Crypto markets edged lower on Tuesday, Feb. 17, as traders remain cautious ahead of new economic data.

Bitcoin (BTC) is trading at about $67,500, down 0.5% over the past 24 hours, while Ethereum (ETH) is up 1% at $1,995. Other large-cap tokens are largely unchanged, with BNB trading at $618, XRP at $1.48, and Solana (SOL) at $85.

Meanwhile, the total cryptocurrency market capitalization stood near $2.39 trillion, down about 0.5% on the day, while 24-hour trading volume was $93.1 billion, according to CoinGecko.

Among top gainers, MemeCore (M) rose about 9%, Pi Network (PI) climbed 6%, and World Liberty Financial (WLFI) advanced around 4.2%.

On the downside, Quant (QNT) fell 3.7%, Worldcoin (WLD) dropped 2.7%, and Sky (SKY) slipped 2.3%.

Paul Howard, senior director at Wincent, noted in comments shared with The Defiant that volatility has cooled after the Feb. 6 spike, with markets now in a holding pattern as institutions hedge rather than take new directional bets.

Howard added that prices are likely to remain rangebound until a clear catalyst emerges, such as major macro or policy headlines. In the meantime, investors are watching this week’s initial jobless claims report.

Liquidations and ETF Flows

Roughly $193.7 million in leveraged crypto positions were liquidated over the past 24 hours, according to CoinGlass. Long liquidations accounted for $126.2 million, while shorts made up $67.5 million.

Bitcoin accounted for $77 million, while Ethereum followed with $44.9 million. More than 83,000 traders were liquidated during the same period.

In the exchange-traded fund (ETF) space, Bitcoin spot ETFs recorded $15.2 million in inflows on Feb. 13, while Ethereum spot ETFs posted $10.26 million in inflows.

Moreover, XRP spot ETFs added $4.5 million on the day, and U.S. Solana spot ETFs recorded $1.57 million in inflows.

Elsewhere

In traditional markets, precious metals were also lower on the day. Gold traded around $4,900, down 2.2%, while silver fell 4% to $74.20. Platinum slipped 1.4% to $2,033, and palladium declined 2.6% to $1,710.

Geopolitics were also in focus as U.S. officials said talks with Iran in Geneva made progress, CNN reported. Negotiations over Russia’s war in Ukraine also continued, with delegations set to resume talks after the initial meetings conclude.

Meanwhile, in Washington, the Department of Homeland Security remained shut down amid an ongoing policy standoff. Experts say this adds to both political and economic uncertainty.

Blockchain advocacy group The Digital Chamber has launched a new unit focused on supporting prediction markets and helping gain regulatory clarity for the sector in the US. 

In an announcement via X on Tuesday, The Digital Chamber unveiled the Prediction Markets Working Group, outlining a multi-year plan to bring clarity to what it called a “misunderstood segment of finance.” 

The Digital Chamber said the first course of action was sending a letter to Commodity Futures Trading Commission (CFTC) chairman Mike Selig praising his efforts to maintain federal jurisdiction over prediction markets, while also calling for an end to regulation by enforcement.

“In our letter, we applauded Chair Selig’s recent statements regarding the intent for CFTC staff to provide tailored rulemaking and guidance for this rapidly growing segment of the financial and digital asset industries,” The Digital Chamber said. 

“For too long, operators in this space have navigated a maze of regulatory ambiguity including unclear overlaps between federal and state regulators,” it added. 

Moving forward, the group plans to continue engaging with the CFTC, develop policy principles, submit policy recommendations, publish research and build a coalition of industry stakeholders and participants. 

It also mentioned “participating in litigation” via friend-of-the-court briefings to educate courts on what it deems the “CFTC’s historic regulatory exclusivity” over the sector.

Prediction markets are heading to court 

The move comes amid intense scrutiny of the sector from state governments and regulators. 

Kalshi, one of the leading prediction market platforms, was hit with a civil enforcement action by the Nevada Gaming Control Board on Tuesday. The gaming board is calling for an injunction to stop Kalshi from offering “unlicensed wagering” in the state. 

Both Kalshi and competitor Polymarket have seen multiple state regulators push to stop them from offering markets such as sports contracts in their respective states, arguing that they are offering unlicensed gambling products.  

Last week, Polymarket filed a federal lawsuit against the state of Massachusetts to preemptively block any potential enforcement action, arguing that the CFTC has primary oversight over the sector, not state governments. 

Related: Prediction markets should become hedging platforms, says Buterin

The CFTC chair has also been echoing such sentiments recently, urging state governments to respect the CFTC’s authority and oversight over the sector or risk facing them in court. 

“Prediction markets aren’t new — the CFTC has regulated these markets for over two decades,” Selig emphasized in a video posted to X on Monday.