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Crypto Markets Slump Following Disappointing US Jobs Report

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Total market value slipped 2% on the day as most large-cap tokens traded lower.

Crypto markets opened the week on softer footing, with prices slipping lower after last week’s brief rebound.

On Monday, Feb. 16, Bitcoin (BTC) was trading around $67,500, down about 2% on the day and 1.7% over the past week, though it briefly rallied to $70,000 earlier today.

Since dropping to as low as $60,000 the first week of February, BTC has mostly been trading in a tight range between $68,000-$70,000. Trading volumes remained around $40 billion over the past 24 hours, suggesting active but indecisive positioning.

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BTC 1-month price chart. Source: CoinGecko

Ethereum (ETH) is down slightly more over the past 24 hours with 3% losses, while down 3.5% on the weekly timeframe.

Total crypto market capitalization fell 2% over the past 24 hours to $2.39 trillion, with most of the top-10 tokens moderately lower on the day. TRON (TRX) was the lone exception, posting slight gains on the day, while Dogecoin (DOGE) lost the most, down 7.5% in the past 24 hours, but still nearly 7% in the green on the week.

‘Macro Hedge Narrative Remains Challenged’

Despite pockets of resilience, analysts continue to flag a lack of strong directional conviction. In a Monday note, analysts at Keyrock said Bitcoin remains tightly correlated with risk assets.

“Our Take: Bitcoin continues to trade as a high-beta extension of tech, struggling to decouple during growth-led drawdowns,” Keyrock wrote. They added:

“Rather than hedging fiat risk, its rising correlation with software stocks continues to weaken its diversification case. Until it begins responding inversely to dollar weakness, its macro hedge narrative remains challenged.”

As for the Crypto Fear & Greed Index, it still remains in “extreme fear” territory, where it’s been for most of the past month.

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Big Movers and Liquidations

Looking at the top-100 assets by market cap, Cosmos (ATOM) led gains on the day, up just 2.4%, followed by Bittensor (TAO), which rose 1%.

On the downside, Rain (RAIN) slid over 8%, while Dogecoin was today’s second biggest loser among large-caps after its recent outperformance.

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DOGE 7-day price chart. Source: CoinGecko

According to CoinGlass data, total liquidations of $232 million over the past 24 hours, with long positions accounting for roughly $159 million. Bitcoin and Ethereum liquidations were nearly even, with $105 million and $90 million, respectively.

ETFs and Macro Conditions

Flows into U.S. spot crypto exchange-traded funds remained negative on a weekly basis, despite a net positive day on Friday.

According to SoSoValue data, last week, spot Bitcoin ETFs recorded net outflows of nearly $360 million, similar to the previous week’s total, bringing total net assets at $87 billion by Feb. 13.

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Spot Ethereum ETFs also posted weekly outflows of $161.2 million, with total net assets of $11.7 billion.

On the macro front, revised labor data reinforced caution. The U.S. Bureau of Labor Statistics revealed on Friday, Feb. 13, that employers added just 181,000 jobs in 2025. That is far below the previously estimated 584,000 and the 1.46 million added in 2024.

Meanwhile, the U.S. Treasury Secretary Scott Bessent said on Friday in an interview for CNBC that Congress should advance the CLARITY Act to set federal rules for digital assets, calling it a source of “great comfort” for markets, while cautioning that bipartisan support could weaken later this year.

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Crypto World

Paradigm Challenges Bitcoin Mining Narrative Amid AI Data Center Boom

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Paradigm Challenges Bitcoin Mining Narrative Amid AI Data Center Boom

The rapid buildout of AI data centers has revived a long-running debate over energy consumption, with critics arguing that large computing operations, including Bitcoin mining, strain power grids and drive up electricity prices.

As Cointelegraph previously reported, the surge in AI data center construction has fueled local resistance in several US regions, with residents and lawmakers raising concerns about power demand and rising electricity costs. Bitcoin (BTC) mining has increasingly been linked to the broader debate over high-density computing infrastructure.

In a recent research note, crypto investment firm Paradigm pushed back on that narrative, arguing that Bitcoin mining is frequently misunderstood and often mischaracterized in public energy debates. Rather than treating mining as a static energy drain, Paradigm frames it as a participant in electricity markets, one that responds to price signals and grid conditions.

Paradigm’s Justin Slaughter and co-author Veronica Irwin also challenge several common assumptions used in energy modeling. For example, they note that some analyses measure Bitcoin’s energy use on a per-transaction basis, even though mining energy consumption is tied to network security and competition among miners, not transaction volume. 

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Other models assume energy production is effectively limitless or that miners will continue operating regardless of profitability, assumptions Paradigm argues are unrealistic in competitive power markets.

According to Paradigm, Bitcoin mining currently accounts for about 0.23% of global energy consumption and about 0.08% of global carbon emissions. Because the network’s issuance schedule is fixed and mining rewards decline about every four years, Paradigm argues that long-term energy growth is constrained by economic incentives.

Source: Daniel Batten

Related: Bitcoin miner production data reveals scale of US winter storm disruption

Bitcoin mining as flexible grid demand

A central pillar of Paradigm’s argument is demand flexibility.

Bitcoin miners typically seek out the lowest-cost electricity, often sourced from surplus or off-peak generation.

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Mining operations can scale consumption based on grid conditions, reducing usage during periods of stress and increasing it when supply exceeds demand. In that sense, Paradigm describes mining as a flexible load, similar to energy-intensive industries that respond to real-time pricing signals.

The debate has taken on new urgency as AI data center expansion accelerates. As Cointelegraph recently reported, some crypto-era infrastructure is now being repurposed to support artificial intelligence workloads, with companies shifting from Bitcoin mining to AI data processing to pursue higher margins. Several traditional Bitcoin miners, including Hut 8, HIVE Digital, MARA Holdings, TeraWulf and IREN, have begun making partial transitions.

By framing mining as responsive demand rather than constant consumption, Paradigm’s report shifts the debate from environmental alarmism to grid economics. The implication for policymakers is that Bitcoin mining should be evaluated within the broader electricity market rather than through simplified energy comparisons.

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Related: The real ‘supercycle’ isn’t crypto, it’s AI infrastructure: Analyst