Crypto World
Bitcoin Dips to $60k, TRM Labs Reaches Crypto Unicorn Status
Cryptocurrency markets experienced a brutal sell-off this week as investor concerns grew over stagnating US liquidity following US President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve.
Bitcoin exchange-traded funds (ETFs) recorded three consecutive days of outflows, with $431 million exiting on Thursday, according to data from Farside Investors. Bitcoin’s (BTC) price briefly dipped to $60,074 on Friday before recovering above $64,930 as of 7:49 a.m. UTC.
Warsh — who previously served as a Fed governor from 2006 to 2011 — is expected to continue the interest rate cut trajectory. His nomination may also signal that broader market liquidity is expected to “stabilize rather than meaningfully expand,” Thomas Perfumo, economist at crypto exchange Kraken, told Cointelegraph.
The industry recorded its 10th-largest liquidation event on Jan. 31, as more than $2.56 billion in leveraged positions were wiped out, according to derivatives data platform CoinGlass.
TRM Labs completes $70M investment round at $1B, becomes crypto unicorn
Blockchain intelligence platform TRM Labs completed a $70 million Series C funding round, valuing it at $1 billion, becoming the latest crypto company to reach unicorn status.
The investment round was led by seed investor Blockchain Capital, with participation from Goldman Sachs, Bessemer Venture Partners, Brevan Howard Digital, Thoma Bravo, Citi Ventures and Galaxy Ventures, according to a Wednesday news release.
TRM Labs seeks to equip public and private institutions with AI solutions that combat cybercrime. The company defends against illicit activities that increasingly rely on automation.
“At TRM, we’re building AI for problems that have real consequences for public safety, financial integrity, and national security,” wrote Esteban Castaño, co-founder and CEO of TRM Labs.
“This funding allows our world-class team — and the people who will join us next — to innovate alongside institutions on the front lines of the most consequential threats, and expand the potential of AI to meaningfully improve how our critical systems are protected.”
The $70 million round shows that capital is flowing into blockchain analytics platforms seeking to stop the spread of AI-fueled scams and cyberattacks, including from large traditional institutions.
Avalanche tokenization hits Q4 high as BlackRock’s BUIDL expands onchain
Blockchain network Avalanche saw increasing institutional adoption across tokenized money market funds, loans and indexes in the fourth quarter, driving the value of real-world assets (RWAs) on the layer 1 to a new high.
The total value locked of tokenized RWAs on Avalanche rose 68.6% over the fourth quarter of 2025 and nearly 950% over the year to more than $1.3 billion, boosted by the $500 million BlackRock USD Institutional Digital Liquidity Fund (BUIDL) that launched in November, Messari research analyst Youssef Haidar said in a Jan. 29 report.
Fortune 500 fintech FIS partnered with Avalanche-based marketplace Intain to launch tokenized loans in November, further boosting Avalanche’s TVL, Haidar said. Intain enables 2,000 US banks to securitize over $6 billion worth of loans on Avalanche.
The S&P Dow Jones also partnered with Dinari, an Avalanche-powered blockchain, to launch the S&P Digital Markets 50 Index, which tracks 35 crypto-linked stocks and 15 crypto tokens on Avalanche.
Traditional finance firms are increasingly confident about experimenting with tokenization, as the Securities and Exchange Commission has become more open to crypto products over the past year.
ParaFi Capital makes $35M investment in Solana-based Jupiter
Jupiter said it has secured a $35 million strategic investment from ParaFi Capital, marking the first time the Solana-based onchain trading and liquidity aggregation protocol has taken outside capital after years of bootstrapped growth.
The transaction involved token purchases at market prices with no discount and an extended lockup period and was settled entirely in Jupiter’s JupUSD stablecoin, the companies said. Financial terms beyond the $35 million investment were not disclosed.
The investment comes as Jupiter has processed more than $1 trillion in trading volume over the past year and expanded beyond swap routing into perpetuals, lending and stablecoins, according to the company.
The deal also included warrants allowing ParaFi Capital to acquire additional tokens at higher prices, a structure the companies said was intended to reflect long-term alignment.
The investment follows a recent expansion of Jupiter’s product offerings. In October, Jupiter rolled out a beta version of its onchain prediction market developed with Kalshi, followed in January by the launch of JupUSD, a Solana-native, dollar-pegged stablecoin built in partnership with Ethena Labs.
Jupiter’s native token (JUP) was up around 9% over the past 24 hours, according to CoinGecko data.
Aave winds down Avara, phases out Family wallet in DeFi refocus
Aave Labs said it is sunsetting its “umbrella brand” Avara in the company’s latest move to refocus on decentralized finance and simplify its branding.
Aave founder and CEO Stani Kulechov posted Tuesday on X that Avara, a company encompassing projects including the Family crypto wallet and previously the social media platform Lens, “is no longer required as we go all in on bringing Aave to the masses.”
Kulechov said the Apple iOS-based Family crypto wallet was also being wound down as the team has “learned that onboarding millions of users requires purpose-built experiences, such as savings, rather than generic, open-ended wallet experiences.”
The move marks Aave’s latest effort to refocus on products such as its flagship lending protocol as the project handed stewardship of Lens to the Mask Network last month, with Kulechov saying Aave’s participation in the protocol would be reduced to an advisory role so it can focus on DeFi.
Kulechov said in his latest post that Aave was “now united as one team of world-class designers, engineers, and smart contract experts, aligned around a single mission: bringing DeFi to everyone.”
Step Finance treasury wallets breached, $27M in SOL drained as STEP crashes 90%
Step Finance, a decentralized finance portfolio tracker on Solana, disclosed a security breach that led to the compromise of several treasury wallets, triggering a sharp sell-off in its native token.
“Earlier today, several of our treasury wallets were compromised by a sophisticated actor during APAC hours. This was an attack facilitated through a well-known attack vector,” the platform wrote in a post on X, adding that they have taken “remediation” steps.
Onchain data reviewed by blockchain security firm CertiK shows that roughly 261,854 Solana (SOL) (worth around $27.2 million) was unstaked and transferred from Step Finance-controlled wallets.
Step Finance has not yet confirmed the total scale of the losses. The team also did not disclose how the attacker gained access, nor whether the incident stemmed from a smart contract flaw, compromised keys or an internal access issue. It also remains unclear whether any user funds were affected, beyond protocol-owned assets.
DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.
The privacy-preserving Zcash (ZEC) token fell 35% to record the week’s biggest decline in the top 100, followed by the Story (IP) token, down 34% during the past week.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
Strategy’s Bitcoin reserves cover debt, and only a prolonged drop to $8,000 could possibly force restructuring.
Strategy CEO Phong Le told investors on Thursday that the company’s balance sheet remains stable despite recent crypto market turbulence, though extreme scenarios could pose challenges.
The firm, the world’s largest corporate Bitcoin (BTC) holder, says it would only need to consider restructuring or additional capital if the cryptocurrency fell to $8,000 and remained there for five to six years.
Balance Sheet Holds Amid Bitcoin Sell-Off
According to reporting by The Block, Le, speaking during Strategy’s fourth-quarter earnings call, emphasized that even after recent market losses, the company’s Bitcoin reserves comfortably cover its convertible debt.
“In the extreme downside, if we were to have a 90% decline in Bitcoin price, and the price was $8,000, that is the point at which our Bitcoin reserve equals our net debt, and we would then look at restructuring, issuing additional equity, issuing additional debt,” he said.
The call came after a sharp sell-off across crypto markets, with BTC down roughly 7% in 24 hours, trading just under $66,000 at the time of writing. Strategy’s stock, MSTR, slid 17% to $107, erasing much of its gains from late 2025 and leaving it down about 72% over six months.
Analysts on social media noted that today’s session saw Bitcoin drop more than $10,000, the first time it has ever dipped by such an amount in a single day, according to The Kobeissi Letter. The dramatic loss in value was part of a structural market downturn that has wiped out $2.2 trillion in crypto market value since mid-October 2025.
Executive Chairman Michael Saylor also spoke in the call, dismissing concerns about quantum computing threats to Bitcoin as “horrible FUD” and outlining plans for a security initiative to support potential upgrades, including quantum resistance.
He reiterated that Strategy’s long-term approach is designed to withstand volatility, pointing to supportive U.S. regulatory developments and the growing integration of Bitcoin into credit markets and corporate balance sheets.
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Strategic Outlook
Strategy is still expanding its Bitcoin holdings despite short-term price swings. Earlier this week, the company acquired 855 BTC for $75.3 million at an average price near $88,000, bringing its total reserves to over 713,500 units.
The buy followed a $25 billion accumulation in 2025 and a $1.25 billion purchase in early 2026, funded largely through capital raises.
Saylor has argued that the significance of Bitcoin treasury companies lies in credit optionality and institutional adoption rather than daily price action. According to him, firms holding BTC on balance sheets can leverage assets for debt issuance, lending, or financial services, giving them flexibility that ETFs lack.
While sentiment has deteriorated sharply in recent months, he framed these developments as part of a long-term integration of digital capital into global financial systems, rather than a short-term price event.
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Key Insights
- US layoffs rise sharply, weakening consumer spending and market confidence.
- Crypto market cap drops 8%, with forced liquidations hitting 1.34B in Bitcoin.
- Bitcoin shows strong correlation with S&P 500 and gold amid macro selloff.
What Sparks Recession Debate?
The US economy shows signs of stress, with rising layoffs and weak hiring fueling recession fears. In January 2026, companies reported over 108,000 job cuts, the highest since 2009. Meanwhile, vacancy opportunities declined to 6.9 million, which is significantly below the projections. Such a decline in jobs could decrease consumer expenditure, impacting economic growth and investor confidence in high-risk assets like cryptocurrencies.
Housing data also contributes to economic issues. The gap between the home sellers and buyers is at an all-time high of 530,000. Reduced housing demand also affects construction employment, bank lending, and general consumer confidence that can add even more strain on financial markets.
Tech Debt and Bond Market Pressures
Stress in the technology credit sector is intensifying. Tech loan distress reached 14.5%, while bond distress climbed to 9.5%, highlighting challenges in debt management. Around $25 billion in software loans are trading at deep discounts. Previously, crypto and stock markets operated independently, but the correlation between the two has increased in recent years, causing crypto to respond sharply to stock market declines.
The bond market also signals caution. The 2-year versus 10-year Treasury yield spread moved to approximately 0.74%, known as bear steeping.
This trend, seen historically before recessions, indicates rising long-term yields relative to short-term rates, which can signal investor concern over future economic growth.
Crypto Market Reacts to Macro Risks
The crypto market tracked declines in traditional markets. The crypto market cap fell by 8% in 24 hours, to approximately $2.22 trillion. Trading volume rose more than 80% as liquidations increased. Bitcoin alone saw more than $1.34 billion of positions liquidated, while leading altcoins such as XRP and Solana posted sizable intraday losses.
Statistics show a 92% correlation between Bitcoin and the S&P 500 and an 80% correlation between cryptocurrency and gold, suggesting macroeconomic factors drove Bitcoin’s decline.
According to U.S. stock market data: S&P 500 fell 84.32 points to around -1.23%, Dow Jones dropped 1.20%, Nasdaq fell 1.59% to 363.99, and the Russell fell 1.79%.
Source: Google Finance
Analysts hope that any Federal Reserve open market operations or changes in rates would inject liquidity and take pressure off risk assets, potentially leading to a market recovery.
Bithumb said it identified and corrected an internal payout error after an “abnormal amount” of Bitcoin was credited to some user accounts during a promotional event, briefly causing sharp price fluctuations on the exchange.
In a company announcement on Friday, the South Korean crypto exchange said the price dislocation occurred after some recipients sold the mistakenly credited Bitcoin, but that it quickly restricted the affected accounts through internal controls, allowing market prices to stabilize within minutes and preventing any chain liquidations.
Bithumb said the incident was unrelated to any hacking or security breach and did not result in losses to customer assets, adding that trading, deposits and withdrawals are operating normally. The company said that customer funds remain safely managed and that it will transparently disclose follow-up actions to prevent similar errors.
While Bithumb did not disclose the amount involved, several users on X claimed that some accounts were erroneously credited with roughly 2,000 Bitcoin (BTC), a claim that has not been independently verified.
The news comes after Bithumb said in January that it had identified roughly $200 million in dormant customer assets spread across 2.6 million accounts that had been inactive for more than a year, as part of a recovery campaign.
According to CoinGecko, Bithumb currently carries a trust score of 7 out of 10 and reported roughly $2.2 billion in 24-hour trading volume at the time of writing.
Related: Bithumb halves crypto lending leverage, slashes loan limits by 80%: Report
Operational issues at centralized cryptocurrency exchanges
Beyond price volatility, the past year has exposed operational challenges at centralized cryptocurrency exchanges that have affected users during routine activity and periods of market stress.
In June, Coinbase acknowledged that restrictions on user accounts had been a major issue for the exchange, and claimed it had reduced unnecessary account freezes by 82% following upgrades to the exchange’s machine-learning models and internal infrastructure.
The disclosure followed years of complaints from users who reported being locked out of their accounts for months, sometimes during periods of heightened market volatility, even when no security breach or external attack had occurred.
During the Oct. 10 market sell-off that triggered billions of dollars in liquidations, Binance faced user complaints that technical issues prevented some traders from exiting positions at peak volatility.
Although Binance said its core trading infrastructure remained operational, and attributed the liquidations primarily to broader market conditions rather than internal failures, the exchange later distributed about $728 million in compensation to users affected by the disruptions.
Magazine: The critical reason you should never ask ChatGPT for legal advice
Bitcoin’s Feb. 5 collapse will go down as one of the most historic selloffs on record. Below are the key statistics that help define the event and indicate how much further there may be to fall.
The bitcoin price started the day near $73,000 and fell to a low around $62,000, a drop — or, as some market participants call it, a candle — of more than $10,000. The day’s 14% decline was the largest single-day drop since November 2022, during the implosion of crypto exchange FTX.
The Fear and Greed Index dropped into single digits, a level seen only a handful of times in bitcoin’s 17-year history. At the same time, bitcoin was the third most oversold it has ever been on the RSI, an indicator that measures the speed and change of price movements.
Supply in profit and loss
The circulating supply in loss, meaning the number of coins that last moved at prices higher than the market price, surged to almost 10 million BTC. That is the fourth-highest level ever, comparable with the 2015, 2019 and 2022 bear-market bottoms.
Another measure, the amount of long-term holders’ circulating supply that is at a loss, reached 4.6 million BTC. At the lows of previous bear markets, the figure exceeded 5 million BTC, suggesting this metric is approaching, but has not yet fully matched, prior extremes.
Supply in profit and supply in loss have nearly converged, a condition that has historically aligned with the bottom of major market declines. At present, roughly 10 million BTC sit in profit and 10 million BTC sit in loss.
While nobody knows for certain whether the bottom is in for bitcoin, history suggests it is likely close, especially with bitcoin already recovering toward $68,000.
Still, market participants may be waiting for bitcoin to test its 200-week moving average, currently near $58,011.
Bitwise contends that the crypto industry’s obsession with timing a market bottom overlooks a historical pattern where peak investor anxiety often signals the start of a recovery.
Having navigated the 2018 and 2022 winters, the crypto asset manager suggested the current “anxious feeling” in the market is a trailing indicator of historical recovery zones.
Bitwise CIO Matt Hougan noted that investors who bought the dip during the 2018 nadir saw returns of approximately 2,000%, while those who entered during the 2022 lows are up roughly 300% in just over three years. For those with a long-term horizon, the firm views the current disconnect between price and progress as a repeat of these specific cycles.
The global crypto market has faced a bruising start to 2026, with over $2 trillion in value wiped out since the October 2025 peak. Bitcoin recently plummeted to a 16-month low near $60,000, a psychological breach that triggered nearly $5.4 billion in leveraged liquidations over a single 72-hour window.
Analysts attributed the carnage to a perfect storm of macro headwinds: the nomination of Kevin Warsh as Federal Reserve Chair signaling a hawkish hard money shift, massive outflows from U.S. spot exchange-traded funds (ETFs) totaling billions, and a broader de-risking trend that has seen investors flee both digital assets and high-growth tech stocks.
The world’s largest cryptocurrency was trading around $68,800 at publication time.
According to the Friday blog post, the fundamental case for the asset class remains unchanged despite the price action.
Hougan argued that the world is increasingly digital and demands non-fiat currencies, pointing to the ascendancy of stablecoins, the rise of tokenization, and the emergence of prediction markets and “AiFi” as evidence of a maturing ecosystem.
He emphasized that while prices do not currently reflect this progress, Wall Street’s continued integration with blockchain technology suggests that fundamentals will eventually drive the next leg up.
Regarding a potential turnaround, Bitwise acknowledged that crypto bear markets typically end in exhaustion rather than a sudden burst of excitement. However, the asset manager identified several specific triggers that could serve as a catalyst for a recovery.
These include the potential passage of the CLARITY Act, a shift back toward risk-on market sentiment, rising interest rate-cut expectations, and technological breakthroughs at the intersection of AI and crypto. In the absence of a sudden positive shock, Bitwise expects the market to “grind out a bottom,” prescribing a strategy of patience and a focus on the long-term destination.
Read more: Deutsche Bank says bitcoin’s selloff signals a loss of conviction, not a broken market
President Donald Trump this week launched TrumpRx, a government-backed platform aimed at lowering prescription drug prices for Americans paying out of pocket. While the announcement initially raised concerns about pricing pressure, financial markets have delivered a clear response.
Major pharmaceutical stocks rallied on February 6, signaling that investors do not see TrumpRx as a near-term threat to earnings. That reaction also matters for broader markets, including crypto, because it shapes overall risk sentiment.
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What TrumpRx Actually Is
TrumpRx is a pricing and discount portal, not a price-control regime. The platform lists dozens of commonly used drugs and directs users to discounted cash prices offered voluntarily by drugmakers and pharmacies.
Crucially, it targets cash-paying and uninsured consumers. It does not affect insurance-negotiated prices, Medicare reimbursement formulas, or long-term supply contracts, which make up the bulk of US pharmaceutical revenue.
But Investors Aren’t Panicking About Drug Profits
Markets are signaling that TrumpRx trims the edges of pricing, not the core. Most pharmaceutical revenue comes from insured and institutional channels that remain untouched by the program.
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For dominant players in high-demand categories like weight-loss and specialty drugs, pricing power remains strong.
In some cases, lower cash prices may even boost volumes without materially hurting margins.
Voluntary Discounts, Not Forced Controls
Another key factor is structure. Participation in TrumpRx is voluntary and tied to broader trade and supply-chain cooperation, including tariff relief.
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For global drugmakers, reduced trade and regulatory risk can offset limited pricing concessions. That trade-off helps explain why the sector moved higher instead of lower.
What This Means For Broader Markets
The pharma rally sends a wider signal. Investors are not pricing in aggressive government intervention or profit-destroying regulation.
That matters for equities and crypto alike. When policy actions appear contained and predictable, risk appetite stabilizes across markets.
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Crypto Cares, Even Indirectly
TrumpRx has no direct link to digital assets. However, crypto remains highly sensitive to policy uncertainty and financial conditions.
By failing to trigger a regulatory shock or worsen inflation expectations, TrumpRx reduces the chance of a hawkish policy response from the Federal Reserve. Stable rate expectations ease pressure on volatile assets like Bitcoin and Ethereum.
Markets are treating TrumpRx as a political signal, not a systemic shock. The positive reaction in pharma stocks shows investors see the policy as narrow, voluntary, and economically contained.
For crypto and risk assets, the takeaway is simple. TrumpRx does not tighten financial conditions or raise regulatory risk.
Instead, it supports a backdrop of policy stability that allows markets to focus on liquidity, rates, and fundamentals rather than fear.
In a recent interview, Bitcoin veteran Samson Mow shares a measured read on the latest pullback in BTC and what may lie behind the churn. He frames Bitcoin (CRYPTO: BTC) not merely as a store of value but as the most liquid asset in global markets, whose 24/7 trading may amplify downside spillovers during stress. The discussion traverses the seeming disconnect between stronger on-chain fundamentals and a prolonged price decline, the rising strength in gold and silver, and the idea that capital rotation among hard assets could set the stage for Bitcoin’s next breakout. The interview also tackles the idea of a looming “quantum threat” and whether it belongs in today’s risk calculus.
Key takeaways
- Bitcoin’s liquidity and around-the-clock trading are highlighted as factors that can magnify downside moves during periods of market stress, according to Mow.
- The narrative emphasizes capital rotation into hard assets, with gold and silver rallies potentially influencing BTC demand as investors reassess risk exposure.
- Discussion of the so‑called quantum threat is treated as a theoretical risk rather than an imminent trigger for BTC price action.
- Despite months of selling pressure, the interview suggests BTC could recover if risk sentiment improves and liquidity conditions shift, even amid strong on-chain fundamentals.
- The long‑standing fiat-devaluation thesis for Bitcoin is debated, with no consensus on whether it remains the primary driver of price moves.
Tickers mentioned: $BTC
Sentiment: Neutral
Market context: In the broader market, Bitcoin’s price action sits amid shifting liquidity and risk appetite. Traders weigh macro signals, cross-asset flows, and structural factors in crypto, with BTC acting as a liquidity proxy that can move sharply on liquidity crises or shifts in risk sentiment.
Why it matters
The interview provides a framework for interpreting a complex price environment where on-chain health does not always translate into immediate price appreciation. By centering Bitcoin’s role as the most liquid asset, the discussion helps readers understand how systemic stress can reverberate through BTC markets even when miners, network security, and transaction metrics remain robust. For investors, the conversation offers a reminder that liquidity dynamics—how quickly assets can be traded without moving price—play a critical role in short- to medium-term volatility. For traders, the emphasis on capital rotation into gold and silver as a macro signal that could precede crypto demand introduces a potential cross-asset tool for assessing sensitivity to risk-on or risk-off shifts. For builders and researchers, the dialogue underscores the need to monitor not just on-chain metrics but the evolving risk sentiment that shapes liquidity and price discovery in crypto markets.
What to watch next
- Watch BTC price action and liquidity indicators in the coming weeks for signs of capitulation easing or a sustainable bounce.
- Monitor the pace of gold and silver rallies and any corresponding shifts in capital flows that could reallocate demand toward BTC.
- Look for any new discourse on the quantum threat and whether market participants translate it into practical risk models or hedging strategies.
- Track macro risk sentiment, including inflation data and central bank signals, for indications that the broader risk appetite is shifting in favor of crypto assets.
Sources & verification
- Interview with Samson Mow discussing BTC’s pullback, catalysts for recovery, and cross-asset dynamics.
- YouTube video of the interview: https://www.youtube.com/watch?v=5VaqkszkWp8
- Discussion points on gold/silver rallies as a backdrop to BTC demand and capital rotation.
- References to the theoretical nature of the “quantum threat” within crypto risk discourse.
Bitcoin market reaction and catalysts for the next move
In a recent exchange, the market’s focus shifts beyond最近 price levels to the mechanics that drive BTC’s moves in a liquidity-driven system. In this framing, Bitcoin (CRYPTO: BTC) is not simply a late-stage risk-on asset waiting for fundamentals to align; it is a constantly tradable currency in a global pool of capital that reacts quickly to shifts in risk appetite. Samson Mow outlines a nuanced picture: the same liquidity that enables Bitcoin to function as the most liquid asset in traditional markets also makes it susceptible to rapid downdrafts when liquidity tightens or risk aversion spikes. The result is a price action that can diverge from longer-term fundamentals, particularly in episodes marked by forced liquidations and cross-asset selling. This perspective emphasizes structure as much as signal, inviting readers to consider how order books, funding rates, and leverage levels contribute to the size and speed of BTC moves during market stress.
One of the central threads in the discussion is the relationship between Bitcoin and the metals complex. After a robust rally in gold and silver, capital rotation becomes a focal point: if investors seek safe havens or hedges against inflation, where does crypto stand in the pecking order? The interview presents a plausible scenario in which BTC could benefit after a metals-led reallocation cycle cools or consolidates. In such an environment, BTC’s liquidity and distribution across exchanges could attract new demand as risk premia recalibrate. The argument does not insist on an immediate rebound; rather, it frames recovery as a gradual reversion supported by improved risk sentiment, reduced forced liquidations, and a rebalancing of portfolios that previously parked capital in gold, silver, or other hard assets.
The discussion also touches on what many in the space consider a longer-term risk: the so‑called quantum threat. This is framed as a theoretical risk to crypto security and ecosystem confidence, not a near-term catalyst for price rallies or crashes. By keeping the focus on present market dynamics—liquidity, leverage, and risk‑on vs. risk‑off cycles—the interview distinguishes between potential future risks and the more immediate drivers of price action. In other words, while the quantum threat may merit attention for risk modeling and contingency planning, it is not presented as the catalyst for Bitcoin’s next move in the near term.
Beyond these threads, the interview revisits the long-standing narrative that Bitcoin’s price can be tied to fiat devaluation. This is a topic that has attracted both staunch believers and critics. The conversation presents a thoughtful counterpoint: even if fiat erosion remains a macro driver, market dynamics—such as liquidity, risk sentiment, and capital flows—can overshadow the fiat narrative in the short and medium term. The net takeaway is not a prediction but a careful reckoning of the multiple forces at play. In practice, readers are reminded to watch for shifts in funding markets and liquidity regimes that may signal the next inflection point for BTC.
For readers seeking a complete sense of the interview’s tone and content, the full video remains a key source. The embedded YouTube presentation provides direct access to Mow’s remarks and the nuances of his argument, offering a useful complement to the written summary. The format underscores a broader industry shift toward multi-source analysis—combining on-chain data, macro context, and participant perspectives—to form a more robust view of Bitcoin’s evolving trajectory.
Chinese regulators have broadened their crackdown on crypto activities, imposing strict oversight on tokenization and stablecoin issuance in a Friday notice.
“Recently, influenced by various factors, speculative activities related to virtual currencies and the tokenization of real-world assets have occurred frequently, posing new challenges and situations for risk prevention and control,” said the notice, issued jointly by eight national organizations including the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC).
The notice reiterates China’s blanket ban on crypto, saying that trading, issuing or facilitating transactions involving digital currencies such as bitcoin , ether , or stablecoins like Tether’s USDT is illegal.
The prohibition extends to foreign entities and individuals offering such services within China. It also bans domestic entities from issuing digital currencies overseas without regulatory approval.
The notice singles out stablecoins — cryptocurrencies pegged to fiat currencies — for special scrutiny. Authorities argue stablecoins replicate key functions of sovereign money and therefore threaten monetary control.
The new rules make clear that no entity, Chinese or foreign, may issue a stablecoin linked to the renminbi abroad without government approval. That includes overseas branches of domestic firms.
The rules also tighten control over tokenization, the fast-growing trend of turning ownership of real-world assets like equities, real estate or funds into digital tokens.
Chinese firms that want to tokenize assets overseas now must obtain approvals or file with regulators, and their financial and tech partners are required to meet heightened compliance standards, the notice said.
China’s crackdown on cryptocurrencies and related activities have been a staple over the past years. The new set of rules build on Chinese authorities in 2021 deeming all crypto-related business activities illegal and prohibiting crypto mining, often called a “China ban.” In 2017, authorities banned Initial Coin Offerings (ICOs), labeling them as illegal fundraising and financial fraud, and ordered domestic cryptocurrency exchanges to shutter fiat-to-crypto trading operations.
Read more: China Never Completely Banned Crypto
Friday’s market saw a notable recovery in cryptocurrency prices, with Bitcoin and Litecoin leading the charge. Bitcoin’s bounce from the $60,000 level helped ease fears of a deeper market correction, as it rose nearly 8% to reclaim the $70,000 mark.
This surge also supported riskier altcoins like Litecoin, which is up about 8% for the day.
Summary
- Bitcoin surged nearly 8% to reclaim the $70,000 level on Friday, easing fears of a deeper correction and supporting altcoins like Litecoin and Shiba Inu.
- Litecoin saw an 8% increase, trading around $54, as traders rotated into altcoins following Bitcoin’s recovery and reduced margin stress.
- Shiba Inu climbed about 7%, benefiting from Bitcoin’s rebound and renewed investor interest in higher-beta tokens.
Why Bitcoin’s rise bodes well for Litecoin
Bitcoin remains the benchmark asset in the crypto space, and when it rallies, traders typically rotate into altcoins like Litecoin. As Bitcoin stabilizes, the risk of forced selling and liquidation cascades decreases, allowing traders to take fresh positions in altcoins.
This is particularly important after Bitcoin touched the $60,074 mark earlier on Friday, a key level that had traders on edge. The rebound reduced margin stress and bolstered sentiment across the market.
Bitcoin’s price recovery also helped offset the concerns raised by figures like Michael Burry, who warned that miners could be forced to sell their Bitcoin holdings if the price dropped below $50,000.
Litecoin’s Friday spike
Litecoin, created in 2011 by Charlie Lee, has seen an uptick in interest as Bitcoin recovers. Known as the “silver to Bitcoin’s gold,” Litecoin benefits from a long track record and strong exchange support. As of Friday, Litecoin is trading around $54, having hit an intraday high of $56.25.
Shiba Inu follows Bitcoin’s lead
Alongside Litecoin, meme-coin Shiba Inu (SHIB) also gained traction, climbing about 7%.
As Bitcoin recovered from its Thursday slump, large investors redeployed capital across the market, pulling speculative coins like Shiba Inu back into the green.
SHIB, which had faced pressure earlier in the week from market weakness and liquidations, is now benefiting from improved market sentiment.
What’s next for crypto?
Bitcoin’s recovery is giving traders a window to reposition in the market, but caution remains. Analysts suggest that while short-term bounces are possible, broader market trends still point to volatility. Key resistance for Bitcoin sits in the $70,000 to $75,000 range, with some traders speculating on further upward movement.
For now, the surge in Bitcoin’s price is driving positive sentiment in the market, with altcoins like Litecoin and Shiba Inu benefiting from the rebound.
TLDR:
- Bitcoin and Ethereum fall below key technical levels, triggering $1.7B in liquidations.
- U.S. Treasury confirms it cannot “bail out” Bitcoin or direct banks to increase holdings.
- Spot ETFs face unrealized losses, but most investor positions remain largely intact.
- Crypto funding continues selectively with TRM Labs, Flying Tulip, and Prometheum rounds.
Recent analysis covers major shifts in digital assets, including sharp price drops, regulatory actions, and institutional responses affecting market flows and positioning.
Crypto Market Downturn and Institutional Exposure
Bitcoin fell below $65,000, while Ethereum dropped under $1,900, triggering $1.7 billion in liquidations within 24 hours. Most liquidations came from long positions, as leveraged traders exited rapidly across major exchanges.
The market broke key technical levels, with Bitcoin falling under the 50-week moving average. Analysts used historical retracements to estimate downside, with targets ranging from $35,200 to $45,000.
Alex Thorn from Galaxy Digital noted that past cycles showed drops below 50-week moving averages often tested the 200-week level near $58,000.
Meanwhile, the cost basis for many institutional investors remained above current prices.
Strategy Inc.’s average holding cost is around $76,000 per Bitcoin, while JPMorgan estimates mining costs at $87,000.
Spot Bitcoin ETFs are also under pressure, with average entry costs near $84,100 per coin.
Despite a 25% unrealized loss, only a small portion of ETF assets has been withdrawn.
Overall, the market shows lower liquidity, technical weakness, and elevated institutional stress.
ETF inflows slowed, and macro-hedging appeal has reduced, reflecting cautious sentiment.
Regulation, Policy Signals, and Capital Movements
Seized Bitcoin has grown in value from $500 million to over $15 billion, reflecting market gains despite volatility. U.S. Treasury Secretary Scott Bessent clarified that seized Bitcoin will be retained, but the government cannot “bail out” prices.
Regulatory attention is shifting to crypto infrastructure, focusing on exchanges, stablecoin corridors, and liquidity hubs.
The Treasury investigates potential sanction evasion, particularly by platforms linked to Iran’s $8–10 billion annual crypto activity.
Meanwhile, the White House hosted discussions with Coinbase, banking groups, and industry representatives on stablecoin rewards. The dialogue explored whether third-party platforms can provide regulated yields to users.
At the same time, state-level enforcement increased, with New York, Nevada, and Connecticut issuing warnings or restraining orders. This divergence reflects the evolving balance between federal guidance and state-level actions.
Capital formation continues cautiously. TRM Labs raised $70 million in Series C funding, while Flying Tulip secured $75.5 million. Prometheum and Penguin Securities also completed rounds, albeit at more conservative valuations.
Despite market stress, selective funding demonstrates ongoing investor interest in blockchain and crypto infrastructure projects. Family offices largely remain sidelined, with 89% holding no crypto exposure, while AI investments show higher interest.
BlackRock’s Bitcoin spot ETF IBIT retains most assets despite AUM retreat from $100 billion to $60 billion. Overall, institutional positioning reflects cautious engagement, regulatory attention, and selective capital deployment.
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