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Fed Minutes Signal Hawkish Tone, Markets React

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Interest Rate Cut probabilities

Bitcoin has emerged as the biggest underperformer since the release of the FOMC minutes for the January 28 meeting, while the US dollar index and bonds rally.

The January FOMC meeting, which saw two dovish dissents, reflected a deeply divided Federal Reserve (Fed).

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Fed Minutes Reveal Hawkish Divide as Bitcoin Struggles

Almost all policymakers supported maintaining the federal funds rate at 3.50–3.75%, though a couple preferred a 25-basis-point cut, citing restrictive policy and labor market risks.

Several officials indicated that further rate cuts could be warranted if inflation declines as expected. Meanwhile, others cautioned that easing too early amid elevated inflation could compromise the Fed’s 2% target.

Some advocated for “two-sided” guidance, highlighting that rates might need to rise if inflation remains above target.

Recent macroeconomic data have reinforced Fed Chair Jerome Powell’s cautiously optimistic outlook.

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Growth has surprised to the upside, inflation appears to be drifting lower, and the job market shows signs of steadying.

These developments have pushed 2026 rate-cut expectations higher, though a move in March is effectively off the table following last week’s stronger-than-expected payroll report.

Interest Rate Cut probabilities
Interest Rate Cut Probabilities. Source: CME FedWatch Tool

Market vulnerabilities were also a focal point, with multiple participants noting risks in private credit and the broader financial system.

Analysts suggest that these concerns, combined with the Fed’s hawkish undertones, have contributed to safe-haven buying in bonds and the dollar, while Bitcoin continues to face downward pressure.

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Dollar Index (DXY) and Bitcoin Price Performance
Dollar Index (DXY) and Bitcoin Price Performance. Source: TradingView

Equities showed modest gains, with the Dow Jones Industrial Average up 0.24%, the S&P 500 up 0.59%, and the NASDAQ up 1.00%, reflecting cautious optimism in markets amid signals from the Fed.

“The minutes show a Fed still divided but attentive to both inflation risks and growth momentum,” said a senior market strategist. “Bitcoin’s underperformance is partly a reflection of risk-off sentiment and the dollar’s continued strength.”

Investors will now watch for any further commentary from Fed officials as markets digest these minutes, weighing the balance between hawkish vigilance and dovish optimism in shaping 2026’s monetary policy trajectory.

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CoinFello Debuts Onchain AI Agent at ETHDenver

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CoinFello Debuts Onchain AI Agent at ETHDenver

[PRESS RELEASE – Denver, Colorado, February 18th, 2026]

CoinFello, an AI agent capable of interacting directly with smart contracts, will be introduced to ETHDenver attendees during the conference’s opening ceremonies. The debut provides attendees with early access to CoinFello through a special preview application called BuffiBot, created by the CoinFello team.

For ETHDenver, CoinFello developed BuffiBot as the event’s official AI assistant for conference information. Attendees can ask about schedules, speakers, workshops, expo vendors, and side events. The experience is accessible through the ETHDenver app and supports both text and real-time voice interactions.

BuffiBot synthesizes ETHDenver’s hundreds of sessions and activities into a single conversational interface. While the ETHDenver deployment highlights a live event use case, CoinFello’s broader functionality extends beyond conference support.

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CoinFello is designed as an AI application for executing and automating interactions with smart contract protocols. Through a chat-based interface, the agent interprets context, executes user-defined intents, and manages both synchronous and asynchronous smart contract actions. The system is built to present smart contract functionality in plain language.

The platform analyzes a user’s wallet history to surface relevant tokens, protocols, and potential actions, reducing reliance on traditional browser-based decentralized applications. CoinFello is also launching as an EIP-8004 agent, enabling it to be called by other AI agents within Ethereum’s emerging agent ecosystem.

CoinFello was founded by JacobC.eth, previously Lead of Operations for MetaMask at ConsenSys. At MetaMask, he helped develop growth and monetization strategies for the Ethereum wallet.

“The previous model for crypto UX is saturated,” said jacobc.eth. “Agentic AI enables onchain execution and DeFi interactions to become accessible to billions of people through familiar and safer user experiences.”

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“We’re pleased to collaborate with the CoinFello team as they bring agent-driven experiences to users through the MetaMask Smart Accounts Kit,” said Ryan McPeck, Product Lead at Consensys for the MetaMask Smart Accounts Kit. “We see a future where AI agents can safely act on behalf of users using granular, transitive permissions that allow individuals to define how activity is executed on-chain.”

ETHDenver attendees will receive exclusive access to CoinFello without joining the public waitlist. Access to CoinFello will continue following the conference, while the BuffiBot experience remains exclusive to ETHDenver.

“ETHDenver has always been where the edges of possibility converge — where builders come to test what the future feels like before the rest of the world catches up,” said John Paller, Founder of ETHDenver. “The fusion of decentralized infrastructure and agentic AI signals a new chapter for coordination itself. When humans and autonomous systems co-create in open networks, we expand who can participate and how value is generated. This is the frontier — and it’s unfolding in real time.”

About CoinFello

CoinFello is an AI agent designed to explain, execute, and automate interactions with smart contracts. Built for self-custody, the platform is currently available in private alpha for end users, with developer versions expected soon. CoinFello supports EVM-compatible networks, leverages EigenAI to enable a self-custodied AI environment, and integrates the MetaMask Smart Accounts Kit to provide users with control over their assets.

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Bitcoin, ether, xrp ETFs bleed while Solana bucks outflow trend

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(SoSoValue)

U.S.-listed crypto ETFs are flashing red across the board, with one notable exception.

Bitcoin spot ETFs saw $133.3 million in daily net outflows as of Feb. 18, led by BlackRock’s IBIT, which shed $84.2 million, and Fidelity’s FBTC, which lost $49 million. Total net assets across bitcoin funds stand at $83.6 billion, roughly 6.3% of bitcoin’s market cap, but recent flows suggest institutions are trimming exposure rather than adding on dips.

(SoSoValue)

Ethereum products followed a similar pattern. U.S. ETH spot ETFs recorded $41.8 million in net outflows on the day, with BlackRock’s ETHA losing nearly $30 million. Total net assets across ether funds sit at $11.1 billion, about 4.8% of ETH’s market cap.

The steady bleed comes as ether trades below $2,000 and struggles to build momentum despite broader expectations of rate cuts later this year.

(SoSoValue)

XRP ETFs also slipped into negative territory, posting $2.2 million in daily outflows. Total net assets across XRP funds are just over $1 billion, or roughly 1.2% of XRP’s market cap. Price action in XRP has mirrored the cautious tone, with the token down over 4% on the day.

(SoSoValue)

Solana, however, stood out.

U.S. SOL spot ETFs recorded $2.4 million in net inflows, pushing cumulative inflows to nearly $880 million. Bitwise’s BSOL led with $1.5 million in fresh capital. While modest in absolute terms, the inflow contrasts sharply with the broader risk-off positioning across bitcoin and ether products.

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(SoSoValue)

Elsewhere, smaller altcoin ETFs such as LINK saw marginal inflows, but the overall picture remains one of selective exposure rather than broad-based accumulation.

The divergence suggests investors are rotating within crypto rather than exiting entirely. With macroeconomic uncertainty lingering and the dollar firming, ETF flows offer a real-time read on where institutional conviction remains and where it is fading.

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Warren Urges Fed And Treasury To Reject Crypto Bailout

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Warren Urges Fed And Treasury To Reject Crypto Bailout

Senate Banking Committee ranking member Elizabeth Warren has reportedly sent a letter to Treasury Secretary Scott Bessent and Federal Reserve chair Jerome Powell, urging them not to bail out “cryptocurrency billionaires” with taxpayer dollars. 

Warren warned that any potential bailout “would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires,” adding that it could also “directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial, according to CNBC.

The letter comes as Bitcoin (BTC) prices have fallen more than 50% from their all-time high in October, hitting a local low of $60,000 on Feb. 6.

The letter also came on the same day that World Liberty Financial hosted its first “World Liberty Forum” for crypto executives and pro-industry policymakers at the President’s private Mar-a-Lago club in Palm Beach, Florida.

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The US government is retaining seized Bitcoin  

Senator Warren also referenced the Financial Stability Oversight Council’s Annual Report hearing on Feb. 4, during which Secretary Bessent was asked about his authority to bail out the crypto industry.

During the hearing, Congressman Brad Sherman asked Bessent if the Treasury Department “has the authority to bail out Bitcoin?” or instruct banks to buy Bitcoin or Trumpcoin (TRUMP). 

A bemused Bessent asked for clarification on the question, stating that “within the context of asset diversification within banks, they could hold many assets.”

Related: Senators ask Bessent to probe $500M UAE stake in Trump-linked WLFI

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Sherman also expressed concern that US tax dollars might be invested in crypto assets. “Why would a private bank be your tax dollars?” asked the Treasury secretary.

Bessent confirmed that “we are retaining seized Bitcoin,” which is not tax money, but an “asset of the US government.”  

Senator Warren claims response was deflection

Warren saw the exchange differently, stating in her letter that Bessent “deflected.” 

“It’s deeply unclear what, if any, plans the US government currently has to intervene in the current Bitcoin selloff,” she wrote. 

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“Ultimately, any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires.” 

“Your agencies must refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires through direct purchases, guarantees, or liquidity facilities,” the letter reportedly stated. 

Cointelegraph reached out to Warren and the Treasury for comment, but did not receive an immediate response. A Federal Reserve spokesman confirmed they had received the letter but declined to comment. 

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