Shiba Inu Coin price has crashed into a bear market, moving from a high of $0.00004565 in March 2024 to the current $0.0000060, and activity in the futures market points to more downside.

Shiba Inu (SHIB), the biggest meme coin on Ethereum (ETH), was trading at $0.0000060, with its market cap falling from a record high of over $41 billion to $3.7 billion today.

Data compiled by CoinGlass shows that the futures open interest has continued falling this year. It moved to just $61 million, down substantially from last July’s high of over $400 million. 

Open interest is a crucial metric that measures unfilled orders in the futures market. A higher open interest when a coin is rising is a sign of increasing investor demand. 

The broader open interest in the crypto market has dived in the past few months following the $20 billion liquidation event in October last year. This is one of the top reasons why Bitcoin and most altcoins have dropped.

Meanwhile, Shiba Inu’s weighted funding rate has remained in the red since February 5. A funding rate is a key data that looks at the small fee that longs and shorts in the futures market pay to hold their positions. In most cases, a falling figure indicates that traders anticipate the price will be lower.

Shiba Inu’s burn rate has dropped substantially in the past few days. It fell by over 99% on Thursday to just 483 coins, worth less than $1 were burned in the last 24 hours.

The biggest risk that SHIB faces is that it has now major catalyst that may push it higher. In addition to the falling burn rate, Shibarium’s activity has dwindled, with its total value locked falling to $856,000.

Shiba Inu Coin price technical analysis

The three-day chart shows that the SHIB price has dropped sharply in the past few months. It has constantly formed a series of lower lows and is now hovering at its lowest level since 2023.

The coin has tumbled below all moving averages, while the Relative Strength Index has formed a descending channel. It also remains below the Supertrend indicator. 

Therefore, the most likely SHIB price is bearish as demand remains thin. This crash may have it move to the next key support at $0.00000050.

BlockTower founder Ari Paul believes the crypto markets are at a critical crossroads, facing two potential outcomes.

Paul outlined that one possibility is that the crypto market has already reached its peak, particularly for this generation of digital assets. Crypto has benefited from strong tailwinds such as mainstream awareness, political support, and relaxed regulations. However, real-world adoption has been slow, with initiatives like El Salvador’s Bitcoin experiment and various corporate trials yielding mixed results. This suggests that further downside remains possible, especially if large liquidation events occur.

On the other hand, the ongoing market downturn could be part of a larger, macro-driven correction within a broader upward trend. In a world increasingly distrustful of fiat systems, Bitcoin (CRYPTO: BTC) and other cryptocurrencies remain attractive to speculative investors. Development continues, niche adoption is expanding, and a new narrative could reignite market momentum. With excess leverage and optimism recently purged, Paul believes the fundamentals may be quietly improving, setting the stage for another upward move driven by coordinated capital flows.

Given these possibilities, Paul advocates for a moderate allocation to crypto, citing the potential for asymmetric upside. However, he also acknowledges the risk of a deeper crash, with prices possibly falling to the $15,000–$40,000 range before any sustained recovery. Currently, Paul is long during the bounce and plans to reassess his position around the $90,000 Bitcoin level.

Paul also raised concerns about Bitcoin’s long-term viability. If BTC stabilizes without significant price growth, the decline in block rewards could put pressure on the network’s security budget. The broader crypto industry, which relies heavily on speculative inflows and transaction-based revenue models, could face significant strain in a stagnant price environment. In this case, Bitcoin might persist as a niche or collectible asset, but at lower valuations, with many holders potentially exiting if the upside appears capped.

Cryptocurrency payments tied to suspected human trafficking services rose 85% in 2025, reaching hundreds of millions of dollars, according to a new report from Chainalysis.

Much of the activity is linked to groups operating in Southeast Asia, the report said, adding that nearly half of transactions from Telegram-based “international escort” services were for over $10,000.

Researchers also found that most payments in these networks were made using stablecoins, while other categories, such as CSAM vendors, used more Bitcoin or privacy coins (specifically Monero) for laundering. “Instant exchangers, which provide rapid and anonymous cryptocurrency swapping without KYC requirements, play a crucial role in this process,” the report reads.

The findings underscore how trafficking networks (and illicit actors in general) are increasingly relying on cryptocurrency to move funds faster and operate around the world.

Chainalysis looked at several types of activity, including escort services, recruitment agents tied to forced labor, prostitution, and vendors selling child pornography. The firm also found payments spanning the Americas, Europe, and Australia.

Still, despite the rise in activity, the firm said cryptocurrency use could also help investigators because of its transparency, making it easier for authorities to trace funds and identify both suspicious and known patterns in pricing. “Standardized pricing models create identifiable transaction patterns that investigators and compliance teams can use to detect suspicious activity at scale,” the report reads.

Looking ahead, Chainalysis said trafficking networks will likely keep evolving their tactics, but better pattern-recognition tools and efficient cooperation between crypto companies and authorities could help detect and disrupt these operations.

TLDR:

• Zero launches with 165 blockchain connections through LayerZero’s existing messaging infrastructure. 
• DTCC, ICE, and Citadel partnerships bring $3.7 quadrillion in annual securities clearing to the platform. 
• Real-time ZK proof system enables transaction finalization in seconds versus traditional batching delays. 
• Three specialized zones handle general computing, private payments, and trading with 2M TPS capacity each.
  

LayerZero has announced Zero, a new Layer 1 blockchain designed to address institutional barriers in digital asset adoption.

The network features three specialized zones for general computing, private payments, and trading infrastructure. Zero leverages LayerZero’s existing interoperability protocol to connect with 165 blockchains at launch.

Major financial institutions including DTCC, ICE, and Citadel have announced partnerships with the platform.

Technical Architecture Addresses Scalability Constraints

Traditional blockchain networks face performance limitations because every validator processes identical transactions.

According to analysis from Delphi Digital, “blockchains are slow because every node does the same work.” This redundant design ensures security but restricts throughput across the network. Zero implements a different model that separates transaction execution from verification processes.

The platform employs a smaller group of block producers to execute transactions and generate zero-knowledge proofs.

Validators then verify these proofs rather than re-executing every transaction. Delphi Digital notes that validators download “less than 0.5% of actual block data,” which lets the network scale without forcing all participants to operate expensive hardware infrastructure.

LayerZero rebuilt the technology stack across multiple layers to eliminate bottlenecks. The system includes QMDB for storage operations, FAFO for parallel execution, SVID for networking functions, and Jolt Pro for proof generation.

FAFO manages parallel compute scheduling. LayerZero claims their system “achieves over 1 million transactions per second” through this architecture.

Proof generation represents the most challenging technical component. Current zero-knowledge systems batch thousands of transactions to offset computational costs, creating delays in finalization.

LayerZero addresses this through real-time proving technology. The company states its Jolt Pro system “can generate proofs fast enough for transactions to finalize in seconds.”

This approach could eliminate latency issues that currently limit zero-knowledge chains in high-frequency applications.

Institutional Partnerships Signal Market Strategy

Zero operates as a standalone L1 that integrates with LayerZero’s messaging protocol. The network maintains EVM compatibility, allowing developers to deploy existing Solidity contracts without modifications.

Each of Zero’s three zones shares a common settlement layer while executing independently. LayerZero claims “each zone can handle 2M TPS with horizontal scaling as more zones are added.”

Tether’s USDt0 stablecoin already runs on this infrastructure. Delphi Digital reports the token has moved “over $70 billion in crosschain transfers since launch.”

This existing adoption demonstrates the network’s operational capacity before the broader Zero platform launches.

The project secured partnerships with established financial institutions on the same announcement day. DTCC clears $3.7 quadrillion in securities annually and operates core settlement infrastructure for U.S. markets.

ICE owns the New York Stock Exchange and manages trading platforms across multiple asset classes. Citadel ranks among the largest market makers globally, handling substantial daily trading volume.

Delphi Digital observes that “institutions want blockchain rails but won’t use what exists.” Fragmentation across multiple chains and transparent transaction records prevent many institutions from adopting existing platforms.

The payments zone incorporates privacy features designed to meet confidentiality requirements for institutional money movement. This positions Zero as infrastructure for regulated entities rather than retail cryptocurrency users.

Grayscale Investments has reportedly submitted an S-1 application to the Securities and Exchange Commission for an AAVE spot exchange-traded fund, according to regulatory filings.

The filing comes as AAVE, a decentralized finance protocol, has drawn attention following a governance vote on decentralizing its operational structure. The proposal received support from the AAVE community, according to reports.

Grayscale, the largest digital asset manager, has not released additional details regarding the timing or structure of the proposed ETF.

The company manages billions of dollars in cryptocurrency assets and has previously filed applications for various digital asset investment products, including spot Bitcoin and Ethereum ETFs that received SEC approval in recent years.

AAVE is a lending protocol that allows users to borrow and lend cryptocurrencies without intermediaries. The token serves as the governance mechanism for the protocol’s decentralized autonomous organization.

Key Insights

• UK Treasury chose HSBC Orion to test blockchain issuance and settlement for digital gilts in a controlled environment.

• The DIGIT pilot targets near real-time settlement and lower operational costs across the UK sovereign bond market.

• Parallel regulatory scrutiny continues as UK authorities monitor crypto-linked ETN access for retail investors.

UK Treasury has announced that HSBC is the platform provider to its Digital Gilt Instrument (DIGIT) pilot. The ruling upholds the proposal of the government to modernize the issue of sovereign debt issuance through distributed-ledger technology. Officials confirmed the appointment on February 12, 2026, following a competitive procurement process launched in late 2025.

🇬🇧 NEW: 2026 is marking the year of “Operationalizing Digital Debt” as the UK Treasury and HSBC move to tokenize Great Britain’s sovereign bonds.

Aims to test on-chain settlement and over-the-counter trading capabilities. pic.twitter.com/QReRyBCLss

— Nathan Jeffay (@NathanOnCrypto) February 12, 2026

The pilot will run within a regulated sandbox. It will allow authorities and market participants to test how digital gilts function across issuance, trading, and settlement. Policymakers expect the trial to provide operational evidence before any wider market rollout.

HSBC Orion Selected for DIGIT Pilot

HSBC will deploy its Orion blockchain platform as the core infrastructure for the DIGIT initiative. Orion already supports multiple large-scale digital bond issuances across Europe and Asia. These include sterling-denominated and green bond transactions for public-sector issuers.

The Treasury intends to make gilts digitally native through DIGIT instead of being tokenized replicas. The platform will enable the use of on-chain settlement that can reduce the settlement period of days to minutes. This model could also minimize reconciliation of intermediaries.

The pilot is consistent with the overall capital markets approach of the government. In 2024, Chancellor Rachel Reeves announced an intention to bring about the use of DLT in the UK gilt market. The DIGIT trial will be a pragmatic move in that direction, and existing regulatory control will be maintained.

Market Context and Regulatory Signals

Blockchain-based bond settlement can improve transparency and operational efficiency. Market participants can track ownership changes directly on a shared ledger. This structure may also widen participation by lowering technical barriers for investors and dealers.

The DIGIT announcement follows increased regulatory interest in digital asset exposure. It has been reported that Trading 212 enabled UK retail investors to access crypto-linked exchange-traded notes without appropriate approval. The regulators insist that firms must possess certain authorization to provide such products based on debentures.

In October 2025, the UK regulators removed a ban on retail crypto ETNs that existed since the 19th century. Regulators have since increased the level of supervision to keep the firms accountable to the rules of conduct. Together, these developments show a dual approach: encouraging financial innovation while maintaining strict market controls.

The regulatory dispute shaping crypto markets intensified as lawmakers push the CLARITY Act, a proposal aimed at reconciling jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) while introducing a formal taxonomy for digital assets. In this environment, White House crypto adviser Patrick Witt argued that allowing stablecoin reward programs offered by crypto platforms should not threaten traditional banks, urging room for compromise between the industry and incumbents. He described the current clash over stablecoin yields as “unfortunate,” insisting that platforms can offer yield products without disrupting existing bank models. A key line of debate centers on whether such yields amount to an unfair advantage or a natural extension of crypto services that banks are already pursuing through OCC charters.

Witt spoke publicly amid ongoing negotiations about the CLARITY Act, a comprehensive bill that would delineate regulatory authority between the SEC and CFTC and codify a framework for classifying crypto assets. He told Yahoo Finance that the industry and banks should be able to operate with shared, competitive product offerings, and that cooperation could unlock new services for customers while preserving financial stability. The interview underscored a broader stance within the administration: innovation should not be stifled, but it must be channeled through clear, enforceable rules.

“They can also offer stablecoin products to their customers, just the same as crypto. This is not an unfair advantage in either way, and many banks are now applying for OCC bank charters themselves to start offering bank-like products to their customers.”

As the debate continues, industry observers note that stablecoin yield programs—long a source of friction between crypto platforms and traditional banks—have become a focal point in how the market structures, and how lawmakers will eventually codify governance for digital assets. The tension has contributed to delays in passing the CLARITY market structure bill, even as proponents emphasize that regulatory clarity would reduce risk and foster legitimate growth. The discussion is not limited to the United States; its outcomes could influence international actors seeking a predictable framework for crypto activities and yield-bearing products.

The CLARITY Act is not just about power delineations; it is also about process. The proposal would establish a formal taxonomy for digital assets and set clear boundaries on which agency leads on what types of instruments. In doing so, it aims to reduce the ambiguity that many market participants say has slowed product development and investment decisions. Yet with the 2026 U.S. midterm elections looming, policymakers and industry executives warn that a shift in control or a politicized environment could derail momentum and threaten the timeline for implementing new rules.

Supporters of the bill have argued that the current regulatory haze is a drag on innovation and market integrity alike. Opponents worry about overreach and the potential for regulatory fragmentation to create compliance burdens. The administration’s line, echoed by Witt, is that a pragmatic path exists: a framework that protects consumers and ensures fair competition while allowing crypto firms to compete on a level playing field with traditional financial institutions.

The debate has drawn attention from high-level voices inside and outside government. Some officials warn that if the House shifts control or if the midterms redraw the political map, the chance to finalize the act could slip away, raising the specter of a regulatory rollback under future administrations. In the meantime, proponents are pushing to keep the window open, arguing that a timely compromise would deliver much-needed clarity and enable continued innovation in a sector that has already reshaped payments, asset custody, and yield strategies for many users.

As markets watch for signs of movement, Witt cautions that a sense of urgency remains essential. The White House Crypto Council has signaled a preference to have the CLARITY Act signed into law before the midterms absorb all policy energy, a reflection of how election cycles can impact regulatory priorities in Washington. The broader industry context remains one of cautious optimism tempered by the reality that policy change in this arena tends to unfold incrementally, with multiple committees, hearings, and competing priorities shaping the final form of any legislation.

Key takeaways

• The CLARITY Act seeks to resolve regulatory overlaps by defining clear jurisdiction for crypto markets between the SEC and CFTC and by creating an asset taxonomy.
• Stablecoin reward programs offered by crypto platforms have emerged as a central flashpoint in negotiations, affecting how banks perceive competition and the potential for OCC charters to offer similar products.
• White House and industry voices emphasize that allowing yield-bearing crypto products does not inherently threaten bank models and may spur collaboration between fintechs and traditional banks.
• The approach hinges on political timing: the 2026 U.S. midterm elections could derail momentum, prompting urgency from policymakers to secure legislation before the election cycle dominates attention.
• Market participants are watching for concrete signals on regulatory alignment, licence pathways for banks, and any new guidance from the White House Crypto Council ahead of meaningful legislative action.
• Beyond domestic debates, the outcome of CLARITY could influence global regulatory expectations and how exchanges, lenders, and wallets structure risk and compliance moving forward.

Sentiment: Neutral

Market context: The ongoing CLARITY discussions sit within a broader climate of regulatory scrutiny and evolving risk sentiment in crypto markets. Investors and institutions await a coherent framework that reduces ambiguity around asset classification, custody, and product permissions, all while remaining sensitive to political timelines and potential shifts in congressional control. As regulators debate jurisdiction, market participants recalibrate liquidity strategies and risk management practices in anticipation of clarity rather than ambiguity.

Why it matters

The core significance of these negotiations lies in the potential for a formal, nationwide framework that makes it easier for crypto firms to operate with confidence while offering consumers clearer protections. A codified taxonomy and clarified agency responsibilities would reduce the current patchwork of guidance, enabling more predictable product development and risk management for platforms that offer yield-based services tied to stablecoins. For banks, the debate tests their willingness to engage with digital-asset ecosystems in a way that preserves safety and soundness while exploring new revenue streams through regulated, bank-like products.

For users, regulatory clarity could translate into more robust consumer protections, standardized disclosures, and a more consistent set of custodial and settlement practices. For builders—exchanges, wallets, and fintechs—a stable, rule-based environment lowers compliance risk and potentially unlocks new partnerships with traditional financial institutions. Yet until legislation passes, the sector remains exposed to policy fluctuations, with funding cycles, product launches, and strategic investments hinging on regulatory signals rather than market fundamentals alone.

In a sector that has repeatedly demonstrated the rapidity with which innovation can outpace policy, the CLARITY Act represents more than a legal instrument; it is a test of the industry’s ability to coexist with traditional finance under a framework that seeks to prevent systemic risk. The administration’s emphasis on timely action underscores the stakes: jurisdictions, product categories, and the balance of powers in financial regulation are all at stake as negotiators weigh how to translate high-level principles into enforceable rules. The outcome could set a template for how the United States integrates crypto assets into the broader financial system, with potential ripple effects across markets, liquidity flows, and investor confidence.

What to watch next

• Progress in CLARITY Act negotiations in Congress, including committee votes and potential amendments (date-dependent).
• Election results and the political balance of the House and Senate in the 2026 midterms and their impact on crypto policy agendas.
• Official guidance or announcements from the White House Crypto Council regarding timelines for the bill’s signing or regulatory clarifications.
• Any movement on OCC charter applications or other pathways for banks to offer crypto-related, yield-bearing products to customers.
• Public disclosures or hearings that illuminate how the SEC and CFTC would implement the proposed asset taxonomy and jurisdictional boundaries.

Sources & verification

• What the CLARITY Act is actually trying to clarify in crypto markets — Cointelegraph
• White House crypto adviser says there’s no time to wait as CLARITY Act window closes — Yahoo Finance
• Delays in passing the CLARITY market structure bill — Cointelegraph
• White House crypto bill talks ‘productive,’ but no deal yet — Cointelegraph

Market reaction and key details

What the debate means for users and institutions

The conversations around the CLARITY Act reflect a pivotal moment for crypto policy: designers of the framework aim to secure a balance between encouraging innovation and maintaining financial stability. The tension over stablecoin yields reveals a deeper question about alignment between rapidly evolving digital-asset products and traditional financial services. As negotiators seek to codify roles and product allowances, market participants should monitor statements from policymakers and industry leaders, as these will influence funding choices, product roadmaps, and risk management practices in the near term.

Why it matters next

Regulatory clarity could enable more predictable product development and safer consumer experiences within the crypto-finance ecosystem. For lenders and exchanges, a clear taxonomy and jurisdictional split reduces the risk of misclassification and regulatory overlap, potentially easing cross-border participation and institutional involvement. For policymakers, the CLARITY Act offers a framework to reconcile innovation with oversight, aiming to prevent systemic risk while preserving competitive, diverse financial services in the digital asset space.

Bitcoin continues to exhibit choppy price action, fluctuating within the $60K–$70K range as the market remains in a clear state of indecision. With neither side establishing dominance, further consolidation appears to be the most probable scenario for the week ahead.

Bitcoin Price Analysis: The Daily Chart

On the daily timeframe, BTC’s rejection at the $70K level resulted in a gradual pullback toward the key $65K support area. The $70K region coincides with the midline of a multi-month descending channel, reinforcing its importance as both a structural and psychological supply zone.

A decisive reclaim of $70K, accompanied by a breakout above the channel’s midpoint, would be required to shift momentum and initiate a more sustainable bullish leg. Otherwise, Bitcoin is likely to remain confined within the $60K–$70K range until fresh demand or supply triggers a directional expansion.

BTC/USDT 4-Hour Chart

On the 4-hour timeframe, declining volume and overlapping candles reflect the market’s equilibrium state. The recent low-momentum drift lower suggests that neither buyers nor sellers are in firm control.

Price may continue to ease toward the $63K internal support level, where short-term stabilization could occur. More broadly, the $60K region remains the primary defense zone for buyers. Sustained accumulation around this level could eventually lay the groundwork for a renewed bullish attempt.

Sentiment Analysis

The 2-week liquidation heatmap on Binance shows Bitcoin trading between two major liquidity clusters that are likely to shape the next impulsive move. To the upside, a dense concentration of short liquidation liquidity is positioned between $78K and $82K, with additional buildup toward $85K.

A breakout above the intermediate $72K resistance could accelerate price toward this zone, potentially triggering a short squeeze if $80K is reclaimed. On the downside, liquidity remains relatively thin until the $60K–$62K region, which aligns with the recent swing low.

A decisive break below $60K could expose this pocket and lead to a deeper liquidation-driven move toward the mid-$50K area. For now, Bitcoin remains compressed between $72K resistance and $60K support. A breakout on either side is likely to trigger a volatility expansion, while continued range-bound movement would reinforce the current consolidation phase.

The honeymoon is over—for President Donald Trump and for crypto enthusiasts alike.

A new Morning Consult poll shows Trump’s approval slipping to 45%, with disapproval climbing to 52%, down slightly from two weeks ago and far below the 52% approval he enjoyed at the start of his second term.

By party lines, he still commands near-universal support from Republicans (86%), while Democrats (11%) and Independents (33%) remain skeptical.

Even as the Dow Jones surged past 50,000 earlier this month, voters aren’t cheering. Only about half believe Trump has effectively tackled health care costs and grocery prices, with approval ratings of 42% and 44% for health care and the economy, respectively.

Disapproval is highest on these fronts, underscoring that record-breaking stock indexes aren’t translating into everyday relief.

Last year, crypto investors largely approved of Trump’s crypto policies and associated them with positive market impacts. Today, it’s a more mixed picture — some crypto holders are skeptical or critical of his approach or disappointed by outcomes.

The disappointment extends to cryptocurrency markets, where the post-election “Trump trade” rally is fizzling fast. Bitcoin, which soared above $125,000 in October 2025 on election euphoria, is down over 28% year-to-date. Enthusiasm for projects tied to the Trump administration, including memecoin $TRUMP, has evaporated, with some losing as much as 95% of their value.

Industry insiders cite a mix of factors: policy outcomes have underwhelmed, proposed legislation like the CLARITY Act may centralize control rather than enhance decentralization, and the market’s risk-off sentiment has replaced the previous speculative fervor.

Even supporters like Cardano founder Charles Hoskinson have labeled the administration’s crypto impact “somewhat useless,” while Nobel laureate Paul Krugman called the Bitcoin crash “the unraveling of the Trump trade.”

A survey from The Information shows that roughly 71% of respondents oppose the Trump administration’s cryptocurrency policies, with 59% strongly against them. Only about 20% expressed support.

Interestingly, even among crypto owners—around 40% of respondents—opposition outweighed support, bucking trends from other polls where crypto holders leaned pro-Trump.

Critics cited several concerns: potential conflicts of interest from Trump and his family’s crypto ventures, the risk that a strategic Bitcoin reserve could weaken the U.S. dollar, and broader worries over fraud, crime, and market volatility in digital assets.