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Crypto World

Crypto Markets Rally After Softer-Than-Expected US Inflation Report

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Total market value rose over 4% today, though risk appetite remains fragile.

Crypto markets caught some relief on Friday, Feb. 13, as investors digested a softer-than-expected U.S. inflation report.

Total crypto market capitalization surged almost 5% over the past 24 hours to $2.44 trillion, while most large-cap crypto assets saw moderate gains on the day.

Bitcoin (BTC) climbed back over 69,000, up 4.5% today and pushing its weekly price change into the green, up 1.7%.

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BTC 7-day price chart. Source: CoinGecko

Ethereum (ETH) rose over 7.5% to trade back above $2,000, bringing weekly gains to 4.4%.

Figure Heloc (FIGR_HELOC) waws the only top-10 assets in the red this morning, though it was down less than 1%. BNB saw subdued gains, up just 1.7% today.

Disciplined Leverage

Sentiment remains unstable despite the boost in prices. Analysts at glassnode noted in an X post on Thursday, Feb. 12, that Bitcoin’s net unrealized profit/loss has slipped back into the hope/fear regime at around 0.18, indicating thin profit cushions.

“This regime tends to be reactive,” glassnode said, adding that rallies often meet sell pressure while downside moves can extend as conviction fades.

Paul Howard, senior director at Wincent, a high-frequency crypto market maker, told The Defiant that markets are showing “a degree of fragility,” as traders remain worried about aftershocks after the Oct. 10 crash that wiped out nearly $20 billion in leveraged positions. Howard elaborated:

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“Rumours surrounding the fallout from 10/10 — reportedly impacting at least one U.S.-based firm — have contributed to a more cautious tone in certain segments. This reinforces the importance of prudent risk management and disciplined use of leverage, particularly in an environment where liquidity can tighten quickly.”

The Crypto Fear & Greed Index remains deep in “extreme fear” territory, though it slightly improved after yesterday’s low.

Big Movers and Liquidations

Looking at the top-100 assets by market cap, Pi Network (PI) led gainers today, up 10%, followed by Midnight (NIGHT), up 9%.

On the downside, World Liberty Financial (WLFI) was today’s biggest loser among large-caps, though it’s down just 2.3%.

As for liquidations, according to CoinGlass data, roughly 90,640 traders were liquidated over the past 24 hours, with total losses nearing $260 million. Bitcoin accounted for $118.2 million and Ethereum for $56 million.

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ETFs and Macro Conditions

On Thursday, Feb. 12, spot Bitcoin ETFs saw even heavier outflows than the day before, posting net outflows of $410.4 million, data from SoSoValue shows. Spot Ethereum ETFs, meanwhile, also recorded net outflows, losing $113.1 million.

In terms of macro dynamics, today the U.S. Bureau of Labor Statistics released its latest Consumer Price Index (CPI) report, showing prices rose 2.4% year-over-year in January, just below the 2.5% forecast by economists surveyed by Dow Jones. Core inflation, which excludes food and energy, matched expectations at 2.5%.

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Crypto World

Crypto Scam Leader Extradited to China to Face Charges

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Crypto Scam Leader Extradited to China to Face Charges

Li Xiong, a key member of a group that allegedly helped crypto scam rings in Asia to move money, has been extradited from Cambodia to China, where he will face fraud and money laundering charges, according to Hong Kong-based news outlet Ta Kung Wen Wei.

On April 1, with strong support from the relevant authorities in Cambodia, a task force sent by China’s Ministry of Public Security successfully escorted Li Xiong, a core key member of the Chen Zhi criminal syndicate, back to China from Phnom Penh, Cambodia,” it said on Wednesday, citing a statement from China’s Ministry of Public Security on WeChat.

Xiong previously served as chairman of Huione Group, an alleged criminal organization that served scam centers in Cambodia that carried out “pig butchering” scams and other investment schemes to steal crypto from victims around the world. 

Huione Group was responsible for one of the largest illicit online marketplaces in the world, handling over $89 billion in cryptoassets.

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Source: Jacob in Cambodia

His extradition comes three months after the arrest of Chen Zhi, the head of Prince Group, which operates Huione Group. In October, it was reported that the US Department of Justice seized 127,271 Bitcoin (BTC) worth more than $15 billion from Zhi.

Related: Hong Kong retiree loses $840K in triple ‘crypto expert’ scam

The US Treasury Department’s Financial Crimes Enforcement Network directed US banks to cut payments and accounts tied to the Huione Group in October.

Authorities ask other Huione members to surrender

Ta Kung Wen Wei noted that several other members of Zhi’s criminal syndicate have been brought to justice “one after another,” citing comments from Chinese public officials.

“Public security authorities will continue to intensify efforts to capture fugitives,” it said, adding:

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“At the same time, they once again warn criminals to recognize the situation, stop before it is too late, surrender as soon as possible, and strive for lenient treatment.”

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