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seeds of BTC’S next big bull run may have already been sown

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seeds of BTC'S next big bull run may have already been sown

Blue Owl Capital’s (OWL) announcement this week that it would sell $1.4 billion in loans to raise liquidity for investors in a retail-focused private credit fund has triggered alarm bells across financial markets, with more than one prominent analyst drawing direct parallels to two Bear Stearns hedge fund collapses that foreshadowed the 2008 financial crisis — and for bitcoin investors, the implications could be profound.

While there was no damage across the major stock market averages, Blue Owl shares fell about 14% for the week and are now lower by more than 50% year-over-year. Other major private-equity players, including Blackstone (BX), Apollo Global (APO), and Ares Management (ARES), also suffered sizable declines.

It stirred some painful memories for those who suffered through the 2008 global financial crisis (GFC).

In August 2007, two Bear Stearns hedge funds collapsed after suffering heavy losses on subprime mortgage-backed securities, while BNP Paribas froze withdrawals in three funds, citing an inability to value U.S. mortgage assets. Credit markets seized up, liquidity evaporated, and what seemed like an isolated incident spiraled into the global financial crisis.

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“Is this a ‘canary-in-the-coalmine’ moment, similar to August 2007,” asked former Pimco head Mohamed El-Erian. “There’s plenty to think about here, starting with the risks of an investing phenomenon in [artificial intelligence] markets that has gone too far,” he continued. El-Erian was quick to point out that while the risks could be systemic, they don’t appear to be anywhere near the magnitude of the 2008 crisis.

Blue Owl’s issue may or may not be another Bear Stearns moment, but if it is, what might that mean for bitcoin?

First, private credit stress doesn’t automatically mean bitcoin rallies. In fact, in the short term, tighter credit conditions can hurt risk assets, bitcoin and the broader crypto market among them. While bitcoin wasn’t around during the 2008 meltdown (more on that later), the price action as the Covid crisis was unfolding — about a 70% decline from mid-February 2020 to mid-March — is illuminating.

The U.S. government’s Federal Reserve’s eventual response, though, could be powerfully bullish for bitcoin. In 2020, trillions of dollars were injected into the economy, helping send BTC from a low of below $4,000 to more than $65,000 about a year later.

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The 2007-2008 playbook followed a similar trajectory: initial credit market stress, equity market denial, banking sector contagion, then massive central bank intervention. If Blue Owl represents the “first domino” — as former Peter Lynch associate George Noble suggested — the sequence could repeat with private credit replacing subprime mortgages as the trigger.

“Chancellor on brink of second bailout for banks”

One of the major outcomes of the 2008 event was the creation of Bitcoin.

The world’s original cryptocurrency was born during the global financial crisis, in part because its mysterious creator (or creators), Satoshi Nakamoto, was disillusioned with governments and central banks conjuring up hundreds of billions, if not trillions, of dollars with little more than a few keystrokes on a computer.

Another major part of the world’s largest digital asset was to create a parallel digital currency that would allow direct peer-to-peer online payments without the need for a financial institution or any government intervention. Essentially, hope was to create a direct alternative to a legacy banking system that had just proved fragile enough to bring down the global financial order through the meddling of centralized entities.

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In fact, Bitcoin’s first-ever block, the so-called Genesis Block on Jan. 3, 2009, was embedded by Satoshi with “Chancellor on brink of second bailout for banks.” That was the headline in The Times of London that day as the U.K. government and the Bank of England engineered a response to the ongoing troubles in that country’s financial sector.

Worth essentially zero on that day and unknown to all but a small handful of “cypherpunks,” bitcoin, 17 years later, has a market cap topping $1 trillion and has the largest asset managers on the planet calling it a near-essential asset to own for most portfolios.

Bitcoin, as we now know it, of course, is different from the original cryptocurrency in 2009. Today, the notion of “store of value” and “digital gold” has come and gone. What was supposed to be anti-establishment has become part of the larger financial system. Large holders are hoarding massive amounts of bitcoin on their balance sheets, financial giants are offering bitcoin to the masses via exchange-traded funds, and even some government entities are buying for their strategic reserves.

So does the Blue Owl failure mean another resurgence of Bitcoin’s original thesis and, in turn, another bull run? Time will tell, but if this event turns out to be El-Erian’s “canary,” signalling another sizable crisis, the global financial system might be in for a rude awakening, and Bitcoin might just become the solution, whatever form it’s taken 17 years later.

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Read more: Bitcoin’s plunge signals coming AI crisis, but massive Fed response will drive new record high: Arthur Hayes

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Crypto World

How Much Ethereum (ETH) Does He Actually Own?

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How Much Ethereum (ETH) Does He Actually Own?


Data from Arkham shows the majority of Buterin’s wealth remains tied directly to token price swings rather than diversified holdings.

Ethereum co-founder Vitalik Buterin holds more than 240,000 ETH, currently valued at approximately $467 million, according to blockchain intelligence platform Arkham’s investigation into his on-chain holdings.

The analysis established Buterin as the largest accessible individual holder of Ethereum, though institutional players and exchange wallets dominate the top rankings of ETH ownership.

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Buterin’s Portfolio Composition and Recent Transactions

The Arkham investigation, published on February 17, provided a detailed breakdown of Buterin’s known crypto assets. His Ethereum holdings have gradually declined over the years, from 662,810 ETH in December 2015, which represented 0.91% of the total supply, to the current 240,010 ETH, which now accounts for about 0.20% of all ETH in circulation.

This reduction stems from both periodic sales and the network’s inflationary supply increases over time. Beyond ETH, Buterin holds smaller positions in several tokens, including 10 billion WHITE worth about $1.16 million, 30 billion MOODENG tokens valued at about $442,000, and 869,509 KNC tokens.

His portfolio also includes roughly $11,000 in Tornado Cash’s TORN token, reflecting past usage of the privacy mixer for donations, including funds sent to Ukraine. Recent on-chain activity shows Buterin moving significant sums in alignment with his public commitments, including a 16,384 ETH withdrawal in late January 2026, worth around $43 million at current prices, to support open-source infrastructure development.

This followed his announcement that the Ethereum Foundation is entering a period of “mild austerity,” with Buterin personally assuming funding responsibilities for certain projects to ensure the Foundation’s long-term sustainability. Subsequent sales of around 2,961 ETH over three days in early February, valued at about $6.6 million, were routed through CoW Protocol using small swaps to minimize market impact.

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Arkham’s assessment of the broader Ethereum holder landscape revealed that institutions and exchanges occupy the top positions. For instance, the ETH2 beacon deposit contract holds over 60% of the total supply, with Binance, BlackRock, and Coinbase ranking among the largest entities.

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Notably, the single largest individual holder is Rain Lohmus, who possesses 250,000 ETH worth $786 million. However, these funds are inaccessible due to lost private keys, a situation Lohmus acknowledged publicly in 2023.

Wealth Trajectory and Philanthropic Focus

Buterin’s net worth has followed Ethereum’s volatile price history closely, given that ETH constitutes over 99% of his known portfolio. He briefly achieved billionaire status in 2021 when the token crossed $3,000, with his holdings peaking at $2.09 billion in November of that year.

Nonetheless, the subsequent bear market reduced his wealth by close to 75% by December 2022. In 2025, rising ETH prices again pushed his net worth above $1 billion during August’s all-time high near $5,000, though recent market corrections, which pushed ETH below $2,000, have brought valuations back to current levels.

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His wealth originated primarily from the 2014 Ethereum pre-sale, where 16.53% of the initial 72 million ETH supply was allocated to founders. A $100,000 Thiel Fellowship grant that same year allowed Buterin to leave the University of Waterloo and dedicate himself fully to Ethereum development.

Unlike many crypto founders who have accumulated substantial stakes in centralized companies, Buterin’s wealth remains almost entirely liquid and tied directly to the network he helped create.

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Trump’s Tariff Announcement Met With a Torrent of Criticism

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US Government, United States, Donald Trump

The tariffs imposed by US President Donald Trump and the 10% global tariff announced by Trump on Friday have drawn critical reactions from US lawmakers, Washington, DC-based think tanks and attorneys. 

US Senator Rand Paul said that the Trump tariffs are a tax increase on “working families and small businesses,” characterizing them as a net negative on the economy.

“Those tariffs weren’t about security — they were a tax on families and small businesses to bankroll a reckless trade war,” US Congressperson Ro Khanna said

US Government, United States, Donald Trump
Source: Rep. Ro Khanna

On Friday, the US Supreme Court (SCOTUS) struck down Trump’s authority to levy tariffs under the IEEPA, which Trump responded to by announcing new 10% global tariffs.

Scott Lincicome, Vice President of Cato’s Herbert A. Stiefel Center for Trade Policy Studies, a Washington DC-based think tank, was also critical of the tariffs. In comments shared with Cointelegraph, he said:

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“Even without IEEPA, other US laws and the Trump administration’s repeated promises all but ensure that much higher tariffs will remain the norm, damaging the economy and foreign relations in the process.”

Trump’s tariffs typically had a negative impact on crypto markets and other risk-on assets. However, crypto prices stayed relatively stable amid the most recent round of tariffs, with Bitcoin’s (BTC) price rising by about 3% after the announcement.  

US Government, United States, Donald Trump
The Total3 indicator, which tracks the market cap of the entire crypto market, excluding Bitcoin and Ether, barely moved following the tariff announcement. Source: TradingView

Related: Bitcoin ignores US Supreme Court Trump tariff strike amid talk of $150B refund

Trump announces an additional 10% tariff, but pro-crypto attorney says legal scope is limited

“Effective immediately, all national security tariffs, Section 232, and existing Section 301 tariffs, remain in place, and in full force and effect. Today, I will sign an order to impose a 10% global tariff,” Trump announced on Friday.

US Government, United States, Donald Trump
President Trump announces a 10% global tariff. Source: The White House

The new 10% global tariff will be imposed on top of already existing tariff rates, Trump added. However, the legal statutes Trump cited are limited in scope, according to pro-crypto attorney Adam Cochran.

“The law he is using only allows this to be on countries we have a deficit with, for a set period of 150 days, and at a capped percent,” he said.

Magazine: Harris’ unrealized gains tax could ‘tank markets’: Nansen’s Alex Svanevik, X Hall of Flame

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