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3 reasons behind the bullish reversal

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3 reasons behind the bullish reversal

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Crypto market rebounds as buying surge drives total capitalization toward $2.4 trillion.

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Summary

  • Capital rotation from BTC and ETH is lifting utility plays like Mutuum Finance, now with $20.6m raised.
  • Mutuum’s V1 testnet enables non-custodial lending, letting users borrow against ETH, USDT, LINK, and WBTC.
  • Lenders earn via mtTokens while borrowers receive debt tokens, powering a decentralized credit market model.

The cryptocurrency market has experienced a decisive shift in momentum over the last 24 hours. After weeks of horizontal trading and minor corrections, a wave of buying pressure has pushed the total market capitalization toward the $2.4 trillion mark. This reversal is characterized by a sharp increase in trading volume across both centralized exchanges and decentralized protocols.

Market data shows that the “Fear & Greed Index” has jumped from a state of extreme fear to a neutral-to-positive reading in a single session. This rapid change in sentiment follows a period of heavy liquidations that effectively cleared out over-leveraged short positions. With the market “cleaner” from a structural standpoint, the path of least resistance has moved to the upside, bringing the $70,000 price target back into focus for the world’s biggest crypto.

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Crypto market surges as bitcoin eyes $70k

Bitcoin (BTC) is currently leading the charge, trading near $66,200 after a nearly 8% single-day gain. The asset is now within striking distance of the psychological $70,000 barrier, a level it has not firmly held since early February. This move has triggered a “halo effect” across the altcoin market, where several top-tier assets are outperforming Bitcoin on a percentage basis.

Solana (SOL): Known for its high beta to market moves, SOL jumped 13% on February 25, reaching an intraday high of $89 as it tests key resistance zones.

Ripple (XRP): Rebounding from recent lows, XRP added 8% to its value, supported by increased clarity in ongoing regulatory discussions.

Dogecoin (DOGE): The leading memecoin saw a 9% spike, reflecting a return of retail speculative appetite as the broader market turns green.

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3 reasons why the crypto market is surging

Record ETF Inflows: US-based spot Bitcoin ETFs recorded over $506 million in net inflows on February 25 alone. This represents the strongest single day of institutional buying since early 2026. This “smart money” accumulation provides a solid floor for the price and offsets selling pressure from short-term traders.

Short Squeeze and Liquidations: The sudden price jump forced the closure of over $571 million in bearish short positions. As these traders were “squeezed” out of their bets, they were forced to buy back Bitcoin and Ethereum, creating a feedback loop that accelerated the upward price movement.

Sparkling Retail Interest in Utility Protocols: There is a noticeable shift in how retail investors are allocating their capital. Instead of chasing high-risk memecoins, many are moving into utility-driven protocols that offer functional financial services. This new wave of interest is focused on platforms that provide financial tools, such as decentralized lending.

Profit reallocation and the rise of utility protocols

Historically, bullish periods in the crypto market follow a specific pattern. Once large-cap assets like Bitcoin and Ethereum finish their initial rally, investors and traders often reallocate their profits into cheaper sectors. 

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This “capital rotation” is currently favoring new utility protocols that show significant momentum. A prime example of this trend is Mutuum Finance (MUTM). This Ethereum-based project is building a non-custodial lending and borrowing ecosystem designed to help long-term holders unlock the value of their assets without selling them. 

Mutuum Finance is already proving its concept with a recently launched protocol version that has attracted the attention of over 19,000 investors. The project has successfully raised over $20.6 million in funding, signaling strong confidence from its community. Currently, the MUTM token is priced at $0.04, reflecting a steady growth phase as the project prepares for its full mainnet transition.

The design and functionality of the V1 protocol

The Mutuum Finance V1 protocol is currently live on the Sepolia testnet, allowing users to interact with a fully functional decentralized credit market. The system is designed to handle high-value assets, including USDT, ETH, LINK, and WBTC.

Lending and mtTokens: When a user supplies assets to the protocol, they receive mtTokens. These interest-bearing receipts represent the user’s share of the liquidity pool. For example, if a lender deposits 1,000 USDT, they receive 1,000 mtUSDT. 

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As borrowers pay interest, the value of these tokens grows automatically; if the pool earns 5% interest, those 1,000 mtUSDT become redeemable for 1,050 USDT after one year, providing the lender with a passive yield.

Borrowing and Debt Tokens: Borrowers can use their deposited assets as collateral to take out loans. This process generates debt tokens, which track the borrower’s liability within the system. For instance, if a user provides $2,000 in ETH as collateral to borrow $1,000 in stablecoins, the protocol issues 1,000 debt tokens to their account. 

Because the system is non-custodial, the user retains full control of their funds through smart contracts, and they simply need to return the value represented by those 1,000 debt tokens plus interest to unlock their original collateral.

A user provides more collateral than they borrow to maintain ownership of their assets while gaining liquidity. By borrowing instead of selling, a user keeps 100% of any future price increases on that collateral and avoids the capital gains taxes triggered by a sale. 

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Top assets eyeing new highs

As the market stabilizes, top cryptocurrencies like BTC, ETH, and XRP are eyeing significant technical milestones. Bitcoin is currently focused on flipping the $70,000 resistance into a support level, which many believe would trigger a run toward its previous all-time highs. Ethereum is similarly eyeing the $2,100 mark, supported by the technical upgrades outlined in the recent “Strawmap” roadmap.

At the same time, Mutuum Finance is moving forward with its official roadmap plans with a focus on facts and technical milestones. The next crypto stages include the integration of Layer 2 (L2) scaling to reduce transaction costs and the implementation of a buy-and-distribute mechanism. This model will use protocol fees to support the MUTM token’s ecosystem directly.

Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.

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Crypto World

US Iran War Nears as FBI Offers $25M for Kidnapped Americans

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US Iran War Nears as FBI Offers $25M for Kidnapped Americans

Tensions between Washington and Tehran escalated further on February 27 after the FBI designated Iran as a State Sponsor of Wrongful Detention. The bureau said it remains committed to returning Americans held captive abroad and bringing their captors to justice.

The FBI highlighted two long-running cases. One involves Robert A. Levinson, a retired FBI special agent who disappeared in 2007 during a trip to Kish Island, Iran. 

The US government continues to offer rewards totaling up to $25 million for information leading to his recovery

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The second case involves Shayan Kazemi, a US citizen who went missing in Istanbul in 2011. The US government is offering up to $200,000 for information leading to his safe return.

What the FBI’s Designation Means

A “State Sponsor of Wrongful Detention” designation signals that the US government believes a country is detaining American citizens unfairly, often for political leverage. It does not automatically trigger military action. 

However, it elevates diplomatic pressure and centralizes recovery efforts under the US Hostage Recovery Fusion Cell.

FBI Info Poster on Robert Levinson Kidnapping. Source: FBI

The move sharply increases political friction. It frames detentions not as isolated incidents but as state-backed tactics.

US Military Posture Tightens

The announcement comes amid heightened military activity in the Middle East. The US has moved advanced fighter jets and additional assets into Israel and the surrounding areas as tensions with Iran rise.

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Officials describe the deployment as a deterrence. Yet markets view the buildup as preparation for a potential escalation if nuclear talks collapse or regional clashes intensify.

Cuba Pressure Adds to Global Risk

Meanwhile, President Donald Trump suggested earlier today that the US could pursue a “friendly takeover” of Cuba

His comment follows weeks of economic pressure on Havana, including oil restrictions that triggered blackouts and fuel shortages.

The combination of Iran escalation and Cuba pressure rattled markets.

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Bitcoin, which had been attempting to recover toward $70,000, fell more than 3% on the day to around $65,000. Traders appear to be reducing risk exposure as geopolitical uncertainty rises.

For now, diplomatic channels remain open. But the language from Washington suggests tensions are entering a more dangerous phase.

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Morgan Stanley Applies US Bank Charter for Crypto Custody

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Morgan Stanley Applies US Bank Charter for Crypto Custody

Morgan Stanley has applied for a de novo national trust bank charter, allowing the bank to hold digital assets on behalf of its clients — a move in rhythm with its recent crypto expansion. 

A public filing with the Office of the Comptroller of the Currency (OCC) shows the application for a bank trust charter was received on Feb. 18 under the name “Morgan Stanley Digital Trust, National Association.” 

More details of the business plan were released on Friday, according to reports from Bloomberg and Forbes, revealing that the Morgan Stanley subsidiary will custody certain digital assets and execute purchases, sales, swaps and transfers to support client investment activities, along with crypto staking. 

Source: Office of the Comptroller of the Currency

A national bank trust charter authorizes a financial institution to engage in fiduciary activities such as trust services, custody and asset safekeeping. “De novo” is a Latin term for “anew,” meaning it is a newly created entity rather than an acquired one. 

This is Morgan Stanley’s first trust charter with a specific focus on crypto and follows 14 de novo bank charter applications in 2025. There are approximately 60 national trust banks supervised by the OCC in the US. 

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Rush for crypto bank charters 

In December, the OCC conditionally approved five applications for crypto-related national trust banks, including First National Digital Currency Bank, Ripple, BitGo, Fidelity Digital Assets and Paxos. 

Stablecoin platform Bridge, owned by payments processor Stripe, said it received conditional approval for a national trust bank earlier this month, which was followed by Crypto.com on Monday.

Related: OCC proposal seeks to settle stablecoin yield debate, clearing way for CLARITY

Days later, Payoneer, a global financial services firm, said it had filed for a national trust bank charter in the US, which could enable it to issue a stablecoin and provide various crypto services.

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Morgan Stanley doubling down on crypto 

Morgan Stanley has accelerated its moves toward crypto in recent months. In January, the Wall Street bank tapped equity markets executive Amy Oldenburg to lead its new crypto unit. 

Job listings on LinkedIn show the $2 trillion investment bank is also looking to expand its crypto team, advertising positions for digital assets strategy director, digital assets strategist and digital assets product lead.

Morgan Stanley also filed to launch spot Bitcoin (BTC) and Solana (SOL) exchange-traded funds in January, and later filed for a staked Ether (ETH) ETF. 

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