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Trump’s National Cyber Strategy Backs Crypto and Blockchain

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Crypto Breaking News

The US administration released its National Cyber Strategy on Friday, signaling that crypto and blockchain technologies are now explicitly targeted for protection and secure integration within the nation’s digital infrastructure. Industry executives say the emphasis could shape policy levers ranging from funding for security research to potential enforcement actions. The six-page document frames the crypto ecosystem not only as a financial frontier but as a critical layer in national security, calling for secure supply chains and privacy protections from design to deployment. As crypto firms digest the implications, questions linger about how the administration will balance innovation with controls on privacy tools, mixers, and unregulated off-ramps.

Among the bold lines, the strategy states a commitment to “build secure technologies and supply chains that protect user privacy from design to deployment, including supporting the security of cryptocurrencies and blockchain technologies.” That clause, highlighted by industry observers as a first for a US cybersecurity framework, signals a potential opening for closer public-private collaboration on security standards. Yet, the policy also contains tougher language about criminal infrastructure and the denial of financial exits for illicit actors, a section that some analysts say could justify crackdowns on privacy-focused tools and crypto mixers in the longer run.

“We will build secure technologies and supply chains that protect user privacy from design to deployment, including supporting the security of cryptocurrencies and blockchain technologies.”

For Galaxy Digital’s head of firmwide research, the wording is a telling shift. Alex Thorn argued that explicitly naming crypto and blockchain as technologies to be protected marks a milestone in how Washington views the sector’s role in national security. The broader document, the industry veteran noted in a post, maps a future where cybersecurity risk management dovetails with crypto governance, potentially guiding federal engagement with crypto firms and infrastructure projects.

Another thread running through the document concerns resilience against emerging threats, notably quantum computing. Castle Island Ventures founder Nic Carter has been vocal about quantum risk to Bitcoin and the broader crypto ecosystem. In a take that aligns with the strategy’s emphasis on modernizing federal information systems, Carter pointed to the section calling for “post-quantum cryptography, zero-trust architecture, and cloud transition” as proof that policymakers are taking quantum threats seriously. “Sure seems like they’re taking quantum seriously. Nothing to worry about, I’m sure,” he said on X.

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Bitcoin’s quantum risk lens tightens policy dialogue

The strategy’s posture toward quantum resilience comes at a time when the industry has debated how close practical quantum computing is to undermining current cryptographic underpinnings. Carter’s views reflect a broader tension inside the crypto community: balancing the need for robust, future-proof security with the practicalities of ongoing network upgrades and governance. The document’s emphasis on post-quantum cryptography is not merely an academic exercise; it foreshadows potential standards for federal and industry-grade security that could ripple through crypto custody, exchanges, and other critical components of the ecosystem.

In the same breath, the strategy reframes AI as a frontier technology that warrants careful risk management and innovation safeguards. The document states, “We will secure the AI technology stack—including our data centers—and promote innovation in AI security.” For crypto developers and asset managers, that phrasing suggests a growing overlap between AI-enabled security tooling, data integrity, and the safeguarding of sensitive financial information within crypto networks.

Beyond technology, the strategy highlights the importance of recruiting the next generation of cyber professionals to design and deploy advanced cyber technologies. This workforce emphasis mirrors a broader policy objective of aligning national security priorities with a vibrant tech economy, including the crypto sector, which relies on sophisticated cryptography, secure software supply chains, and resilient cloud infrastructure.

Market context

Market participants are watching how this policy direction translates into practical steps. The strategy’s emphasis on secure technologies and anti-criminal enforcement may influence risk sentiment, regulator expectations, and capital flows within crypto markets. While the document stops short of prescribing specific new rules, its signaling—particularly around post-quantum security, zero-trust architectures, and secure supply chains—could shape future standards, audits, and compliance requirements for crypto firms and their service providers.

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Why it matters

For crypto users and investors, the strategy’s framework could translate into clearer security expectations and potentially more formal coordination between government agencies and the private sector on safeguarding digital assets. Acknowledging crypto and blockchain as technologies warranting protection might open avenues for collaboration on security research, testing, and standard-setting, helping to reduce systemic risk in the space.

For builders and operators, the document signals that security-by-design will be a central theme in any future regulatory guidance. Post-quantum readiness, zero-trust adoption, and robust cloud migration plans could become de facto prerequisites for governmental contracts, subsidies, or public-private partnerships, shaping how wallets, exchanges, and custody solutions structure their software, audits, and incident-response playbooks.

From a policy perspective, the juxtaposition of safeguarding innovation with criminal offense enforcement creates a dynamic tension. The “uproar against criminal infrastructure” language may push policymakers to balance privacy rights with anti-money-laundering goals, a debate that will likely surface in regulatory conversations and legislative proposals in the months ahead. Market participants will need to watch not only for new rules but for how agencies interpret and implement the strategy’s guardrails across different fiscal cycles and political winds.

What to watch next

  • Implementation details on the post-quantum cryptography rollout and zero-trust adoption across federal information systems.
  • Guidance or proposed regulations related to privacy-focused tools, mixers, and off-ramps for digital assets.
  • Standards development and collaboration efforts between government agencies and crypto industry participants on secure supply chains.
  • Budget allocations or policy actions that fund cybersecurity research relevant to crypto infrastructure.

Sources & verification

  • President Trump’s Cyber Strategy for America (White House PDF): https://www.whitehouse.gov/wp-content/uploads/2026/03/President-Trumps-Cyber-Strategy-for-America.pdf
  • Galaxy Digital’s Alex Thorn on crypto security in the strategy: https://x.com/intangiblecoins/status/2030078133303455922?s=20
  • Nic Carter on quantum readiness and policy emphasis: https://x.com/nic_carter/status/2030091238742053115?s=20
  • Bitcoin quantum risk discussion and institutional concerns: https://cointelegraph.com/news/bitcoin-quantum-computing-risk-institutions-developers
  • Bitcoin price context referenced in coverage: https://cointelegraph.com/bitcoin-price

National Cyber Strategy reframes crypto under security and quantum guardrails

The six-page document makes it clear that the administration views cryptography, digital assets, and blockchain as components of critical national infrastructure rather than peripheral technologies. While the exact regulatory path remains to be seen, the emphasis on post-quantum readiness and secure, privacy-conscious design sets a baseline for how federal agencies intend to engage with the crypto ecosystem. Industry voices have already started parsing the strategy’s language for practical implications—ranging from research funding opportunities to potential investigations into privacy-preserving architectures and on-ramps.

The strategy’s commitment to privacy-by-design, coupled with its tough stance on combatting illicit financial activity, positions the policy as a pivot point for the sector. Whether this translates into collaboration on cryptographic standards or a tightening of enforcement around privacy tools remains to be seen. What is clear is that the policy framework now recognizes crypto and blockchain as central to national security considerations, not just speculative technologies with speculative risk profiles.

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Bitcoin’s Four-Year Cycle May Be Ending, Fidelity Research Suggests

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Bitcoin’s Four-Year Cycle May Be Ending, Fidelity Research Suggests

TLDR:

  • Fidelity data shows Bitcoin volatility hitting record lows even months after the 2025 price peak near $126,000.
  • Public companies and ETFs now hold nearly 12% of Bitcoin supply, signaling major institutional accumulation.
  • Bitcoin’s MVRV ratio has stayed near 2x realized value this cycle, far below peaks seen in past bull markets.
  • Fidelity’s profit-to-volatility ratio has remained above 0.015 since 2023, marking the longest stability period.

Bitcoin’s market behavior may be entering a new phase, according to recent research from Fidelity Digital Assets. 

The firm argues that long-standing boom-and-bust cycles could weaken as institutional demand reshapes the market. Data shows volatility hitting record lows even months after Bitcoin reached new price highs. 

The question now is whether the classic four-year Bitcoin cycle still defines the crypto market.

Bitcoin Volatility Trends Challenge the Classic Four-Year Cycle

Bitcoin reached a market capitalization near $2.5 trillion during its October 2025 peak. Prices climbed above $126,000 during that rally.

However, volatility moved in the opposite direction. One-year realized volatility recorded 17 new all-time lows in January 2026.

Source: Fidelity Digital Assets

According to Fidelity Digital Assets research, this pattern differs sharply from previous cycles. Historically, volatility surged as Bitcoin approached market peaks.

The current trend suggests a shift toward a larger and more liquid market. Fidelity compared Bitcoin’s growth to large-cap technology companies reaching maturity.

The firm notes that Bitcoin’s market size has expanded rapidly across cycles. The asset is now twice as large as its 2021 peak valuation.

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It also stands nearly ten times larger than the 2017 cycle peak. Compared with 2013, Bitcoin’s market capitalization has expanded more than 200-fold.

Fidelity’s data shows volatility began declining in late 2023. At the time, Bitcoin traded near $27,000 before starting its latest rally.

Institutional Demand Reshapes Bitcoin Market Structure

Demand patterns have changed significantly as institutions enter the market. Public companies and exchange-traded products now hold a growing share of supply.

According to Fidelity Digital Assets, 49 public companies hold more than 1,000 Bitcoin each. Combined holdings exceed one million BTC.

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Source: Fidelity Digital Assets

That amount represents more than five percent of Bitcoin’s circulating supply. The cohort has steadily increased holdings since early 2020.

Exchange-traded products have accelerated institutional accumulation. Spot Bitcoin ETPs launched in the United States in January 2024.

By January 2026, those vehicles collectively held nearly 1.3 million Bitcoin. This equals roughly 6.4 percent of the circulating supply.

Fidelity reported that the leading Bitcoin ETF surpassed $75 billion in assets within two years. Gold’s GLD ETF required almost seven years to reach that milestone.

On-chain metrics also suggest a calmer market cycle. Bitcoin’s market value to realized value ratio has remained near two throughout the current bull market.

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Earlier cycles saw sharper expansions. The ratio reached six during 2013 and four during both the 2017 and 2021 cycles.

Fidelity estimates that reaching a ratio of four again would imply a $4.5 trillion Bitcoin market cap. That level corresponds to roughly $225,000 per coin.

The firm also introduced a “Profit to Volatility Ratio” metric. It compares profitable addresses with realized volatility.

That ratio has remained above 0.015 since late 2023. Fidelity describes this period as the longest stretch of stability in Bitcoin’s history.

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AI Model Finds 22 Firefox Vulnerabilities in Two Weeks

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Claude Opus 4.6 found 22 Firefox bugs in 2 weeks, 14 flagged high-severity by Mozilla researchers.
  • The 14 high-severity finds equal nearly a fifth of all such Firefox bugs Mozilla fixed in 2025.
  • Claude succeeded in building working exploits in only 2 of several hundred automated attempts.
  • Anthropic spent roughly $4,000 in API credits testing Claude’s exploit development capabilities.

Anthropic’s Claude Opus 4.6 identified 22 security vulnerabilities inside Firefox in just two weeks. Fourteen of those bugs were classified as high-severity by Mozilla. That figure represents nearly a fifth of all high-severity Firefox flaws remediated throughout 2025. 

The findings emerged from a structured research partnership between Anthropic and Mozilla.

Claude AI Uncovers High-Severity Firefox Bugs at Record Speed

The collaboration began as an internal model evaluation.

Anthropic wanted a harder benchmark after Claude Opus 4.5 nearly solved CyberGym, a known security reproduction test. Engineers built a dataset of prior Firefox CVEs and tested whether the model could reproduce them.

Claude Opus 4.6 replicated a high percentage of those historical vulnerabilities. That raised a concern: some CVEs may already have existed in Claude’s training data. 

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Anthropic then redirected the effort toward finding entirely new bugs in the current Firefox release.

Within twenty minutes of beginning exploration, Claude flagged a Use After Free vulnerability inside Firefox’s JavaScript engine. Three separate Anthropic researchers validated the bug independently. 

A bug report, alongside a Claude-authored patch, was filed in Mozilla’s Bugzilla tracker.

By the time that first report was submitted, Claude had already produced fifty additional crashing inputs. Anthropic ultimately scanned nearly 6,000 C++ files and submitted 112 unique reports to Mozilla. Most fixes shipped to users in Firefox 148.0.

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Firefox 148 Ships Fixes as AI Exploit Research Raises New Alarms

Mozilla triaged the bulk submissions and encouraged Anthropic to send all findings without manual validation. That approach accelerated the pipeline significantly. Mozilla researchers have since begun testing Claude internally for their own security workflows.

Anthropic also tested whether Claude could move beyond discovery into active exploitation. 

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Researchers gave Claude access to the reported vulnerabilities and asked it to build working exploits. The goal was to demonstrate a real attack by reading and writing a local file on a target system.

Across several hundred attempts, spending roughly $4,000 in API credits, Claude succeeded in only two cases. 

According to Anthropic’s published findings, the model is substantially better at finding bugs than exploiting them. The cost gap between discovery and exploitation runs at least an order of magnitude.

The exploits that did work required a test environment stripped of standard browser security features. Firefox’s sandbox protections were not present. 

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Anthropic noted that sandbox-escaping vulnerabilities do exist and that Claude’s output represents one component of a broader exploit chain.

Anthropic urged software developers to accelerate secure coding practices. The company also outlined a “task verifier” method, where AI agents check their own fixes against both vulnerability recurrence and regression tests. 

Mozilla’s transparent triage process helped shape that approach throughout the research.

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Flow Network Incident Resolved as HTX Restores Full FLOW Services

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • HTX confirms all FLOW assets remained intact during the Flow network incident and verification process
  • Flow developers patched the vulnerability responsible for abnormal transactions on December 27
  • HTX restored FLOW trading, deposits, and withdrawals after verifying network stability
  • Exchange removed its January notice following Flow’s detailed post-incident security report

Flow blockchain’s December security incident has reached a full resolution after coordination between the network and major exchange HTX. 

The update confirms the vulnerability responsible for abnormal transactions has been patched and network operations restored. HTX also verified that all user-held FLOW tokens on its platform remain intact. 

Trading, deposits, and withdrawals for the token have resumed normal operations.

Flow Network Incident Resolved as HTX Confirms Normal Operations

The Flow ecosystem shared an update confirming that the issue reported on December 27 has been fully resolved. The incident involved abnormal transactions triggered by a technical vulnerability on the network.

HTX activated internal emergency procedures once it detected the event. The exchange maintained communication with Flow ecosystem partners while monitoring the situation.

The latest update indicates that developers patched the vulnerability and restored normal network activity. The Flow team also identified and addressed abnormal minted assets during the review process.

Flow stated that ecosystem services have stabilized after the corrective actions. Network operations now function normally across supported platforms.

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HTX verified user asset balances during the investigation period. The exchange reported that all FLOW tokens held by customers remain fully validated.

HTX Restores FLOW Trading, Deposits, and Withdrawals

HTX confirmed that FLOW trading resumed after reviewing the network’s recovery. Deposits and withdrawals for the token now operate without restrictions.

The exchange initially issued a notice about the incident on January 13. That notice questioned the security status of the Flow network at the time.

HTX later removed the notice after reviewing the Flow Foundation’s post-incident report. According to HTX, the report provided detailed explanations addressing earlier concerns.

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The exchange stated that the new information clarified how developers handled the vulnerability. It also confirmed that the response restored stability across the network.

Flow Foundation acknowledged the collaboration between both organizations during the investigation period. The foundation stated it expects continued cooperation with HTX moving forward.

HTX reiterated that user asset security remains its top priority. The exchange said it will continue monitoring supported networks and working with ecosystem partners.

The update confirms the incident no longer affects current operations. FLOW trading infrastructure across HTX now runs under normal conditions.

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BTC slips below $68,000 as dollar posts steepest weekly gain

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Bitcoin fails to sustain breakout momentum as rate hikes beckon: Crypto Markets Today

Bitcoin fell to $67,960 by Saturday morning, down 3.4% over the past 24 hours and retreating sharply from the past week’s high. The move fits what has become a recurring script in recent months, with late-week selling dragging prices toward the lower end of the range heading into Saturday.

Majors took the harder hit again. Ether dropped 4.4% to $1,974, solana fell 4% to $84.31, dogecoin lost 2.9% to $0.09, and BNB slid 2.6% to $627. XRP fell 2.2% to $1.37.

The weekly picture tells a more nuanced story though. Bitcoin is still up 3.6% over seven days. Ether has gained 2.6%. BNB added 2.1%. The mid-week surge absorbed the war shock and then some, even if Friday’s pullback took the shine off.

Meanwhile, the dollar posted its steepest weekly gain in a year, strengthening as markets priced in higher energy costs, stickier inflation, and a Fed that has even less room to cut rates. That’s a direct headwind for bitcoin and every other asset denominated against the dollar.

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“As tensions escalated in the Middle East last week, investors moved quickly to the safety of the U.S. dollar, which strengthened as markets began pricing in higher energy prices and reignited inflation fears, potentially delaying Federal Reserve rate cuts,” said Björn Schmidtke, CEO of Aurelion, in an email to CoinDesk.

The on-chain data paints a fragile picture beneath the surface. Glassnode data shows 43% of bitcoin’s total market supply is now sitting at a loss. That’s a significant overhang.

As bitcoin recovers, those underwater holders have an incentive to sell into any rally to break even, creating persistent resistance on the way up. It’s one reason the push to $74,000 on Thursday couldn’t hold. Every bounce toward higher prices runs into supply from people who’ve been waiting months to get out.

One bright spot came from stablecoin flows. Messari recorded a 415% jump in net stablecoin inflows to $1.7 billion over the week, with daily transfers up nearly 10%. That’s potentially dry powder waiting to be deployed, and it suggests retail isn’t entirely absent despite the fear-heavy sentiment. Whether that capital rotates into bitcoin or waits for lower prices is the question.

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The war continues to set the tempo. The U.S.-Iran conflict showed no signs of resolution this week. Oil remains elevated. The Strait of Hormuz is still disrupted. And the macro backdrop of strong dollar, sticky inflation, and delayed rate cuts is the worst combination for risk assets.

Bitcoin’s week looked impressive in headlines, touching $74,000 mid-week, but the round trip from $68,000 to $74,000 and back to $68,000 is just another lap of the range.

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Bitcoin Dip May Not Be Over As Retail Ramps Up Buying: Santiment

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Cryptocurrencies, Bitcoin Price, Adoption

Retail investors have been scooping up Bitcoin after it slipped below $70,000, but whale activity suggests the price could still head lower if past patterns repeat, according to crypto sentiment platform Santiment.

“The moment Bitcoin hit $74k, these key stakeholders began taking profit,” Santiment said in a report on Friday.

Santiment explained that whales — those holding between 10 and 10,000 Bitcoin (BTC) — “accumulated heavily” between Feb. 23 and Mar. 3, when Bitcoin was trading between $62,900 and $69,600.

Cryptocurrencies, Bitcoin Price, Adoption
Whales (green line) have been selling, while retail investors (red line) have been buying more Bitcoin. Source: Santiment

Since Wednesday, when Bitcoin climbed past $70,000 and touched $74,000, the cohort has offloaded around 66% of their recent purchases, Santiment said. Meanwhile, retail investors — those holding below 0.01 Bitcoin — have been increasing their positions.

Correction may not be over yet, says Santiment

“When retail buys while whales sell, it typically signals that the correction is not yet over,” Santiment said. Bitcoin is trading at $67,984 at the time of publication, according to CoinMarketCap.

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Bitcoin’s price decline led the Crypto Fear & Greed Index to fall 6 points, pushing it further into “Extreme Fear” territory with a score of 12 on Saturday.

MN Trading Capital founder Michael van de Poppe shared a similar outlook, saying a further decline is possible. “If Bitcoin doesn’t find support in this $67-68K region, then we’re likely going to retest the lows for liquidity before bouncing back upwards,” van de Poppe said in an X post on Friday.

Spot Bitcoin ETFs post largest outflow day in three weeks

The decline coincided with US-based spot Bitcoin ETFs posting their largest outflow day since Feb. 12, with a total of $348.9 million in net outflows across the 11 ETF products, according to Farside data.

Related: Trump’s National Cyber Strategy pledges to support crypto and blockchain

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Bitcoin’s price fell as low as $60,000 on Feb. 6 during its downtrend from the October all-time high of $126,000 before showing a modest recovery. Economist Timothy Peterson suggests this level could be the floor for the time being.

“This valuation level has always marked a bottom for Bitcoin. About 99.5% chance it stays above $60k,” Peterson said in an X post, referring to the Bitcoin Price to Metcalfe Value chart.

Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen