The crypto market wavered today, February 17, as traders watched several potential catalysts, including Federal Reserve statements and the happenings in the Middle East.

Crypto market on edge after a dovish statement by Austan Goolsbee

Bitcoin (BTC) price was little changed at $67,000, while Ethereum (ETH) was trading at $1,980. The market capitalization of all coins dropped by 0.15% in the last 24 hours to over $2.34 trillion.

Similarly, the Crypto Fear and Greed Index was hovering at the extreme fear zone of 13, while the Altcoin Season Index was trading at 31.

The crypto market wavered after Austin Goolsbee, the head of the Chicago Fed, noted that there was room for several interest rate cuts this year if inflation continues to fall toward the 2% target. He said: 

“I do think that if this proves to be transitory, and we can show that we’re on path back to 2% inflation, I still think there’s several more rate cuts that can happen in 2026, but we’ve got to see it.”

The statement came a few days after the Bureau of Labor Statistics published encouraging consumer inflation dropped to 2.4% in January from the previous 2.7%, while the core CPI remained unchanged at 2.5%. Inflation has been trending downward from 3%, and the downtrend may continue in the coming months.

The recent dot plot signaled that the Fed will deliver one interest rate cut this year. On the other hand, Polymarket traders anticipate that the bank will cut rates three times.

The crypto market would benefit from more interest rate cuts, as we saw during the Covid pandemic, when Bitcoin and most altcoins jumped to record highs as central banks slashed rates.

Hedge funds are betting against the dollar

Goolsbee’s statement came as a report showed the hedge funds were increasingly bearish on the US dollar. The survey by Bank of America showed that the currency’s positioning among fund managers fell to the lowest level in over a decade. In theory, a weaker dollar benefits the crypto market because most coins are quoted in U.S. dollars.

Looking ahead, the next major catalyst for Bitcoin and other altcoins will come on Wednesday, when the Federal Reserve releases minutes from its last monetary policy meeting. These minutes will provide more information about the last meeting and hints on what to expect in the next meetings.

TLDR:

• Bundesbank President Nagel endorsed euro stablecoins as low-cost tools for cross-border payments across Europe.
  
• The digital euro will become the first pan-European retail payment solution built on solely European infrastructure.
  
• A wholesale CBDC is in development to enable programmable central bank money payments for financial institutions.
  
• Nagel warned Europe can no longer rely on transatlantic cooperation and rules-based order as it once did.

Germany’s Bundesbank President Joachim Nagel has publicly endorsed euro-denominated stablecoins as a viable tool for cross-border payments.

Speaking at the American Chamber of Commerce in Germany on February 16, 2026, in Frankfurt, Nagel outlined a broader vision for European financial sovereignty.

His remarks covered payment system independence, regulatory reform, and capital market integration. The endorsement marks a notable shift in tone from a senior European central banker on private digital assets.

Nagel Makes the Case for Euro-Denominated Stablecoins

Euro stablecoins, according to Nagel, can facilitate cross-border payments for individuals and firms at lower cost. This positions them as practical instruments rather than speculative assets.

The focus is specifically on euro-denominated instruments that reinforce European monetary control. By framing stablecoins within a sovereignty narrative, Nagel separates them from broader crypto market concerns.

The endorsement did not come in isolation. Nagel stated that the Eurosystem is actively working toward a retail central bank digital currency.

He described it as “the first pan-European retail digital payment solution, based solely on European infrastructures.” Euro stablecoins, in his view, serve a complementary role alongside this public infrastructure.

Work on a wholesale CBDC is also advancing in parallel. Nagel noted that “a wholesale CBDC would allow financial institutions to make programmable payments in central bank money.”

Together, the retail CBDC, wholesale CBDC, and euro stablecoins form a layered European digital payments ecosystem. Each instrument serves a distinct purpose within that framework.

The core argument is that Europe must reduce its dependence on foreign-controlled payment networks. Currently, major digital payment solutions used across the EU rely heavily on US-based providers.

Euro stablecoins offer a market-driven complement to public infrastructure in closing that gap. Nagel’s endorsement lends institutional credibility to that path forward.

Broader European Reforms Back the Digital Payments Push

The stablecoin endorsement fits within a wider agenda to strengthen the international role of the euro. Nagel outlined three reform priorities: regulatory simplification, the Savings and Investments Union, and euro payment sovereignty.

He described this as “an ambitious programme” that he regards as “essential to successfully overcoming the current challenges.” Each priority connects to the others in building a more resilient European economy.

Regulatory complexity remains a known obstacle to growth and investment across Europe. Nagel referenced reports by Enrico Letta and Mario Draghi calling for streamlined EU rules.

He stressed that “it is not their mere existence that causes problems” but rather “their extraordinary complexity and rigidity.” An ECB High-Level Task Force on simplifying financial regulation is active, with Nagel serving as a member.

Capital market fragmentation across member states continues to limit private investment. Nagel pointed out that “a high degree of economic fragmentation still remains” despite over 30 years of the single market.

The Savings and Investments Union was presented as the key mechanism to address this gap. High European savings, he argued, “could be better channelled into fostering innovation, productivity and competitiveness.”

Transatlantic trade remains substantial, with the EU and US together representing 44% of global GDP. However, Europe is clearly preparing for a world where that partnership carries more uncertainty.

Nagel was direct in saying, “we cannot rely on transatlantic cooperation and the rules-based international order to the same extent as before.”

His support for euro stablecoins reflects that broader repositioning of European financial policy toward greater independence.

More than 36,000 BTC left exchanges this month as miners shifted holdings to cold storage, hinting at bullish expectations ahead.

Bitcoin miners have moved more than 36,000 BTC from exchanges since the beginning of February.

The volume stands out when measured against earlier months and points to a change in how they are managing their holdings.

Miner Activity in February

A CryptoQuant report indicates that roughly 36,000 BTC were transferred from trading platforms within a short period this month. Out of that total, more than 12,000 BTC was withdrawn from Binance, while the remaining 24,000 BTC was distributed across several other exchanges. This shows that the activity occurred broadly across the market, instead of being linked to a single exchange or one isolated transaction.

This type of activity is generally associated with long-term storage because miners typically move BTC to cold wallets instead of leaving their holdings on exchanges. Such transfers can also mean confidence in future price growth, as lower exchange balances reduce the amount of BTC readily available for sale on the spot market.

CryptoQuant also noted that daily withdrawals accelerated during the period. On one day alone, more than 6,000 BTC was moved off exchanges, marking the highest single-day total since last November. Compared to January, February’s withdrawal levels are much higher, contributing to the view that miners are actively repositioning.

At the same time, miners are not the only group showing sustained faith in the OG cryptocurrency’s upside. Data shows that long-term holders accumulated 380,104 BTC over the past 30 days, indicating continued demand from that segment of the market.

Market Outlook

The opening weeks of February have delivered a blow to BTC, with its price falling near the $60,000 at one point. Data from CoinGecko shows that over the past 24 hours, the cryptocurrency went from slightly over $67,000 to just under $70,000, while posting a decline of more than 28% over the past month.

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However, analysts at VanEck describe the 2026 downtrend as an “orderly deleveraging” instead of a sudden collapse. Head of Digital Asset Research Mathew Sigel previously explained that this is because futures open interest has dropped by about 20%, suggesting leveraged positions are being reduced in a controlled manner rather than through panic-driven liquidations.

February’s performance has also been shaped by institutional outflows, macroeconomic pressure, and tax-related factors. Spot Bitcoin ETF outflows are now exceeding inflows, suggesting profit-taking or a shift to defensive assets like gold. The Federal Reserve has also maintained rates near 3.75% amid 2.4% inflation, while the newly introduced Internal Revenue Service 1099-DA form adds compliance pressure for investors.

An Ethereum user lost $600,000 on Tuesday morning to a common crypto scam known as ‘address poisoning.’

Highlighting the loss, SpecterAnalyst, a self-described “onchain investigator,” warned users to “always verify the entire wallet address.”

The costly mishap comes just one week after another user lost over $350,000 to the same scam, despite first sending a test transaction to the attacker’s address.

Read more: Crypto trader loses $50M USDT to address poisoning scam

Address poisoning is an attack vector in which scammers send spam transactions to genuine users, after they make a transfer.

The incoming transactions come from similar-looking addresses in the hopes that the user will confuse them for the intended address in future transfers. Fake versions of common token tickers may be transferred in these spam transactions, or small amounts of genuine assets.

The strategy requires generating a new, look-alike address with identical beginning and end characters, which the user accidentally copies and pastes into future transfers. 

Popular block explorers often abbreviate the middle portion of addresses to save space.

Read more: Refund of $70M ‘address poisoning’ scam ongoing, over 50% returned

Barabazs.eth, of the Ethereum Foundation and Ump.eth, proposes a partial solution to this issue. The tool allows for visually truncated addresses, while the full text remains searchable for users to double-check before transfers.

However, using an address book is far safer than copying addresses from a block explorer.

After Ethereum’s Fusaka upgrade lowered transaction costs, address poisoning has surged. The volume of freshly created addresses has risen sharply following the protocol upgrade in December last year, according to research from Andrey Sergeenkov.

Test failed successfully

In the wake of today’s loss, SpecterAnalyst also drew attention to a significant loss from last week.

This time, the user even sent a test transaction to the scammer’s spoofed address, but “the test fund was not properly confirmed before sending the main amount.”

The simple error led to a loss of over $350,000.

SpecterAnalyst suggests that, for this user, testing became “a routine step rather than serving its actual purpose of confirming the correct destination address.”

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Dutch payments company Quantoz Payments has become a principal member of Visa, enabling it to issue virtual debit cards backed by its regulated e-money tokens and sponsor third-party fintechs seeking to offer stablecoin-linked payment products across Europe.

Under the agreement, Quantoz will be able to issue Visa-branded virtual cards tied to balances held in its USDQ, EURQ and EURD e-money tokens, allowing users to spend those funds online, in stores and through mobile wallets.

The company will also act as a BIN sponsor, enabling fintech partners to embed card issuance directly into their platforms.