Crypto investors are looking for someone to blame for a crashing market that has already shed one-fifth of its total market capitalization since the start of the year — and they have Binance squarely in their social media crosshairs.

However, the world’s largest crypto exchange is firing back, denying rumors that it’s sending legal letters to silence critics.

“Winning is the best response to FUD,” founder Changpeng Zhao (CZ) wrote today. “Binance saw net inflow for ALL 1 day, 7 day and 1 month periods, to the tune of $ billions. Some possible FUD sponsors saw the opposite,” he laughed.

Amid the bearish knock-on effects from Binance’s role in a massive liquidation event on October 10, sentiment against the company has continued to deteriorate.

Goodwill gestures by the exchange have failed to calm complaints, and some traders with losses even threatened Binance with legal action.

Recently, critics have been broadcasting ragebait and screenshots of alleged cease-and-desist letters about October 10–11, from Binance, or even an alleged direct message threat from CZ. 

Schrödinger’s letters from Binance lawyers

Whether Binance’s law firms have sent cease-and-desist letters this week is a classic case of he said, she said. Thousands of people seem either entirely convinced or entirely unpersuaded.

Today, for example, CZ denied sending not only that direct message but also any legal letters over insolvency allegations.

In contrast, a trader with massive losses from October 10-11 insists that Binance group attorneys “are leveraging UAE law to warn me to delete my posts” and have threatened him with a lawsuit.

Elsewhere, a social post with over a million impressions claimed that Binance was suffering insolvency. Later, that same person claimed Binance mailed him a cease-and-desist letter about that insolvency claim — which again earned almost a million impressions.

However, Binance’s help desk called that letter a forgery, and Binance co-founder Yi He reiterated that correction.

Examples of allegations that Binance actually sent a cease and desist letter are replete on social media, but whether or not the company actually sent them is dubious. 

In January 2026, digital asset trading platform Gate released its latest Transparency Report. The report shows that Gate continues to advance across key areas, including multi-asset trading, on-chain derivatives, and asset management, with its trading structure and user use cases steadily expanding.

While maintaining the stable operation of its core crypto asset business, Gate is accelerating its evolution toward a comprehensive digital asset platform that integrates traditional financial assets, on-chain trading, and yield management.

On the trading front, Gate’s derivatives market share has risen to 11%, marking it as one of the centralized exchanges with the largest period-on-period increase.

CryptoRank noted in its annual report that Gate’s perpetual futures trading volume grew from $911.2 billion in Q1 2025 to $2.42 trillion in Q3, remaining at a high level of $1.93 trillion in Q4. Additionally, Gate was recognized as the exchange with some of the fastest contract trading volume growth in 2025.

In the traditional financial assets segment, Gate TradFi now covers asset classes including metals, foreign exchange, indices, commodities, and selected popular equities. Since the launch, cumulative trading volume has exceeded $20 billion.

These features have been fully integrated into the Gate App and Web platform, allowing users to trade across multiple markets within a unified account system using USDT as margin. As demand for precious metals and macro-related assets increases, multi-asset price trading and cross-market hedging are emerging as new growth drivers.

Beyond trading and asset allocation, Gate is actively introducing AI capabilities into high-frequency user decision-making scenarios. Launched in January 2026, GateAI focuses on asset analysis and market interpretation, supporting market browsing and candlestick analysis through a global floating interface and contextual prompts.

In its first month, GateAI achieved a user satisfaction rate of approximately 88% and began to integrate into users’ daily trading decision workflows.

At the same time, Gate continues to strengthen its decentralized derivatives trading capabilities. In January, Gate DEX completed a brand and experience upgrade, with Gate Web3 officially rebranded as Gate DEX. The platform now supports one-click login via account or wallet, significantly lowering the barrier to on-chain trading.

Perp DEX recorded nearly 440,000 cumulative transactions monthly, reflecting a notable increase in on-chain perpetual trading activity. In addition, activity on the Gate Layer network continued to rise, with on-chain addresses surpassing 100 million and monthly transaction volume increasing by more than 22% month-on-month. User interaction and on-chain activity frequency continued to strengthen, providing foundational support for multi-chain asset circulation and ecosystem application deployment.

In asset management and structured products, multiple Gate product lines advanced in parallel. By the end of January, Staking recorded a total value locked (TVL) of $1.301 billion, having peaked at $1.512 billion during the month. ETH staking volume reached nearly 170,000 ETH, setting a new historical high.

Leveraged ETF tokens recorded trading volume of over 6.7 billion USDT in January, representing a month-on-month increase of 32.6%. Simple Earn saw cumulative subscriptions exceeding 2.5 billion USDT, with an average of more than 350,000 participating users per day. Holdings of BTC and GT continued to grow, indicating sustained user demand for core assets and more stable allocation strategies amid market volatility.

In terms of security and transparency, Gate continued to strengthen its reserve and verification mechanisms. In January, the overall reserve ratio increased to 125%, with total reserves valued at approximately $9.478 billion. BTC reserves reached a ratio of 140.69%, while reserves for major assets, including ETH, USDT, and GT all remained above 100%, keeping Gate’s asset backing and risk buffer capacity at an industry-leading level.

On the branding and community side, Gate continued to reinforce long-term connections with creators, users, and institutions through content system upgrades and high-quality event operations. Centered around Gate Square and Gate Live, the platform further refined content incentives and conversion pathways, promoting deeper integration between high-quality content, trading activity, and ecosystem collaboration.

Meanwhile, through closed-door institutional exchanges, annual community summits, and other multi-layered initiatives, Gate expanded professional dialogue and brand influence, further consolidating its position as a leading comprehensive crypto platform in terms of user ecosystem engagement and industry participation.

Overall, Gate is advancing across multiple business lines simultaneously. By continuously expanding asset coverage, product formats, and technological capabilities, the platform is progressively building a more structured and synergistic trading and asset management ecosystem.

As market conditions and user needs continue to evolve, Gate’s long-term development path as a comprehensive digital asset platform is becoming increasingly solid, with further potential to expand application scenarios and ecosystem boundaries.

Details can be found here.

About Gate

Gate, founded in 2013 by Dr. Han, is one of the world’s earliest cryptocurrency exchanges. The platform serves over 49 million users with 4,400+ digital assets and pioneered the industry’s first 100% proof-of-reserves. Beyond core trading services, Gate’s ecosystem includes Gate Wallet, Gate Ventures, and other innovative solutions.

For more information, please visit: Website | X | Telegram | LinkedIn| Instagram | YouTube

Disclaimer: This content does not constitute an offer, solicitation, or recommendation. You should always seek independent professional advice before making investment decisions. Note that Gate may restrict or prohibit certain services in specific jurisdictions. For more information, please read the User Agreement via https://www.gate.com/user-agreement.

TLDR:

• BitMine’s ETH holdings drop to $8.4B, down $8B from the initial $16.4B investment. 
• BMNR stock plunges 88% since its July peak amid Ether price declines. 
• Over 2.9M ETH staked, generating 2.81% annual yield in staking rewards. 
• BitMine holds $538M cash with no debt, allowing it to maintain ETH positions.

BitMine ETH losses have reached $8 billion following Ether’s decline below $2,000. Despite sharp declines, the company reports no debt obligations and continues earning staking income from its Ethereum holdings.

BitMine’s Ethereum Holdings and Stock Performance

BitMine Immersion Technologies (BMNR) currently holds 4.29 million ETH, purchased at an estimated total cost of $16.4 billion. At current prices below $2,000 per Ether, the portfolio’s market value has fallen to approximately $8.4 billion. 

This represents nearly $8 billion in paper losses. BMNR shares have reacted sharply to Ether’s decline. 

Since July, the stock has fallen 88% and hit a new low on Thursday, declining 7% on the day alone. This movement reflects investor concern over BitMine’s heavy exposure to Ethereum, especially amid declining prices.

The firm’s funding strategy differs from many other crypto treasuries. Rather than borrowing, BitMine relied on equity issuance to acquire its Ethereum and other digital assets. 

According to Thomas Lee, Executive Chairman, the company faces no debt covenants or restrictions. This approach allows BitMine to hold its ETH through periods of market volatility without immediate pressure to sell.

In recent weeks, BitMine has continued Ethereum accumulation. The company added 41,788 ETH in the past week, following steady weekly purchases since December 2025. 

This demonstrates a consistent commitment to maintaining and growing its Ethereum portfolio.

Financial Position, Staking, and Market Activity

BitMine maintains a strong cash position of $538 million while staking over 2.9 million ETH. Staked Ethereum generates an annual yield of approximately 2.81%, providing a steady income stream despite the market drawdown.

In addition to Ethereum, BitMine holds 193 Bitcoin and strategic investments in other companies. This includes a $200 million stake in Beast Industries and $19 million in Eightco Holdings. 

These assets contribute to liquidity and diversify the company’s portfolio. Ethereum network activity has shown strong fundamentals, with daily transactions reaching an all-time high of 2.5 million and active addresses surpassing one million. 

These metrics suggest robust usage and engagement, even as prices remain under pressure. BitMine also ranks among the most actively traded U.S.-listed stocks, averaging $1.1 billion in daily volume. 

The firm’s large-scale Ethereum holdings, diversified portfolio, and staking income support its ability to ride out short-term market volatility.

Bitcoin has entered a critical phase after its recent correction dragged the price toward the $70,000 level. Viewed through a macro lens, this move has exposed BTC to elevated downside risk. 

Several on-chain and technical indicators now align with a bearish outlook. However, large holders are actively accumulating, attempting to slow or reverse the developing trend.

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Bitcoin Loses A Major On-Chain Support

Bitcoin has dropped below the True Market Mean for the first time since September 2023. This metric reflects the aggregate cost basis of actively circulating supply. Trading below it signals weakening conviction among participants and marks a structural shift in market behavior.

The loss of this anchor confirms deterioration that has been forming since late November. From a mid-term perspective, Bitcoin is now confined within a broader valuation corridor. Upside momentum has weakened, while downside pressure continues to build across multiple timeframes.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

On the downside, the Realized Price near $55,800 represents the historical level where long-term capital re-enters. On the upside, the True Market Mean of around $80,200 has flipped into resistance. This configuration limits recovery potential and increases the probability of further downside exploration.

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Bitcoin’s Macro Outlook Suggests 37% Crash

This structural weakness aligns with a macro bearish setup visible on the charts. Bitcoin is breaking down from a Head and Shoulders pattern that has been developing for months. This formation carries a projected downside of roughly 37%, targeting $51,511 if fully realized.

The sharp 20% decline over the past week accelerated this breakdown. Rapid selling pressure confirmed the pattern’s neckline breach, intensifying bearish momentum. Such moves often lead to follow-through declines as trapped long positions unwind.

The next critical support below $70,000 sits at $68,072. Losing this level would validate the bearish projection. A decisive break would likely trigger additional liquidations, increasing volatility, and accelerating price movement toward lower structural levels.

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BTC Whales Jump In As Rescue

Despite mounting bearish signals, Bitcoin whales are actively attempting to prevent further downside. Addresses holding between 10,000 and 100,000 BTC have accumulated more than 50,000 BTC in just four days. At current prices, this accumulation exceeds $3.58 billion.

This behavior reflects strategic positioning rather than speculative trading. Large holders often accumulate during periods of fear, especially after sharp corrections. Bitcoin slipping below $75,000 appears to have created an attractive entry zone for long-term capital.

If whale accumulation continues, it could absorb sell-side pressure and stabilize the price. Historically, such activity has preceded short-term rebounds. However, sustained impact depends on broader market sentiment and whether retail selling pressure subsides.

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BTC Price Is Close To Falling Below $70,000

Bitcoin price is trading near $69,500 at the time of writing after a 20% weekly decline. For now, BTC is yet to close a daily candle below $70,000 psychological support. This level has acted as a demand zone in previous corrections, making it critical for near-term stability.

From a short-term perspective, downside risks remain elevated. A breakdown below $68,442 would likely trigger accelerated selling. Under that scenario, Bitcoin could fall toward $65,360. Losing that support may expose BTC to a deeper slide toward $62,893.

Alternatively, whale accumulation could influence price direction. A successful defense of $70,000 may allow Bitcoin to rebound toward $75,000. Reclaiming that level as support would invalidate the immediate bearish thesis and reopen the path toward $80,000 if momentum improves.

The Bitcoin buying company Strategy reported a net loss of $12.4 billion in the fourth quarter of 2025, driven down by Bitcoin’s 22% fall over the quarter.

Bitcoin (BTC) reached a peak high of $126,000 in early October, but tumbled over the quarter ending Dec. 31 to under $88,500. Bitcoin is down 30% so far this year to $64,500, below Strategy’s average cost per BTC of $76,052.

Strategy (MSTR) said on Thursday that despite the loss, its Q4 revenues rose 1.9% year-on-year to $123 million, driven in part by its business intelligence arm, but the recent Bitcoin sell-off saw its shares close 17% down on Thursday to $107.

Bitcoin’s latest tumble pushed it to a low of $62,500 on Thursday, leaving Strategy down 17.5% on its 713,502 Bitcoin holdings.

Strategy on strong financial footing, says finance boss

Despite the massive quarterly loss, Strategy chief financial officer Andrew Kang said in a statement that the company’s capital structure remains “stronger and more resilient today than ever before.”

“Strategy has built a digital fortress anchored by 713,502 Bitcoins and our shift to Digital Credit, which aligns with our indefinite Bitcoin horizon.”

Related: US won’t ‘bail out’ Bitcoin, says Treasury Secretary Bessent 

The company boosted its cash holdings to $2.25 billion in Q4 to allow for 30 months of dividend payouts, signaling financial strength despite the market downturn.

Strategy also has no major debt maturing until 2027, meaning it isn’t under immediate pressure to repay borrowings and may not be forced to liquidate Bitcoin to meet obligations in the near term.