Crypto World
Why Bitcoin suffered a $110 billion wipeout despite its best week of Wall Street news in months
Bitcoin briefly pushed toward $74,000 this week, buoyed by a string of bullish developments that have tied the crypto industry ever closer to traditional finance.
Some market observers began calling this a bullish rally, with one analyst even saying that the new run ‘has legs.’
Yet the rally didn’t last. By the end of the week, the largest cryptocurrency had slipped back below $69,000, losing $110 billion in market cap.
The pullback came despite what might otherwise have been considered one of the most positive stretches of institutional news for the sector in months.
Morgan Stanley named Bank of New York Mellon as a custodian for its spot bitcoin ETF exposure, adding another layer of Wall Street infrastructure around the asset class. Crypto exchange Kraken gained access to the Federal Reserve’s payment system, a milestone in integrating crypto firms with the U.S. banking network. Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, invested in crypto exchange OKX, valuing it at $25 billion, while U.S. President Donald Trump publicly suggested traditional banks should strike a workable relationship with the crypto industry.
Individually, any one of these developments might have sparked a market rally in earlier crypto cycles, when institutional adoption was seen as the catalyst that would send crypto into a massive bull run. Instead, now that adoption is here, the market is ignoring it as macro forces have taken over.
Why the selloff
The selloff was mainly triggered by U.S. dollar strengthening as the conflict in Iran intensified, after U.S. President Donald Trump seemingly quashed any chance of some sort of negotiated settlement with Iran, saying, “There will be no deal with Iran.”
This spurred a spike in oil prices, new inflation concerns and shifting expectations around interest rates (despite jobs data showing a weakening market), which put pressure on risk assets globally. Equities moved to the downside as the dollar index rose, and crypto — which has increasingly traded alongside technology stocks (read: risk assets) — followed.
If that’s not enough, Cracks in the global private credit market expanded to Wall Street giant BlackRock, which reportedly began limiting withdrawals from its $26 billion private credit fund amid rising redemption requests. Following similar stress at Blue Owl, which sold $1.4 billion in loans last month to meet withdrawals, the events started to rattle investors.
Reality check
So what does this week’s episode mean? A growing reality in crypto markets: macro matters more than crypto-native news.
Over the past several years, bitcoin has become more tightly correlated with the Nasdaq and other risk assets as institutional investors entered the market. Hedge funds, asset managers and ETF flows increasingly treat bitcoin as part of a broader portfolio of macro-sensitive assets, reacting to liquidity conditions, interest rates and dollar strength.
Ironically, the same institutional adoption that many in the industry have long sought may be contributing to this dynamic.
As bitcoin becomes embedded in traditional financial portfolios, its price is increasingly influenced by the same forces that move equities, commodities and currencies. When the dollar rallies or interest-rate expectations rise, liquidity tightens across markets — and crypto is rarely immune.
That doesn’t mean the steady drumbeat of institutional developments is irrelevant. The expansion of custody services, banking access, and exchange investment points to a deeper, more mature crypto market structure forming beneath the surface.
Who is selling?
One question investors ask when such conflicting price action batters the markets is: Who is selling?
The macro risk seemed to have spooked mostly the short-term bitcoin holders, who cashed out as bitcoin hit $74,000.
These short-term holders transferred more than 27,000 BTC ($1.8 billion) to exchanges in profit over the past 24 hours — one of the largest spikes in recent months, according to CryptoQuant analyst Darkfost.
Short-term holders are typically the most reactive group in the market, and their selling reflects lingering caution amid the ongoing war in Iran and other macro uncertainties. These holders act more like traders, going in and out of an asset to make quick profits, rather than investors who want to buy and hold for the long term. And with bitcoin’s thin liquidity, these moves make a dent in the price action
And the data shows that.
The only short-term investors currently in profit are those who accumulated bitcoin between one week and one month ago, at a realized price of roughly $68,000, suggesting some recent buyers above that price are choosing to lock in gains rather than extend their positions.
In the short term, with crypto in the midst of a bear market dating back to early October and macro uncertainty, price is the only thing that matters to investors.
Silver lining
But it’s not all doom and gloom.
A recent Binance Research report noted that U.S. spot bitcoin ETFs recorded roughly $787 million in net inflows last week — their first positive weekly flows since mid-January — suggesting that some institutional investors may be beginning to re-engage with the market after several weeks of persistent outflows.
In fact, in a recent conference, giant university endowment funds, which tend to focus on long-term return, said that they have begun looking into other alternative investment ideas, including digital assets-related ETFs, given the sky-high valuations of traditional equities.
The report also pointed to signs that speculative excess may already have been flushed out.
Bitcoin funding rates have fallen to their lowest levels since 2023, indicating that leveraged long positions have largely been unwound — conditions that historically create a cleaner foundation for more durable rallies driven by spot demand rather than short-term speculation.
In the end, it all comes down to conviction and market moves.
Some traders called the sharp rally earlier this week a “bull trap” — a brief breakout that lures in late buyers before reversing lower. While institutional conviction is on the rise, with thin liquidity, a skittish market, macro headwinds and a lack of clear catalysts, bitcoin’s price action, at least this week, seems to have proven them right so far.
Read more: Bitcoin is stuck in a rut but JPMorgan says new legislation could be the ultimate spark
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.
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.
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.
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.
“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.
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.
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.
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.
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
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
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.
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.
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.
TLDR:
- Former CFO diverted $35M into DeFi lending platforms despite company policy requiring conservative investments.
- Crypto investments promising 20% yields collapsed within weeks, wiping out nearly all of the company funds.
- The software firm laid off 60 employees after the financial losses triggered a major restructuring.
- A federal court sentenced the executive to two years and ordered repayment of the full $35,000,100.
A former chief financial officer has received a two-year prison sentence after diverting $35 million in company funds into risky cryptocurrency investments.
U.S. federal prosecutors said the executive secretly transferred the money to a DeFi platform he controlled. The funds quickly collapsed in value after being placed in high-yield crypto lending protocols.
The case exposes how unauthorized crypto bets can devastate corporate finances.
CFO Moves $35M Into DeFi Lending Platforms
Nevin Shetty served as chief financial officer at a private software company beginning in March 2021. The firm raised capital to support growth and product development.
Company leadership adopted an investment policy designed to protect those funds. The policy restricted investments to conservative instruments such as money market accounts.
According to the U.S. Attorney’s Office for the Western District of Washington, Shetty helped draft that policy. However, he later transferred company funds into a cryptocurrency venture he secretly controlled.
Court records show Shetty launched a side company called HighTower Treasury in early 2022. The business had no outside customers.
Between April 1 and April 12, 2022, Shetty ordered wire transfers totaling $35,000,100 from a Chase branch near his home. The funds moved into HighTower Treasury accounts.
Prosecutors said Shetty then deployed the money across decentralized finance lending protocols. These platforms advertised yields exceeding 20 percent.
HighTower planned to return a smaller fixed payment to the software company. Shetty and his partner would keep the remaining profits.
Federal prosecutors stated the arrangement allowed Shetty to personally benefit from returns generated with company funds.
Crypto Investments Collapse Within Weeks
Initial results appeared profitable. According to court filings, the strategy generated roughly $133,000 in profits during the first month.
However, the DeFi investments soon deteriorated. Crypto market losses rapidly erased the value of the positions.
By May 13, 2022, the investment portfolio had nearly reached zero value. Almost the entire $35 million disappeared.
After the collapse, Shetty informed two fellow executives about the transfers. The company dismissed him immediately.
The financial damage forced the firm to restructure operations. Court documents state the company laid off around 60 employees after the loss.
The U.S. Attorney’s Office described the scheme as a calculated fraud carried out over several months. Prosecutors argued Shetty misled colleagues and financial institutions during the transfers.
Following a nine-day trial, a jury convicted Shetty in November 2025 on four counts of wire fraud. Federal investigators from the FBI’s Seattle field office supported the case.
A federal judge sentenced Shetty to two years in prison and ordered repayment of $35,000,100. He will serve three years of supervised release after prison.
The court also barred him from serving as a corporate officer without approval from a probation officer.
Bitcoin is firmly in the deepest phase of the bear market and the pain may worsen, according to CK Zheng, founder of crypto investment firm ZX Squared Capital.
“Bitcoin’s price is convincingly in deep bear market territory now. We expect a further 30% price drop during 2026 as the Iran war started,” Zheng told CoinDesk in an email, citing the “four-year cycle” as one of the key catalysts.
The world’s largest cryptocurrency has already nearly halved since hitting a record high of over $126,000 in October last year, according to CoinDesk data. As of writing, it changed hands at around $68,000.
The four-year bitcoin cycle
Crypto investors often talk about the “four-year cycle” – a pattern in which prices surge, crash, and then recover, centred on the quadrennial mining reward halving.
The halving, most recently implemented in April 2024, is a programmed event that halves bitcoin’s supply expansion rate every 4 years. As of today, 3.125 BTC are emitted as rewards for each block mined on the Bitcoin network, down from the original 50 BTC at launch after four halving events to date.
Historically, bitcoin’s price has tended to peak about 16–18 months after a halving, followed by a bear market that typically lasts about a year.
BTC topping out in October last year, roughly 18 months after the April 2024 halving, means the cycle is playing out again. So, the bear market could deepen in the near term.
Zheng said that the cycle is proving very difficult to break. According to him, the reason is simple: human psychology.
“The “Four-year crypto cycle” momentum is gaining strength and is extremely difficult to break due to individual investors’ psychological behaviors,” Zheng said.
Individual investors tend to behave in predictable ways — buying during hype and selling during panic. That behavior reinforces the boom-and-bust four-year pattern that has defined crypto markets for more than a decade.
Because of this, Zheng said bitcoin still trades more like a speculative asset than a safe haven like gold.
He added that the institutional adoption of bitcoin remains very slow and limited in scope at this stage and warned that some firms that have purchased bitcoin as a treasury asset may be forced to sell, leading to a deeper price sell-off.
“The total size of crypto ETFs and Digital Asset Treasury companies is only around 10% of the whole crypto market. Some Digital Asset Treasury firms may be forced to sell cryptos to meet certain debt servicing requirements during this bear market, which may create a vicious cycle,” Zheng said.
For now, Zheng’s outlook is clear: crypto’s bear market may have further to run before the next cycle begins.
“Our long-term target is $0.9000,” one analyst stated.
Ripple’s XRP has registered a minor uptick over the past week, coinciding with the broader cryptocurrency market’s revival.
However, some analysts believe its price may decline sharply in the near future and even fall below the psychological $1 level.
New Pullback Ahead?
Earlier this week, XRP tried to reclaim the $1.50 mark but failed and now trades at around $1.39 (per CoinGecko’s data). The asset’s market capitalization stands at approximately $85 billion, making it the fourth-biggest cryptocurrency, trailing behind BTC, ETH, and USDT.
One person who has been closely monitoring its performance is the X user TradingShot. In their view, XRP has been moving within a downward channel throughout its entire bear cycle, which, according to the chart, began in July 2025 – shortly after the price reached its all-time high of over $3.65.
TradingShot noted that the severe decline in February this year hit the previous target on the 1W MA200, suggesting the asset’s next potential pullback may lead to a further drop to the 1M MA100 support, set at under $0.90.
“This level is critical as it formed the June 2022 bottom of the previous Bear Cycle. Our long-term Target is $0.9000,” the X user concluded.
X user WealthManager also presented a bearish forecast. They believe XRP looks “very dangerous” right now, warning that a “huge drop could be imminent.”
Meanwhile, the prominent Bitcoin educator and advocate Adam Livingston spoke sharply against Ripple’s native cryptocurrency. He said he would rather have $100,000 in FTX customer refund claims than $100,000 in XRP.
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“At least SBF might send a heartfelt apology from prison before he dies of old age,” Livingston added.
The Bullish Scenario
Despite the pessimistic views some express toward XRP, many indicators suggest its price may head north soon. Numerous market observers pointed out that large investors have purchased almost 4.2 billion tokens (worth a whopping $5.7 billion at current rates) since the October 10 crash.
This development reduces the amount of XRP tokens available on the open market, and economic principles dictate that the valuation should rise if demand doesn’t diminish. Moreover, this shows that whales are confident in the asset and view lower prices as an opportunity, a signal that could encourage smaller players to follow suit.
XRP’s exchange netflow is next on the list. Over the past several weeks, outflows have consistently exceeded inflows, indicating that investors are moving their holdings off centralized platforms and into self-custody. This shift reduces the amount of coins immediately available for sale, easing short-term selling pressure.
The asset’s Relative Strength Index (RSI) is also worth mentioning. It has fallen to around 30 on a weekly scale, marking oversold territory that can sometimes be a precursor to a rally. On the other hand, ratios above 70 are considered bearish.
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Crypto industry executives are combing through US President Donald Trump’s National Cyber Strategy after it was released on Friday, searching for hints about what it could signal for government support of the crypto industry.
“Crypto and blockchain are explicitly named as technologies to be ‘protected and secured.’ This is a first for any US cybersecurity strategy,” Galaxy Digital’s head of firmwide research Alex Thorn said in an X post on Friday.
Crypto and blockchain were mentioned once in the six-page report:
“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.”
However, industry executives have also been interpreting other parts of the document to see how they relate to crypto.
Thorn pointed to a section pledging to “uproot criminal infrastructure and deny financial exit and safe haven.” “This language could easily justify crackdowns on mixers, privacy coins, and unregulated off-ramps,” he said.
Bitcoin VC points out that quantum has been taken “seriously”
Castle Island Ventures founder Nic Carter, who has been vocal about the threat of quantum computing to Bitcoin (BTC) in recent times, pointed to the section saying the government “will accelerate the modernization, defensibility, and resilience of federal information systems by implementing cybersecurity best practices, post-quantum cryptography, zero-trust architecture, and cloud transition.”
“Sure seems like they’re taking quantum seriously. Nothing to worry about, I’m sure,” Carter said in an X post.
It comes as the crypto industry continues to debate about how close quantum computing is to being a serious threat to Bitcoin. On Feb. 15, Carter said that major Bitcoin-holding institutions may eventually lose patience with Bitcoin developers for not addressing quantum computing concerns quickly enough.
Trump points to the next generation as a priority
Trump said that the National Cyber Security outlines his priorities for “ensuring that America remains unrivaled in cyberspace.” Artificial intelligence was a key focus of the report.
“We will secure the AI technology stack—including our data centers—and promote innovation in AI security,” it said.
Related: Community banks and crypto industry ‘are allies’ in CLARITY Act debate: Exec
Trump also emphasized the importance of recruiting the next generation of workers in the cyber workforce to “design and deploy exquisite cyber technologies and solutions.”
The US typically releases a national cybersecurity strategy every administration, outlining the government’s priorities for emerging technologies.
Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
The man behind the pseudonym Mark Zuckerfart has resurfaced after months of speculation. In an exclusive interview, the marketer explains why he left the Solfart project and why he now believes Patos Meme Coin has the team, strategy, and momentum to dominate the next wave of Solana meme tokens.
crypto.news presents an exclusive look at the man behind the pseudonym: Mark Zuckerfart. With a track record of scaling meme coins into the hundreds of millions, Zuckerfart has long been a silent engine in the marketing and creative space.
But his latest chapter came with a cost. After a dispute over Solfart’s financial transparency and the team’s treatment, MZ walked away from his previous brand last November, leaving behind one final, cryptic Reddit post. Now, with the ducks flying high, it’s clear what the image meant. He has found a new home as the Marketing and Creative Head for Patos Meme Coin and a project leader.
For the first time, he’s addressing the rumors regarding Solfart and explaining why the move was necessary —and how Patos Meme Coin is a band of unrivaled Crypto Rock Stars.
MZ, let’s start with the basics. Why did you leave Solfar (SOLF) Token?
I was a co-creator of solfart but I wasn’t the owner. I never handled wallets and payments, etc, I just made sure the internet was littered with content and provided connections to all the major news outlets. I left because we had a $15k sale, and the money was mishandled. Neither the team under me nor I were compensated, while the owner squandered money. The writing on the wall was clear; he was not ‘cutting the cheese’.
But hey, I made that slogan and concept for him. Makes sense. If he doesn’t believe in the idea/concept, he has no reason to. He didn’t make the creative concepts nor share the belief
What do you think will happen to the Solfart token now, and what did you learn from the experience?
Hopefully, Fart McSatoshi learns and keeps moving forward. I wish no negatives on anyone and believe he can steer his own vision as he chooses.
I do see he’s still shilling the work I did back in November of 2025, however. I think investors should demand more. That’s it. He’s a brilliant developer. Every time I see people asking “what happened to Mark Zuckfart” or wanting my work back, I feel more inspired to continue creating with Patos.
What made you move on to Patos Meme Coin?
More control allows me to exercise greater budgetary restraint and have a firm handle on the project’s direction. To make sure there’s a fair opportunity for everyone.
My belief in building something that will spread wealth to those who invest will be honored by this project. I also believe in the developer & marketing team’s ideas. We have a crew of people from 4 countries who are absolute Rock Stars at their craft. The Beatles of the Crypto space!
Everyone shares one belief, structured around math fundamentals. Everyone works just as hard as I do, and results are showing already.
Ducks eat bread together. Ducks fly high together. “PATOS” is all that, but also a potential catalyst to Pump All Tokens on Solana by creating a FOMO for the SPL ecosystem.
Do you believe Patos Meme Coin is better than Solfart?
Undoubtedly. Our team has far more reach in the actual crypto industry. Look at what we’ve achieved in 2 months compared to Solfart.
Patos Meme Coin has more crypto exchange listings, we’re on Google News on a new site every few days, and our first round of presale is nearly sold out.And recently, we released the first dAPP with more to come. Patos.games is a play-to-earn GameFi hub launched to help anyone earn $PATOS while boosting trading volumes and, in turn, brand visibility. Speaking of after the presale, of course. If you go point for point, the facts are clear.
What makes you confident in Patos Meme Coin’s execution?
Experience. Connections. Power. Consistency. Scaling ability.
The 111 Crypto exchange idea wasn’t just to compete with my old ideas at Solfart. It’s because I, myself, and a teammate conducted an analysis of crypto exchanges’ effects on the market cap of previously listed tokens, on average; tokens on a similar scale to what Patos Meme Coin is destined to be, if not less.
That 111 Cex theory puts those averages together, and along with support from our rising “Patos Flock” following, should create an excess of momentum in the opening week, and our team, keyword ‘teamwork,’ can handle all aspects of what needs to be done to convert that momentum into a parabolic market cap increase. And 111 is a bit ‘over the top’ of where the actual math suggested, but we want to aim for Mars, not the Moon.
Parabolic increases in market cap turn into parabolic token price explosions. We even have connections with Pop Culture celebrities and influencers that will aid our growth at the right time. Our collective reach really separates us from any other presale currently live.
On PatosMemeCoin.com, it shows that the token presale’s first round is almost closed, with 9 remaining; 10 total. This means PATOS should have around 11 crypto exchange listings confirmed per round. Is this accurate?
Something like that. For instance, we expect to add 4, possibly 6, more crypto exchange listing confirmations to our resume before round 1 closes. That will boost our total CEX confirmations to 12 or 14. Our team likes to be ahead of the ball, ahead by as far as possible.
The doors are open to many people as they trust the team involved and me. The faster funding comes in, the faster listings will grow, and in compounding fashion, vs. speed.
But of course, the price of tokens goes up with each round, with the 10th-round price 47% higher than the first. The fastest duck gets the most bread.
You mentioned earlier that you have the GameFi dAP “Patos Games.” What other applications can investors expect?
We like to keep most things very much hush. As you can see from the Patos Games references, there was no mention of the actual project before it launched. There are too many energy & idea thieves in this industry, and I want to keep as many surprises for investors as possible.
Just know, we’re looking to make an impact in a way that will make Patos Meme Coin a meme coin with utility that’s used for years to come. That’s the goal.
Our team would much rather ‘show’ than talk. But at this point, we have more CEX support, a GameFi pixel game launched, and so much visibility. Changpeng Zhao, aka CZ, responded to us indirectly on X.
With just what we have now, a 50x increase in value from today’s token price is possible. comes, the faster listings will grow, and in compounding fashion vs speed increase.
Thank you for your time, Mark Zuckerfart. Wishes of great fortune and materialization of your vision for Patos Meme Coin.
Wishes aren’t needed. Just hard work If you’re ready to win, come join the Flock.The first round has 18% left, and we’re still in the 2nd month of this token presale. Check others’ ages to notice how fast we are moving by comparison.
We’re going to go even faster soon. Get your first bag holdings during the genesis round at PatosMemeCoin.com. And to all of those invested right now: Patos Fock, let’s fly Mother Quackin’ high.
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
A crypto executive has pushed back against claims by the president of a community banking association that any compromise between the banking sector and the crypto industry on the CLARITY Act would be a mistake. Austin Campbell, founder of Zero Knowledge Consulting, argued in a Friday X post that success or failure won’t be dictated by the players who stand to lose the most. “If community banks and crypto can’t find a way to work together, we already know who the winners are. It’s not the community banks. It’s not consumers. It’s not the crypto industry,” Campbell said, framing a potential collaboration as a win for local economies over the entrenched interests of large lenders. He went on to stress that the real opportunity lies in using stablecoins to address persistent technology and regulatory gaps that have hindered community banks from embracing crypto-enabled solutions.
Key takeaways
- Austin Campbell argues that cooperation between community banks and crypto firms is essential to avoid a decisive win by large banks, implying a missed opportunity for local lenders and consumers if cooperation fails.
- The exchange centers on the CLARITY Act, with proponents of flexibility arguing concessions could bolster liquidity and economic activity in smaller markets, while opponents warn of deposit leakage and regulatory risk.
- Banking lobbyists contend that a broad adoption of stablecoins could siphon deposits from traditional banks, citing a Standard Chartered note that predicts a potential drop in deposits tied to growing stablecoin use.
- Political figures, including Eric Trump and Donald Trump, have weighed in on the debate, urging speed on related legislation and arguing that banks are throttling crypto policy to preserve profits.
- Policy discussions are playing out against a backdrop of ongoing regulatory scrutiny, growing acceptance of stablecoins as liquidity tools, and the broader question of how to regulate a rapidly evolving payments ecosystem.
Tickers mentioned:
Market context: The CLARITY Act debate sits at the intersection of regulatory clarity, stablecoin usage, and local lending dynamics, illustrating how policy choices may affect both consumer access to higher-yield options and the resilience of regional banks.
Sentiment: Neutral
Market context: The discussions frame liquidity and regulatory risk as central to crypto’s interaction with traditional finance, underscoring how policy signals could influence participation by smaller lenders and crypto firms alike.
What to watch next: 1) Movement on CLARITY Act amendments in Congress; 2) Public statements from community bank associations and their members; 3) Upticks in stablecoin adoption and related liquidity tooling; 4) Public commentary from major banks on crypto policy; 5) Regulatory updates on stablecoins and payments infrastructure.
Why it matters
The core of the debate centers on whether stablecoins and other crypto-enabled liquidity tools can be harnessed by community banks without eroding traditional deposit bases. Campbell’s argument positions community banks as potential beneficiaries if they partner with crypto firms to offer compliant, technology-enabled services. In his view, the real threat comes not from crypto or consumers, but from capital and lobbying power concentrated among the largest banks, which he says have incented competing factions to undermine collaboration. The framing challenges the assumption that regulatory concessions are inherently risky for local lenders and instead suggests they could unlock new channels for funding and lending in smaller markets.
On the other side, Christopher Williston, president of the Independent Bankers Association of Texas, has warned that concessions in the CLARITY Act could undermine local lending by shifting liquidity away from traditional banks. Williston argues that “it’s simply impossible to roll over in the fight for liquidity that powers the economies of the places we call home.” The argument underscores a broader fear among lenders that stablecoins, if not properly regulated, might draw away customer funds or complicate reserve management. The debate has drawn in perspectives from the broader banking lobby, with Standard Chartered’s note highlighting potential deposit declines as stablecoin adoption grows, a claim that adds material weight to calls for thoughtful design and robust safeguards in any proposed framework.
The policy dialogue has also intersected with political commentary this week. Eric Trump criticized large banks on X for allegedly blocking Americans from earning higher yields on savings, while Donald Trump pressed for swift action on a Market Structure bill and argued that banks should not obstruct crypto policy. The political dimension adds urgency to lawmakers’ considerations about how to balance investor protection, financial stability, and innovation in a rapidly evolving payments landscape. A broader conversation about the regulatory underpinnings of stablecoins—how they are issued, backed, and used for on-ramps and off-ramps—remains central to building a framework that protects consumers while supporting responsible innovation.
In the background, the debate unfolds as policymakers weigh how to integrate stablecoins into a compliant, secure financial system. The tension between liquidity needs in local economies and the banks’ concerns about deposits and reserve adequacy illustrates the complexity of crafting policy that does not stifle competition or slow the adoption of technology that could enhance efficiency and inclusion. With the CLARITY Act and related market-structure discussions occupying congressional calendars, the path forward will likely hinge on how well negotiators can translate public policy into practical reforms that serve both communities and investors.
The discourse also mirrors a broader industry trend: the growing importance of stablecoins as tools for settlement, liquidity provisioning, and cross-border transactions. As more institutions explore regulated, compliant implementations, the emphasis remains on transparent, auditable designs that align incentives across participants—from small community banks to the largest money-center institutions. The YouTube discussion linked below captures a snapshot of these tensions, featuring perspectives from industry observers and policymakers as they navigate the trade-offs between innovation, risk, and stability. Video discussion
In parallel, the political discourse has featured statements from prominent figures, including Eric Trump and Donald Trump, urging lawmakers to move promptly on the crypto agenda. The narrative underscores a broader theme: the policy environment is actively shaping the strategic calculus of counterparty risk, liquidity provisioning, and the pace at which the crypto sector can integrate with traditional banking rails.
As the CLARITY Act debate continues, observers will be watching for how congress evaluates stability, consumer protection, and the risk of deposit outflows under different design choices. The tension between the desire for innovation and the need for prudent oversight remains at the heart of policy discussions, with industry voices insisting that collaboration between community banks and crypto firms could unlock benefits for local economies—if guided by clear, enforceable rules.
What to watch next
- Legislative updates on the CLARITY Act, including potential amendments that balance liquidity with deposit protection.
- Statements from independent bankers’ associations and regional banks on the proposed framework and liquidity impacts.
- Regulatory guidance on stablecoins, disclosures, and reserves that could influence adoption by smaller lenders.
- Public commentary from influential industry figures and lawmakers ahead of key votes or hearings.
- Verification of deposit-flow projections tied to stablecoin use and cross-border settlement experiments.
Sources & verification
- Independent Bankers Association of Texas president Christopher Williston’s remarks on X: https://x.com/IBAT_CLW/status/2029950462649057749?s=20
- Patrick Witt’s commentary related to the discussion: https://x.com/patrickjwitt/status/2030102472417489373?s=20
- Standard Chartered note on stablecoins and deposits: https://cointelegraph.com/news/stablecoins-real-threat-us-bank-deposits-says-standard-chartered
- Eric Trump’s X post on banks and yields: https://x.com/EricTrump/status/2029309823423009211
- Trump’s call for Market Structure action and related coverage: https://cointelegraph.com/news/trump-takes-swipe-banks-over-stalled-crypto-bill
- YouTube video discussion: https://www.youtube.com/watch?v=ry9MI57Pbjs
- Independent context on the CLARITY Act and liquidity debates (general references within the reporting):
Community banks, crypto, and the CLARITY Act: the policy battle shaping liquidity
The CLARITY Act debate places community banks at the center of a larger question about how crypto-enabled liquidity should integrate with traditional financial rails. Austin Campbell’s critique centers on the idea that the most durable gains for local economies will come from partnerships rather than adversarial standoffs. He emphasizes that stablecoins—when designed with robust risk controls—could bridge operational and regulatory gaps that have long hindered community banks from accessing the efficiencies and speed of digital payment rails. In this framing, cooperation between smaller lenders and crypto companies becomes a pragmatic path to improving service offerings and expanding financial inclusion, rather than a theoretical contest over who controls the new payments paradigm.
However, the opposing view, as articulated by Williston and other banking lobbyists, highlights a legitimate concern: if policy is perceived as too lenient, the safety and soundness of traditional deposits could be compromised. Their argument rests on the premise that deposits are a fragile resource that must be safeguarded, especially in times of rising interest rates and macro uncertainty. The Standard Chartered projection, cited in coverage of the debate, adds a quantitative dimension to this concern by warning that widespread stablecoin adoption could translate into meaningful deposit declines for US banks. Such projections reinforce calls for careful governance, reserve standards, and transparency to ensure any crypto-enabled framework strengthens, rather than destabilizes, the banking system.
The political dimension adds urgency to the policy conversation. With voices from the White House and Congress weighing in—alongside public commentary from figures like Eric Trump and Donald Trump—the push to finalize a coherent market-structure and payments framework grows stronger. The discourse suggests that supporters see an opportunity to advance crypto policy in a way that complements innovation while addressing consumer protection and financial stability concerns. As policymakers examine potential concessions, the role of community banks could hinge on the availability of regulatory guardrails that enable responsible experimentation without undermining essential lending activities in local communities.
In sum, the current moment captures a critical crossroads for the crypto ecosystem and traditional finance. The CLARITY Act, the stability and resilience of local banks, and the pace of crypto-enabled liquidity tools will collectively shape how the sector evolves over the next 12 to 24 months. Stakeholders on both sides are advocating for a design that preserves consumer choice and market competition while ensuring that reserve management, disclosure, and oversight keep pace with the speed of innovation. As noted, the path forward will depend on concrete policy language, precise regulatory expectations, and the willingness of varied actors to collaborate in service of broader economic vitality rather than narrow interests.
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