Key Highlights
- Retail & Institutional Moves: Retail investors bought the dip while institutions continued selective accumulation, showing resilience despite a bearish market.
- Regulatory and Product Updates: Key developments included OKX’s Malta license, Animoca’s Dubai VASP, 24/7 CME futures, and new ETFs, including Bitwise-Roundhill election-linked filings.
- FTX & Security Risks: Ongoing legal developments around FTX, SBF’s solvency claims, IoTeX bridge breach, and Tether’s CNH₮ wind-down highlighted continued operational and legal risks in the market.
It was a rough week for crypto prices, but activity didn’t dry up. Retail investors mostly stayed put instead of selling into the drop. Institutions moved things around, cut some exposure, and added in places where prices looked stretched. Regulation kept inching forward, but repeated warnings about a deeper bear market kept traders cautious.
FTX stayed in the headlines again. At the same time, new ETFs went live, companies picked up licenses, and another security issue surfaced, showing the market hasn’t slowed down even with prices under pressure.
Top Headlines
This week looked more like an adjustment than panic. Retail investors didn’t rush for the exits. Institutions made calculated moves. Regulators signaled progress, but bearish calls and court battles weighed on sentiment. Expansion news and security breaches reminded everyone that risk and opportunity are still moving side by side.
Retail and Market Resilience Takes Center Stage
Retail flows were one of the clearer signals this week. Instead of selling, many investors bought dips or held their positions. On-chain data showed stress building, but there were no signs of a full breakdown or mass capitulation.
Coinbase Data Shows Retail Buying the Dip
Brian Armstrong said Coinbase data shows retail investors increased their Bitcoin and Ethereum holdings during recent pullbacks. He noted that balances were higher in February than in December, even though prices were lower. Most users either held or added to positions, a shift from earlier cycles where sell-offs were sharper.
BTC Profit Supply Hits Historic Lows
Bitcoin’s supply in profit fell to around 55–56%, the lowest level since the 2022 bear market bottom. Roughly 10 million BTC are currently held at a loss. Historically, similar levels have appeared near market bottoms, though final lows have often formed closer to 45–50%. Long-term holders continue to hold steady.
Bear Market Warnings Grow Louder
Despite accumulation, analysts warned that downside pressure may not be over yet.
Willy Woo: Bear Trend Strengthening
On-chain analyst Willy Woo said Bitcoin’s bear market is strengthening, pointing to rising volatility and weak inflows. He outlined a multi-phase downturn and said markets appear to be moving past the early liquidity phase, with further pressure possible before recovery begins.
Institutional Accumulation Persists
Institutions continued to add exposure, treating lower prices as an opportunity.
Europe’s Treasury Firm Adds BTC
Capital B, Europe’s first Bitcoin treasury firm, added six BTC through equity funding, bringing total holdings to 2,834 BTC worth about €165 million. This came despite a steep drop in the company’s share price, showing continued commitment to its Bitcoin strategy.
Bitmine Stocks Up on ETH
Bitmine added 45,759 ETH, increasing its Ethereum holdings to 4.37 million ETH worth roughly $9.6 billion. Chairman Tom Lee described current conditions as a short-term slowdown but said the company remains focused on long-term growth, with most ETH staked.
Trump-Backed Miner Crosses 6K BTC
American Bitcoin, backed by the Trump family, crossed 6,000 BTC in holdings through mining and purchases. The stash is valued at around $413 million, with the firm benefiting from lower mining difficulty and retention strategies.
UAE Royal Group Mines 6,782 BTC
The UAE Royal Group said its Citadel Mining operations have produced 6,782 BTC so far, worth about $454 million. The group continues to benefit from low energy costs and long-term mining operations.
Portfolio Shifts and New Products
Firms across traditional finance and crypto launched new products and adjusted exposure.
Harvard Trims BTC, Adds ETH ETF
Harvard Management Company reduced its Bitcoin ETF holdings by 21% while buying its first Ethereum ETF shares. Total crypto exposure now stands at about $352 million, showing a shift toward diversification rather than exit.
Canary Launches Staked SUI ETF
Canary Capital launched a U.S.-listed SUI ETF that includes staking rewards. The product offers regulated exposure with yield, though SUI prices dipped after launch amid broader market weakness.
Bitwise Files for Election Prediction ETFs
Bitwise, along with Roundhill, filed for ETFs linked to U.S. election outcomes using derivatives. The move highlights growing interest in prediction-based financial products.
Regulatory and Expansion Progress
Several regulatory and licensing milestones were reached this week.
OKX Secures Malta License
OKX has received a license in Malta, clearing the way for the exchange to roll out crypto payment services across the European Union. With the approval, OKX now operates under EU regulatory oversight and is positioning itself to align with upcoming MiCA requirements.
Animoca Brands Gets Dubai VASP
Animoca Brands has been granted a VASP license by Dubai’s Virtual Assets Regulatory Authority (VARA). The approval allows the company to run broker-dealer activities from Dubai and expand its Web3 and gaming operations in the region.
CFTC Chair: Bill Nears Law
The chair of the Commodity Futures Trading Commission (CFTC) said the crypto market structure bill is close to becoming law. He noted that recent coordination between Congress and the White House has helped move long-stalled proposals toward final approval.
White House Takes Stablecoin Lead
The White House stepped in to lead stablecoin negotiations as talks narrowed on key issues. Discussions are now centered on enforcement powers and reserve requirements, with proposals around yield for stablecoin holders dropped from the talks.
CME Enables 24/7 Crypto Futures
Chicago Mercantile Exchange said it plans to move crypto futures trading on its Globex platform to a 24-hour schedule. The decision reflects growing international participation and the need to match the always-on nature of crypto spot markets.
FTX and SBF Saga Continues
Legal activity linked to FTX remained active as new filings and appeals moved through the courts. The case continues to draw regulatory attention and complicate one of the largest bankruptcy proceedings in the crypto sector.
SBF: FTX Was Always Solvent
Sam Bankman-Fried said FTX was solvent despite an $8 billion liquidity gap. He argued that internal data showed assets exceeded customer liabilities and blamed the bankruptcy process for deepening losses.
SBF Accuses Judge of Bias
Bankman-Fried accused Judge Lewis Kaplan of political bias during the trial. He cited remarks related to campaign donations and courtroom conduct as evidence of unfair treatment.
Appeal Links to Circuit Ruling
In his appeal, Bankman-Fried said key evidence related to intent was excluded from the trial. He argued that a recent Second Circuit ruling strengthens the case for a retrial.
Proxy Calls FTX Bankruptcy “Shadiest”
Speaking through a proxy, Bankman-Fried referenced criticism, calling the FTX bankruptcy the “shadiest.” The comments pointed to high legal fees and limited creditor recoveries as central concerns.
Token Failures and Investments
Many crypto projects continued to struggle as prices stayed under pressure, but a small number of early bets produced strong returns.
The gap between speculative token launches and platforms with sustained user demand became more visible during the week.
85% of 2025 Tokens Failing
Data showed that roughly 85% of tokens launched in 2025 are now trading below their issue price. The slide has been driven by heavy supply, fading post-launch interest, and thinner liquidity even for projects backed by venture capital.
Paul VC Firm’s 165X Polymarket Return
A venture firm linked to Jake Paul and Logan Paul recorded a 165x return on an early investment in Polymarket. The gain came as trading activity on the platform surged around major political and market events.
Security and Strategic Shifts
Operational risks and strategic exits marked another theme of the week.
IoTeX Bridge Loses $4.3M
IoTeX said its ioTube bridge suffered a $4.3 million loss after a validator key was compromised, allowing an attacker to mint and move assets. The team paused affected contracts, said the core network was not impacted, and is working to trace and contain the stolen funds.
Tether Ends CNH₮ Stablecoin
Tether said it will discontinue its CNH₮ offshore yuan stablecoin. The company cited low usage and demand, with redemptions remaining available during a phased wind-down.
News You Might Have Missed
- Pakistan moved closer to crypto regulation after regulators proposed a controlled sandbox framework aimed at testing digital asset products under supervision.
- Venezuela may explore oil-for-Bitcoin trade under a proposal linked to opposition leader María Corina Machado, as sanctions pressure continues to reshape economic policy debates.
- A legal win tied to Illinois Governor J. B. Pritzker unlocked an $8.6 billion refund demand outcome that could benefit Bitcoin miners operating in the state.
- Antier launched a VARA-compliant crypto exchange platform in the UAE, targeting institutional and enterprise clients.
- Crypto ETPs continued to attract steady inflows, with Bitcoin and Ethereum products seeing consistent interest despite broader market weakness.
- Coinbase faced transaction delays on Solana as technical issues disrupted processing, prompting user complaints and internal fixes.
- The U.S. Supreme Court blocked proposed Trump-era tariffs, while Bitcoin hovered near the $67,000 level amid broader macro uncertainty.
- Missouri advanced legislation to create a state-managed Bitcoin reserve, marking another step toward government-held digital asset strategies.
- SBI Holdings announced plans to issue security token bonds with XRP-linked incentives, blending traditional finance with crypto rewards.
- Sam Bankman-Fried published a list of what he called “10 myths” about the FTX collapse, continuing his public defense ahead of ongoing legal proceedings.
- Hyperliquid and Polymarket were named to Forbes’ Top 50 Fintech list, reflecting growing recognition of crypto-native platforms.
What to expect next week
Next week is likely to be about confirmation rather than direction, as markets test whether recent dip-buying can hold under continued volatility.
Retail behavior will be closely watched to see if accumulation persists or starts to fade if Bitcoin revisits key support levels, while on-chain signals and commentary from analysts like Willy Woo may shape expectations around a deeper bear phase. Institutions could continue quiet rebalancing, with ETF flows offering clues on sustained demand, even as regulatory progress in the U.S. and abroad remains incremental.
Legal developments tied to Sam Bankman-Fried and any fresh security incidents also remain headline risks, keeping sentiment cautious despite ongoing activity across the market.
