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Bitcoin’s Next Move May Hinge on U.S. Credit and Debt Conditions

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Crypto Breaking News

Bitcoin (CRYPTO: BTC) dipped below $73,000 on Tuesday as a confluence of tightening credit conditions and elevated debt costs test market nerves. The macro backdrop shows a paradox: credit spreads remain compressed even as debt levels and borrowing costs stay elevated, a dynamic some analysts say could define BTC’s trajectory over the coming months. In this environment, an intriguing pattern emerges: the gap between credit pricing and actual credit-market stress has become a potential predictor for Bitcoin’s next move, echoing how similar dislocations played out in prior cycles.

Key takeaways

  • The ICE BofA US Corporate Option-Adjusted Spread is at 0.75, its lowest level since 1998.
  • US debt stands at about $38.5 trillion, while the 10-year Treasury yield is hovering near 4.28%.
  • Bitcoin whale inflows to exchanges have risen, but on-chain profit-taking is easing despite the higher turnover on centralized venues.
  • Historical cycles show BTC often forms a local bottom several months after credit spreads widen, a pattern that could repeat if liquidity tightens further.
  • Analysts have signaled that a renewed accumulation phase could unfold in the months ahead, potentially after a period of market stress becomes more visible.

Market context: The current setup places Bitcoin at a crossroads where tight credit conditions and escalating debt costs contrast with a risk-off tilt in broader markets. The macro backdrop remains complex: while spreads compress, signaling relatively contained credit risk by some measures, the debt burden and the path of yields continue to constrain liquidity and appetite for risk assets, including BTC. This divergence—cheap-ish credit against a backdrop of financial strain—has historically preceded pronounced price moves for Bitcoin, underscoring why market participants are watching the bond and credit markets as a leading indicator for crypto trajectories. For reference, the data point often cited is the ICE BofA Corporate OAS, which has been moving in a way that ties into Bitcoin’s price rhythms during stress episodes.

In previous cycles—2018, 2020 and 2022—Bitcoin tended to bottom after credit spreads began to widen, with the delay ranging roughly three to six months. The suggestion of a lag between financial-market stress and crypto-price bottoms has resurfaced as traders parse the current dislocation. Some analysts have argued that if liquidity tightens further and spreads rise, Bitcoin could enter another phase of accumulation before broader market stress becomes fully evident. For instance, commentary from Alphractal founder Joao Wedson highlighted the potential for an accumulation phase if liquidity conditions deteriorate and credit spreads widen in the months ahead, a scenario that could set the stage for a multi-month consolidation before fresh directional moves. Argued.

Bitcoin whale activity and on-chain dynamics

Over the past few days, on-chain data show a spat of activity that peers at broad selling pressure yet also hints at longer-term fatigue among holders. Analysts have observed intensified transfers of BTC from large wallets to centralized exchanges, including a notable spike when wallets holding more than 1,000 BTC deposited roughly 5,000 BTC on a single day—an amount that mirrors a similar spike seen in December. The pattern of inflows from high-value wallets has raised questions about near-term selling pressure, especially amid a broader market lull.

In parallel, a broader cohort—holders in the six- to twelve-month age category—also moved 5,000 BTC to exchanges, marking the largest inflow from this segment since early 2024. Yet despite these near-term inflows, a counterpoint is evident: long-term holder behavior appears less aggressive, with spending output profit ratio (SOPR) sliding toward 1, its lowest reading in a year as BTC tested a year-to-date low near $73,900.

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The tension between supply-side selling signals and longer-term holder exhaustion is a focal point for traders trying to gauge whether price weakness will endure or consolidate into a base. SOPR’s retreat toward equilibrium suggests fatigue among sellers in the longer horizon, a sign that a more durable bottom might require additional macro catalysts or clearer liquidity signals. The data, including real-time movement patterns and on-chain profitability metrics, remains a key input for analysts weighing the likelihood of a new accumulation window amid ongoing macro stress.

In the broader lens, the trend of exchange inflows paired with mixed on-chain signals mirrors what happened in prior cycles: weakness in price often coincides with attempts at price discovery amid shifting risk sentiment. The bond market’s stress indicators—how spreads widen or compress—tend to precede or align with crypto-market inflection points in ways that traders have tracked for years. As yields remain elevated and debt continues to accrue, the path of least resistance for Bitcoin may hinge on whether liquidity tightens enough to widen credit spreads, thereby unlocking a new phase of accumulation that could endure into the latter half of the year.

Looking ahead, investors will be watching two intertwined channels: the projected movements in credit-spread dynamics, and the cash-flow environment that governs risk appetite more broadly. If spreads begin a sustained widening trend, and liquidity tightens toward the 1.5%–2% range in coming weeks and months, BTC could see more pronounced bottom-building dynamics. Conversely, if credit conditions stay contained while yields drift higher, the downside might be tempered, and the market could pivot toward a range-bound phase that emphasizes accumulation rather than rapid sell-offs. The narrative remains contingent on macro developments, but the structural data—ranging from the debt mountain to the nuanced behavior of large BTC holders—provides a framework for parsing the next leg of the BTC story.

Why it matters

The observed disconnect between credit pricing and underlying market stress matters because it feeds into a broader risk-management framework for crypto investors. When traditional markets signal rising caution through widening stress or tighter liquidity, crypto assets can behave as a leveraged proxy—at times drawing demand from hedging flows, at other times succumbing to capitulation. The current data set—debt totals, yield levels, and evolving on-chain activity—offers a lens into how Bitcoin might respond as macro signals evolve. For users and builders in the ecosystem, the takeaway is to monitor liquidity proxies alongside price action, recognizing that a sustained shift in credit conditions could precede meaningful regime changes for BTC and related assets.

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At the same time, the data remind market participants that crypto markets are not isolated from macro forces. Central bank policy expectations, debt dynamics, and financial-market stress indicators continue to weave a complex tapestry that shapes capital allocation. Understanding these interconnections can help traders anticipate whether the coming months will favor accumulation, consolidation, or renewed volatility as global liquidity conditions adapt to shifting fiscal and monetary landscapes.

What to watch next

  • Watch credit-spread movements toward the 1.5%–2% range through April, which could precede renewed BTC downside or a gradual bottoming process.
  • Monitor the trajectory of US debt and the 10-year yield, especially any sustained retreats or surprises that could alter liquidity dynamics.
  • Track on-chain SOPR levels and exchange-inflow patterns, especially among holders in the six- to twelve-month window, for signs of seller exhaustion or renewed demand.
  • Look for a potential accumulation window after July 2026, as suggested by macro-cycle analyses that link credit stress to longer-term price basins.

Sources & verification

  • ICE BofA US Corporate Option-Adjusted Spread data and related macro signals (BAMLC0A0CM) from the Federal Reserve’s data repository.
  • U.S. debt levels and the 10-year Treasury yield data points reflecting the January-end totals and current yields.
  • CryptoQuant insights on whale and holder activity and SOPR trends used to interpret near-term market dynamics.
  • Analyst commentary on liquidity and bond-market stress scenarios that inform Bitcoin’s potential accumulation phase.

Market reaction and macro signals shaping BTC trajectory

Bitcoin (CRYPTO: BTC) has moved to test new support near the lower end of its recent range as macro indicators paint a mixed picture for risk assets. The corporate credit market continues to offer a strange juxtaposition: spreads are tight on the surface, yet the debt landscape remains heavy, and yields persist in a tight corridor. This bifurcation creates a testing ground for BTC, where a failure to sustain prices could reflect broader risk-off dynamics, while a stabilization or rebound could indicate the onset of an accumulation period as liquidity conditions slowly improve, or at least stop deteriorating.

Historical context provides a framework for interpretation. In past cycles, periods of widening credit stress often preceded a trough in BTC prices by a few months, followed by a phase of quiet accumulation as investors waited for clearer macro direction. The present discussion centers on whether current signals will produce a similar pattern or whether a new regime will emerge where BTC acts more as a hedge against macro risk rather than a tradable risk-on asset. The ongoing debate among market observers highlights a spectrum of possible outcomes, with some arguing that the next leg could hinge on how the bond market absorbs liquidity stress, while others point to on-chain signals that may foretell a more durable bottom forming in the months ahead.

The conversation also touches upon practical implications for market participants. If liquidity tightens and spreads widen, Bitcoin could see renewed volatility as traders reposition portfolios to weather the stress. If, on the other hand, the stress signals abate and the price finds support, the market could shift toward gradual accumulation—a phase that has historically offered a quieter backdrop for long-term investors to build positions. The data and commentary from industry analysts keep bridging macro indicators with on-chain realities, providing a nuanced view of the evolving crypto-market landscape.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Bitcoin Nears $90K After Trump Scraps 10% Tariffs

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BTC/USD Chart Analysis Source: TradingView

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Bitcoin is seeking the $90,000 reclaim as US President Donald Trump dropped tariff threats and ruled out seizing Greenland from an ally by force.  

Trump’s theatrics and consequent tensions have kept markets on edge this week, prompting investors to take the latest developments with a pinch of salt even as relief was palpable.

BTC has edged up a fraction of a percentage to trade at $89,955 as of 1:19 a.m. EST, with an intraday low of $87,304 and a high of $90,295, according to Coingecko data.  

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The crypto market also edged up to $3.13 trillion in market capitalization. As a result, the total liquidations in the crypto market came in at $605 million.

Trump Backs Off EU Tariffs, Markets Edge Higher

Crypto investors eased back into risk after President Donald Trump struck a calmer tone on Greenland and signaled a path toward a deal that pulled some heat out of markets.

According to Trump, he had reached the “framework of a future deal” involving NATO over Greenland, and indicated he would hold off on the tariff threat.

“It’s a long-term deal. It’s the ultimate long-term deal. It puts everybody in an excellent position, especially as it pertains to security and to minerals,” Trump told reporters.

While speaking at the World Economic Forum in Davos, Trump said he would not impose the tariffs and ruled out the use of force in the dispute over the Danush territory.

“I won’t do that,” the U.S. President said at Davos of an attack to secure Greenland.

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“Okay? Now everyone’s saying,’ Oh, good,’ that’s probably the most significant statement I made because people thought I would use force. I don’t have to use force, I don’t want to use force, I won’t use force.”

Trump’s words came as markets waited to see the full extent of EU trade retaliation over the Greenland issue. 

As the crypto markets edged higher, gold prices remained largely steady after hitting a record high near $4,900/ounce in the previous session.

Silver prices rose 1% to $94.03 per ounce, just below record highs of $95.89/oz hit earlier this week.

Bitcoin Price Set For A Rally Back Above $100K

Bitcoin price is currently consolidating near the $89,000–$90,000 region, holding just above short-term support around $87,000–$88,000, which buyers have defended following the sharp sell-off from November highs.

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This consolidation comes after a strong decline from the $115,000 area, where selling pressure accelerated and forced the price of BTC into a corrective phase. Demand stepped in near the $82,000 zone. The rebound from this area suggests downside momentum has slowed in the long term.

Bitcoin is trading around the 50-day Simple Moving Average (SMA) near $90,200, but remains well below the 200-day SMA around $105,000, which continues to act as major resistance on the upside.

The downward slope of the 200-day SMA indicates the broader trend remains bearish unless Bitcoin can reclaim this level and hold above it.

Bitcoin’s Relative Strength Index (RSI) is hovering around 45, sitting below the neutral 50 mark. This suggests momentum remains weak, though not oversold, leaving room for a recovery attempt if buying pressure increases.

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BTC/USD Chart Analysis Source: TradingViewBTC/USD Chart Analysis Source: TradingView
BTC/USD Chart Analysis Source: TradingView

From the 1-day BTC/USD chart, Bitcoin price is trading within a rising channel following the sell-off. This structure often represents a bearish continuation pattern, with price currently trading between channel support and resistance. A move toward the $94,000–$98,000 resistance zone is possible, where the upper channel boundary aligns with prior rejection levels.

A clean breakout above $98,000, followed by a reclaim of the 200-day SMA near $105,000, would be the first meaningful signal of a trend reversal.

For Bitcoin to realistically target a sustained move back above $100K, it would need a confirmed trend shift, which may call for a close above the $95,000 zone.

Conversely, failure to break above channel resistance could trigger another pullback, with $88,000 acting as initial support, followed by the $85,000 demand zone if selling pressure returns.

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Top 5 Altcoins To Buy For Catching the Next Ethereum-Style Run: Digitap ($TAP) Best Crypto to Buy in 2026

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Top 5 Altcoins To Buy For Catching the Next Ethereum-Style Run: Digitap ($TAP) Best Crypto to Buy in 2026

Ethereum’s biggest run didn’t start with headlines. In early 2020, ETH traded below $150, with low retail interest, rising network usage, and steady capital accumulation in the background. Over the next 18 months, Ethereum climbed more than 20x, driven by DeFi adoption, stablecoin growth, and real demand.

Today, investors are scanning for similar patterns. The market is volatile, but capital is moving selectively. Projects with working products, expanding user bases, and clear use cases are getting more attention than purely narrative-driven tokens.

Below are five altcoins to buy that are increasingly mentioned as candidates for the next major cycle:

  1. Digitap ($TAP): Crypto banking app in presale, focused on cross-border payments
  2. Hyperliquid (HYPE): Derivatives platform expanding into prediction markets
  3. Morpho (MORPHO): DeFi lending protocol with strong institutional backing
  4. Jupiter (JUP): Solana-based DeFi superapp with growing product scope
  5. Quant (QNT): Enterprise interoperability project showing technical stabilization

1. Why Digitap’s Timing and Utility Are Drawing Early Interest

Digitap is a crypto presale focused on cross-border payments, with a live platform that makes using crypto feel closer to everyday banking. This innovative project removes much of the complexity that still exists in the crypto space and addresses a gap many analysts see as critical for broader adoption.

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With Visa cards in circulation, active iOS and Android apps, and over 120,000 connected wallets handling cross-border transfers, Digitap is showing early signs of real usage. That traction helps explain why $TAP is increasingly mentioned among the best crypto to invest in.

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From an investment angle, timing is central. The presale launched at $0.0125 and is now priced at $0.0467, putting early participants up over 270%. The next price increase to $0.0478 is scheduled in 6 days, and stages have been filling quickly. So far, $5M has been raised, with 212M tokens sold.

The confirmed launch price is $0.14, which keeps upside visible for late-stage presale buyers. As prices step up every few days, the main variable becomes entry timing.

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2. Hyperliquid Momentum Builds After HIP-4 Proposal

Hyperliquid has built momentum as a derivatives-first platform. On February 2, the project introduced HIP-4, a proposal to add outcome-based trading, including prediction markets and options-style products.

This expansion matters because 99% of Hyperliquid’s fees are converted into HYPE buybacks, creating a direct link between usage and token demand. Broadening the product set could increase fee volume if adoption follows.

Technically, HYPE remains strong. The token trades above its 7-day and 30-day moving averages, and MACD momentum remains positive. Holding support near the $26 level keeps the current structure intact.

3. Morpho Rebounds as DeFi Lending Activity Grows

Morpho operates in the DeFi lending space, allowing users to earn yield or borrow assets through noncustodial vaults and markets. The protocol has grown into one of the top lending platforms by TVL.

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Price action recently showed a rebound from oversold levels, with MORPHO moving back above its short-term average. Longer-term resistance remains, but fundamentals continue to improve. TVL surpassed $8.2B, growing more than 26% month over month during late 2025.

Institutional validation adds weight. Morpho was included in Grayscale’s Top 20 list, and the Ethereum Foundation deployed capital into the protocol. That backdrop supports MORPHO’s role as core DeFi infrastructure.

4. Jupiter Grows Beyond Swaps With New DeFi Tools

Jupiter has become one of the most used DeFi platforms on Solana. It dominates swap routing and continues to expand into perpetuals, DCA tools, portfolio tracking, and lending.

The project recently secured $35M from ParaFi Capital, settled in JupUSD, with extended lockups. JupUSD’s circulating supply nearly doubled to $77M, improving liquidity across Jupiter’s ecosystem.

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Jupiter also integrated Polymarket on Solana, adding prediction markets to its suite. While this broadens use cases, it also shifts focus beyond JUP’s core governance role. Scale remains Jupiter’s main advantage.

5. Quant Finds Support After Extended Downtrend

Quant has struggled over longer timeframes but recently stabilized near a major technical level. Price found support around the $69 Fibonacci retracement, and RSI moved out of oversold territory.

The broader market saw a modest bounce, and QNT slightly outperformed that move. However, sentiment remains mixed, and the token is still well below its longer-term averages. A move above the $72–$76 range would be needed to confirm a stronger recovery.

Quant remains a higher-risk enterprise play, but it stays relevant when markets begin to rotate toward infrastructure.

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How Investors Are Positioning Ahead of the Next Bull Run

Ethereum’s early run rewarded projects that combined utility, timing, and adoption before the market caught on. Digitap fits this setup the best by being early, active, and focused on a real financial problem. With prices stepping up every few days and adoption metrics already in place, timing matters more here than with fully priced assets.

Hyperliquid, Morpho, Jupiter, and Quant each bring credible narratives. But for investors looking to position ahead of the next cycle rather than react to it, Digitap’s presale structure and live product make it one of the more closely watched altcoins to buy in 2026.

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Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.

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Epstein files show crypto ties to Coinbase, Blockstream: DOJ

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Epstein files show crypto ties to Coinbase, Blockstream: DOJ

Convicted sex offender Jeffrey Epstein’s hidden crypto investments came to light in a new release of so-called Epstein files — documents from the U.S. Department of Justice (DOJ), revealing his $3 million stake in Coinbase and links to Bitcoin developer Blockstream.

Summary

  • Epstein invested $3 million in Coinbase in 2014 through a U.S. Virgin Islands-based entity.
  • Epstein also backed Bitcoin developer Blockstream in 2014 but sold his stake months later due to conflicts of interest.
  • The revelations are part of a new batch of documents released by the U.S. Department of Justice.

Epstein, according to Bloomberg, invested in Coinbase through a U.S. Virgin Islands-based entity in 2014, years after his criminal conviction. The deal was brokered by Brock Pierce, a cryptocurrency mogul and former child actor, and Brad Stephens, co-founder of Blockchain Capital.

At the time, Epstein’s $3 million investment represented less than 1% of Coinbase, which was valued at $400 million. Emails indicate that Coinbase co-founder Fred Ehrsam was aware of Epstein’s involvement, though it’s unclear whether a planned meeting ever took place.

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Blockchain Capital attempted to acquire part of Epstein’s stake in 2018, and Epstein even considered reinvesting during Coinbase’s Series E round. The company went public in 2021 and is now valued at nearly $50 billion.

Epstein crypto dealings didn’t end with Coinbase

Epstein also backed Bitcoin-focused company Blockstream in 2014 but sold his stake a few months later due to conflicts of interest.

In a statement, Blockstream CEO Adam Back clarified that the company has no financial ties to Epstein’s estate. Epstein’s involvement in crypto was part of his broader investment portfolio, which spanned finance, media, and technology, securing him access to powerful networks.

These latest revelations, part of thousands of pages of Epstein’s financial records, underscore his deep, secretive ties to the world of digital assets.

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Base AI Agent Ecosystem Surges as AI Social Platform Moltbook Goes Viral

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Base AI Agent Ecosystem Surges as AI Social Platform Moltbook Goes Viral


Activity on Base-based AI-powered launchpad Clanker has surged as traders speculate on the rise of autonomous AI agents.

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Trump MAGA statue has strange crypto backstory

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Trump, Maga meme coin PATRIOT technicals

A 15-foot-tall statue of former President Donald Trump, cast in bronze and gilded in gold leaf, has a home: a 7,000-pound pedestal at one of Trump’s golf resorts.

But this monument, dubbed “Don Colossus,” is not just a tribute to the 34-felony-count president. According to the New York Times, it’s at the heart of a bizarre cryptocurrency venture that’s seen a rollercoaster of financial hopes, legal disputes, and strange alliances — and it may just be the wildest moneymaking scheme of the Trump era.

Summary

  • A 15-foot statue of Trump was used to promote the struggling PATRIOT memecoin, which lost over 90% of its value shortly after its launch.
  • The project faced delays, infighting, and a legal dispute with sculptor Alan Cottrill, who claimed he was owed $75,000 for intellectual property rights, stalling the statue’s public debut.
  • Despite the coin’s failure, the project continues with plans for an official unveiling at Trump’s Doral golf resort.

The statue was funded by cryptocurrency investors who paid $300,000 to commission a sculptor to create it as a homage to Trump. It was then used to promote PATRIOT, a memecoin with little function beyond speculation, designed to capitalize on MAGA hype.

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The coin went on sale in late 2024, briefly spiking in value as Trump made bold promises about turning the U.S. into the “crypto capital of the planet.” But as with many memecoin ventures, the excitement didn’t last.

Trump, Maga meme coin PATRIOT technicals

PATRIOT’s price plummeted, losing over 90% of its value within months, marred by delays and infighting among the investors. The statue, initially planned for a grand unveiling, became a symbol of the volatile and often dubious nature of memecoins, which are known for their reliance on viral trends and celebrity endorsements.

However, its sheer size and golden sheen have continued to draw attention, and it has remained the centerpiece of a marketing campaign designed to revive the struggling cryptocurrency.

The project’s backers, including crypto developers and right-wing activists, used social media to promote the statue, hoping to gain enough internet buzz to revive the coin’s value.

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Official Trump ‘trumps’ Patriot

While the statue was being built, it encountered multiple setbacks, including a clash with Ohio-based sculptor Alan Cottrill, who claimed he was owed $75,000 for intellectual property rights. The dispute over the use of his design for marketing purposes led to a bitter standoff, with Cottrill threatening to withhold the statue until he was fully compensated. Despite these tensions, the statue’s construction proceeded, and a concrete-and-stainless-steel pedestal was installed at Trump’s golf complex in January 2026.

Though the Trump family publicly distanced itself from the coin, Trump promoted the project, including a link shared to Breitbart News, and kept the spotlight on PATRIOT.

His own coin, Official Trump (TRUMP), launched shortly before the PATRIOT unveiling, further complicating the situation and leading to a drop in interest in the competing crypto token. The timing couldn’t have been worse, as the price of PATRIOT tanked just as Trump’s official token took off.

The PATRIOT saga, though financially rocky, continues to capture the public’s imagination. The statue, intended as a marketing stunt for the coin, is now poised for an official unveiling in Doral, Florida.

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Trump has reportedly expressed interest in attending the event, though no official date has been set.

In the meantime, Cottrill is still waiting for full payment for his work, while the investors continue to promote the project online, hoping the statue’s golden finish will spark renewed interest.

Despite the setbacks, the statue stands as a symbol of one of the stranger intersections between politics, crypto, and celebrity culture. The backers of PATRIOT have insisted that the project wasn’t about getting rich — it was about building a “people’s crypto token” that would celebrate Trump and his supporters.

As of now, it seems more like a monument to memecoins.

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Vitalik Buterin Calls for Evolving Ethereum’s L2 Vision as Base Layer Grows

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR

  • Vitalik Buterin reassesses Ethereum’s Layer 2 scaling vision in light of faster-than-expected base layer growth.
  • Buterin emphasizes that Ethereum’s Layer 2 networks have not achieved the full decentralization once envisioned.
  • Leading rollups such as Optimism and Arbitrum have made progress but still face challenges in trustless execution and cross-chain interoperability.
  • The original concept of Ethereum scaling with L2 rollups may no longer align with the network’s evolving needs.
  • Vitalik Buterin advocates for more focus on native rollups and tighter integration of ZK-EVM technology into Ethereum’s base layer.

Vitalik Buterin, Ethereum’s co-founder, is reassessing Ethereum’s Layer 2 (L2) scaling vision. His recent comments on X reflect concerns over the slow progress of decentralization in L2 networks. As Ethereum’s base layer scales, Buterin suggests that the framework positioning L2 rollups as quasi-native shards no longer aligns with the network’s current trajectory.

Vitalik Buterin Reassesses Ethereum’s L2 Scaling Approach

In a shift from previous views, Vitalik Buterin has called for a reevaluation of Ethereum’s L2 scaling plans. Ethereum’s Layer 1 has grown faster than expected, while L2 decentralization has lagged. Buterin emphasized that L2s have not fully reached the decentralized “Stage 2” model once envisioned for Ethereum scaling.

L2 networks, such as Optimism and Arbitrum, have achieved milestones but still face challenges. They trail in achieving full decentralization and cross-chain interoperability. Buterin’s reassessment highlights these shortcomings and questions whether L2s can fulfill their intended promise of scaling Ethereum.

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Ethereum L2 Struggles to Meet Expectations

The original vision for Ethereum L2s was to provide a scaling solution with a trustless, decentralized environment. However, the progress has been slower than anticipated, especially in the areas of cryptographic guarantees and interoperability. Despite advancements in L2 rollups, such as Base and Arbitrum, they still fall short of full decentralization and are not yet fully integrated into Ethereum’s core system.

Buterin’s recent comments suggest that Ethereum L2 must adapt to the evolving network dynamics. Ethereum’s base layer, with increasing gas limits and scalability, may make L2 solutions less crucial in the future. This shift calls into question whether L2 rollups will remain the go-to solution for Ethereum scaling as Layer 1 becomes more capable.

The Shift Toward Native Rollups and ZK-EVM Integration

As Ethereum’s base layer grows more robust, Vitalik Buterin and others in the Ethereum community have started focusing more on native rollups. These rollups, integrated more deeply into the Ethereum protocol, could replace the need for separate L2 solutions. Buterin has expressed growing support for native rollups, particularly those built around zero-knowledge (ZK) proofs, which offer more efficient and secure scaling.

The development of ZK-EVM technology is key to this shift. It has the potential to enable more seamless integration between the Ethereum base layer and rollups. This move could lead to a more streamlined approach to scaling Ethereum while maintaining decentralization and security, a shift that Buterin believes aligns better with the network’s long-term goals.

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WULF gains 11% after boosting power capacity

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Russia crypto mining pioneer Igor Runets put under house arrest on tax charges

TeraWulf (WULF) rose 11% on Tuesday pre-market after news that the firm acquired two power-heavy industrial sites, more than doubling its energy and computing footprint to 2.8 gigawatts (GW).

The sites — one in Hawesville, Kentucky, and the other in Morgantown, Maryland —add 1.5 gigawatts of capacity, the firm said in a late Monday press release. The company said this will help it meet demand for new large-scale computing and data workloads, as well as support grid reliability in those regions.

The move comes as a growing number of crypto miners position themselves as key players in the artificial intelligence (AI) infrastructure boom. With AI companies in need of data center space, high-powered chips, and vast amounts of electricity, miners have become crucial partners to handle compute needs.

TeraWulf’s Hawesville property, a former industrial site with over 250 buildable acres, includes immediate access to 480 megawatts (MW) of power, including an on-site substation and high-voltage transmission lines. The firm said the location puts it within reach of major Midwest markets and offers a relatively fast path to deploying new compute capacity. The company expects to develop the site in phases.

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In Maryland, TeraWulf picked up the Morgantown Generating Station, a 210 MW power facility with expansion potential to 1 GW. The site is already delivering electricity to the grid and could eventually host 500 MW of compute infrastructure in the first buildout phase, the firm said.

The company said it aims to pair any future computing activity with added power generation to keep the site net-positive for the grid.

TeraWulf now operates across five sites and is targeting 250 to 500 MW of new contracted capacity each year.

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Bitcoin (BTC) Trades Flat as Index Inches Lower

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9am CoinDesk 20 Update for 2026-02-03: vertical

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 2283.41, down 0.3% (-6.5) since 4 p.m. ET on Monday.

Nine of the 20 assets are trading higher.

9am CoinDesk 20 Update for 2026-02-03: vertical

Leaders: ICP (+0.7%) and BNB (+0.6%).

Laggards: HBAR (-2.0%) and XLM (-1.6%).

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The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

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From a 14-month low to a sharp rally triggers $740 million in liquidations

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From a 14-month low to a sharp rally triggers $740 million in liquidations

Bitcoin whiplashed on Tuesday, plunging to a 14-month low before rallying back above $76,000 as tech-sector turmoil sent markets spinning.

The largest cryptocurrency dropped to $72,900 during the early U.S. session — its weakest level since November 2024, when Donald Trump was elected. Then BTC has since rebounded 5% off the lows, climbing back to $76,800, before the advance faded again. Ethereum’s ether bounced 10% from session lows to above $2,300 before giving back some of the gains, according to CoinDesk data.

The rebound came as Congress reached a deal to end the partial government shutdown, which offered some near-term relief to markets.

Helping ease pressure on risk assets further was an appearance by Nvidia (NVDA) CEO Jensen Huang on CNBC, where he dismissed speculation about friction between the chipmaker and OpenAI. “There’s no controversy at all. It’s complete nonsense,” Huang said, reaffirming Nvidia’s commitment to invest in OpenAI’s next fundraising round. His comments came amid growing concerns over the stability of ChatGPT creator OpenAI, a key driver of sentiment in the AI-fueled tech rally.

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Still, the sharp drop in crypto left a trail of damage. Total liquidations across digital asset derivatives surged to $740 million over the past 24 hours, according to CoinGlass. Long positions, those betting on higher prices, bore the brunt of the wipeout with $287 million in BTC longs and $267 million in ETH longs being flushed.

Technical breach

Despite the rebound, bitcoin taking out the April 2025 “tariff tantrum” lows marked a key technical breakdown, raising the risk of a deeper correction.

Still, Benjamin Cowen, founder of Into The Cryptoverse analytics firm, said the overwhelming bearish sentiment might set the stage for a short-term countertrend rally. Historically, he noted, when bitcoin sweeps prior lows, it often triggers relief rallies.

He also warned that failure to bounce soon could make for “one hell of a midterm year,” referring to bitcoin’s past bear markets, such as 2022 and 2018, which also coincided with U.S. midterm elections.

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“I feel like the bear narrative has been really strong for a while, and so I would expect a countertrend rally soon so that it gives the bulls some hope for a while,” Cowen said in an X post.

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OG Prediction Market by Crypto.com Debuts Before Super Bowl Event

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TLDR

  • Crypto.com has launched OG, a standalone prediction market platform focused on sports, finance, politics, and entertainment events.
  • The platform will offer CFTC-regulated sports event contracts and allow margin trading on prediction contracts for the first time.
  • The first one million users to sign up for OG will receive up to $500 in rewards as part of its launch promotion.
  • OG aims to replicate Crypto.com’s success in the cryptocurrency space by offering a similar user experience and platform growth.
  • Nick Lundgren, Crypto.com’s Chief Legal Officer, will serve as CEO of OG and lead the platform’s growth in the prediction market industry.

Crypto.com has officially launched a new prediction market platform called OG, just days before the Super Bowl. The platform will offer regulated sports event contracts along with predictions on financial, political, cultural, and entertainment events. It aims to be the first platform to provide margin trading on prediction contracts, enhancing its appeal to users.

OG Prediction Market Platform to Offer CFTC-Regulated Contracts

The OG platform will feature prediction markets that are fully regulated by the Commodity Futures Trading Commission (CFTC). The platform will launch with a range of markets, including sports events like the Super Bowl, along with other sectors such as finance and entertainment. Sports events are expected to be a major draw for users, as OG aims to provide an all-encompassing platform for fans to engage in predictions.

Crypto.com sees the launch of OG as a natural extension of its growth in the prediction market business. The company has experienced 40x growth in its prediction market sector over the past six months. This surge in activity prompted the need for a standalone platform to better cater to its growing user base.

Crypto.com’s Co-Founder and CEO, Kris Marszalek, expressed confidence in OG’s potential. “Crypto.com successfully built one of the largest brands and best app experiences in cryptocurrency. Now, we will replicate this experience with OG in the prediction market space,” he said. The launch of OG comes at a pivotal time as the CFTC prepares to introduce new rules for prediction markets in the United States.

Nick Lundgren, who currently serves as Crypto.com’s Chief Legal Officer, will lead OG as CEO. He previously played a key role in the acquisition of Crypto.com’s CFTC-registered exchange and clearinghouse, which led to the creation of OG. Lundgren emphasized the vast opportunity prediction markets present, calling it a “deca-billion dollar industry.”

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Exclusive Rewards and Partnerships for Early Adopters

OG will reward its first one million users with up to $500 in rewards. The platform will also offer exclusive access to experiences through Crypto.com’s established sports partnerships. These include deals with organizations like UFC, Formula 1, and the UEFA Champions League. OG plans to leverage these relationships to build a loyal user base and strengthen its position in the market.

The launch of OG comes ahead of the Super Bowl, one of the most widely viewed sports events globally. By offering prediction contracts for such high-profile events, Crypto.com aims to capture the attention of a diverse audience. As it rolls out its services, OG will initially focus on the U.S. market, where it has the backing of its CFTC-registered exchange.

OG’s debut marks a significant milestone in Crypto.com’s expanding presence in the prediction market space. The company is committed to providing users with an engaging, secure, and regulated platform.

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