Bitcoin BTC$69,210.75 has clawed its way back above $70,000, recovering from a sharp drop near $60,000 earlier in the month.

The cryptocurrency is up nearly 5% in the last 24-hour period, while the broader CoinDesk 20 (CD20) index rose 6.2% in the same period.

The rebound comes as investors react to a cooler-than-expected U.S. inflation print and signs of renewed risk appetite. The Consumer Price Index for January rose 2.4% year-over-year, just below the forecasted 2.5%.

That gave markets a reason to believe interest rate cuts could arrive sooner than expected, lifting both stocks and cryptocurrencies. Lower interest rates make risk assets more attractive, as the rate of return on risk-free or low-risk investments lowers.

Traders on prediction market Kalshi are currently weighing a 26% chance of a 25 bps rate cut in April, up from 19% earlier in the week. On Polymarket, the odds rose from 13% to 20%.

Still, the rally masks deeper fractures beneath the surface.

The Crypto Fear & Greed Index continues to reflect deep anxiety, hovering near extreme fear levels last seen during the 2022 bear market over the collapse of FTX. The index has been sitting in “extreme fear” since the beginning of the month.

Bitwise analysts noted that $8.7 billion in bitcoin losses were realized in the last week, second only to the fallout from the 3AC collapse.

“Nevertheless, the rotation of supply from weaker hands to conviction investors has historically been associated with market stabilisation phases, though such redistribution requires time to fully unfold,” Bitwise wrote.

Bitcoin treasury firms were sitting on over $21 billion of unrealized losses, an all-time high. Bitcoin’s recovery has seen that figure drop to $16.9 billion.

Thinner trading volumes are supporting the current rally during the weekend and seller exhaustion. The $8.7 billion in realized losses in the last week could be seen as a “textbook capitulation event.”

Yet, the extreme fear gripping the market poses a challenge. AS Bitwise research analyst Danny Nelson told CoinDesk, the market’s “main driver right now is fear. Fear that we’ll go lower.”

That fear is seeing investors take any coming rally as a chance to sell. Whether that will keep on materializing or the shift to higher-conviction holders will see the market change directions remains to be seen.

Over the past two years, the Bitcoin (BTC) ecosystem has witnessed a proliferation of “layer 2s” that have claimed to bring decentralized finance to the world’s oldest blockchain network. Despite the high hopes many Bitcoin enthusiasts held for these protocols, their results have fallen catastrophically short.

This pattern reveals the core reason behind the constant failure, and it’s not what you think. Instead of selling a scaling solution for Bitcoin, they were selling speculative tokens about Bitcoin. The difference is critical, and it’s exposed by the one test that matters. Do they meet the architectural standards of a true layer 2?

What real layer 2s actually look like

Ethereum’s (ETH) mature layer-2 ecosystem provides the gold standard for what scaling solutions should accomplish. Real layer 2s require three non-negotiable features: data availability on layer 1 (the base layer must hold data needed to reconstruct the state), verifiable execution through fraud or validity proofs, and permissionless exits based solely on layer-1 data.

By this definition, which focuses on security inheritance rather than marketing claims, almost nothing in the Bitcoin ecosystem meets the criteria. Despite 73 Bitcoin scaling solutions in development, most are sidechains masquerading as L2s, running parallel to Bitcoin rather than on top of it.

Judge the difference and risk-reward of using any Bitcoin L2 to just using Ethereum. Any so-called Bitcoin L2 that fails to meet this standard asks you to accept its novel security model, whereas using Ethereum’s genuine L2s allows you to simply inherit Ethereum’s.

Three fatal flaws

Every major Bitcoin L2 shares the same architectural failures that doom it from the start. First, each project relies on bridges or federations to facilitate the movement of BTC in and out of the network. This creates a centralized chokepoint and massive custodial risk. You’re reintroducing the exact “trusted third party” that Bitcoin was created to eliminate. 

Second, these projects are “token first.” They lead with tokens that have no necessary function for the protocol’s core operation. This creates perverse incentives and turns the project into a speculative go-to-market approach rather than a utility-first scaling strategy.

Third, users must sacrifice the security of Bitcoin to use these networks. They must leave Bitcoin’s sovereign, proof-of-work security model and submit to a new, often proof-of-stake consensus run by a small set of validators. You’re trading the world’s most robust and decentralized security for a weaker, novel one.

Taken together, these three flaws are fatal for “Bitcoin layer 2s.” They turn the claim of Bitcoin scalability into a mere marketing ploy. If it doesn’t preserve L1 assurances, it’s not actually scaling Bitcoin.

The graveyard is already full

The numbers tell the story better than any technical argument. Merlin Chain once topped Bitcoin L2 total value locked (TVL) rankings, but now it is bleeding value daily. Babylon promised the “Bitcoin staking revolution” and delivered an 84% loss. These projects raised millions, launched with fanfare, and collapsed within months.

Meanwhile, legitimate developments like Tether (USDT) on the Lightning Network show what real Bitcoin scaling looks like. Lightning processes real payments, while these L2s process exit liquidity. The pattern is clear for new pump-and-dumps. Announce a Bitcoin L2, launch a token, pump on a “Bitcoin scaling” narrative, and dump when the reality hits that you’ve built another sidechain with extra steps.

Build on Bitcoin, not beside it

As research shows, projects like BitVM are working toward realistic rollups that actually inherit Bitcoin security. Others are exploring metaprotocol approaches, systems that use Bitcoin’s base layer as an immutable data ledger and settlement layer, where all activity is ultimately rooted in standard Bitcoin transactions.

Start on layer 1, prove product-market fit, then scale with techniques that keep users within Bitcoin’s trust domain. There’s no bridge custody, and users retain their L1 exit guarantees.

The “SlowFi” advantage directly addresses the speed critique. For core financial primitives, stablecoins, lending, and decentralized exchanges, Bitcoin’s deliberate finality and security create stickier liquidity and more sustainable growth, avoiding the farm-and-dump cycles of high-speed chains. Speed is the enemy of stability.

The future of Bitcoin scaling isn’t about creating faster, separate systems; it’s about using Bitcoin’s own finality and security to create a more stable and sovereign form of finance.

The return to first principles

Bitcoin DeFi’s potential is real, with institutions increasingly interested in Bitcoin-native yield opportunities. The current L2 boom is a distraction, building fragmented, high-risk sidechains instead of unifying and strengthening the Bitcoin network.

The future of Bitcoin is about making the base layer itself more powerful and programmable. Any solution that requires a bridge, a new token, or a new consensus mechanism is considered a legacy approach.

As VCs pour hundreds of millions into Bitcoin sidechains, let’s remember that funding doesn’t equal innovation. The projects that will define Bitcoin’s next decade are those building genuine L1 enhancements and true security inheritance, not repackaged sidechains with Bitcoin branding.

The L2 solution trend must end. Bitcoin deserves better than extraction disguised as innovation. The builders who understand this distinction will inherit the future. The rest will join the growing graveyard of failed tokens that promised to “unlock Bitcoin” and instead unlocked only losses.

The majority of voters in a recent poll believes there’s more pain ahead for bitcoin. But, that could be a blessing in disguise.

The past several months have been a consistent struggle for the primary cryptocurrency, which traded above $126,000 in early October – not that long ago.

However, it was rejected there, and the October 10 crash that wiped out over $19 billion in leveraged positions started something that it seems hasn’t ended yet. Although bitcoin didn’t collapse below $100,000 at the time, it did so in November and hasn’t been within a six-digit price territory ever since.

It ended 2025 in the red, making it the first post-halving year to do so. Although it started 2026 on the right foot and neared $100,000 by the middle of January, it faltered there, and the subsequent rejection was more than just a healthy correction.

In the span of just a few weeks, the cryptocurrency plunged by almost $40,000 and dumped to $60,000 on February 6. This meant that the asset had crashed by more than 50% since its October all-time high.

Although this is a massive price calamity that brought down the entire market and the overall sentiment with it, especially in times when other financial industries were thriving, most people in a recent survey voted that the bottom is not actually in.

A poll by Ali Martinez shows that only 22.7% of the voters responded that $60,000 was the lowest BTC will ever go in this market cycle. The answer with the most votes – 30.4% – was actually $38,000, which, given bitcoin’s price of $70,000 now, would mean another near-50% crash.

Price Prediction: $BTC Market Bottom

— Ali Charts (@alicharts) February 12, 2026

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Some recent reports agree with the aforementioned results, indicating that the overall market structure has fundamentally changed and the bears are now in control. Analysts are split on trying to determine whether the bottom lies, but most believe it could be somewhere around $50,000.

On the other hand, Warren Buffett has repeatedly reasserted that investors should be greedy when others are fearful, and vice versa. Additionally, the analytics company Santiment has frequently noted that BTC typically moves in the opposite direction of the crowd’s expectations, so there might be a surprise rally hidden somewhere in this pile of fear.

TLDR:

• China mandates blockchain technology for full-chain green electricity certification by 2030. 
• Market-based electricity trading will reach 70% of national consumption under unified system. 
• Green certificates will integrate with carbon emission accounting through blockchain tracking. 
• China seeks to promote domestic green power consumption standards as international benchmarks.

China will deploy blockchain technology across its national green electricity certification system under new State Council guidelines released in February 2026.

The reform document mandates full-chain certification for green electricity production and consumption using distributed ledger technology.

Blockchain integration represents a central component of the country’s unified electricity market reform scheduled for completion by 2030.

The certification mechanism aims to establish transparent tracking of renewable energy from generation through end-user consumption.

China seeks to transform its green electricity consumption standards into international benchmarks through this technological infrastructure.

Blockchain Powers National Green Certificate Tracking Infrastructure

The green electricity market reform introduces blockchain as the technical foundation for certification processes. The policy directs authorities to “fully introduce blockchain and other technologies” into the national system.

Full-chain certification will track renewable energy across production, transmission, and consumption stages. The technology deployment ensures transparency and prevents double-counting in green electricity claims.

Green certificates will function as basic identification tools for renewable energy environmental attributes. The national unified green certificate market will expand in scale and functionality.

Blockchain implementation supports monitoring of certificate prices to maintain reasonable market levels. The system combines compulsory consumption requirements with voluntary participation options for market participants.

Multi-year purchase agreements between renewable energy issuers and users will operate on blockchain infrastructure. The technology enables automated verification and settlement of long-term contracts.

Inter-provincial new energy priority generation plans can be implemented through blockchain-tracked green power trading.

Various trading models including aggregation transactions will leverage the distributed ledger framework for enhanced efficiency.

Carbon Accounting Integration Targets International Recognition

China will study feasible pathways for including green certificates in carbon emission accounting systems. Blockchain traceability features support accurate measurement of emission reductions from renewable energy consumption.

The certification mechanism connects green electricity markets with carbon trading frameworks. Agricultural and forestry biomass power generation projects may participate in voluntary greenhouse gas emission reduction markets.

The reform strengthens international communication regarding green certificate application and accounting methods.

China aims to promote domestic green electricity consumption standards as international norms. Blockchain-based certification provides verifiable data for cross-border recognition of renewable energy attributes.

The technology addresses growing demand from multinational corporations for auditable clean energy procurement.

Green power standard systems will undergo improvements to align with global practices. Full-chain blockchain certification offers third-party verification capabilities without central authority dependencies.

This approach appeals to international stakeholders requiring independent validation of environmental claims. The distributed architecture supports integration with emerging global carbon accounting protocols.

Unified Market Framework Enables Blockchain Deployment Scale

The broader electricity market reform creates necessary conditions for blockchain technology adoption. By 2030, market-based trading will reach 70% of total electricity consumption nationwide.

All power sources and users except guarantee customers will participate directly in market transactions. This scale provides sufficient transaction volume to justify distributed ledger infrastructure investments.

Cross-provincial and intra-provincial joint transactions will operate through interconnected platforms. Blockchain technology facilitates information sharing and mutual recognition across regional boundaries.

The system enables registration in one location with nationwide data sharing for electricity market operators. Standardized data models and information interaction protocols support blockchain interoperability requirements.

New business entities including virtual power plants will participate in blockchain-enabled markets. These operators must meet technical standards for operation monitoring and information interaction.

Distributed energy resources can aggregate and trade through blockchain smart contracts. The technology reduces transaction costs for smaller participants while maintaining security and transparency.

Market participants will access unified credit systems built on blockchain infrastructure. Credit information collection and sharing will operate through distributed networks.

Power generation enterprises, electricity sales companies, and users will receive credit evaluations using blockchain-verified transaction histories.

The tamper-resistant nature of distributed ledgers enhances trust in market operations and regulatory compliance.

The Ethereum Foundation appointed Bastian Aue as interim co-Executive Director on February 13. The organization positioned the move as a strategic pivot toward institutional longevity and “cypherpunk” values.

Aue replaces Tomasz Stańczak, who steps down after nearly a year in the role. He would be leading the Foundation alongside Hsiao-Wei.

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ETH Reclaims $2,000 as Foundation Outlines New Strategic Mandate

The transition comes as the non-profit steward of the Ethereum blockchain seeks to balance operational efficiency with a mandate to ensure the network’s survival for “1,000 years or more.”

Aue, who previously worked with the executive team on grants and operations, brings deep institutional knowledge to the role.

In a statement, he emphasized a return to the network’s ideological core and pledged to prioritize “real permissionless infrastructure.”

“The mandate of the EF is to make sure that real permissionless infrastructure, cypherpunk at its core, is what gets built. Ethereum should outlast us, and it has been our job from the beginning to make sure it is robust enough to do so,” Aue said.

This rhetoric suggests a strategic reprioritization for the blockchain network. The goal is to ensure the protocol is robust enough to survive centuries of geopolitical and technological shifts, rather than reacting to short-term industry trends.

Notably, Stańczak’s tenure marked the beginning of a critical restructuring phase of the blockchain network’s leadership.

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He was appointed approximately 12 months ago, during a period when the Foundation faced mounting industry criticism for perceived laxity and bureaucratic inertia.

Under him, the Foundation shifted gears as he injected a sense of urgency into the organization. Stańczak helped to streamline internal teams and expand the EF’s engagement with the broader developer ecosystem.

The Foundation noted his guidance was instrumental in “maturing” the organization’s operations during a volatile market cycle.

“In his year at the EF, Tomasz helped to greatly increase the efficiency of many parts of the foundation, and turn the EF into an organization that is much more responsive to the world outside. He brought fresh new energy to the organization, and as a result of his encouragement and support, the Ethereum Foundation is regularly doing things well outside its previous comfort zone,” Vitalik Buterin, Ethereum co-founder, said.

With the organizational ship steadied, the appointment of Aue signals a shift in focus from operational triage to existential durability.

Meanwhile, the leadership continuity plan was announced amid broader market volatility.

Ethereum traded roughly 5.5% higher over the past 24 hours, reclaiming the $2,000 level to trade near $2,051 as of press time.

This price appreciation contrasts with the broader market’s poor performance since the beginning of the year.

ETH remains down approximately 36% over the last quarter, highlighting the turbulent environment Aue inherits as he attempts to steer the Foundation toward its millennial vision.

PI has surged by almost 20% since its latest all-time low registered just a few days ago.

Bitcoin’s impressive price ascent that began late on Friday drove the asset to a multi-day low of just under $70,000, where it faced some resistance.

The altcoin space is filled with notable gainers as well, with ETH surging toward $2,100, SOL going to $86, and XRP aiming at $1.45.

BTC Eyes $70K

After dumping to $60,000 on February 6, the primary cryptocurrency bounced off to $72,000 almost immediately but couldn’t penetrate that level and was sent south toward $68,000. The following several days were quite underwhelming as BTC spent them trading sideways between $68,000 and $72,000.

The upper boundary rejected the latest attempt on February 10, and bitcoin began to lose value rapidly, going down to $66,000 on February 12 and $65,000 on Friday morning. However, the bulls managed to defend that support and actually helped BTC reverse its trajectory.

They initiated a notable leg up that drove bitcoin to $68,000 $69,000 on Friday evening. After it stalled there for some hours, the bulls pushed the asset further to almost $70,000 on Saturday morning, but that resistance is yet to fall.

For now, bitcoin’s market cap has risen to $1.390 trillion on CG, while its dominance over the altcoins has remained relatively stable at 56.7%.

Alts on the Rise

Ethereum struggles mid-week as it dumped below $2,000 after the latest leg down. However, it reacted positively to this drop and now sits close to $2,100 after a 6% daily increase. XRP, which went down to $1.35 at one point, stands at $1.45 now after a similar daily increase.

Zcash is the biggest gainer from the larger-cap alts. ZEC has soared by 20% to $280, followed by HBAR (9%), BCH (8%), XLM (8%), and LINK (6%). SOL has shipped to $86 after a 7.3% daily jump.

Pi Network’s native token has finally shown some signs of revival. It’s up by 8% daily and 18% since its all-time low marked just three days ago, which prompted some analysts to speculate whether this is a sustainable recovery or just another dead-cat bounce before a new plunge.

The total crypto market cap has added roughly $100 billion in a day and is up to $2.455 trillion on CG.

ARK Invest has returned to buying shares of Coinbase Global after trimming its position, adding roughly $15 million worth of stock across several of its actively managed exchange-traded funds (ETFs) on Friday.

The Cathie Wood-led asset manager purchased 66,545 Coinbase shares through the ARK Innovation ETF (ARKK), 16,832 shares through Next Generation Internet ETF (ARKW) and 9,477 shares through Fintech Innovation ETF (ARKF), according to the firm’s daily trade disclosures.

The buying activity coincided with a sharp surge in Coinbase stock. Shares closed the trading session at $164.32, up about 16.4% on the day, before edging higher in after-hours trading, according to data from Google Finance. The surge put the firm’s total purchase at roughly $15.2 million.

Alongside Coinbase, ARK also increased its stake in Roblox Corporation, buying shares in ARKK, ARKW and ARKF. Roblox closed near $63.17 on the New York Stock Exchange on Friday.

Related: Coinbase unveils crypto wallets designed specifically for AI agents

ARK cuts Coinbase shares across ETFs

Last week, ARK Invest reduced its exposure to Coinbase, selling about $17.4 million in Coinbase stock on Feb. 5 for the first time this year and its first reduction since August 2025.

The exchange then sold another $22 million worth of Coinbase shares across several ETFs on Feb. 6, while increasing its position in digital-asset platform Bullish.

As Cointelegraph reported, Coinbase became the top detractor across several of Cathie Wood’s ARK Invest ETFs in the fourth quarter of 2025, as a broader crypto market pullback pressured performance. Shares of Coinbase fell more sharply than both Bitcoin (BTC) and Ether (ETH) during the quarter.

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Coinbase posts $667 million Q4 loss

Coinbase reported a net loss of $667 million in the fourth quarter of 2025, ending an eight-quarter run of profitability. Earnings per share came in at 66 cents, missing analyst expectations of 92 cents, while net revenue fell 21.5% year-over-year to $1.78 billion. Transaction revenue dropped nearly 37% to $982.7 million, although subscription and services revenue rose more than 13% to $727.4 million.