Etherβs price plummeted up to 24%, causing its one-day at-the-money volatility to spike from 34% to 184%. The renewed U.S. trade war intensified risk-off sentiment, triggering major market dislocations. On Deribit, ETH hit a low of $2,065, while Kraken and Coinbase saw prices at $2,127 and $2,150, respectively. Market makers reportedly contributed to the heightened volatility and price distortions.
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Crypto ETPs recorded a fourth consecutive week of inflows, totaling $527 million, with Bitcoin leading the surge as U.S. investors poured in $474 million. Despite AI-driven market uncertainty, including $530 million in early-week outflows triggered by concerns over Chinaβs DeepSeek AI, the market rebounded strongly, attracting over $1 billion later in the week. BlackRockβs IBIT led Bitcoin ETF inflows with $918 million, while XRP saw $15 million in inflows, bringing its YTD total to $105 million. Ethereum struggled, ending the week with neutral net flows.
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MicroStrategy halted its weekly Bitcoin purchases for the first time in 12 weeks, likely due to a pre-earnings blackout period. The company holds 471,107 BTC and recently raised over $250M to continue accumulating.
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World Liberty Financial, a Trump-backed DeFi protocol, transferred over 90% of its treasury, including significant ETH and WBTC holdings, to Coinbase. The moves, totaling hundreds of millions, coincided with ETHβs sharp rebound and Eric Trumpβs post suggesting it was a good time to buy. Similar transfers were made for AAVE, ENA, and LINK, while its TRX position remained untouched. The reason behind these transactions remains unclear.
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Coinbase has announced plans to list Ether.fi (ETHFI) and Bittensor (TAO), signaling compliance with the exchangeβs security and regulatory standards. Following the announcement, both tokens surged over 30% before retracing, reflecting typical exchange listing reactions. The move is expected to boost liquidity and demand for these altcoins.
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Berachain, a blockchain known for its cult-like following, is officially rolling out its mainnet on February 6. The network introduces a proof-of-liquidity consensus mechanism, rewarding liquidity providers. The launch has been humorously framed as occurring in "Q5," a fictional quarter beyond Q4, adding to the hype. Meanwhile, Berachainβs pre-deposits application has already attracted over $3 billion in liquidity within a week, signaling strong early interest.
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FTX to Start Repayments for Bahamas Creditors on February 18
FTX will begin repaying creditors in the Bahamas process from February 18, prioritizing claims under $50,000 via BitGo. Other creditors will need to wait until March 4 for reimbursement. Additionally, creditors will earn 9% annual interest on lost assets since FTX's collapse in November 2022, reflecting the surge in crypto values. This marks a major step in resolving the exchangeβs bankruptcy and restoring investor confidence.
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FTX will begin repaying creditors in the Bahamas process from February 18, prioritizing claims under $50,000 via BitGo. Other creditors will need to wait until March 4 for reimbursement. Additionally, creditors will earn 9% annual interest on lost assets since FTX's collapse in November 2022, reflecting the surge in crypto values. This marks a major step in resolving the exchangeβs bankruptcy and restoring investor confidence.
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Led by Hester Peirce, the SECβs new crypto task force will work on defining which tokens are securities and creating a legal framework for compliant offerings. This marks a shift from Gary Genslerβs enforcement-driven stance, as the agency moves toward clearer regulations under a Republican majority.
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The XRP Ledger stopped producing blocks for about an hour before spontaneously recovering, with Ripple CTO David Schwartz citing a possible network "drift" caused by validation issues. No assets or transactions were lost. The disruption follows previous technical challenges on XRPL, raising concerns about network stability. XRP dropped 8.3% on the day to $2.52.
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Ondo Finance has launched Ondo Global Markets, enabling onchain access to U.S. stocks, bonds, and ETFs. The platform tokenizes assets 1:1, making them freely transferable outside the U.S., similar to stablecoins. With over $650M TVL, Ondo continues expanding real-world asset tokenization.
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The FDIC published 790 pages revealing its restrictive stance on banks serving crypto firms. Acting Chairman Travis Hill signaled a shift, stating the agency is reassessing its crypto policies amid Senate scrutiny.
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FTT price has gained momentum following FTXβs plan to start creditor payments on February 18, particularly for Bahamas creditors. The RSI has climbed to 59.2, reflecting growing buying pressure, but ADX remains weak, indicating an unconfirmed uptrend. If FTT breaks resistance at $2.44, it could push toward $3, though failure to hold current levels may lead to further consolidation.
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Coinbase director Conor Grogan claims Kraken might possess crucial information about Bitcoin's creator, Satoshi Nakamoto. His research suggests Nakamotoβs wallet interacted with CaVirtEx, a Canadian exchange acquired by Kraken in 2016. If true, Kraken could have access to historical KYC data linked to Nakamoto, who is estimated to hold 1.096 million BTC (~$108 billion). Kraken responded cryptically, stating, "We are all Satoshi," fueling further speculation.
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A BNB Chain test memecoin (TST) surged to a $52 million market cap within minutes of a post by Binance founder CZ. The spike followed a tutorial video featuring TST, triggering speculative trading. CZ later clarified that TST is not an official BNB Chain token, and neither Binance nor its team holds any of it. The token has since retraced to around $15 million.
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Alexey Pertsev, the Tornado Cash developer sentenced to 64 months for money laundering, will be released on Friday under electronic monitoring. A Dutch court suspended his detention, allowing him to prepare for his appeal. Pertsev stated he will "fight for justice" as he challenges his conviction.
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Bitgetβs native token, BGB, has surged, outperforming major crypto assets despite broader market declines. The tokenβs Balance of Power (BoP) and rising RSI indicate strong buying pressure, suggesting potential for further gains. Currently trading at $6.73, BGB must break the $7.80 resistance to reach its all-time high of $8.50. However, a loss of momentum could see it drop to support at $5.97.
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Coinbase has added POPCAT, PENGU, and MORPHO to its listing roadmap, continuing its aggressive push into memecoins. Following the announcement, POPCAT surged 11%, PENGU jumped 17%, and MORPHO gained 14%, though most of these gains were quickly erased amid broader market volatility.
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Recent speculation about SWIFT integrating XRP via EastNets has been clarifiedβwhile EastNets, a SWIFT Certified Service Bureau, utilizes Rippleβs messaging technology, XRP itself is not integrated into SWIFTβs network. Despite this, Rippleβs solutions are increasingly adopted by financial institutions, particularly in the UAE, indicating broader acceptance of its technology within SWIFT-connected systems.
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