Crypto World
ETH ETF Outflows Top $242M Despite Ether Holding $2K
Ether holds $2,000, but may remain under pressure as traders watch corporate earnings, US government debt and growing global tensions.
Key takeaways:
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Institutional demand for Ether is cooling as investors shift toward the safety of short-term US government bonds.
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High interest rates and rising ETH supply make the current staking yield less attractive for long-term holders.
Ether (ETH) price has failed to sustain levels above $2,150 since Feb. 5, leading traders to fear a further correction. Investor sentiment deteriorated following outflows from Ether exchange-traded funds (ETFs) and increased demand for put (sell) options.
US-listed Ether ETFs saw $242 million in net outflows between Wednesday and Thursday, reversing the trend from the prior two days. The institutional demand that followed the 20% Ether price recovery after the $1,744 bottom on Feb. 6 has faded as investors noted inconsistency in US economic growth—evident by the growing demand for short-term US government bonds.
Yields on the US 2-year Treasury declined to 3.42% on Friday, nearing the lowest levels seen since August 2022. The higher demand for government-backed debt reflects traders’ expectations of further interest rate cuts by the US Federal Reserve (Fed) throughout 2026. Signs of economic stagnation reduce inflationary risks, paving the way for expansionist measures.
Regardless of macroeconomic trends, Ether has underperformed the broader cryptocurrency market, causing traders to question if Ethereum still has what it takes to compete against networks that offer base layer scalability and faster onchain activity.
Traders fear that ETH price is destined for more downside, but data seems to reflect the recent price weakness rather than the anticipation of a further crash.
Ether price declined 38% in 30 days, which negatively pressures the network’s fees and ultimately reduces incentives for staking. Long term holding is a critical component for sustainable price growth, and the current 2.9% staking yield is far from appealing, considering the US Fed target rate stands at 3.5%. Furthermore, the ETH supply is growing at an 0.8% annualized rate.
ETH derivatives metrics reflect traders’ fear of further price drops
Professional traders are not comfortable holding downside price exposure according to ETH derivatives metrics, which further reinforces the bearish sentiment.
The ETH options delta skew stood at 10% on Friday, meaning put (sell) options traded at a premium. The increased demand for neutral-to-bearish strategies causes the indicator to move above the 6% threshold, which has been the norm for the past two weeks. Traders’ mood reflects a six-month bear market as ETH trades 58% below its all-time high.
Related: Crypto investor sentiment will rise once CLARITY Act is passed–Bessent
From a broader perspective, a mere $242 million in Ether ETF outflows represents less than 2% of the total $12.7 billion in assets under management; hence, traders should not assume that ETH price has entered a death spiral. Investors’ morale will eventually recover as the network remains the absolute leader in Total Value Locked (TVL).
Traders’ attention will likely remain centered on corporate earnings results and whether the US government will be able to refinance its debt amid growing global socio-economic tensions. Under this scenario, ETH price will likely remain pressured regardless of onchain and derivatives metrics.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Ether traded back above the $2,000 level on Friday, extending gains after the US consumer price index print came in cooler than expected. The relief rally adds to a nascent recovery narrative that could open the door to a test of higher targets if momentum sustains. Market participants are parsing a mix of on-chain signals, leverage data, and institutional demand as they gauge whether this move can translate into a durable bottom or simply a short-lived bounce. With weekly closes in focus, traders are watching for follow-through in the days ahead, while crypto derivatives data continues to feed the debate over whether risk appetite is finally pivoting in Ethereum’s favor.
Key takeaways
- Ether futures’ open interest across major exchanges has fallen by about 80 million ETH in the past 30 days, signaling a broad reduction in leveraged exposure rather than new long bets.
- Binance, the largest venue by volume, led the decline with roughly 40 million ETH pulled from futures positions (about half of the total drop), underscoring a widespread de-risking trend across top platforms.
- Across Gate, Bybit and OKX, combined declines pushed the total among the four major platforms toward a cumulative drop of roughly 75 million ETH, suggesting the trend is not isolated to a single exchange.
- Funding rates on Binance slipped into deep negative territory (around -0.006), the lowest seen in about three years, implying extreme bearish positioning that could set the stage for a short squeeze if buyers re-emerge.
- Technically, Ether has carved out a bullish setup, breaking from a falling wedge and hovering near $2,050; a measured move could target around $2,150, with potential tests of the 100-period SMA near $2,260 and a path toward $2,500 if demand accelerates.
- On-chain activity and rising institutional demand have persisted as tailwinds, with cost-basis accumulation identified around the $1,880–$1,900 zone helping form a potential price base for further upside.
Tickers mentioned: $ETH
Sentiment: Bullish
Price impact: Positive. The cooler CPI print contributed to a rebound from the $2,000 area and increased odds of an extended bounce toward higher targets.
Trading idea (Not Financial Advice): Hold. The setup points to potential upside on continued demand signals, but traders should remain mindful of macro surprises and the possibility of renewed volatility if liquidity conditions shift.
Market context: The latest inflation data appears to have nudged investors back toward risk assets, helping to ease some of the near-term macro headwinds that had weighed on crypto markets. Although liquidity remains uneven across venues, the combination of weaker-than-expected inflation readings and supportive on-chain dynamics has contributed to a more constructive backdrop for Ethereum in the near term.
Why it matters
From a market perspective, Ethereum’s price action this week matters not only for holders but for the broader crypto ecosystem. The confluence of falling open interest and negative funding rates suggests many participants were trimming risk rather than chasing new bets, which can reduce the likelihood of rapid, force-driven liquidations in a downside scenario. In such environments, a cleaner backdrop often arises where a new rally can take hold more easily if buyers step in decisively, creating a more stable price base. The sustained improvement in network activity and inflows from institutional actors adds another layer of fundamental support that could help underpin a more durable recovery beyond short-term speculative moves.
On the on-chain front, the observed accumulation at sub-$2,000 levels signals a cadre of investors is building a longer-term stance, a factor that matters because the health of Ether’s network—usage, validator activity, and transaction throughput—has historically fed into price resilience. This dynamic aligns with discussions in the space about Ether’s role not just as a trading instrument but as a network with ongoing growth potential, particularly if demand from institutions and developers continues to accrete.
For market participants, the critical question is whether the $2,000 threshold can function as a genuine floor in the current cycle. If price can hold that level and push higher, momentum could attract fresh buyers and sequentially lift Ether toward the $2,150–$2,260 range in the near term, with a longer arc toward the $2,500 zone if fundamental and technical signals align. Conversely, a break below that level could accelerate downside risk, especially if systemic liquidity tightens or macro headlines shift sentiment once again. In either case, the latest data suggest that the market is closer to a base-building phase than a continuation of the prior downtrend.
What to watch next
- Monitor whether ETH holds the $2,000 support on continued trading sessions and whether buyers emerge at the next test of resistance around $2,150.
- Track open interest and funding rates across major exchanges for signs of capitulation ending or renewed leverage entering the market.
- Watch for a potential challenge to the 100-period simple moving average near $2,260 and any subsequent move toward $2,500 if momentum remains constructive.
- Observe on-chain signals, including ongoing accumulation patterns and institutional flow indicators, for signs of sustained demand beyond short-term price action.
Sources & verification
- CryptoQuant Quicktake: Ethereum open interest across major exchanges declines by over 80 million ETH in 30 days.
- CryptoQuant analysis on funding rates hitting -0.006, the lowest level since December 2022, signaling extreme bearish positioning.
- Glassnode heatmap data showing a cost-basis distribution with substantial support between $1,880 and $1,900 and roughly 1.3 million ETH accumulated there.
- On-chain signals and institutional inflows discussed in related coverage, including notes on network activity tailwinds for Ether.
Ether price action and outlook
Ether broke out of a descending wedge on the four-hour chart and traded around $2,050 at the time of observation. The measured move from the breakout points toward $2,150 highlights a near-term upside trajectory, with the potential to test higher resistance if the rally gains traction. The same chart framework points to possible retests of the 100-period simple moving average near $2,260, followed by a pathway toward the $2,500 horizon should momentum accelerate beyond the immediate levels.
On the downside, a firm hold above the psychological $2,000 level remains a critical anchor, reinforced by the 50-period moving average that has acted as interim support in recent sessions. The cost-basis distribution heatmap from Glassnode emphasizes a populated zone beneath the current price, where long-term holders have previously shown willingness to accumulate, which could provide a stabilizing force if price action turns choppy in the near term.
Historically, periods of negative funding rates at strong price floors have preceded short squeezes that sparked sharper moves to the upside. If the current dynamic persists—declining open interest, controlled leverage, and improving macro sentiment—ETH could establish a more durable base rather than form a brief rally followed by renewed volatility. As market attention shifts toward macro cues and ETF developments, investors will be watching how ETH behaves around key support levels and whether on-chain demand sustains the current trajectory.
Bitcoin (BTC) gained at Friday’s Wall Street open as a fresh US inflation surprise boosted the mood.
Key points:
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Bitcoin price action heads toward key resistance after US CPI inflation data cools beyond expectations.
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Crypto becomes a standout on the day as macro assets see a cool reaction to slowing inflation.
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Traders stay wary on overall BTC price strength.
Bitcoin spikes on soft January CPI data
Data from TradingView showed up to 4% daily BTC price gains at the time of writing, with BTC/USD reaching $69,190 on Bitstamp.
The renewed upside came after the January print of the US Consumer Price Index (CPI) fell short of expectations.
As confirmed by the Bureau of Labor Statistics (BLS), core CPI matched estimates of 2.5%, while the broader reading was 2.4% — 0.1% lower than anticipated.
Reacting, trading resource The Kobeissi Letter noted that CPI inflation was now at multiyear lows.
“Core CPI inflation is now at its lowest level since March 2021,” it wrote in a post on X.
“Odds of further interest rate cuts are back on the rise.”
Kobeissi referred to the prospects of the Federal Reserve cutting interest rates at its next meeting in March. As Cointelegraph reported, market expectations of such an outcome were previously at rock bottom, not helped by strong labor-market performance.
After the CPI release, odds of a minimal 0.25% cut remained at less than 10%, per data from CME Group’s FedWatch Tool.
Continuing, Andre Dragosch, European head of research at crypto asset manager Bitwise, argued that when viewed through the lens of Truflation, an alternative inflation meter, the CPI drop was “not really a surprise.”
📌RE: CPI Release
Not really a surprise there if you have been following the @truflation CPI number which has plummeted sub-1% already…
IYKYK pic.twitter.com/GPEUqaSNZI
— André Dragosch, PhD⚡ (@Andre_Dragosch) February 13, 2026
Elsewhere on macro, gold attempted to reclaim the $5,000 per ounce mark, while the US dollar index (DXY) sought a recovery after an initial CPI drop to 96.8.
US stocks, on the other hand, failed to copy Bitcoin’s enthusiasm, trading modestly down on the day at the time of writing.
Analyst eyes current range for BTC price higher low
Considering the outlook for BTC price action, market participants had little reason to alter their cautious positions.
Related: Binance teases Bitcoin bullish ‘shift’ as crypto sentiment hits record low
“$BTC Still consolidating in this falling wedge,” trader Daan Crypto Trades wrote in his latest X update.
“Attempted a break out yesterday but got slammed back down at the $68K level. That’s the area to watch if this wants to see another leg up at some point.”
Earlier, Cointelegraph reported on the significance of the $68,000-$69,000 zone, which plays host to both the old 2021 all-time high and Bitcoin’s 200-week exponential moving average (EMA).
“Whether you like it or not: Bitcoin remains to be in an area where I think that we’ll see a higher low come in,” crypto trader, analyst and entrepreneur Michaël van de Poppe predicted in his own forecast.
“It’s fragile, for sure, but it doesn’t mean that we’re not going to be seeing some momentum coming in from the markets.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Binance rolls out its prepaid Mastercard crypto card to select CIS markets, offering instant crypto-to-fiat payments, cashback rewards, and a Valentine promo amid scam warnings.
Summary
- Binance’s prepaid Mastercard crypto card now serves verified users in selected CIS countries, including Armenia, converting Bitcoin, Ethereum, stablecoins and 100+ tokens to local fiat at checkout.
- The card supports in-store and online Mastercard payments, offers up to 2% cashback, and runs a Valentine-themed reward campaign with pink-icon tokens like AMP, UNI and DOT for referrals, top-ups, and trading.
- U.S. prosecutors separately warn that Valentine’s Day is peak season for romance-linked crypto scams, urging users to distrust online-only partners and avoid sending funds to unverified platforms.
Binance has launched its prepaid Mastercard crypto card in several Commonwealth of Independent States countries, marketing lead Anka Tsintsadze confirmed on Friday.
The cryptocurrency exchange, the world’s largest by trading volume, made the Binance Mastercard available to verified users in select CIS jurisdictions including Armenia. The card allows users to convert bitcoin, ethereum, stablecoins and more than 100 supported tokens instantly into local fiat currency at checkout.
“Pay in crypto. Merchants get fiat or crypto. Best way to push crypto payments and adoption,” Binance co-founder Changpeng Zhao wrote on X, commenting on the service’s regional expansion.
According to Binance, the card supports both in-store and online transactions at outlets that accept Mastercard. Prepaid crypto card holders are eligible to receive up to 2% cashback on qualifying purchases, capped per month.
Users in the CIS can fund accounts using US dollars via credit or debit cards, Apple Pay, and Google Pay. In Uzbekistan, customers may deposit Uzbek som through the Humo card network, while those in Kazakhstan can top up balances in tenge through local banks and Mastercard channels.
The card enables customers to retain crypto holdings until the moment of purchase. When making payments, Binance executes the exchange at checkout, eliminating the need for cardholders to pre-convert their crypto into fiat.
The crypto-linked payment card will only be available to applicants who already hold an account with a provider that issues such cards, including a crypto exchange or a digital currency-supporting bank. Binance requires users to complete identity verification and anti-money laundering checks before ordering the card, including standard know-your-customer procedures.
Once approved, users can access card services without Binance administrative, processing, or annual fees, although third-party charges still apply in some cases, according to the company.
Prior to Friday’s announcement, the exchange had launched its card services in the UK, Austria, Belgium, Bulgaria, Croatia, the Republic of Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. The CIS rollout extends Binance’s card footprint beyond the European Economic Area.
Binance also announced a Valentine-themed promotional campaign with a reward pool. The campaign runs for approximately one month, or until the rewards are fully distributed. The promotion features pink-themed crypto rewards and invites users to complete tasks within the Binance ecosystem.
Users can participate by referring friends, topping up wallets, or trading on Spot and Futures markets. The “Bring a Plus One” initiative rewards users for inviting new participants to the platform. “Love at First Top-Up” encourages participants to deposit via Binance P2P, fiat channels, card payments, or the Buy Crypto feature. Rewards can reach up to a set limit in tokens identified by a pink icon, including AMP, UNI, and DOT, according to Binance.
Separately, US prosecutors issued a warning Thursday that Valentine’s Day is a peak season for romance cryptocurrency scams. The US Attorney’s Office for the Northern District of Ohio advised citizens to be cautious of online relationships.
Attorney David Toepfer stated that fraudsters may have been building trust over weeks or months before February 14, luring victims into making crypto payments to fraudulent investment platforms. He listed several warning signs, including requests to move conversations from dating apps to WhatsApp or Telegram, early professions of love, refusal to meet in person, and demands for payment via crypto, gift cards, or wire transfers.
“Romance scammers are after your money, not your heart. They prey on trust and emotion, often targeting elderly Americans and vulnerable individuals. We encourage everyone to slow down, verify identities, and never send money to someone you have not met in person,” US Attorney Toepfer stated in the alert.
TLDR
- Shytoshi Kusama will reveal details about an independent AI project on February 14.
- The project focuses on solving issues related to digital identity and legacy management.
- The initiative is not related to the Shiba Inu blockchain and aims to create an encrypted archive.
- Over six months of development and 100,000 lines of custom code have gone into the project.
- Shiba Inu’s price rebounded after a five-day drop and is now targeting resistance at $0.000007 and $0.0000076.
Shiba Inu’s Shytoshi Kusama is set to reveal details about a new independent project on Valentine’s Day. Kusama, the lead ambassador of the Shiba Inu ecosystem, had previously teased a significant update. This project, separate from the official Shiba Inu roadmap, focuses on addressing modern issues related to digital identity and legacy.
Kusama’s Focus on Digital Legacy and AI
Last week, Shytoshi Kusama shared more insights about his upcoming venture. The project is not related to blockchain but is centered around a standalone AI platform. This platform aims to tackle the growing problem of digital footprints, which are often messy and unorganized. Kusama explained that it would function as an encrypted archive, designed to preserve human legacy in a secure way.
Lucie, a Shiba Inu team member, clarified that this initiative is a separate endeavor and has no direct link to the Shiba Inu blockchain. Over six months of hard work and 100,000 lines of code have gone into developing this platform. Kusama’s independent project represents a fresh direction in the digital space, emphasizing the importance of managing personal digital footprints for future generations.
Shiba Inu’s Price Movements Amid Market Trends
While the Shiba Inu community eagerly anticipates Kusama’s February 14 update, the token’s price has seen some fluctuations. On February 12, SHIB reversed a five-day losing streak and began to show signs of recovery. At the time of writing, SHIB was priced at $0.000006290, marking a 3.03% decline over the last 24 hours. Despite this, the broader cryptocurrency market had experienced an uptick in response to January’s consumer inflation data, which came in lower than expected.
The Shiba Inu token has recently witnessed a 24% rise from a low of $0.000005 on February 6. The rebound comes after a period of sideways trading in early February. The next resistance levels for SHIB are set at $0.000007 and $0.0000076, which traders will closely monitor.
Shytoshi Kusama’s New Venture Outside Shiba Inu
At the end of January, Kusama broke his silence and revealed more about his new venture. A corporate partner prompted this initiative and operates outside the Shiba Inu ecosystem. Despite its separation from SHIB, Kusama’s update has generated much interest from the community. The upcoming broadcast is expected to reveal more details about this ambitious AI project.
As the Shiba Inu community waits for the next steps in the SHIB ecosystem, attention is focused on what Kusama has to share. His independent project may have far-reaching implications, especially given its focus on AI and digital legacy management.
TLDR
- Bitcoin’s MVRV ratio has dropped to 1.13, signaling that its price is approaching undervalued levels.
- The MVRV ratio reaching its lowest point since March 2023 suggests that Bitcoin is nearing an undervalued zone.
- CryptoQuant’s analysis shows that Bitcoin’s price has been in a downtrend for four months after its all-time high in October 2025.
- The Z-score of Bitcoin’s MVRV ratio is at historic lows, lower than during previous market bottoms in 2015, 2018, 2020, and 2022.
- Bitcoin’s current price decline differs from past cycles, as it has not experienced a sharp rise into overvalued zones.
Bitcoin (BTC) is nearing undervalued territory for the first time in three years as its market value to realized value (MVRV) ratio approaches a critical inflection point. The MVRV ratio compares Bitcoin’s market cap to the price at which its supply last moved, often seen as a key indicator of Bitcoin’s market cycle. According to CryptoQuant’s recent research, the MVRV ratio has fallen to 1.13, signaling that the current Bitcoin price is near levels that might be considered undervalued.
Bitcoin MVRV Ratio Reaches Lowest Level Since March 2023
As Bitcoin’s price dipped below $60,000 last week, the MVRV ratio dropped to 1.13, marking its lowest point since March 2023. The ratio below 1 suggests that Bitcoin’s supply is undervalued at current price levels. CryptoQuant contributor Crypto Dan noted that Bitcoin has been on a downtrend for about four months following its all-time high in October 2025, and is now entering what could be considered an undervaluation zone.
“When the MVRV ratio falls below 1, Bitcoin is regarded as undervalued,” Crypto Dan commented, adding that the current reading of around 1.1 suggests a near-undervalued state.
The MVRV ratio last registered below 1 in early 2023. At that time, Bitcoin was trading at about $20,000. The ratio surged to a peak of 2.28 during Bitcoin’s all-time high in October 2025, showing a sharp contrast to the present situation. This change highlights a difference in the current cycle compared to past ones.
The current decline in Bitcoin price has raised questions about its potential bottom. CryptoQuant’s analysis shows that Bitcoin’s market cap has dropped significantly, with the MVRV ratio falling into the undervalued zone. This suggests that the market is entering a critical phase, with the possibility of a trend reversal.
Research also highlights that Bitcoin’s price behavior during this cycle deviates from typical MVRV patterns. Historically, Bitcoin has experienced sharp rises into overvalued zones during bull markets, but this time the price has not reached such highs.
“Bitcoin did not experience a sharp rise into a clearly overvalued zone during the recent bull cycle,” the CryptoQuant report states.
Z-Score and MVRV Indicate Bitcoin Price Bottom Is Approaching
According to crypto trader and analyst Michaël van de Poppe, the Z-score of the MVRV ratio has recently reached historic lows. The Z-score measures the standard deviation of Bitcoin’s market cap in relation to the MVRV ratio. Van de Poppe pointed out that Bitcoin’s Z-score is now lower than during previous market bottoms, including those in 2015, 2018, the COVID crash in 2020, and 2022.
Furthermore, CryptoQuant contributor GugaOnChain described Bitcoin as being in a “capitulation zone” and suggested that the market is nearing an accumulation phase.
“The statistical deviation of the Z-Score screams opportunity, signaling that the bottom of this downtrend is being forged right now,” GugaOnChain wrote.
Mainland China widens its crypto ban to cover RMB-pegged stablecoins and tokenized real-world assets, even as Hong Kong pushes ahead with a licensed stablecoin regime.
Summary
- A new joint notice from the PBoC, CSRC and other agencies extends China’s virtual currency ban to tokenized real-world assets, treating many RWA platforms as illegal finance if unlicensed.
- The rules bar any domestic or controlled entity from issuing RMB-pegged stablecoins abroad without approval, tighten mining enforcement, and target “shadow” data centers that secretly run rigs.
- Hong Kong moves in the opposite direction, with the HKMA preparing its first stablecoin licenses as firms like Ant Group and JD.com apply, even as Beijing flags crime and dollar-stablecoin risks.
China’s central bank and top regulatory authorities have extended the country’s cryptocurrency ban to include tokenization of real-world assets and stablecoins, according to a new regulatory notice.
China issues new stablecoin guidance
The People’s Bank of China and the China Securities Regulatory Commission, along with other agencies, released the notice to prevent and resolve risks associated with virtual currencies. Virtual currencies and mining remain completely prohibited in China under the expanded framework.
The notice requires prior authorization for the issuance of stablecoins tied to the renminbi outside the country. Domestic businesses and foreign entities under their control cannot issue virtual currencies worldwide unless they have obtained necessary permits from relevant authorities in accordance with applicable laws and regulations, the notice stated.
The regulatory framework emphasizes that monetary sovereignty is affected by stablecoins related to legal tender since they perform certain functions in circulation and usage. No entity or individual, domestic or foreign, can issue any RMB-pegged stablecoin outside the country without appropriate authorizations, according to the notice.
The notice reiterates the prohibition of virtual currency-related companies and the need to continue regulating virtual currency mining. The National Development and Reform Commission and relevant agencies will continue implementing stringent regulations on mining operations, the document stated.
Regulatory concerns include organizations appearing to be data centers but actually engaged in mining, managers moving equipment between areas to avoid local oversight, and correlation between some mining operations and speculation and trading in virtual currencies, according to the notice.
The notice establishes ground rules for tokenization of real-world assets, including compliance criteria. Regulators defined tokenization as using encryption and distributed ledger technology for the issuance and trading of rights to ownership, income, and other interests in assets.
Providing intermediary or technology services for RWA tokenization activities in China, as well as engaging in such activities, may be considered unlawful financial operations, the notice stated. The framework forbids the illegal sale of tokenized securities, the sale of securities to the public without proper authority, the trading of criminal securities or futures, and the solicitation of funds without a proper license.
The notice indicates possible exclusions for commercial operations carried out using specified financial infrastructure and with approval of relevant authorities under current laws and regulations. The entity with actual control over underlying assets is required to file a report with the CSRC before participating in related operations, according to regulatory guidelines.
Overseas issuance paperwork must describe the domestic filing company, underlying assets, token issuance strategy, and related details in depth, along with other relevant documentation, the notice stated.
Despite mainland opposition to cryptocurrency activity, the Hong Kong Monetary Authority is planning to grant an initial set of stablecoin licenses in March. Eddie Yue, chief executive of the HKMA, said in a Legislative Council meeting that a decision was hoped for by March.
The government is evaluating dozens of applications submitted by stablecoin issuers. The HKMA began accepting applications after Hong Kong passed a Stablecoins Ordinance requiring permits for entities that issue stablecoins in the territory or link them to the Hong Kong dollar.
Stablecoins are digital currencies designed to maintain steady values by being linked to assets such as traditional currencies or gold. The HKMA has discussed regional uses including tokenized deposit systems for foreign banks and cross-border payments, according to reports.
Ant Group and JD.com have expressed interest in Hong Kong’s licensing framework, according to the Financial Times. Preparations in Hong Kong were halted after Chinese authorities, notably the People’s Bank of China, raised reservations, the Financial Times reported.
China’s regulatory framework on cryptocurrency tightened from 2013 onward, and concerns about volatility and illegal activity led to a total ban on cryptocurrency transactions in 2021.
Recent research indicates that stablecoins were used by organized crime to move illicit funds, with daily transfers facilitated by complex networks, according to reports. Beijing’s concerns include the growing role of the US dollar in the digital asset market, especially dollar-tied stablecoins.
At a recent Senate Banking Committee hearing, the US Treasury Secretary said he “would not be surprised” if Hong Kong’s digital asset program were seen as an attempt to establish an alternative to American financial leadership.
TLDR:
- Ethereum rejected at $2.1K resistance after breaking support, confirming bearish structure remains intact
- Open interest declined 80M+ ETH across exchanges in 30 days, with Binance leading at 40M reduction
- Technical framework requires sustained reclaim of $2.1K-$2.15K range to shift bias back to bullish
- Derivatives market cleanup reduces leverage risk and may establish foundation for price stability
Ethereum continues to trade below critical support levels while derivatives markets show widespread deleveraging.
The asset sits at $1,958.53 as of this writing after failing to hold the $2.1k threshold. Meanwhile, open interest across major exchanges has contracted by more than 80 million ETH over the past month.
This dual pressure from spot price weakness and futures market retreat signals a period of market recalibration.
Technical Breakdown Points to Further Downside Risk
Ethereum’s price structure has followed a textbook pattern of support failure and failed reclaim attempts. The rising trendline near $2.8k marked the initial breakpoint in this sequence. Once that level gave way, the asset moved swiftly toward $2.1k support.
Market participants initially viewed the $2.1k zone as a potential floor for consolidation. However, that expectation proved premature as the level failed to contain selling pressure.
The subsequent drop carried ETH down to $1.7k before any meaningful bounce materialized.
Analyst Dami-Defi noted on X that the asset “bounced just enough to suck in hope” before retesting the broken $2.1k support.
That retest resulted in a clear rejection, confirming the zone had flipped from support to resistance. This behavior typically indicates continued weakness rather than bullish recovery.
The current technical framework suggests limited upside potential while ETH trades below $2.1k. A sustained reclaim of the $2.1k-$2.15k range would be required to shift the bias.
Until such a development occurs, counter-trend rallies represent selling opportunities rather than the start of new uptrends.
Futures Market Contraction Reflects Cautious Positioning
Cryptoquant analyst Arab Chain reported that derivatives markets have undergone substantial position reduction across multiple platforms.
Binance recorded the largest decline with approximately 40 million ETH in open interest exiting over 30 days. Gate.io followed with more than 20 million ETH in reduced exposure.
Additional platforms showed similar trends with OKX declining by 6.8 million ETH and Bybit by 8.5 million ETH. These four venues alone account for roughly 75 million ETH in reduced open interest.
Source: Cryptoquant
When smaller exchanges are included, the total contraction exceeds 80 million ETH across the ecosystem.
This pattern indicates traders are closing positions rather than establishing new leveraged bets. The move reflects either profit-taking after extended positioning or risk reduction in response to volatile conditions.
High-leverage participants appear particularly active in unwinding exposure during this phase.
The derivatives market reset may ultimately create healthier conditions for future price discovery. Reduced leverage decreases the risk of cascading liquidations that amplify volatility.
This cleanup process often precedes periods of greater stability and can establish a firmer foundation for subsequent moves.
TLDR:
- BlackRock increased BitMine holdings to 9,049,912 shares, up 165.6% from last quarter
- The total position is valued at roughly $246 million according to the latest 13F filing
- BitMine controls about 4.3 million ETH, or nearly 3.5% of Ethereum’s circulating supply
- Institutional investors continue adding exposure through crypto-linked public equities
BlackRock increased its ownership in BitMine Immersion Technologies during the latest reporting period. A new regulatory filing shows the asset manager raised its stake to 9,049,912 shares, marking a 165.6% quarterly jump and valuing the position at roughly $246 million.
Institutional Allocation Grows
The updated position appeared in BlackRock’s most recent 13F disclosure filed with U.S. regulators. These filings list equity holdings managed across the firm’s broad investment portfolios.
The document shows a sharp rise from the prior quarter’s reported share count.The latest total now exceeds nine million shares of BitMine common stock.
The company trades publicly under the ticker BMNR. It operates immersion-based mining facilities and manages digital assets on its balance sheet.
Shortly after the filing surfaced, crypto-focused accounts shared the figures on social media. One widely circulated post noted that BlackRock had loaded up on BitMine shares.
The message cited the same increase and valuation metrics from the official filing. It framed the purchase as another move by institutions toward crypto-related equities.
BlackRock oversees trillions of dollars across global markets and sectors. Movements of this scale often draw attention from traders and analysts.
Ethereum Treasury Strategy
BitMine’s business model combines mining infrastructure with long-term cryptocurrency holdings. Its treasury includes approximately 4.3 million ETH accumulated through operations and reserves.
That amount represents around 3.5% of Ethereum’s circulating supply. The figure places the company among the larger known corporate holders of the asset.
Holding such reserves ties company performance closely to digital asset prices. Changes in Ethereum’s value can influence both revenue expectations and balance sheet strength.
BlackRock’s expanded position increases institutional exposure to that structure. It links traditional capital management with companies directly tied to blockchain assets.
Quarterly disclosures offer measurable data for tracking these allocations. They provide concrete numbers rather than market rumors or short-term speculation.
The latest filing presents a clear snapshot of BlackRock’s current commitment. With over nine million shares, BitMine becomes a larger piece of its public equity holdings.
The increase arrives as crypto-focused strategies continue attracting institutional capital. Public filings now serve as a key source for monitoring that steady accumulation.
BlackRock made its first formal move into decentralized finance this week, listing its tokenized Treasury fund on Uniswap, with Bitcoin and Ether staging only modest rebounds amid heavy ETF outflows.
Bitcoin (BTC) and Ether (ETH) each rose about 2.5% during the past week but were unable to cross key psychological levels due to mixed exchange-traded fund (ETF) flows and crypto investor sentiment sinking to record lows.
Bitcoin ETFs started the week with two consecutive days of inflows, but they quickly reversed with $276 million in outflows on Wednesday and $410 million on Thursday.
Ether ETFs saw similar flows, with two modest days of inflows, followed by $129 million in outflows on Wednesday and $113 million on Thursday, according to Farside Investors data.
In a silver lining to the correction, Bitcoin’s sharp drawdown to $59,930 may have marked a critical “halfway point” in the current bear market, as markets are now sitting at a critical inflection point that will determine the relevance of the four-year cycle theory, according to Kaiko Research.
Despite sliding crypto valuations, large institutions continue exploring cryptocurrency adoption, including the world’s largest asset manager, BlackRock, which announced its first foray into decentralized finance (DeFi) on Wednesday.
BlackRock enters DeFi, taps Uniswap for institutional token trading
Asset management giant BlackRock is making its first formal move into decentralized finance by bringing its tokenized US Treasury fund to Uniswap, marking a milestone moment for institutional adoption of DeFi.
According to a Wednesday announcement, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) will be listed on the Uniswap decentralized exchange, allowing institutional investors to buy and sell the tokenized security.
As part of the arrangement, BlackRock is also purchasing an undisclosed amount of Uniswap’s native governance token, UNI, the announcement said.
The collaboration is being facilitated by tokenization company Securitize, which partnered with the world’s biggest asset manager on the launch of BUIDL.
According to Fortune, trading will initially be limited to a select group of eligible institutional investors and market makers before expanding more broadly.
“For the first time, institutions and whitelisted investors can access technology from a leader in the decentralized finance space to trade tokenized real-world assets like BUIDL with self-custody,” said Securitize CEO Carlos Domingo.
BUIDL is the biggest tokenized money market fund, with more than $2.18 billion in total assets, according to data compiled by RWA.xyz. The fund is issued across multiple blockchains, including Ethereum, Solana, BNB Chain, Aptos and Avalanche.
In December, BUIDL reached a key milestone, surpassing $100 million in cumulative distributions from its Treasury holdings.
Trump family’s WLFI plans FX and remittance platform: Report
World Liberty Financial (WLFI), a decentralized finance (DeFi) platform backed by the family of US President Donald Trump, announced on Thursday that it will launch foreign currency exchange (FX) and remittance services for its users.
The planned foreign exchange and remittance platform, called World Swap, seeks to challenge traditional remittance and FX service providers with lower fees and a simplified user interface, according to Reuters.
Daily global FX trading volume surpassed $9.6 trillion in April 2025, according to a report from the Bank for International Settlements (BIS), and the personal remittances market topped $892 billion in annual volume in 2024, according to data from the World Bank.
No exact timeline was given for the rollout. Cointelegraph reached out to World Liberty Financial but did not receive a response by the time of publication.
The expansion into FX and remittances follows WLFI’s application for a national trust bank charter in January and the launch of World Liberty Markets, a lending platform, as WLFI continues to grow while attracting scrutiny from Democratic lawmakers in the US.
Uniswap scores early win as US judge dismisses Bancor patent suit
A New York federal judge dismissed a patent infringement lawsuit brought by Bancor-affiliated entities against Uniswap, ruling that the asserted patents claim abstract ideas and are not eligible for protection under US patent law.
In a memorandum opinion and order on Tuesday, Judge John G. Koeltl of the US District Court for the Southern District of New York granted the defendant’s motion to dismiss the complaint filed by Bprotocol Foundation and LocalCoin Ltd. against Universal Navigation Inc. and the Uniswap Foundation.
The court found that the patents are directed to the abstract idea of calculating crypto exchange rates and therefore fail the two-step test for patent eligibility established by the US Supreme Court.
The ruling marks a procedural win for Uniswap, but it is not final. The case was dismissed without prejudice, giving the plaintiffs 21 days to file an amended complaint. If no amended complaint is filed, the dismissal will convert to one with prejudice.
Shortly after the ruling, Uniswap founder Hayden Adams wrote on X, “A lawyer just told me we won.”
“Uniswap Labs has always been proud to build in public — it’s a core value of DeFi,” a Uniswap Labs spokesperson told Cointelegraph. “We’re pleased that the court recognized that this lawsuit was meritless.”
Cointelegraph reached out to representatives of Bprotocol Foundation for comment but had not received a response by publication.
Binance completes $1 billion Bitcoin conversion for SAFU emergency fund
Binance completed the $1 billion Bitcoin conversion for its emergency fund, committing to holding Bitcoin as its core reserve asset.
Binance purchased another $304 million worth of Bitcoin (BTC) on Thursday, completing the conversion of $1 billion in Bitcoin for its Secure Asset Fund for Users (SAFU) wallet, according to Arkham data.
The fund now holds 15,000 Bitcoin, worth over $1 billion, acquired at an average aggregate cost basis of $67,000 per coin, Binance said in a Thursday X post.
“With SAFU Fund now fully in Bitcoin, we reinforce our belief in BTC as the premier long-term reserve asset.”
The last tranche of BTC came three days after Binance’s previous $300 million acquisition on Monday.
The exchange first announced it would convert its $1 billion user protection fund into Bitcoin on Jan. 30, initially pledging a 30-day window for the acquisitions, which were completed in less than two weeks.
The exchange said it would rebalance the fund if volatility pushes its value below $800 million.
Vitalik draws line between “real DeFi” and centralized yield stablecoins
Ethereum co-founder Vitalik Buterin drew a clear boundary around what he considers “real” decentralized finance (DeFi), pushing back against yield-driven stablecoin strategies that he says fail to meaningfully transform risk.
In a discussion on X, Buterin said that DeFi derives its value from changing how risk is allocated and managed, not simply from generating yield on centralized assets.
Buterin’s comments come amid renewed scrutiny over DeFi’s dominant use cases, particularly in lending markets built around fiat-backed stablecoins like USDC (USDC).
While he did not name specific protocols, Buterin took aim at what he described as “USDC yield” products, saying they depend heavily on centralized issuers while offering little reduction in issuer or counterparty risk.
DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
The Pippin (PIPPIN) token rose 195% as the week’s biggest gainer in the top 100, followed by the Humanity Protocol (H) token, up 57% during the past week.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
Ether (ETH) traded back above $2,000 on Friday, and its gains extended after the US Consumer Price Index (CPI) print came in cooler than expected.
The recovery put ETH/USD on track for its first bullish weekly candle close since mid-January, fueling speculation for a rally toward $2,500.
Key takeaways:
-
Ether futures’ open interest fell by 80 million ETH in 30 days, and funding rates hit three-year lows, indicating a weakening bearish trend.
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ETH price has established strong support around $2,000, a level that must hold to secure the recovery.
Ether open interest falls by 80 million ETH
CryptoQuant data shows Ether futures open interest (OI) across all major exchanges has dropped by over 80 million ETH in the past 30 days.
Binance, the world’s largest cryptocurrency exchange by trading volume, recorded the largest decline of about 40 million ETH (50%) over the last 30 days.
Related: ETH ETF holders in ‘worse position’ than BTC ETF peers as crypto market looks for bottom
Ether’s OI on Gate exchange fell by more than 20 million ETH (25%), while Bybit and OKX saw declines of 8.5 million ETH and 6.8 million ETH, respectively. Cumulatively, the four major platforms saw a total decline of about 75 million ETH, while other platforms accounted for the remaining five million ETH, confirming that the phenomenon is widespread and not limited to a single exchange.
This suggests that leverage traders are “reducing their exposure rather than opening new positions,” CryptoQuant analyst Arab Chain said in a Quicktake analysis.
This significant drop in OI amid dropping prices can be “viewed as a clean-up of weaker positions, thereby reducing the likelihood of sharp forced liquidations later on,” the analyst said, adding:
“This environment may pave the way for a period of relative stability or the formation of a more solid price base for Ethereum in the near future.”
Ether futures funding rates on Binance have plunged deep into negative territory at -0.006, marking the lowest value recorded since early December 2022.
“It indicates that the bearish sentiment has reached an extreme peak not seen in the last three years,” CryptoQuant contributor CryptoOnchain said in a Thursday Quicktake analysis.
Historically, extreme negative funding rates at major price support levels often precede a short squeeze.
“When the crowd is this convinced that prices will fall further, the market tends to move in the opposite direction to liquidate late bears,” the analyst said, adding:
“Current data suggests we may be witnessing a classic capitulation event, mirroring the bottom formation of late 2022, potentially setting the stage for a sharp recovery.”
As Cointelegraph reported, Ether’s surging network activity and rising institutional investor inflows are significant tailwinds for any short-term ETH price gains.
ETH price technicals: Bulls must keep Ether above $2,000
The ETH/USD pair broke out of a falling wedge on the four-hour chart, to trade at $2,050 at the time of writing.
The measured target of the falling wedge, calculated by adding the wedge’s maximum height to the breakout point at $1,950, is $2,150.
Higher than that, the price may rise to retest the 100-period simple moving average (SMA) at $2,260 and later toward $2,500.
On the downside, a key area to hold is the $2,000 psychological level, embraced by the 50-period SMA, as shown in the chart below.
The Glassnode cost basis distribution heatmap reveals a significant support area recently established between $1,880 and $1,900, where investors acquired approximately 1.3 million ETH.
As Cointelegraph reported, Ether accumulation addresses witnessed a surge in daily inflows as ETH dropped below $2,000 last week, signalling strong investor confidence in its long-term potential.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
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