Crypto World
ICP to add 20% revenue burn in new tokenomics shift
ICP adds 20% revenue-funded burns and usage-based node rewards to align supply with demand.
Summary
- 80% of Internet Computer cloud engine revenue will go to node providers, while 20% will buy and burn ICP, creating a usage-linked supply reduction.
- Node providers will shift from fixed subsidies to compensation tied directly to compute demand, aligning incentives with real network activity.
- The updated model mirrors other compute-focused chains that use fee-funded burns and demand-driven payouts to reward infrastructure and curb token inflation.
The DFINITY Foundation announced plans to update Internet Computer’s tokenomics to include a burn mechanism funded by network revenue, according to a statement from the organization.
Under the new model, 80% of revenue generated by Internet Computer cloud engines will be distributed to node providers operating the infrastructure, while the remaining 20% will be used to purchase and burn ICP tokens, the foundation stated. Node provider associations have begun preparations to market cloud engines, according to the announcement.
The current system provides node providers with fixed payments for maintaining network operations regardless of workload demand. The updated structure will tie node compensation directly to usage-driven revenue from compute services, linking incentives to actual network activity, the foundation said.
The change represents a shift from a fixed-subsidy model toward a usage-based economic framework for the Internet Computer network, according to DFINITY.
The revenue allocation directs a portion of funds to token burns, creating a demand-linked supply reduction mechanism as network adoption increases. The majority of revenue will flow to infrastructure operators to incentivize capacity provision and service reliability, the foundation stated.
Similar usage-based token economic models have been implemented in other compute-oriented blockchain networks, industry observers noted.
The transition aligns network incentives with usage while introducing a structural supply reduction mechanism tied to adoption levels, according to the foundation’s announcement.
PayPal Holdings has reportedly attracted unsolicited takeover interest after a prolonged stock slump left the payments giant trading well below recent highs, signaling that competitors were looking to consolidate their footprint in the digital payments space.
Citing people familiar with the matter, Bloomberg reported Monday that PayPal has been meeting with banks to review buyout approaches from unnamed investors. One potential bidder — described as an industry rival — is said to be exploring an acquisition of the entire company, while others have expressed interest in specific PayPal assets.
There is no guarantee a deal will materialize, and discussions remain at an early stage, the report said.
Shares jumped following the news, but the rebound only partly offsets a bruising year for investors. PayPal stock had fallen roughly 46% over the past 12 months before Monday’s report, according to market data. Shares were up more than 6% on Monday.
The company has pivoted toward digital assets as part of its turnaround strategy. Then-CEO Alex Chriss positioned stablecoins as a way to address what he described as the “innovator’s dilemma” — the risk that established companies become too reliant on legacy products and miss disruptive technological shifts.
Earlier this month, Chriss was removed from the job following disappointing fourth-quarter 2025 financial results. Enrique Lores, currently HP’s CEO, was tapped to lead PayPal through its next phase.
Related: YouTube enables PYUSD stablecoin payouts for US creators: Report
Despite struggles, PayPal’s crypto push gains traction
Although PayPal’s broader turnaround has been uneven, its expansion into digital assets has produced measurable results.
Its dollar-pegged stablecoin, PayPal USD (PYUSD), has surpassed $4 billion in market capitalization, making it the sixth-largest stablecoin globally. It now trails only USDt (USDT), USDC (USDC), Ethena USDe (USDe), Dai (DAI) and World Liberty Financial USD (USD1), according to market data.
Beyond issuing its own stablecoin, PayPal has expanded its crypto payments infrastructure. The company recently introduced shareable payment links that allow users to send cryptocurrencies and stablecoins through peer-to-peer transfers, broadening access beyond traditional wallet-to-wallet transactions.
Earlier in 2025, PayPal also launched “Pay with Crypto,” a blockchain-based settlement service that lets merchants accept digital asset payments while receiving funds in fiat currency. The offering reflects PayPal’s push to position itself as a bridge between traditional payments and on-chain settlement.
However, neither initiative was mentioned earlier this month in the company’s earnings announcement nor on management’s subsequent call with analysts.
Related: Stablecore’s Jack Henry integration opens stablecoins to 1,600 banks
TLDR
- Binance.US plans to expand its US operations after the SEC dismissed its 2023 lawsuit with prejudice.
- Changpeng Zhao said a clearer regulatory climate could support deeper banking partnerships and a possible financial charter.
- The SEC dropped the case following a policy shift and a mutual agreement between regulators and the exchange.
- Binance. US had suspended dollar deposits and withdrawals for about eighteen months during the legal dispute.
- Binance agreed to pay $4.3 billion in penalties in 2023 over anti-money laundering violations.
Binance.US plans expansion in the United States after regulators dropped their 2023 lawsuit. Changpeng Zhao outlined the path forward in a Bloomberg News interview. He said improved rules could support deeper banking ties and a financial charter.
The SEC dismissed its civil case with prejudice last May. The agency and the exchange reached a mutual agreement after policy changes.
The lawsuit had accused Binance entities of operating an unregistered exchange. Regulators also alleged the sale of unregistered securities in thirteen counts.
Binance.US Moves to Restore Banking Access
Binance.US now seeks restored dollar services after an eighteen-month suspension. Trading volumes fell sharply during the freeze and weakened its market share.
Zhao said a friendlier climate could enable stronger banking partnerships. He added that charter discussions depend on legal and management decisions.
Binance.US restored some services after regulators eased federal oversight restrictions. The platform seeks new banking partners across several major states.
Executives review compliance systems to meet updated federal regulatory standards. They plan to do outreach with regulators and community banks this year.
The company hired staff focused on risk management and controls. It also rebuilt relationships with payment processors nationwide and custodians.
Legal Resolution and Leadership Clarifications
Zhao clarified that his comments applied only to the US platform. He said international operations follow separate strategies and structures.
He remains the largest shareholder but holds no executive role. He stated that he will not return as chief executive.
He served four months in prison after pleading guilty to violations. A presidential pardon followed his release in September 2024.
Speculation arose about potential talks between the Trump family and Binance. Zhao denied any business ties with World Liberty Financial.
He dismissed claims about executive discussions after receiving the pardon. He repeated that leadership changes depend on corporate governance processes.
Regulatory Shift and Financial Penalties
Binance agreed to pay 4.3 billion dollars in penalties in 2023. Authorities tied the settlement to anti-money laundering compliance failures.
The case reshaped the company’s operations within the United States market. It halted fiat channels and limited customer access for months.
Under the Trump administration, regulators dropped several crypto enforcement actions. Paul Atkins now leads the SEC and formed a Crypto Task Force.
The agency says it prefers structured rules over courtroom battles. Officials aim to balance investor protection with market innovation.
Strategy CEO Michael Saylor dismissed concerns about quantum computing during an appearance on Natalie Brunell’s Coin Stories podcast, saying the cybersecurity community broadly agrees that any credible quantum threat is likely more than a decade away.
While it remains unclear if or when a quantum risk might materialize, Saylor told the podcast host that any credible breakthrough would prompt coordinated software upgrades across global banking systems, internet infrastructure, consumer devices, artificial intelligence networks and crypto protocols, including Bitcoin (BTC).
Saylor said the digital systems underpinning modern digital infrastructure would eventually adopt post-quantum-resistant cryptography if necessary, adding that such a shift would not come as a surprise.
“You’ll see it coming. We’ll all see it coming,” he said, adding that Bitcoin’s software is designed to change over time, with nodes, hardware, and wallets capable of upgrading in response to emerging threats.
In his view, global consensus on how to respond would emerge only if a credible threat develops, noting that governments, technology companies and financial institutions would all face the same risk to their digital systems.
He also described the crypto sector as the “most sophisticated cybersecurity community,” pointing to the multi-factor authentication and hardware key protections commonly used to secure digital assets.
In his view, the procedures required to move Bitcoin are significantly more rigorous than the security standards used for traditional bank wires or stock trading systems. Saylor said:
“I think the crypto community will be the first to perceive the threat, and to react to the threat, and they’ll be leading the way.”
Quantum computing is an emerging field of computation that uses quantum mechanics to process information far faster than classical computers, prompting concerns that advanced machines could eventually break the cryptography securing Bitcoin and other digital assets.
Saylor’s Strategy is the largest Bitcoin treasury company in the world. On Monday, the Tysons Corner, Virginia-based company announced it had purchased 592 Bitcoin for roughly $39.8 million last week, its 100th acquisition since adopting a Bitcoin treasury strategy in August 2020.
It currently holds 717,722 BTC, acquired for about $54.56 billion at an average price of $67,286 per coin.
Related: Willy Woo warns quantum risk is eroding Bitcoin’s edge over gold
The ongoing quantum debate in crypto
While Michael Saylor, one of Bitcoin’s most prominent advocates, has downplayed the risks posed by quantum computing, others in the crypto industry appear more worried about the threat.
One of them is Ethereum (ETH) co-founder Vitalik Buterin, who in late 2025 cited Metaculus, a forecasting platform, that suggested around a 20% chance that quantum computers capable of breaking current cryptography could emerge before 2030, with a median estimate around 2040.
Speaking months later at Devconnect in Buenos Aires, he warned that elliptic curve cryptography, which underpins Ethereum and Bitcoin, could fail before the 2028 US presidential election and urged a transition to quantum-resistant systems within the next four years.
The Ethereum Foundation has incorporated post-quantum preparedness into its 2026 security roadmap, with researcher Justin Drake announcing on Jan. 24 that a dedicated Post-Quantum team had been formed, describing the move as a turning point in the foundation’s long-term quantum strategy.
The quantum threat has even caused some to speculate its the reason behind the Bitcoin’s recent price decline, which has fallen from highs of over $126,000 in October to its current price of around $64,000.
In January, Castle Island Ventures partner Nic Carter said Bitcoin’s “mysterious” underperformance could be attributed to quantum risk concerns, saying that markets were reacting even if developers were not.
That view drew pushback, with Glassnode analyst James Check writing that quantum computing plans should be put in place, but the threat is not the “primary reason” behind the decline in price.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum: BIP-360 co-author
Crypto funds recorded $288 million in outflows last week, marking the fifth consecutive week of declines, according to the latest weekly report from CoinShares.
Summary
- Digital asset investment products saw $288 million in weekly outflows, marking the fifth consecutive week of withdrawals and bringing the cumulative total to $4 billion over the period.
- The United States led redemptions with $347 million in outflows, while Europe and Canada recorded modest inflows, highlighting a regional divergence in sentiment.
- Bitcoin accounted for the bulk of withdrawals, while short-bitcoin products and select altcoins such as XRP and Solana saw minor inflows.
US sells, Europe buys: Crypto funds show sharp regional divide
The latest withdrawals bring cumulative outflows over the current stretch to $4.0 billion, highlighting persistent weakness in investor sentiment.
Trading activity also cooled significantly. Total volumes across crypto exchange-traded products fell to $17 billion, the lowest level since July 2025, after several weeks of elevated turnover. The sharp decline in activity suggests growing investor apathy following recent market turbulence.
Regional flows reveal a widening divergence in sentiment.
The United States accounted for $347 million in outflows, reflecting continued caution among U.S. investors. In contrast, Europe and Canada recorded a combined $59 million in inflows, as some investors appeared to view recent price weakness as a buying opportunity.
Switzerland led regional inflows with $19.5 million, followed by Canada at $16.8 million and Germany at $16.2 million.
Bitcoin leads $288M weekly outflows
Bitcoin (BTC) remained the primary driver of weakness, with $215 million in outflows, representing the largest share of redemptions. Meanwhile, short-bitcoin products saw $5.5 million in inflows, the highest of any category, suggesting some investors are positioning for further downside.
Ethereum (ETH) experienced the second-largest withdrawals at $36.5 million, while multi-asset products and Tron saw outflows of $32.5 million and $18.9 million, respectively.
Among altcoins, minor inflows were recorded in XRP ($3.5 million), Solana ($3.3 million), and Chainlink ($1.2 million), though these were insufficient to offset broader market weakness.
Despite the ongoing selloff, total assets under management remain substantial at $130.4 billion, indicating that while sentiment is subdued, institutional exposure to digital assets persists.
Crypto World
Strange New Chinese AI ‘KIMI’ Predicts the Price of XRP, PEPE and Cardano By the End of 2026
Feeding KIMI AI carefully worded prompts unlocks eye-popping 2026 price outlooks for XRP, Pepe, and Cardano heading into 2026.
Based on KIMI’s data-driven models, all three could deliver gains of at least 5x by the end of next year.
Below we assess how realistic KIMI’s targets are.
XRP ($XRP): KIMI Maps a Longer-Term Route Toward $8
In a recent update, Ripple reiterated that XRP ($XRP) remains the cornerstone of its plan to establish the XRP Ledger as a global, enterprise-ready payments infrastructure.
With fast settlement times and negligible transaction costs, the XRP Ledger could capture meaningful share in two rapidly expanding segments of crypto adoption: stablecoins and tokenized real-world assets.
XRP currently trades near $1.40. According to KIMI’s extended forecast model, the token could advance to $8 by the end of 2026, implying a near sixfold increase.
Market indicators support this outlook. XRP’s Relative Strength Index (RSI) sits around 39 and rising, while price action remains below the 30-day moving average, conditions that suggest now presents an attractive accumulation zone.
Additional momentum could come from multiple sources, including institutional demand following the approval of U.S.-listed XRP ETFs, Ripple’s growing network of global partnerships, and potential regulatory clarity if the U.S. CLARITY bill advances this year.
Pepe ($PEPE): KIMI Teases a 2,300% Upside Scenario
Pepe ($PEPE), launched in April 2023, has since become the largest meme coin outside the doge category, with a market capitalization of $1.7 billion.
Derived from Matt Furie’s “Boy’s Club” comics, PEPE’s instantly recognizable avatar and strong cultural resonance have kept it in the spotlight across social platforms.
Despite intense competition in the meme coin space, PEPE has maintained its leadership thanks to a loyal community and the many copycat tokens it has inspired.
Occasional cryptic posts from Elon Musk on X have also fueled speculation that PEPE may rank alongside DOGE and BTC in his personal portfolio.
At the time of writing, PEPE trades around $0.0000041, roughly 85% below its December 2024 ATH of $0.00002803.
Under KIMI’s most aggressive assumptions, PEPE could rally nearly 2,300% this year, climbing to $0.000098 and decisively surpassing its previous record.
Cardano (ADA): KIMI Gives Hoskinson’s ETH Contender 1,300% Gains
Founded by Charles Hoskinson, Cardano ($ADA) emphasizes peer-reviewed research, high security standards, scalability, and long-term network sustainability.
With a market capitalization near $10 billion and over $128 million in total value locked (TVL), Cardano’s ecosystem continues growing despite the downturn.
KIMI’s projections suggest ADA could climb slightly above 1,300%, rising from about $0.27 today to nearly $3.80 by the end of 2026. That level would place it well above its 2021 peak of $3.09.
However, ADA is currently trading at its lowest level since October 2024.
Given the volatile market conditions seen this year, further downside is possible, including a possible collapse down to $0.15 in a bear market.
Maxi Doge: A New Meme Contender Emerges as Majors Target Higher Levels
Pepe’s inherent meme coin magic (volatility) means KIMI thinks it could 24x this year. However, given its large market cap, even Pepe’s headroom for growth is limited by its size.
Maxi Doge ($MAXI) is not, however. Having raised $4.6 million so far in its ongoing presale, it’s one of the hottest under-the-radar meme coins around.
The project centers on Maxi Doge, a brash, gym-obsessed, unapologetically degen alpha doge and an envious distant cousin and self-proclaimed rival to Dogecoin.
Its tone and branding tap directly into the raw, irreverent energy that powered the 2021 meme coin boom.
MAXI is an ERC-20 token built on Ethereum’s proof-of-stake network, giving it a far smaller environmental footprint than Dogecoin’s proof-of-work model.
Early presale buyers can currently stake MAXI tokens for yields of up to 67% APY, with rewards decreasing as the staking pool expands.
The token is currently selling for $0.0002805, with automatic price increases at each funding milestone. Purchases are supported through wallets such as MetaMask and Best Wallet.
Stay updated through Maxi Doge’s official X and Telegram pages.
Visit the Official Website Here.
The post Strange New Chinese AI ‘KIMI’ Predicts the Price of XRP, PEPE and Cardano By the End of 2026 appeared first on Cryptonews.
Crypto World
World Liberty Financial Claims Hackers and Paid FUD Targeted USD1 in Orchestrated Market Attack
TLDR:
- World Liberty Financial alleged that several WLFI co-founder accounts were hacked during the Tuesday attack.
- Paid influencers reportedly spread fear and uncertainty to trigger a short-term sell-off in USD1 markets.
- USD1 briefly depegged to 0.9802 USDT before recovering to its intended $1.00 par value quickly.
- Eric Trump deleted WLFI-related posts on X, causing the token to briefly fall more than 8% in value.
World Liberty Financial reported a coordinated attack against its USD1 stablecoin on Monday morning. The project alleged that several co-founder accounts were hacked, influencers were paid to spread fear, uncertainty, and doubt, and large short positions were opened to profit from the resulting volatility.
USD1 briefly dipped to 0.9802 USDT before recovering to its $1.00 peg. WLFI credited its full 1:1 asset backing and mint-and-redeem mechanism for the quick recovery.
World Liberty Financial Alleges a Three-Part Coordinated Campaign
World Liberty Financial reported that the attack followed a structured and deliberate pattern. Hackers gained unauthorized access to several WLFI co-founder accounts on social media. Those accounts were then used to push misleading information to a broad audience.
Shortly after, paid influencers reportedly amplified the negative messaging across multiple platforms. The manufactured narrative was designed to erode market confidence in USD1 quickly.
Together, the hacked accounts and coordinated posts created enough panic to trigger a short-term sell-off.
While the social media campaign unfolded, attackers also opened massive short positions on WLFI tokens. This move was timed to profit from the price drop caused by the artificial fear in the market. The strategy reflected a pattern that has been observed in previous coordinated crypto attacks.
World Liberty Financial responded publicly through its verified X account, stating: “A coordinated attack was launched against USD1 this morning. Attackers hacked several WLFI cofounder accounts, paid influencers to spread FUD, and opened massive shorts to profit from the manufactured chaos.” The project urged users to rely only on verified channels going forward.
Eric Trump’s Deleted Posts Contributed to the Brief Market Decline
The reported attack was further compounded when Eric Trump, a WLFI co-founder, deleted several project-related posts on X.
The timing of the deletions coincided with the broader attack already unfolding across the market. Observers and traders quickly flagged the removed content as a point of concern.
Following the deletions, WLFI token prices fell more than 8% within a short window. The drop showed how sensitive crypto markets remain to social media activity, particularly during moments of uncertainty. Even minor shifts in online presence can trigger outsized reactions from market participants.
USD1 also felt the pressure during this period, trading temporarily at 0.9802 USDT against its intended $1.00 peg.
While the deviation was short-lived, any movement away from the peg in a stablecoin draws immediate scrutiny. The price recovered to par shortly after the situation stabilized.
World Liberty Financial maintained that the attack caused no lasting damage to USD1 or its underlying structure.
The team reaffirmed its long-term commitment to the project and noted that the stablecoin’s backing held firm throughout the incident. The full scope of the attack is still being investigated by the WLFI team.
TLDR
- Vitalik Buterin swapped more than 3,100 ETH for stablecoins through CoW Swap in recent days.
- On-chain data shows the transactions totaled over $6.1 million at current market prices.
- His on-chain Ethereum holdings now stand at more than 224,000 ETH valued at about $426 million.
- Buterin previously moved over $29 million in ETH, with at least $2.3 million funding Ethereum Foundation initiatives.
- Ethereum’s price fell below $1,900 and dropped over 36% in the past month.
Vitalik Buterin has continued selling Ethereum (ETH) through decentralized exchanges in recent days. On-chain data shows he swapped thousands of ETH for stablecoins. The latest transactions come as Ethereum’s price trades below $1,900.
Vitalik Buterin Executes Fresh ETH Sales Through CoW Swap
Arkham Intelligence labeled wallets tied to Vitalik Buterin recorded recent swaps on CoW Swap. The data shows he exchanged more than 3,100 ETH for stablecoins over several days.
Those transactions equal more than $6.1 million at current prices. After the swaps, his on-chain holdings stand at over 224,000 ETH.
The remaining balance carries a value of about $426 million. The transfers follow a pattern of routine sales observed in recent weeks.
Earlier, Buterin moved over $29 million worth of Ethereum. At least $2.3 million from that amount supported Ethereum Foundation initiatives.
He previously outlined plans to sell around $44.7 million in ETH. He linked those sales to a period of “mild austerity” for the Foundation.
Buterin said the approach would “ensure the Ethereum Foundation’s own ability to sustain in the long term.” He added it would protect Ethereum’s “core mission and goals.”
Ethereum Price Drops Below $1,900 as Market Weakens
Ethereum’s price has declined during the broader crypto market downturn. ETH has fallen about 4% over the past 24 hours.
The asset recently traded at $1,872 on major exchanges. It earlier touched a two-week low of $1,855 on Sunday.
Over the past month, Ethereum has dropped more than 36%. The token also remains over 62% below its August all-time high of $4,946.
Buterin has also addressed Ethereum’s long-term roadmap in public statements. He said the Ethereum mainnet “needed a new plan” regarding layer-2 scaling networks.
He discussed the relationship between the base layer and scaling chains. He suggested adjustments to strengthen coordination and efficiency.
Last week, Buterin supported a new censorship-resistant upgrade for the network. He said Ethereum was “going hard” on its technical direction.
He also referred to reviving a “cyberphunk” ethos within the ecosystem. These remarks came as developers continued work on protocol upgrades.
The recent ETH sales occurred during this period of roadmap discussion. On-chain data continues to track movements from wallets linked to Vitalik Buterin.
Australian authorities have charged two men following an investigation into an alleged $5 million cryptocurrency investment scam that targeted vulnerable victims across the country.
Summary
- The New South Wales Police Force has charged two men following an investigation into an alleged $5 million cryptocurrency investment scam targeting Australians.
- Police allege victims — including elderly and vulnerable individuals — were lured via social media into depositing funds into a fake trading platform, with money funneled through multiple crypto wallets.
- One man has been charged and granted conditional bail, while investigations continue as authorities warn Australians about rising investment scam losses.
Australia steps up crypto fraud crackdown
The New South Wales Police Force said detectives from its Cybercrime Squad launched Strike Force Resaca to investigate reports of fraudulent online investment activity. Search warrants were executed at properties in Strathfield and Cammeray, as well as a business premises in Burwood, all located in Sydney.
Police allege the scheme lured victims, many described as elderly or financially vulnerable, through social media advertisements and unsolicited messages promoting cryptocurrency and other high-return investment opportunities.
Victims were reportedly directed to deposit funds into what they believed was a legitimate trading platform known as “NEXOpayment.” Australian authorities claim the money was instead funnelled through multiple cryptocurrency wallets and exchanges in an attempt to disguise the movement of funds.
A 42-year-old man was arrested at a Strathfield residence and taken to Auburn Police Station, where he was charged with recklessly dealing with proceeds of crime valued above $5,000. He was granted conditional bail and is scheduled to appear at Burwood Local Court on March 17, 2026.
A 36-year-old man was also arrested at a Cammeray property and later released pending further inquiries.
Police say investigations remain ongoing and are urging anyone who suspects they may have been targeted by an investment scam to report the matter to authorities. Officials reiterated that investment scams remain one of the highest-loss cybercrime categories in Australia.
Key takeaways:
-
Historical data shows Bitcoin often outperforms during trade wars and liquidity injections despite initial macro fear.
-
Resilient mining activity and a shift to net long positions on CME futures suggest professional traders are buying the dip.
Bitcoin (BTC) traders are becoming increasingly anxious after 18 days of trading below the $75,000 level. Concerns intensified following a retest of $64,200 on Monday, triggered by a retreat in global stock markets. US President Donald Trump’s decision to increase baseline import tariffs to 15% has heightened uncertainty, leading investors to adopt a more risk-averse stance.
While these events appear negative at first glance, Bitcoin has a history of outperforming during bearish macroeconomic shifts. More importantly, risk perception is gradually improving; Bitcoin miners have shown resilience, and professional traders used the recent dip to add exposure.
On April 2, 2025, the Trump administration signed an executive order imposing sweeping “reciprocal tariffs” on nearly every trading partner. The situation escalated on April 9, 2025, as additional tariffs were applied to 75 countries, including a 34% rate for China. This move coincided with Bitcoin hitting a five-month low at $74,600, which was followed by a 38% rally over the next month.
Traders choose cash over Bitcoin during periods of uncertainty
The natural instinct for traders during periods of uncertainty is to seek shelter in cash and government bonds. Despite its unique benefits, Bitcoin is not yet considered a safe haven by most investors. However, once the market realizes that governments may be forced to inject liquidity to stimulate the economy, Bitcoin tends to outperform.
The US Federal Reserve (Fed) lends cash against Treasury collateral to maintain smooth funding markets and settlements. This measure should not be viewed as a direct liquidity injection, as it reflects temporary balance sheet conditions. Nevertheless, peak levels in this indicator—such as the $100 billion seen on March 16, 2020—have historically marked reversals in Bitcoin’s price trend.
In fact, the COVID-19 crash of 2020 marked the beginning of a multi-month rally, taking Bitcoin to $42,000 from $4,400. Consequently, those who claimed the cryptocurrency failed as a long-term investment while it traded 55% below its prior $19,900 all-time high between May and July 2020 were proven wrong. A similar pattern could unfold in 2026 if liquidity conditions deteriorate further.
Nvidia (NVDA US) is scheduled to report quarterly earnings after the US stock market closes on Wednesday. Results from the chipmaker will likely set the investor mood, particularly as concerns regarding rising tech sector debt mount. Notably, shares of Coreweave (CRWV US) and Oracle (ORCL US) have already plunged over 50% from their previous all-time highs.
While conditions for companies supporting the artificial intelligence sector weaken, the exodus of investment from Bitcoin miners represents less of a risk now that the network hashrate has fully recovered from a 25% dip in January. More importantly, ASIC miners released in 2024 and early 2025 remain profitable even at an electricity cost of $0.07 per kilowatt-hour.
Related: Bitcoin miner MARA buys majority stake in AI data center firm Exaion
The de-escalation of “miner death spiral” fears may have helped instill bullishness among professional fund managers. Large speculators, including hedge funds, have shifted from a net short to a net long position on CME Bitcoin futures, according to a CFTC report published last week. Analyst Tom McClellan noted that two similar historical shifts preceded significant Bitcoin price bottoms.
While no single reversal indicator can confirm if the $60,200 level on Feb. 6 marked the cycle low, the combination of liquidity concerns, fears of excessive AI sector valuations, and resilience in the mining sector could push Bitcoin’s price back toward $75,000 in the near term.
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.
TLDR:
- LINK has corrected over 86% from its 2021 high near $53, now compressing inside a key demand block at $5.60–$7.50.
- CryptoPatel identifies smart money absorption at macro support, with sell-side liquidity sweeps fully absorbed on the 3W chart.
- Three upside price targets are mapped at $26.30, $52.22, and $100, representing up to 1,675% return from the demand zone.
- The bullish setup is invalidated if LINK prints a three-weekly candle close below the critical support level of $4.76.
Chainlink’s native token, LINK, is currently priced around $8.30 after an extended period of price compression. Analyst CryptoPatel has released a high-timeframe technical forecast pointing toward a potential 10x move.
The setup is built on multi-year chart structure and accumulated demand at macro support. With volatility contracting sharply on the three-weekly chart, market participants are watching closely for a breakout confirmation.
LINK Accumulates Inside a Multi-Year Demand Block
LINK has been trading inside a descending channel on the three-weekly chart since its 2021 cycle high near $53. The token corrected more than 86% from that peak over the following years.
Price has since compressed into a demand block between $5.60 and $7.50. This zone is where CryptoPatel identifies strong smart money absorption taking place.
Multiple higher lows have formed within this demand block on the higher timeframe. Each successive low reflects buyers stepping in before price reaches prior lows.
CryptoPatel noted that sell-side liquidity sweeps into this support region have been fully absorbed. That behavior points toward sustained accumulation rather than distribution at current levels.
The analyst’s tweet reads: “Fractal Structure Mirroring Previous Cycle Compression Before Breakout.” This observation draws a direct parallel to prior accumulation phases in LINK’s price history.
Each of those phases was followed by a sharp directional expansion. The current setup carries a structurally similar pattern on the same timeframe.
Volatility on the three-weekly chart has contracted to an extreme degree, according to CryptoPatel. That level of compression typically precedes a larger expansion move in either direction.
Price is currently hovering near $8, described as range equilibrium within the analyst’s framework. The descending channel resistance from the 2021 all-time high remains the defining technical ceiling.
Key Price Levels That Could Trigger a Massive Upside Move
CryptoPatel has mapped out three upside targets: $26.30, $52.22, and $100. A move to the third target from current prices would represent a gain of approximately 1,110%.
The projected total return from the high-timeframe demand zone sits between 1,232% and 1,675%. These targets align with liquidity pools resting above current price on the higher timeframe chart.
The critical confirmation signal for this setup is a three-weekly candle close above the descending trendline resistance. A simultaneous break of the range high on that timeframe would further strengthen the bullish case.
Until that close materializes, the channel resistance remains structurally intact. Traders following this setup are waiting for that specific trigger before adding exposure.
CryptoPatel’s bullish bias holds as long as LINK stays above $4.76 on the three-weekly timeframe. That level marks the lower boundary of the high-timeframe demand zone.
A confirmed candle close below $4.76 would signal structural failure and open the door to further downside. That threshold functions as the hard invalidation point for the entire setup.
The analyst describes this as a high-timeframe, patience-based trade with asymmetric risk-to-reward. It is best suited for spot accumulation and long-term swing positioning, per the forecast.
No macroeconomic or fundamental variables are incorporated into the analysis. Traders are encouraged to conduct independent research before making any financial decisions.
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