Ethereum has entered an aggressive deleveraging phase, breaking decisively lower after weeks of distribution near the upper boundary of its medium-term range. A key macro driver behind this move appears to be the recent escalation of geopolitical tensions in the Middle East, which has pushed broader risk assets into de-risking mode and amplified existing technical fragilities in the ETH market.

The combination of macro uncertainty, elevated leverage, and vulnerable chart structure has produced a sharp unwind rather than a controlled pullback.

Ethereum Price Analysis: The Daily Chart

On the daily chart, ETH has broken down from the prior ascending structure that extended from the late-2025 lows and has failed to break above the 100-day and 200-day moving averages, which are now both located above the $3,000 mark. This price behavior has confirmed a transition from corrective sideways action into a clear downside trend.

The price has also broken below the first major demand band around the $2,200-$2,000 area, which coincides with a prior consolidation base and the origin of the last strong impulsive advance. Daily RSI has also fallen into deeply oversold territory in the low 20s, indicating stretched short-term conditions.

However, as long as the market remains capped below the broken moving averages and former support around $2,200, the broader structure continues to point toward a bear-market rally at best rather than a confirmed reversal.

ETH/USDT 4-Hour Chart

The 4-hour chart highlights the velocity of the current sell-off, with ETH cascading lower from the previously defended $2,800–$2,900 support and barely pausing on intermediate levels. The market is now trying to stabilize around the $1,850–$1,900 range, and a mild bullish divergence is emerging on the 4-hour RSI, where momentum has begun to print higher lows despite marginally lower price lows.

This configuration often signals that forced selling pressure is easing and that a short-term relief bounce or sideways consolidation may follow.

Immediate resistance now sits in the $2,100–$2,200 area, with a stronger supply zone at $2,800. Any rebound that stalls below these bands would keep the intraday trend firmly bearish, while a clean breakdown below the recent $1,800 low would pave the way toward the deeper demand zone at $1,500.

Sentiment Analysis

On the derivatives side, open interest across Ethereum futures has collapsed from elevated levels above 30 billion USD to nearly a third that size, tracking the price decline and signaling a large-scale liquidation cascade rather than an orderly reduction in positioning. This sharp contraction in open interest indicates that a significant portion of leveraged longs has been forced out of the market, with margin calls and auto-deleveraging accelerating the downside once key support levels failed.

While such events are painful in the short term, they also tend to cleanse excess leverage from the system, leaving a lighter positioning backdrop where spot flows and fresh capital, rather than crowded derivatives exposure, can play a larger role in setting the next directional move.

Eurozone finance ministers are set to meet on Feb. 16 to explore the integration of euro-denominated stablecoins and central bank digital currencies (CBDCs) to enhance the euro’s global standing, Reuters has learned.

The European Commission is preparing a set of proposals aimed at strengthening the euro’s role in the international monetary system. These proposals are expected to include the issuance of euro-denominated stablecoins, tokenized deposits, and CBDCs.

Currently, the euro accounts for approximately 20% of global currency reserves, compared to about 60% for the U.S. dollar, the report reads.

Despite this significant presence, euro-denominated instruments make up less than 1% of the stablecoin market, which is predominantly dominated by U.S. dollar-pegged assets.

Economic security is a central theme of this meeting. The commission has highlighted the need for the EU to act decisively in strengthening its economic and financial security. This includes proposals for joint EU debt issuance to finance common projects, potentially increasing the euro’s appeal in global financial markets.

As The Defiant reported earlier, analysts at credit rating agency S&P Global anticipate that the growth of euro stablecoins will likely be driven by real-world asset (RWA) tokenization rather than payments.

This article was generated with the assistance of AI workflows.

It was a catastrophic week in terms of price movements, but HYPE has defied the trend and stands out as a top performer.

The past few weeks have been anything but dull in the cryptocurrency markets. Unfortunately for the bulls, it’s not in their favor.

It all began last Saturday. Bitcoin had finally recovered some ground following the previous crash to $81,000 and stood around $83,000-$84,000, which was rather unusual as the two largest precious metals – assets known for their stability – crashed on Friday by double digits.

This heightened volatility reached BTC on Saturday when it dumped from $84,000 to under $76,000. The bulls tried to intervene, but all they could do was help BTC recover slightly to $79,000. The asset was quickly rejected there and dipped below $74,000 on Monday. The same failed rebound scenario repeated, and the bears took complete control of the market in the following days.

The culmination, at least for now, transpired yesterday. Another brutal sell-off drove the largest digital asset down to $60,000. As such, BTC not only erased all gains charted after Trump’s reelection victory in late 2024, but it actually dumped to under the levels from back then. Strategy’s bitcoin positions went deep in the red as the cryptocurrency dropped by $30,000 in just over a week.

The reasons behind this calamity may vary and are still debated by analysts. From rising geopolitical tensions to the new Fed Chair to excessive leverage in the markets. The fact is, though, the overall crash on Thursday alone wiped out more than $2.6 billion in leveraged positions.

Despite rebounding to $67,000 as of press time, BTC is still nearly 20% down weekly. Many altcoins have produced even more significant declines, such as ETH (-28%), BNB (-23%), LINK (-21%), XMR (-26%), and others. HYPE, on the other hand, continues to defy the overall trend and has soared by 19% within the same timeframe.

Market Data

Market Cap: $2.38T | 24H Vol: $360B | BTC Dominance: 56.6%

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BTC: $67,200 (-18.4%) | ETH: $1,950 (-28.3%) | XRP: $1.43 (-20%)

This Week’s Crypto Headlines You Can’t Miss

Institutional Exit? US Investors Are Dumping ETH at a Record Rate. Even before Ethereum’s most significant decline to under $1,800, reports claimed that US-based investors had intensified the selling pressure, which was evident from the declining ETH Coinbase Premium Index.

Roubini Predicts a ‘Crypto Apocalypse’ Amidst Bitcoin’s Plunge Under Trump-Era Policies. These times of pure uncertainty and price calamity are the perfect opportunity for industry haters, such as Nouriel Roubini, to lash out again. Recently, the economist predicted a “crypto apocalypse,” explaining that the evolution of money and payments will be a gradual process, instead of the quick revolution promised by crypto advocates.

Michael Burry Warns Bitcoin Treasury Firms Face Existential Risk as BTC Slide Deepens. Michael Burry also spoke out after years of silence, warning that Bitcoin Treasury Companies could soon face liquidation threats if the cryptocurrency’s price declines continue.

Crypto Winter Has Been Here Since January 2025, But Recovery May Be Closer Than You Think. Despite the multiple new all-time highs registered by BTC last year before October, Bitwise’s CIO, Matt Hougan, recently asserted that the asset has been in a bear market since January 2025. More optimistically, though, he noted that the end may be closer than you expect.

Tom Lee Shrugs Off ETH Sell-Off, Says Fundamentals Don’t Match Falling Prices. Tom Lee, who has perhaps the largest exposure to ETH through Bitmine, dismissed the recent asset decline. Although Bitmine’s position is deep in the red, Lee said ETH’s crashing price doesn’t reflect the strong fundamentals behind the token and the network.

Bitcoin Trading at 41% Discount, Power-Law Model Shows $122K Fair Value. Basing their analysis using the power-law valuation model, market commentator David put BTC’s fair value at just under $123,000. If true, this would mean that the cryptocurrency currently trades with a massive discount of roughly 50%.

• Ethereum price is trading inside a huge channel on the monthly chart.
• Bitcoin’s crash to $60,000  dragged ETH to its intraday lows.
• After falling to lows of $1,748, ETH risks another leg down.

Ethereum’s price hovers above $1,960 as of writing on February 6, 2026.

This follows a sharp downturn in the past 24 hours, with the top altcoin crashing to lows of $1,700 amid broader market turbulence.

Bitcoin’s crash to $60,000, before rebounding to $67,000, dragged ETH to its intraday lows.

All the top altcoins, including Solana, BNB and XRP, fell sharply amid the bloodbath.

Ethereum price recap

Ethereum fell below $1,800 on Thursday, marking its weakest level since mid-2025 as heavy selling pressure intensified.

The decline followed a sharp drop in Bitcoin to around $60,000, which sent shockwaves through the broader crypto market.

Although prices have since recovered above $1,900, continued ETF outflows and a prevailing risk-off environment suggest bullish momentum remains fragile.

Ethereum is down more than 29% over the past week and about 40% over the past month, underscoring the depth of the recent sell-off.

ETH price prediction: could bears target $1,000 next?

Although bulls are targeting a move back above $2,000, the monthly chart points to a fragile price structure.

The chart paints a massive range with $4,900 forming the top established during the past bear cycle.

At the lower end, the parallel channel suggests potential downside toward the $1,000–$1,200 zone.

At present, the $1,800–$1,900 area aligns with support levels seen in April and May 2025, which were tested after ETH retraced from highs of around $4,100 in December 2024.

This overlap reinforces the zone’s importance in determining near-term price direction.

Analysts see this as a critical support zone, but if sellers breach it, it could give way to a downturn to levels untested since Ethereum’s 2022 bear market bottom.

As such, bulls must eye a notable bounce above $2,000. If this happens, the next targets lie in the $2,250-$2,700 range.

However, a breakdown below $1,800 risks testing $1,700 again.

This week’s breakdown aligns with a similar breakdown in March-April 2025, which put prices beneath a key uptrend line formed since the bullish flip in April 2020 after the COVID crash.

With bears having touched the mark already amid current bearish conditions, the picture isn’t in favour of bulls.

A revisit could open up a path to the multi-year demand reload zone around $1,250-$1,000. This area represents untapped liquidity from the 2022 lows.

Cardano price continued its strong downward trend, reaching its lowest level since February 2021, as the crypto market crash accelerated. 

Cardano (ADA) token was trading at $0.2650, down by 80% from its highest point in December 2024. It has also retreated by 91% from its all-time high of $3.

A potential catalyst for ADA’s price will be the upcoming CME Group futures listing on February 9 this year. This is a major listing that will make it available to institutional and retail traders.

Historically, such important launches normally lead to higher prices. For example, tokens such as Solana (SOL) and Ripple (XRP) jumped after their futures launched. 

However, in Cardano’s case, there is a possibility that the rebound will not happen after the futures launch. First, the launch will occur during a crypto market crash. As such, the broader sentiment in the industry may outweigh the importance of the futures listing.

Second, Cardano may remain under pressure since the ADA futures launch has been priced in by market participants. Additionally, Cardano has lost favor with investors in the past few years because it has been left behind by similar chains like Solana, BNB Chain, and Ethereum. 

Cardano has failed to attract major oracle networks like Chainlink. Its total value locked in the DeFi industry is less than $300 million, which is much lower than the billions in assets in the industry. Also, it has a small market share in the stablecoin industry, with just $30 million in assets.

Charles Hoskinson and the team are working to address these issues through a 70 million ADA fund launched last year. The fund’s goal is to attract more oracles, tier-1 stablecoins, and analytics tools. Also, Cardano is preparing for the Midnight mainnet launch either this month or in March.

Cardano price technical analysis 

The weekly chart shows that the ADA token has been in a strong downtrend in the past few months. It retreated from a high of $1.3296 in December 2024 to a low of $0.2360. Its lowest level this week was notable as it has failed to move below it several times since December 2022.

ADA price has moved below the 50-week and 100-week Exponential Moving Averages, which have made a bearish crossover. The Relative Strength Index has moved into the oversold zone at 30.

Therefore, the most likely Cardano price prediction is neutral. On the positive side, it has always bounced back whenever it reached this support level. This means that it may rebound again in the coming weeks.

On the other hand, losing this support will lead to more downside, potentially to the key level at $0.100.

As the weekend approaches, select altcoins are flashing early signals that could define short-term price action. From renewed bullish momentum to deep drawdowns hinting at exhaustion, the market is offering a mixed technical outlook.

BeInCrypto has analysed three such tokens that the investors should watch going into the weekend.

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Decred (DCR)

Decred has produced a strong bullish expansion, rallying sharply to $24.70 after reclaiming the $20.22 pivot. The impulsive candle confirms buyers regaining control following a higher-low structure above $17.45. This move shifts short-term momentum decisively bullish after a prolonged consolidation phase.

Holding above $22.84 keeps upside momentum intact, with $25.94 as the next key resistance. A daily close above $25.94 would open a move toward $30.06. Notably, DCR shows a weak negative correlation of -0.09 with Bitcoin, suggesting relative insulation from broader BTC volatility.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

The bullish scenario is invalidated on a daily close below $20.22. A failure there would shift momentum back to neutral and expose $18.79. Losing $17.45 would fully break the higher-low structure and confirm a return to broader downside or prolonged consolidation.

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Polygon (POL)

POL extended losses, setting a new all-time low at $0.0839. The altcoin briefly plunged 22.8% before recovering part of the drop. It closed the session down 12.8%, reflecting persistent selling pressure and weak market confidence as POL continues to struggle for a stable price base.

On-chain signals offer cautious optimism. The Chaikin Money Flow is forming a bullish divergence with the POL price, indicating declining outflows despite continued weakness. This shift suggests improving demand beneath the surface, which could help POL reclaim $0.1024 and extend a recovery toward the $0.1193 resistance.

However, downside risks remain elevated if sentiment fails to improve. Continued bearish momentum could force POL to print additional all-time lows. As a result, such a move would negate the emerging bullish divergence, reinforce the prevailing downtrend, and delay any meaningful recovery as sellers maintain control over price action.

Optimism (OP)

OP set a new all-time low during Friday’s intraday session, falling to $0.1579. The move extended a persistent downtrend that has pressured prices all week. OP’s cumulative decline is now near 40%, highlighting sustained selling pressure and weakening investor confidence across recent trading sessions.

Momentum indicators suggest selling pressure may be nearing exhaustion. The Money Flow Index is close to slipping into oversold territory, a level historically linked with reversals. If confirmed, this could encourage dip buying and help OP reclaim $0.1817, opening upside toward $0.2128 or $0.2506.

On the other hand, bearish risk remains elevated if market sentiment continues to deteriorate. Failure to stabilize could push OP below $0.1579. At the same time, a fresh all-time low would invalidate the bullish divergence setup, reinforce the prevailing downtrend, and delay any recovery attempt as sellers retain control.

• ai.com lets users create a personal AI agent in about 60 seconds, with no coding required.
• Agents can execute tasks across apps and build new capabilities when needed.
• Improvements are shared across the network, boosting overall agent performance.

The race to move artificial intelligence from conversation to execution is accelerating.

ai.com, a new consumer AI platform founded by crypto executive Kris Marszalek, is entering the market with autonomous AI agents designed to act on users’ behalf, not just answer prompts.

The company says its agents can organize work, execute tasks across apps and even build missing tools themselves, a step that could push AI deeper into everyday digital life.

From crypto scale to consumer AI ambition

ai.com is led by Kris Marszalek, best known as co-founder and CEO of Crypto.com, one of the world’s largest consumer crypto platforms.

Marszalek will continue to lead both companies, positioning ai.com as a mass-market AI play rather than a niche developer tool.

The platform allows users to generate a personal AI agent in about 60 seconds, with no coding or technical setup.

Unlike standard chatbots, these agents are designed to carry out actions like sending messages, managing calendars, automating workflows or building simple projects.

ai.com says agents can even create new capabilities on their own if a task requires functionality that does not yet exist.

Those improvements, once validated, are shared across the wider agent network. In theory, that creates a flywheel effect: the more agents are used, the more capable all agents become.

Marszalek has framed this as a decentralized system that could speed progress toward artificial general intelligence, or AGI: AI systems that can perform a wide range of tasks at a human-like level.

“We are at a fundamental shift in AI’s evolution as we rapidly move beyond basic chats to AI agents actually getting things done for humans,” said Kris Marszalek, Founder and CEO of ai.com.

Our vision is a decentralized network of billions of agents who self-improve and share these improvements with each other, vastly and rapidly expanding agentic capabilities and accelerating the advent of AGI.

ai.com will officially launch its agent product on February 8, 2026, with a high-profile advertising debut during Super Bowl LX on NBC.

Autonomy meets privacy and regulation

While the promise is bold, autonomous agents raise immediate questions around safety, privacy and accountability.

ai.com says each agent operates in a secure, isolated environment where user data is encrypted with individual keys and actions are limited strictly by user permissions.

That architecture will be tested quickly if agents are allowed to trade stocks, handle payments or interact with third-party platforms.

Financial regulators, in particular, are likely to scrutinize how responsibility is assigned when an AI agent makes a mistake or executes a harmful action.

The company says users will retain full control, with all actions permission-based. Still, the real challenge will be proving that consumer-grade autonomy can scale without introducing new risks.

ai.com is free to start, with paid subscription tiers offering more advanced capabilities.

Additional features under exploration include financial integrations, agent marketplaces and social networks connecting humans, agents and agencies.

For now, ai.com’s launch signals a shift in the consumer AI narrative, away from asking questions and toward getting things done.

Editor’s note: This release outlines how Amazon enters its fourth-quarter earnings period with improving investor sentiment, driven largely by stronger-than-expected performance from Amazon Web Services. Cloud growth and resilient demand have become central to the market narrative, alongside expectations that AI-related workloads will scale further in 2026. The commentary also highlights investor focus on valuation, operating margins, capital expenditure discipline, and the advertising business, while pointing to longer-term optionality from logistics automation, AI monetisation, satellite connectivity, and potential pricing changes across the Prime ecosystem.

Key points

• AWS growth exceeded expectations, supporting confidence ahead of Q4 earnings.
• Investor sentiment is closely tied to cloud capacity expansion and sustained demand.
• AI-driven workloads are expected to be a major factor shaping AWS performance in 2026.
• Amazon’s valuation is viewed as relatively modest compared with long-term earnings potential.
• Profitability drivers include margin expansion, capex discipline, and advertising growth.

Why this matters

Amazon’s cloud performance is increasingly important for investors assessing earnings quality and long-term growth. AWS sits at the intersection of cloud infrastructure and AI adoption, making its trajectory relevant for enterprise customers, developers, and the broader digital economy. For markets, the balance between continued investment and margin improvement will be key in determining whether stronger cloud momentum can translate into sustained shareholder value.

What to watch next

• Fourth-quarter earnings results and updated guidance for AWS growth.
• Signals on AI workload scaling and related infrastructure investment.
• Developments in operating margins, capital expenditure, and advertising revenue.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Abu Dhabi, United Arab Emirates – February 05, 2026: Amazon (NASDAQ: AMZN) is entering its fourth-quarter earnings period with improving investor confidence, supported by a strong performance in the previous quarter and growing optimism around its cloud computing division, Amazon Web Services (AWS).

Cloud momentum has been a key driver of sentiment, with AWS growth coming in ahead of expectations and clear signs that demand remains resilient as capacity continues to expand.

Commenting on the outlook, Lale Akoner, Global Market Analyst, said:
“Momentum in AWS has been a major positive for Amazon, with cloud growth exceeding expectations and demand remaining healthy as capacity scales. This has played an important role in strengthening investor confidence heading into the fourth quarter.”

Looking ahead, 2026 is expected to be a pivotal year for AWS, particularly as AI-related workloads continue to scale. Investors are increasingly focused on whether accelerating cloud growth can translate into stronger earnings momentum and support a higher valuation. At current levels, Amazon shares trade at a relatively modest multiple of long-term earnings, further contributing to the improving sentiment.

Beyond cloud, market attention is also centred on Amazon’s path to higher profitability. This includes potential operating margin expansion, continued discipline around capital expenditure, and sustained growth in the advertising business.

Over the longer term, additional upside could come from logistics automation, broader monetisation of AI across consumer products, new revenue streams such as satellite internet, and the potential for future Prime subscription price increases.

Media Contact:
PR@etoro.com

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As the United States moves toward the 2026 midterm elections, crypto industry lobbying and fundraising activity has accelerated, highlighting a strategic shift in how the sector seeks to shape policy. Super PACs linked to crypto interests have begun pooling funds, with a notable fundraising push that includes a main industry vehicle and prominent tech donors. The landscape features a blend of bipartisan engagement and party-aligned advocacy, underscored by legislative efforts such as the CLARITY Act, which has stalled in the Senate even as committees in the House advance. This push comes amid a broader backdrop of regulatory scrutiny, market volatility, and debates over how best to foster innovation while protecting consumers.

Key takeaways

• The crypto sector’s political spending surged last cycle, with total contributions reaching at least $245 million in 2024, signaling a robust, well-funded lobbying posture ahead of midterm elections.
• Fairshake, the industry’s leading super PAC, raised about $133 million in 2025 and now holds more than $190 million in cash on hand, reflecting significant donor commitments from major players including a16z, Coinbase, and Ripple.
• Discontent about influence in Washington is real among reform groups, who warn that large, industry-aligned money can marginalize ordinary voters and complicate democratic processes.
• Crypto donors are pursuing a bipartisan strategy, supporting both parties or pivoting to align with policymakers who promise a friendlier regulatory environment, while some in Congress push for a unified framework like the CLARITY Act.
• Historical context matters: the sector’s political clout has grown since the 2020–2021 lobbying surge and the FTX collapse, which did not halt the industry’s push to engage lawmakers and shape policy on market structure and consumer protection.

Tickers mentioned: $BTC, $ETH, $COIN

Market context: As the midterm cycle sharpens, the crypto lobby’s visibility in Washington mirrors broader regulatory debates and a shifting investment climate. The policy trajectory—particularly around market structure and stablecoins—remains uncertain, even as lobby groups deploy sizable resources to influence committees and votes.

Why it matters

The scale of money funneled into crypto lobbying marks a meaningful departure from earlier eras of campaign finance. Industry-aligned super PACs have become major players, capable of marshaling independent expenditures and transfers to allied committees in a way that can outpace more traditional advocacy channels. This dynamic matters for users, investors, and builders because policy decisions—ranging from regulatory clarity to enforcement actions—directly affect product innovation, market access, and consumer protections.

Observers say the growing influence of well-funded crypto PACs is changing the calculus inside Congress. While some lawmakers welcome clearer rules and a predictable regulatory environment, critics argue that high-dollar donations risk sidelining everyday constituents and distorting legislative priorities. The tension between fostering innovation and imposing guardrails is at the core of ongoing debates about market structure, stablecoins, and the broader crypto economy. The argument is not merely about dollars and elections; it touches the core question of how the American political system can balance rapid technological change with responsible oversight.

Within this landscape, the industry’s messaging is increasingly tailored to bipartisan themes, while some prominent figures invest in politically aligned avenues that promise favorable outcomes. The Winklevoss twins’ support for a conservative pro-crypto fund, for example, underscores a strategic tilt toward candidates perceived as crypto-friendly, even as others push for more centrist or Democratic support to maintain broad accessibility to policymakers. The result is a more nuanced, multi-faceted lobbying approach that seeks to hedge policy risk across party lines and ideological spectrums.

Looking back, the sector’s political activity has evolved alongside its own evolution as a market sector. During the 2020–2021 bull run, crypto firms ramped up advertising and public-relations campaigns, while high-profile names in the industry entered politics or attempted to influence policy through visible campaigns. The FTX saga and related enforcement actions accelerated a broader embrace of Washington engagement, as industry participants sought to define a path toward functioning product rails under a potential regulatory framework.

In Congress, the debate often centers on balance. Proponents argue that a comprehensive framework could unlock innovation and reduce uncertainty, while opponents warn against overreach that could stifle the development of new financial products. The debate around a major piece of legislation, commonly referred to as the CLARITY Act, illustrates this tug-of-war: supporters contend that clear rules would legitimize the sector and invite responsible participants to operate within a defined system, whereas critics warn that the bill may still fall short of satisfying industry stakeholders and ethics officials in the Senate.

One notable donor in the crypto space—Bankman-Fried—made headlines years earlier with immense campaign contributions, a fact cited by prosecutors as part of a broader indictment about how influence was used to push for policies favorable to his business interests. His case serves as a cautionary backdrop to current financing strategies, illustrating how the line between political advocacy and business priorities can blur in high-velocity markets. While Bankman-Fried has faced severe legal scrutiny, the broader ecosystem continues to pursue access to policymakers, albeit with increased attention on governance, compliance, and transparency.

As the 2024 cycle demonstrated, crypto funding did not merely surge; it also diversified. The Fairshake network, originally built as a single-issue pro-crypto fund, grew into a hub for multiple committees and independent expenditures. Its disclosed activity included substantial support for Democrats during the 2023–2024 period, alongside other, more conservative-aligned committees. This diversification is indicative of a broader strategy: deploying resources to achieve leverage across the political spectrum, while maintaining an emphasis on lawmakers perceived as aligned with crypto-friendly regulatory approaches.

“Super PACs are increasingly becoming in vogue for special interests who want to make their presence known in Washington,” said Michael Beckel, research director of Issue One, noting that large, industry-backed reservoirs of cash have become a significant force in shaping policy outcomes. As a result, the cadence and flow of money—both donations and independent expenditures—have become a persistent feature of the policy landscape, with significant implications for how regulations are written and how quickly they move through Congress.

“Industry-aligned super PACs with huge bank accounts have made a huge splash and helped thwart new regulations on their business interests.”

Beyond the halls of Congress, attention has turned to broader governance questions, including the ongoing debate around market structure, consumer protections, and the role of stablecoins in a broad financial ecosystem. The White House has hosted closed-door discussions among crypto and banking leaders in a bid to bridge gaps, but public progress remains cautious, with officials signaling that meaningful consensus may require additional time and negotiation. The dynamic between White House oversight, Senate deliberations, and industry lobbying will likely shape the regulatory timetable for years to come.

As election season resumes, the crypto lobby’s influence remains a core variable in policy outcomes. The sector’s strategy—balancing donor networks, bipartisan outreach, and legislative pressure—highlights how political influence now intersects with technology policy in a way that goes beyond traditional lobbying. If lawmakers can craft a coherent, forward-looking framework that protects consumers while enabling innovation, it could mark a watershed moment for both the crypto industry and the broader financial ecosystem. If not, the divergence between policy ambitions and practical implementation could prolong regulatory uncertainty for years ahead.

What to watch next

• Tracking the CLARITY Act’s status in the Senate and any new consensus on market structure legislation (dates and committee votes).
• Updates on major crypto donors’ disclosures and whether new transparency rules affect PACs and independent expenditures.
• White House-industry talks outcomes and potential regulatory proposals touching stablecoins and consumer protections.
• Upcoming midterm dynamics and how shifts in party control may influence crypto-friendly policy initiatives.
• Monitoring any shifts in the funding strategy of Fairshake and its affiliated committees as the 2026 cycle approaches.

Sources & verification

• FEC committee records for Fairshake (C00835959) and its 2024–2025 activity.
• Open Secrets data on Fairshake expenditures and donor contributions from 2023–2024.
• Reuters reporting on Bankman-Fried’s political donations and related investigations.
• Politico commentary on the blockchain network and party strategy in 2025.
• Senate roll-call votes related to the GENIUS Act and related crypto policy debates.

Crypto money and the midterm race: donors, policy, and power

Political action committees representing the crypto industry have already mobilized substantial funding as the United States heads toward its 2026 midterm elections. The focal point is a blend of large, unrestricted sums and more targeted campaigns designed to influence key policymakers and committees. The industry’s flagship super PAC, Fairshake, has emerged as a central vehicle for fundraising and political spending, with documented contributions and independent expenditures that exceed a century-and-a-half in collective capacity when combined with allied groups.

Last year, the crypto industry spent at least $245 million on campaign contributions, a figure that underscored the sector’s appetite for influence. The main super PAC funded by the industry, Fairshake, raised about $133 million in 2025, and its cash on hand now exceeds $190 million. Notable backers include venture-capital powerhouse a16z which contributed an initial $24 million, with Coinbase and Ripple each donating $25 million. The scale here is not merely academic: it represents a deliberate attempt to tilt regulatory and legislative outcomes in ways that supporters argue will create a more predictable environment for innovation and growth, while critics warn of the democratic perils of concentrated influence.

Activist groups have pressed back, arguing that large, industry-backed money undermines the voice of everyday Americans. “This kind of influence buying ultimately undermines the democratic process by marginalizing everyday Americans, ensuring that their voices and interests take a backseat to the crypto industry’s deregulatory desires,” said Saurav Ghosh, director of the Campaign Legal Center. The concern is not limited to the abstract; it centers on the real-world risk that policy outcomes could skew toward a narrow set of corporate interests rather than broad public goals, particularly as midterm dynamics favor the party controlling the House, Senate, or White House.

The broader political calculus shows crypto lobbying pursuing a degree of bipartisanship, even as the industry remains most comfortable with a regulatory posture that favors innovation. The Senate’s posture toward the CLARITY Act remains a barometer of how far policymakers are willing to go in crafting a comprehensive framework. The act advanced in the House this summer, but in the Senate it has yet to reach a conclusion that satisfies the governance and ethics concerns raised by many Democrats. In the interim, crypto advocates have sought to demonstrate broad-based appeal, balancing support within both major parties and pushing a long-term vision of a policy regime that accommodates new financial technologies without compromising consumer protections.

Publicly, some in the industry emphasize the necessity of nonpartisan engagement. Representative Sam Liccardo, a crypto-friendly Democrat, suggested that no industry should “put eggs in one basket,” signaling a preference for diversified political support. Yet others warn that aligning too closely with one party could backfire as political winds shift. The Winklevoss twins’ strategic donations to Digital Freedom Fund illustrate how industry actors are attempting to influence the policy conversation from multiple angles, covering both conservative and liberal lanes in pursuit of favorable regulatory outcomes.

The policy dialogue has also intersected with discussions about market structure and consumer protections, with Coinbase’s leadership engaging in public debates about proposed restrictions on stablecoin yields. Coinbase argued that a blanket ban could stifle innovation and impede legitimate financial services, while supporters of tighter controls contend that consumer safety cannot be compromised in the name of rapid innovation. The White House has attempted to broker a dialogue on these issues, hosting a closed-door summit with leaders from both crypto and banking sectors; however, Reuters reports that the gathering did not yield a definitive breakthrough on policy alignment.

The broader context is a political environment in which the crypto industry’s influence is increasingly visible and, for some observers, troubling. Critics warn that a system in which wealthier donors shape policy can cast doubt on the electorate’s ability to influence outcomes. Election-oversight advocates argue that this trend could erode trust in democratic institutions if policy results appear engineered to accommodate corporate interests rather than public benefit. In this light, the ongoing lobbying activity surrounding the CLARITY Act, the market structure debate, and related regulatory proposals will be essential to watch as the 2026 midterms approach.

As with any sector undergoing rapid evolution, the stakes are high for users, investors, and builders who rely on a stable, transparent policy framework. The current cycle demonstrates that money, messaging, and momentum can affect the speed and direction of regulatory developments, even in a landscape as complex and dynamic as crypto. The coming months will reveal whether policymakers can translate high-level objectives into clear, workable rules that support innovation while safeguarding the integrity of financial markets.

Is XRP’s recovery sustainable or is this just a dead cat bounce?

Ripple’s cross-border token nosedived to a 14-month low amid the recent crash of the broader cryptocurrency market.

Despite the brutal collapse and the bearish conditions, one important indicator suggests that a short-term resurgence could be on the horizon.

The Light at the End of the Tunnel

The past 24 hours have been ruthless for the digital asset sector, and XRP undoubtedly felt the impact. Its valuation plummeted to $1.11 (per CoinGecko’s data), the lowest level since November 2024, while its market capitalization briefly shrank to nearly $70 billion.

The violent move south has caused the asset’s Relative Strength Index (RSI) to reenter territory last seen during the October 2025 collapse. The technical analysis tool measures the speed and magnitude of recent price changes and ranges from 0 to 100.

Ratios below 30 suggest that the valuation has declined too much in a short period of time, meaning the token is oversold and ready for a potential rebound. On the contrary, anything above 70 is considered a bearish zone. Hours ago, XRP’s RSI fell to 13, but later rose to the current 40.

Meanwhile, the asset’s price has regained some lost ground to nearly $1.40, raising the question of whether this marks the beginning of a genuine recovery or simply represents a dead-cat bounce.

It is important to note that over the past few days, the spot XRP ETF netflows have been positive, suggesting that institutional investors remain interested in the asset. To put this into perspective, the same investment vehicles focused on Bitcoin (BTC) and Ethereum (ETH) have experienced massive red daily candles.

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Not so Fast

Despite the optimistic signals mentioned above, some industry participants believe that a further crash is imminent. X user FEXIR | CRYPTO predicted that XRP may tumble below $0.50, while Charting Guy warned that the price could fall to $1.

The increasing number of tokens stored on Binance reinforces fears of an additional crash. Data provided by CryptoQuant shows that investors have been transferring coins from self-custody to the biggest exchange in the past week, and now the reserves stand at almost 2.73 billion XRP. Such a development is often interpreted as a pre-sale step.