plans to create a foundation to hold and steward the Aave brand. 

The proposal marks a shift in how Aave captures and distributes value. It would consolidate protocol and product revenue at the DAO level while shifting Aave Labs to a DAO-funded operating model after months of governance tension. 

Source: Aave

Governance concerns over voting power

The funding request drew scrutiny from some community members. Marc Zeller, founder of the Aave Chan Initiative, wrote that the package of roughly $50 million represents a significant portion of the DAO treasury. 

He called for unbundling the vote into separate proposals covering revenue alignment, V4 ratification, foundation creation and funding. 

Zeller also called for clearer definitions of “revenue” and independent verification of product income flowing to the DAO. He raised concerns over the 75,000 Aave token grant, noting that governance tokens carry voting power. He said entities receiving DAO tokens should disclose their wallet holdings. 

Meanwhile, crypto commentator DefiIgnas described the proposal as a “big compromise” that AAVE holders “should like,” though he also said clearer disclosures around governance voting power tied to the 75,000 AAVE grant would be appropriate.

Aave Labs framed the proposal as a move toward a “token-centric” model that aligns value accrual with the DAO. Aave founder Stani Kulechov said on X that directing product revenue to the DAO would expand its capacity to fund growth and other initiatives. 

“This would position the DAO to fund growth, increase buybacks, and pursue other opportunities as it sees fit,” Kulechov wrote. 

Related: Vitalik draws line between ‘real DeFi’ and centralized yield stablecoins

Proposal follows rejected IP vote

The proposal follows another contentious governance episode recently. On Dec. 26, Aave tokenholders rejected a proposal to transfer control of the protocol’s brand assets to an entity under the DAO, with a majority voting against the measure. 

On Jan. 3, Kulechov outlined a broader strategy to expand beyond decentralized finance (DeFi) lending and revisit how non-protocol revenue flows to token holders.

The current proposal formalizes elements of that vision, combining revenue consolidation, V4 ratification and a new foundation structure in a single strategic pitch. 

The Temp Check is intended to gauge community support before proceeding to a binding vote. If it advances, the proposal would move through additional governance stages before any funds are distributed.

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US spot Bitcoin exchange-traded funds (ETFs) saw heightened selling on Thursday, with outflows accelerating the same day Standard Chartered lowered its 2026 Bitcoin forecast.

Spot Bitcoin (BTC) ETFs recorded $410.4 million in outflows, extending weekly losses to $375.1 million, according to SoSoValue data.

Unless Friday brings substantial inflows, the funds are on track for a fourth consecutive week of losses, with assets under management (AUM) nearing $80 billion — down from a peak of nearly $170 billion in October 2025.

Daily flows in US spot Bitcoin ETFs since Monday. Source: SoSoValue

The selling coincided with Standard Chartered lowering its 2026 Bitcoin target from $150,000 to $100,000, warning that prices could fall to $50,000 before recovering.

“We expect further price capitulation over the next few months,” the bank said in a Thursday report shared with Cointelegraph, forecasting Bitcoin to drop to $50,000 and Ether (ETH) to $1,400.

“Once those lows are reached, we expect a price recovery for the remainder of the year,” Standard Chartered added, projecting year-end prices for BTC and ETH at $100,000 and $4,000, respectively.

Solana ETFs the only winners amid heavy crypto ETF outflows

Negative sentiment persisted across all 11 Bitcoin ETF products, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) and the Fidelity Wise Origin Bitcoin Fund suffering the largest outflows of $157.6 million and $104.1 million, respectively, according to Farside.

Ether ETFs faced similar pressure, with $113.1 million in outflows dragging weekly flows to $171.4 million — marking a potential fourth consecutive week of losses.

XRP (XRP) ETFs saw their first outflows of $6.4 million since Feb. 3, while Solana (SOL) ETFs bucked the trend, recording minor $2.7 million in inflows.

Extreme bear phase not yet here as analysts expect $55,000 bottom

Standard Chartered’s latest Bitcoin forecast follows previous analyst forecasts that Bitcoin could dip below $60,000 before testing a recovery.

Crypto analytics platform CryptoQuant reiterated that realized price support remains at around $55,000 and has not yet been tested.

“Bitcoin’s ultimate bear market bottom is around $55,000 today,” CryptoQuant said in a weekly update shared with Cointelegraph.

Bitcoin’s realized price chart. Source: CryptoQuant

“Market cycle indicators remain in the bear phase, not extreme bear phase,” CryptoQuant noted, adding: “Our Bull-Bear Market Cycle Indicator has not entered the Extreme Bear regime that historically marks the start of bottoming processes, which typically persist for several months.”

Bitcoin hovered around $66,000 on Thursday, briefly dipping to $65,250, according to CoinGecko data.

Despite ongoing selling pressure, long-term holder (LTH) behavior does not indicate capitulation, with holders currently selling around breakeven. “Historical bear market bottoms formed when LTHs endured 30–40% losses, indicating further downside may be required for a full reset,” CryptoQuant added.

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Crypto treasury company ETHZilla has launched a token offering access to equity in jet engines that the company acquired last month as part of its pivot into tokenized assets.

ETHZilla said on Thursday that the token, called Eurus Aero Token I, was being launched through its new subsidiary, ETHZilla Aerospace, and is backed by two commercial jet engines that are leased to “a leading US air carrier.”

The company has priced each token at $100, with a minimum purchase of 10 tokens. ETHZilla said its tarageting an 11% return rate based on holding it for the full term of the engine leases that extend into 2028.

ETHZilla was formerly a clinical-stage biotech company called 180 Life Sciences Corp that pivoted to buying and holding Ether (ETH) in July amid a frenzy of new crypto treasury companies at the time.

ETHZilla chairman and CEO McAndrew Rudisill said the project “expands investment access and modernizes fractional asset ownership in markets that have historically been available only to institutional credit and private equity.”

"Offering a token backed by engines leased to one of the largest and most profitable US airlines serves as a strong use case in applying blockchain infrastructure to aviation assets with contracted cash flows and global investment demand,” he added.

Source: ETHZilla

ETHZilla shifting away from crypto treasury

Rudisill said in December ETHZilla is moving away from just buying and holding ETH and aims to build a business that brings assets on-chain through tokenization.

Crypto treasury companies experienced significant growth and hype last year, but enthusiasm has since started to cool across the market as crypto prices have dropped. 

ETHZilla purchased the two jet engines for a combined $12.2 million in January, after selling off some of its ETH stash last year.

As part of its ongoing tokenization push, ETHZilla is also planning to launch tokens for additional asset classes, including home and car loans, according to the company’s announcement.

Some crypto execs have predicted the tokenized RWAs will grow significantly in 2026, fueled by adoption in emerging economies facing issues with capital formation and attracting foreign investment. 

Over $24 billion in RWA is estimated to be on-chain as of Friday, across more than 846,808 holders, according to RWA.xyz.

Ether stash down from previous high

In a Securities and Exchange Commission filing in September, ETHZilla disclosed it held 102,246 Ether at an average acquisition price of roughly $3,948, which was valued at $443 million at the time.

Related: ‘Horse has left the barn:’ ETHZilla bets big on Ethereum’s stablecoin play

Ether has fallen in step with the rest of the crypto market and has been drifting between $1,872 and $2,130 in the last seven days, according to CoinGecko.

Strategic Ether reserves lists ETHZilla as holding more than 93,000 in Ether, worth over $188 million. However, CoinGecko estimates the company’s stash is closer to 69,802, and is worth about $136 million. 

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