Epstein’s 2010s emails show Gensler talks, XRP/XLM bets, CBDC and stablecoin funding links.

Newly released documents from the Jeffrey Epstein case contain references to communications involving cryptocurrency policy discussions and Gary Gensler, according to reports published this week.

The documents include emails dated 2018 that reportedly mention conversations between Epstein and individuals connected to policy and academic circles in the cryptocurrency sector. Gensler, who later served as Chair of the Securities and Exchange Commission, appears among the names referenced in the materials.

According to the reports, the files contain correspondence suggesting Epstein discussed arranging a meeting with Gensler regarding cryptocurrency topics. Emails from 2018 indicate Epstein told former U.S. Treasury Secretary Lawrence Summers that Gensler had arrived early for crypto-related discussions, according to the documents. Summers reportedly responded that he knew Gensler and considered him intelligent.

No documents released to date have established a direct connection between Epstein and any specific cryptocurrency decision or project, according to available reports. However, records suggest Epstein invested millions in early cryptocurrency ventures, including approximately $3 million in Coinbase in 2014, reports stated.

Some emails reportedly referenced XRP and Stellar, leading to speculation about possible investments in those projects, though the documents do not provide clear confirmation, according to observers.

Additional claims in the reports suggest Epstein provided funding for U.S. central bank digital currency pilot programs through MIT and certain Federal Reserve Banks. Gensler taught at MIT during that period and worked in academic policy circles before entering government service and participating in the development of U.S. cryptocurrency regulation.

Reports also indicate Epstein explored early stablecoin-related investments, including Circle, through connections associated with Brock Pierce. Pierce reportedly requested Epstein’s assistance in connecting with Lawrence Summers, according to accounts of the correspondence.

The documents suggest Epstein maintained investments in private cryptocurrency ventures while maintaining relationships with academic and policy circles involved in digital currency regulation, according to analysts reviewing the materials. The timing of these connections has drawn attention as they occurred before cryptocurrency markets achieved mainstream adoption.

A key volatility indicator for Bitcoin (BTC) has narrowed to its tightest measurement on record, a pattern that was followed by a multimonth rally in previous bull and bear markets. Will the Bollinger Bands indicator call the market bottom again?

Record Bitcoin Bollinger Band compression hints at volatility

Analyzing the monthly Bitcoin chart, crypto analyst Dorkchicken noted that BTC’s Bollinger Bands are currently at their “tightest” level on record. Such conditions have repeatedly led to bullish breakouts, with the only prior downtrend from similar conditions occurring in 2022, during the drop to $16,000 from $20,000.

Bollinger Bands measure price volatility, and extreme compression often leads to a sharp expansion. The analyst added that there are higher odds of an upside trend once expansion begins.

On the contrary, Bitcoin trader Nunya Bizniz pointed to an approaching 50- and 200-period simple moving average (SMA) death cross on the three-day chart. A death cross occurs when the shorter-term moving average falls below the longer-term average, signaling weak price momentum. 

Across the past three instances, the pattern marked drawdowns of about 50% over the following one to six months and aligned closely with final cycle capitulation phases.

A similar path may imply a potential bottom between March and August near $33,000. The trader also said that BTC has spent 110 days below its short-term holder cost basis of $89,800. During previous cycle lows, the price typically remained under that level for nearly 200 days on average. 

Market analyst Ardi also noted that the long futures exposure from retail traders has increased on each dip to $68,000 from $88,000. Currently, 72% of tracked retail accounts are long into a descending trendline. 

While this reflects early signs of market optimism, each recent surge in long positioning has been followed by a sharp sell-off. With positioning once again elevated, these longs remain vulnerable to liquidation, increasing the risk of a liquidity hunt if the price moves lower.

Related: Bitcoin ‘roadmap to bottom’ says $58.7K Binance cost basis now crucial

BTC’s Sharpe ratio is interesting, but $70,000 remains the level to crack

Crypto analyst MorenoDV said that Bitcoin’s short-term Sharpe ratio has dropped to -38.38, matching levels last seen in 2015, 2019 and late 2022. 

The Sharpe ratio measures the risk-adjusted return, and deeply negative readings mark periods of deep drawdown and volatility. Each extremely low ratio signal has aligned closely with the major cycle lows, leading to strong BTC rallies, with the analyst noting that the current price range may be a “generational buy zone.” 

Glassnode data calls for confirmation through a stronger BTC demand absorption. Since early February, each move above the $70,000 level has stalled as the net realized profits exceeded $5 million per hour.

Glassnode added that in Q3 2025, profit-taking between $200 million to $350 million per hour did not interrupt the advance to new highs in Q4. 

Related: ‘Resilient’ Bitcoin holders defend BTC, but bear floor sits 20% lower: Glassnode