By Francisco Rodrigues (All times ET unless indicated otherwise)

Cryptocurrency prices are falling as some holders look to cash in on the mid-week bounce to $74,000 and others prefer less risky assets as the war in the Middle East escalates.

Bitcoin BTC$70,549.10 has lost 3.7% in the past 24 hours, holding just above $70,000, while the wider CoinDesk 20 (CD20) index dropped 3.5% as momentum from the rally earlier in the week cools. Bitcoin cleared $74,000 on Wednesday and is still up more than 6% over five days.

Illia Otychenko, lead analyst at CEX.IO, said the decline reflects selling pressure from short-term traders who bought the recovery. “Despite the recent recovery, there is still limited conviction that the rally will continue,” Otychenko told CoinDesk.

Meanwhile, derivatives markets show growing pessimism. Funding rates remain deeply negative, meaning traders are paying to hold onto short positions.

But underlying demand hasn’t gone anywhere. Otychenko noted that stablecoin movements into exchanges recently reached their highest levels in 2026 while spot bitcoin ETF flows turned positive.

“This creates a clear conflict in the market. Institutional spot buyers are accumulating Bitcoin, while derivatives traders are increasing short positions,” he added. “Historically, when spot accumulation coincides with negative funding, it often ends in a short squeeze, where short sellers are forced to close positions and the price moves higher. However, that outcome is not guaranteed.”

Geopolitics remains a factor. Brent crude is up more than 22% in the past week after U.S. and Israeli strikes on Iran and retaliatory attacks disrupted oil shipments through the Strait of Hormuz, a chokepoint carrying roughly 20% of global supply.

“Hormuz tanker traffic is still down 92%, Goldman is warning oil could hit $100, and the curve is flattening again as the short end reprices inflation risk with the 2Y backing up to 3.51%,” said Bryan Tan, a trader at Wintermute in a note.

The surge in energy prices is feeding inflation concerns, prompting traders to reconsider interest-rate cut expectations. Bond markets are already reflecting that shift, with U.S. Treasury yields rising as investors price in the risk that inflation will remain elevated.

And don’t forget, there’s also the U.S. jobs report later today, which will also feed into the Fed’s interest-rate decisions. Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today

What to Watch

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

• Crypto
• Macro
  • March 6, 8:30 a.m.: U.S. nonfarm payrolls for February Est. 59K (Prev. 130K)
  • March 6, 8:30 a.m.: U.S. unemployment rate for February Est 4.3% (Prev. 4.3%)
  • March 6, 8:30 a.m.: U.S. average hourly earnings MoM for February Est. 0.3% (Prev. 0.4%)
• Earnings (Estimates based on FactSet data)
  • March 6: Metalpha (MATH), pre-market

Token Events

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

• Governance votes & calls
  • No major governance votes & calls.
• Unlocks
  • March 6: Hyperliquid (HYPE) to unlock 2.72% of its circulating supply worth around $288.77 million.
• Token Launches

Conferences

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

Market Movements

• BTC is down 1.15% from 4 p.m. ET Thursday at $70,398.30 (24hrs: -2.89%)
• ETH is down 1.58% at $2,055.24 (24hrs: -3.01%)
• CoinDesk 20 is down 1.22% at 2,008.56 (24hrs: -3.52%)
• Ether CESR Composite Staking Rate is down 8 bps at 2.83%
• BTC funding rate is at -0.011% (-1.2209% annualized) on Binance

• DXY is unchanged at 99.23
• Gold futures are up 0.69% at $5,100.10
• Silver futures are up 1.64% at $83.03
• Nikkei 225 closed up 0.62% at 55,620.84
• Hang Seng closed up 1.72% at 25,757.29
• FTSE 100 is unchanged at 10,415.70
• Euro Stoxx 50 is unchanged at 5,760.30
• DJIA closed on Thursday down 1.61% at 47,954.74
• S&P 500 closed down 0.56% at 6,830.71
• Nasdaq Composite closed down 0.26% at 22,748.99
• S&P/TSX Composite closed down 0.98% at 33,610.00
• S&P 40 Latin America closed down 3.12% at 7,318.90
• U.S. 10-Year Treasury rate is up 7 bps at 4.15%
• E-mini S&P 500 futures are unchanged at 6,804.50
• E-mini Nasdaq-100 futures are unchanged at 24,905.25
• E-mini Dow Jones Industrial Average futures are unchanged at 47,804.00

Bitcoin Stats

• BTC Dominance: 59.47% (-0.02%)
• Ether-bitcoin ratio: 0.02917 (-0.24%)
• Hashrate (seven-day moving average): 1,026 EH/s
• Hashprice (spot): $30.66
• Total fees: 2.75 BTC / $198,402
• CME Futures Open Interest: 104,755 BTC
• BTC priced in gold: 13.8 oz.
• BTC vs gold market cap: 4.71%

Technical Analysis

• The ratio of altcoins (excluding top 10) to bitcoin is looking likely to close above the 50-week exponential moving average, implying no clear breakout for altcoinss relative to BTC.
• With no clear RSI divergences it is unlikely we will see a sustained rally from the broader altcoin universe.

Crypto Equities

• Coinbase Global (COIN): closed on Thursday at $205.71 (–1.54%), –0.40% at $204.89 in pre-market
• Galaxy Digital (GLXY): closed at $22.73 (–6.61%), –0.70% at $22.57
• MARA Holdings (MARA): closed at $8.77 (–5.60%), –0.91% at $8.69
• Riot Platforms (RIOT): closed at $15.60 (–5.63%), –0.71% at $15.49
• Core Scientific (CORZ): closed at $16.00 (+1.01%)
• CleanSpark (CLSK): closed at $9.95 (–6.66%), –0.50% at $9.90
• Exodus Movement (EXOD): closed at $11.18 (–8.06%)
• CoinShares Bitcoin Mining ETF (WGMI): closed at $39.25 (–4.73%)
• Circle Internet Group (CRCL): closed at $105.74 (+0.45%), –0.43% at $105.29
• Bullish (BLSH): closed at $35.02 (–4.99%), unchanged at $35.00

Crypto Treasury Companies

• Strategy (MSTR): closed at $139.81 (–4.53%), –0.30% at $139.39
• Strive Asset Management (ASST): closed at $9.25 (–3.85%)
• Sharplink (SBET): closed at $7.93 (–2.46%), –1.01% at $7.85
• Upexi (UPXI): closed at $0.96 (–10.93%)
• Lite Strategy (LITS): closed at $1.13 (–7.38%)

ETF Flows

Spot BTC ETFs

• Daily net flows: -$227.9 million
• Cumulative net flows: $55.7 billion
• Total BTC holdings ~ 1.29 million

Spot ETH ETFs

• Daily net flows: -$90.9 million
• Cumulative net flows: $11.74 billion
• Total ETH holdings ~ 5.68 million

Source: Farside Investors

While You Were Sleeping

TLDR

• On March 4, Morgan Stanley submitted Amendment No. 1 to its S-1 registration form with the SEC for a spot Bitcoin ETF
• Named the Morgan Stanley Bitcoin Trust, the product is slated to trade on NYSE Arca following regulatory clearance
• Bitcoin holdings will be secured through Coinbase Custody’s offline cold storage infrastructure, while BNY Mellon manages cash assets
• Bitcoin pricing will be determined using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate
• Authorized participants can create and redeem shares using either cash or Bitcoin

Wall Street veteran Morgan Stanley has advanced its efforts to introduce a spot Bitcoin exchange-traded fund. The financial institution submitted an amended registration filing to the U.S. Securities and Exchange Commission on March 4.

JUST IN: 🇺🇸 Morgan Stanley issues new SEC filing for a spot Bitcoin ETF, announcing Coinbase and BNY Mellon as the custodians 👀 pic.twitter.com/52UCwS7geu

— Bitcoin Magazine (@BitcoinMagazine) March 4, 2026

The proposed product, termed the Morgan Stanley Bitcoin Trust, aims to mirror Bitcoin’s market price without pursuing additional returns.

Morgan Stanley Investment Management, operating as a division of the parent company, serves as the delegated sponsor and will oversee the trust’s operational management.

The initial filing was submitted to the SEC in January 2026, concurrent with a separate application for a Solana-focused ETF. This March revision provides enhanced structural information regarding the Bitcoin-based investment vehicle.

The filing specifies that the trust will operate without leverage, derivatives, or comparable instruments. Its sole function will be holding Bitcoin and establishing daily share valuations through a designated pricing index.

Custody and Storage

Asset protection responsibilities fall to two separate entities. Coinbase Custody Trust Company will maintain Bitcoin reserves in offline cold storage facilities, ensuring private keys remain isolated from internet connectivity to mitigate hacking risks.

The Bank of New York Mellon assumes the role of cash custodian and administrative overseer. While FDIC insurance doesn’t cover either custodian, private insurance coverage exists, though it’s distributed among multiple clients.

Bitcoin valuation for the trust relies on the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate. This index aggregates transaction data from prominent Bitcoin spot trading platforms.

How Shares Will Work

Share creation and redemption processes involve authorized participants—financial entities that facilitate ETF market liquidity.

These participants may contribute cash or Bitcoin to receive share baskets. The redemption mechanism operates inversely. Coinbase Inc. functions as the prime execution agent handling Bitcoin transactions related to these activities.

Trading is anticipated to commence on NYSE Arca following SEC review completion and registration statement effectiveness.

Morgan Stanley joins an expanding roster of established financial institutions pursuing regulated Bitcoin investment vehicles.

No specific launch timeline appears in the bank’s filing. The trust awaits formal SEC registration approval before proceeding.

Coinbase maintains two distinct functions within the fund structure—custody services via Coinbase Custody Trust Company and trade execution through Coinbase Inc.

The amendment emphasizes the trust’s passive investment approach, explicitly avoiding market timing strategies or short-term Bitcoin price speculation.

Key Takeaways

• Federal judge orders immediate freeze on 70.6 Bitcoin connected to BlockFills platform

• Dominion Capital initiates legal action seeking recovery of 70.6 BTC from BlockFills

• Crypto trading platform prevented from moving 70.6 Bitcoin during ongoing litigation

• BlockFills confronts mounting challenges following 70.6 BTC asset freeze order

• Restraining order on 70.6 Bitcoin amplifies difficulties for embattled crypto firm

A federal judge in the United States has issued an order preventing BlockFills from transferring 70.6 Bitcoin as the cryptocurrency trading platform faces a significant legal challenge. The restraining order immobilizes these digital assets while Dominion Capital pursues its claims through the judicial system. This development compounds existing difficulties for BlockFills, which recently suspended customer withdrawals and experienced substantial financial setbacks.

Judge Issues Temporary Restraining Order on Bitcoin Holdings

Federal Judge Mary Kay Vyskocil granted a temporary restraining order specifically targeting 70.6 Bitcoin under BlockFills’ control. The judicial directive prohibits any movement or international transfer of these cryptocurrency holdings. Additionally, the court mandated complete segregation between client funds and company assets, along with comprehensive documentation of all Dominion Capital positions.

Dominion Capital submitted its legal complaint on February 27 through the Southern District of New York. The filing alleges that BlockFills improperly held onto client cryptocurrency and mixed various account balances to cover trading deficits. Based on these allegations, the judge authorized the asset freeze to safeguard the 70.6 Bitcoin from potential dispersal.

This temporary restriction continues in force until the court conducts its next scheduled hearing. BlockFills must furnish complete documentation showing where the 70.6 Bitcoin is held and its current condition. The platform faces a March 17 deadline for its official response unless the court modifies the timeline.

Crypto Platform Struggles with Financial Pressures

The cryptocurrency exchange suspended all customer withdrawals starting February 11 following intense market turbulence that depleted available liquidity. Company officials attributed the operational difficulties to Bitcoin’s decline approaching $60,000 levels. The withdrawal suspension, however, triggered increased examination of the platform’s financial oversight and asset management practices.

Company assessments indicated losses reaching approximately $75 million throughout the market downturn period. Institutional customers began questioning whether their deposited assets maintained full backing on the exchange. The controversy surrounding the 70.6 Bitcoin surfaced during this turbulent financial episode.

Significant personnel shifts occurred as co-founder Nicholas Hammer departed from his position as chief executive. Joseph Perry took over leadership responsibilities on an interim basis while the organization worked toward operational stability. Financial restructuring advisors have cautioned that bankruptcy proceedings may become necessary without swift financial improvement.

Asset Dispute Highlights Systemic Industry Challenges

Dominion Capital aims to reclaim the 70.6 Bitcoin that it maintains was improperly withheld by the trading platform. The court’s restraining order guarantees these Bitcoin holdings remain secured pending judicial examination of competing ownership assertions. This legal safeguard maintains the contested cryptocurrency intact throughout the litigation process.

The platform provided services to approximately 2,000 institutional clients, including hedge funds and investment management firms. Trading volume exceeded $60 billion throughout 2025 according to company figures. Nevertheless, operational breakdowns have sparked wider concerns regarding asset safekeeping and corporate disclosure practices.

This legal proceeding underscores persistent vulnerabilities within centralized cryptocurrency lending and exchange operations. Litigation involving substantial digital asset reserves continues influencing regulatory and oversight conversations. Resolution of the frozen 70.6 Bitcoin situation awaits forthcoming court proceedings and financial transparency reports.

A U.S. federal judge has temporarily frozen crypto assets linked to institutional trading platform Blockfills as part of an ongoing legal dispute with investment firm Dominion Capital.

Court steps in after Blockfills withdrawal halt, freezes 70 BTC

In a temporary restraining order issued by the U.S. District Court for the Southern District of New York, the court barred Blockfills from transferring or disposing of roughly 70.6 Bitcoin allegedly belonging to Dominion Capital, while the case proceeds.

The order was granted after Dominion filed a complaint accusing Blockfills of misappropriating and commingling customer funds, then refusing to return assets after halting withdrawals earlier this year.

According to the filing, Dominion had held about 70.55 BTC and a small cash balance on the platform. The firm claims it was unable to access the funds after Blockfills suddenly suspended withdrawals in early February 2026.

Dominion further alleges that Blockfills admitted during internal client meetings that customer assets had been commingled on a single balance sheet and used to cover operational costs and trading losses, leaving the company with a balance sheet shortfall of about $77 million by the end of 2025.

Judge Mary Kay Vyskocil granted the emergency order after Dominion argued there was a risk the assets could be moved or depleted before the court could fully review the case. The ruling prevents Blockfills from transferring the disputed Bitcoin or moving related assets outside the United States until further proceedings are held.

The legal action comes amid mounting stress for the Chicago-based crypto brokerage. Earlier reports indicated the firm suffered roughly $75 million in lending losses during the recent market downturn, prompting leadership changes and discussions about a potential sale or rescue financing.

The temporary restraining order will remain in place until a court hearing determines whether a longer-term injunction should be issued as the lawsuit moves forward.

Key Highlights

• Bitcoin climbs to $71,926 as crypto market posts solid gains today.
• Ethereum trades above $2,099 with a 5% daily surge amid strong activity.
• XRP price rises to $1.41 as altcoins follow broader market gains.
• Solana breaks $90 with a 4% daily increase amid global optimism.
• Dogecoin jumps 6.5%, leading meme coins in today’s crypto rally.

Bitcoin Shows Strong Recovery

BITCOIN JUST HIT $74,000 🚀 pic.twitter.com/VFJ2pF2XA5

— Ash Crypto (@AshCrypto) March 4, 2026

Bitcoin, the leading cryptocurrency, is currently valued at $71,926. The coin rose by 3.8% in a single day as market confidence returned. Weekly performance shows a modest recovery of 6% despite monthly losses.

Background context shows Bitcoin experienced a multi-week slump due to global uncertainties. The coin had dipped below key psychological levels before this surge. This rebound is the first major uptick after consecutive weeks of declines.

Market observers note that Bitcoin continues to attract attention amid regulatory news. Although some experts label the gain a short-term surge, the market reaction remains positive. The coin’s resilience strengthens confidence in digital asset markets.

Ethereum Posts Gains Above $2,000

Ethereum is currently trading at $2,099, marking a daily rise of 5%. Weekly performance shows a 2.16% increase while the monthly trend remains negative at 9%. Trading volumes surged to $33.12 billion, reflecting high market activity.

The recovery follows broader crypto market improvements and optimism around regulatory clarity. Ethereum has remained one of the top-performing altcoins despite past volatility. Investors increasingly view ETH as a key asset in decentralized finance applications.

Analysts highlight that Ethereum’s network upgrades support the coin’s recovery. Strong developer activity and DeFi demand contribute to renewed interest. The altcoin remains a major driver of daily market sentiment.

XRP Rebounds to $1.41

XRP recorded a 3% daily gain, reaching $1.41 amid market optimism. Weekly and monthly performance remain slightly negative at 2.5% and 12%, respectively. The altcoin has regained momentum following earlier declines.

XRP’s recovery is influenced by easing geopolitical tensions and growing hopes for regulatory clarity. Trading activity also increased as global market sentiment improved. The coin maintains strong interest among retail and institutional participants.

Observers note that XRP remains a major player in cross-border transactions. Ripple’s ongoing partnerships support the coin’s market relevance. Market dynamics indicate potential for continued short-term gains.

Solana Climbs Above $90

Solana is trading at $90.5, reflecting a 4% daily increase and a 2% weekly gain. The token has experienced a 14% monthly decline, yet today’s surge signals market recovery. Trading volumes also indicate heightened investor interest.

The coin’s growth aligns with easing global tensions and positive market sentiment. Solana remains a leader in high-speed blockchain applications. Developers continue to expand Solana’s ecosystem, driving investor confidence.

Analysts highlight that the token’s network activity supports the recent price movements. Solana’s technical upgrades contribute to its resilience amid market fluctuations. The asset continues to draw attention as a high-growth altcoin.

Dogecoin Leads Meme Coin Gains

Dogecoin surged by 6.5% to $0.0957, outperforming other meme tokens today. Weekly and monthly performances remain negative at 4% and 11%, respectively. The coin regained traction amid broader crypto market improvements.

Dogecoin’s growth coincides with renewed optimism in retail cryptocurrency markets. Social media buzz and market sentiment continue to support price movements. Despite past volatility, DOGE remains a prominent meme-based digital asset.

Observers note that Dogecoin benefits from both mainstream interest and speculative activity. The coin’s unique appeal and community support boost daily trading momentum. DOGE remains among the most watched assets in today’s rally.

Drivers Behind Today’s Market Rally

The crypto market recovery is attributed to easing geopolitical tensions, regulatory clarity, and positive policy signals. Reports of potential US-Iran peace talks eased global uncertainty. Additional support comes from calls for passage of the CLARITY Act.

The US SEC has submitted new interpretive guidance on cryptocurrency regulation. The paper clarifies how federal securities laws may apply to digital assets. Proposals include frameworks for crypto prediction markets and broader compliance measures.

Overall, the combination of positive geopolitical signals and regulatory clarity supported gains across major cryptocurrencies. Market participants reacted swiftly, boosting trading volumes and asset prices. The rally reflects renewed confidence in the digital asset space.

The previous plans laid out by the country’s central bank indicated that it wanted to form the fund from crypto seizures.

A month after the initial reports emerged that Kazakhstan’s central bank plans to invest in cryptocurrencies, governor Timur Suleimanov provided further details today that actually differ slightly from the initial idea.

As reported by Reuters, the governor of the central bank said during a briefing on interest rates that the entity is “currently developing a list of instruments in which we will invest. This includes not only cryptocurrency itself.”

“These include shares of high-tech ​companies related to cryptocurrencies and digital financial assets, index funds and other instruments that exhibit similar ​dynamics to crypto assets.”

The report states that the portfolio of up to $350 million will be formed from other current investments, such as gold and foreign exchange reserves.

Deputy Chair Aliya Moldabekova explained that the investments will begin in April-May. However, she disclaimed that they do not plan “any large investment in cryptocurrencies,” before adding:

“We are currently selecting companies that deal with digital ​assets. For ​example, those ⁠involved in cryptocurrency infrastructure. We are currently in the process ​of selecting such companies.”

Reuters noted that the central bank holds over $69 billion worth of gold and foreign exchange reserves as of February 1, while its national fund held around $65 billion worth of assets.

It’s worth noting that Kazakhstan has mulled a similar fund for some time, but a previous report on the matter claimed it would also use “crypto seized by law enforcement agencies” to create a digital asset stockpile.

The latest streak of inflows in US spot Bitcoin exchange-traded funds (ETFs) was interrupted by fresh outflows as the BTC price dipped below $71,000 on Thursday.

Spot Bitcoin (BTC) ETFs saw $228 million in net outflows on Thursday, ending the three-day inflow streak of about $1.1 billion, according to SoSoValue data.

While weekly inflows still held at $917.3 million heading into Friday’s session, year-to-date net outflows rose to around $900 million. Cumulative inflows in 2026 so far amount to $3.58 billion, while cumulative outflows total $4.49 billion.

Total assets under management remained above $90 billion after reclaiming the threshold earlier this week.

According to Farside data, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led outflows with $89 million, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) at $48 million and the Bitwise Bitcoin ETF (BITB) at $46 million.

The slip in spot Bitcoin ETFs came as analysts pointed to BTC’s relief rally facing headwinds amid a persisting bear market.

Related: Bitcoin is forming a bottom as the 4-year cycle ends: VanEck CEO

According to CryptoQuant, Bitcoin’s rally above $73,000 was “likely just a relief rally” rather than the start of a new bull phase. The observation aligns with the analysts’ previous forecasts that BTC could fall below $60,000 amid the ongoing crypto winter.

Solana ETFs hold strong despite 57% price drop since launch

Negative sentiment hit altcoin ETFs, with Ether (ETH) funds posting $91 million in outflows. XRP (XRP) and Solana (SOL) also saw minor outflows of $6 million and $5 million, respectively.

Notably, Solana ETF outflows marked the first losses since early February, while year-to-date inflows have totaled roughly $200 million. In comparison, XRP has seen $86 million in inflows.

Solana’s ETFs have accumulated $1.5 billion in cumulative inflows despite a 57% drop in SOL’s price since the launch of spot ETFs in July, Bloomberg ETF analyst Eric Balchunas said in a post on X.

“Yet they managed to not only accumulate $1.5 billion in flows but not really give any of it up,” Balchunas said, adding that many institutions have increased exposure to Solana in the fourth quarter of 2025. “Both are really good signs for the future,” he added.

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