CryptoPotato

Bitwise's Perspective on How Aave Might Contribute to the End of Cryptocurrency Downturn

Despite enduring fragility in Bitcoin's sentiment after a significant dip from its peak price, Matt Hougan, Bitwise's Chief Investment Officer, suggests that decentralized finance (DeFi) could steer the market out of the bear phase. He cites a governance proposal by Aave Labs titled "Aave Will Win" as an example of the new DeFi phase. Aave, along with protocols like Uniswap, operates as serious businesses with substantial revenues. However, DeFi tokens have struggled, largely due to their design as governance tokens without a direct claim on protocol earnings. Hougan notes that Aave's proposal to direct all revenue from its branded products to the DAO treasury may transform the token from a governance-only role to an asset with a direct claim on revenues, potentially leading other assets to follow suit.

Could this be the Finale of the Machi Big Brother's Financial Decline? The Crypto Whale Grasps the Final $1M After Catastrophe

Machi Big Brother, also known as Jeffrey Huang, is noted for his vast, leveraged long positions in numerous tokens on the decentralized exchange, Hyperliquid. However, recent market volatility has dramatically impacted his remaining capital, reducing his Hyperliquid account value to less than $1 million. This massive decline in fortune, from a net worth close to nine figures five months ago, is mainly attributed to his controversial approach to crypto trading. Huang's numerous project launches and aggressive moves into DeFi, including forking Compound to create Cream Finance, have often resulted in heavy losses and failed ventures. His recent activities, such as the launch of the Boba Oppa meme coin on Solana and the sale of over 1,000 NFTs, have further contributed to his financial downfall.

Founder of CryptoQuant Suggests Halting Old Bitcoin Addresses to Block Quantum Threats

CryptoQuant founder, Ki Young Ju, has proposed a preventive measure against potential quantum computer thefts by freezing old Bitcoin (BTC) addresses. He explains that all BTC held in old address types are equally at risk. Assets could either be frozen by design or stolen if quantum machines develop enough to crack BTC’s cryptography. Ju warns that even private keys stored securely may become useless if owners do not adopt protocol upgrades promptly. An estimated 6.89 million BTC are currently exposed to such threats, and about 3.4 million BTC have been dormant for over ten years. Despite the technical feasibility of freezing dormant BTC, reaching a community agreement remains a significant challenge due to the slow pace of social consensus and the potential conflict with the core philosophy of decentralization and user control.

Latest Updates on Pi Network (PI) as of February 18

The Pi Network Core Team previously issued a deadline for nodes to upgrade, with the warning that non-compliance could lead to disconnection. Despite the deadline passing, there has been no information about compliance rates or extensions. The team has faced criticism for a lack of transparency and progress, with some members waiting for over seven years to transfer their Pi coins. In addition, the PI token experienced a severe drop in price to $0.1312, but recovered to over $0.20 shortly afterward. An analyst predicts a 500% surge in the token's value. PiScan data reveals a potential easing of selling pressure with a reduction in the number of coins to be unlocked daily.

Peter Thiel Departs from ETHZilla as Firm Liquidates $74.5M in ETH Amidst Market Volatility

Peter Thiel and Founders Fund have fully divested from ETHZilla Corp, selling their ether (ETH) holdings for $74.5 million, as confirmed by an SEC filing. Originally a biotech firm named 180 Life Sciences Corp., ETHZilla transitioned to cryptocurrency management in August, a move that coincided with a significant market downturn. The company, which once held over 100,000 ETH, has been liquidating its assets due to this downturn, selling ETH in October and December to cover debts, repurchase shares, and repay senior secured convertible notes. ETHZilla has also launched a subsidiary, ETHZilla Aerospace, indicating a shift towards real-world, asset-backed offerings. Despite no public comment on Thiel's departure or the ETH sales, the moves highlight the financial struggles of crypto-focused public companies and the need for careful financial management amidst market volatility.

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Analyst Forecasts Second Phase of Bitcoin Bear Market

Seasoned on-chain analyst Willy Woo has cautioned that the Bitcoin market is progressing into the second phase of a bear trend. Woo suggests the first phase began in Q3 2025, marked by liquidity breakdown and subsequent price drops. He cites rising volatility metrics as a key sign of the trend, and predicts phase two will start when global equities start to weaken. Despite some analysts' differing interpretations of the data, Woo remains bearish, warning of possible further price capitulation around peak outflows. He does, however, see a potential turnaround in liquidity, marking the end of the bear market.

Market Overview: Pi Network (PI) Experiences a 40% Weekly Rise, while Bitcoin (BTC) Struggles at $68K

Bitcoin has been experiencing fluctuating prices around $68,000, even slipping below this mark on several occasions in the past day. The first week of trading in the current month saw a significant drop for Bitcoin to $60,000, a first since October 2024, representing a $30,000 decline in just over a week. Despite a brief recovery, it faced selling pressure at $72,000, and has been trading between this and the $68,000 mark since. Meanwhile, Pi Network's PI token has seen impressive growth, rising over 40% in the past week, from an all-time low of $0.1312 to around $0.19. The total crypto market cap has added over $25 billion in a day, now standing at $2.430 trillion.

Unknown Trader Gains $7M from Shorting, Outperforming High-Profile Losses

An anonymous trader, dubbed as 0x58bro, has garnered $7M in unrealized profits by shorting Ethereum and other cryptocurrencies, as revealed by Arkham's on-chain intelligence data. This success comes while many high-profile crypto traders are recording significant losses. 0x58bro, who holds a portfolio of nearly $13M, has made substantial gains from shorting ETH and ENA, despite the market volatility. The trader also holds over $7.5M in Aave’s interest-bearing ETH token and $5M in Aave’s USDC deposit token, indicating a strategic approach. Meanwhile, other traders such as Machi Big Brother and institutions like Trend Research have incurred losses to the tune of $28M and $869M respectively. Whether 0x58bro will maintain his short positions or join the accumulating addresses betting on a rebound remains to be seen.

For the First Time, Over Half of Ethereum's Supply is Held in Staking Address: Santiment Report

According to Santiment, Ethereum's proof-of-stake contract address now contains over half of the Ether supply, a first in the coin's eleven-year history. This figure can be misleading as it represents around 30% of the total supply, with approximately 37 million ETH currently staked out of 121.4 million tokens. The proof-of-stake address operates as a one-way vault, temporarily locking staked ETH from normal circulation. When validators withdraw, the Ether is released as newly issued coins on Ethereum’s main network, making the contract's share of the supply appear larger. Demand for staking has soared, with a record percentage of ETH supply staked and around 3.9 million ETH awaiting staking. In contrast, Ether prices have decreased to bear market lows below $2,000 due to panic selling by retail traders.

Grayscale Notes XRP as the Most Frequently Discussed Asset, Following Bitcoin

Grayscale, the asset management giant, has recognized XRP as the second-most discussed asset in their platform's community, following bitcoin. Rayhaneh Sharif-Askary, Grayscale’s Head of Product and Research, highlighted the active and passionate community behind the XRP, with the asset being a popular topic among their clients. The interest in XRP stems from its potential to capture market share and the demand for products tied to the asset. Despite previous challenges and lagging product-market fit, the positive sentiment from the XRP community is expected to shift its narrative. This is supported by the recent $33.4 million inflow into XRP-related investment products, contrasting the outflows from Bitcoin and Ethereum. With XRP recently rallying by 16%, experts predict a positive price trajectory for the asset.

Cryptocurrency Miners Pull Out 36K Bitcoin Amid Positive Market Indications

Cryptocurrency miners have withdrawn over 36,000 Bitcoin (BTC) from various exchanges since February started. The action, more prominent than previous months, suggests a shift in how they handle their assets. Reportedly, over 12,000 BTC were withdrawn from Binance, while the rest were spread across different exchanges. This significant transfer is usually linked to long-term storage or confidence in future price growth. Daily withdrawals also increased during this period, with a single day witnessing a removal of over 6,000 BTC, the highest since last November. In addition to miners, long-term holders accumulated 380,104 BTC in the past 30 days, indicating sustained demand. Despite the price of BTC falling close to $60,000 at one point in February, experts describe the downtrend as an "orderly deleveraging," suggesting a controlled reduction in leveraged positions rather than panic-driven liquidations.

Vitalik Buterin Clarifies Ethereum's Neutrality and Human Bias

Ethereum co-founder, Vitalik Buterin, states that Ethereum's use is not dependent on agreeing with his personal views on various subjects. He emphasizes that Ethereum, as a decentralized protocol, is built on permissionless and censorship-resistant principles, allowing anyone to use the network freely, independent of any specific viewpoints. Labeling certain applications as "corposlop" is not censorship, but rather a form of criticism that he deems necessary. He rejects the idea of "pretend neutrality" for individuals and insists that they should clearly state their principles. According to Buterin, principles are not limited to protocol design; they inevitably extend to broader social contexts. He also warns against the hollow use of "freedom" in technology, disconnected from other aspects of life and argues that a decentralized protocol should not be confined to a single metaverse. These statements come a month after his support for digital sovereignty concerns raised by Bitcoin maximalists.

Bitcoin Pauses at Key Pressure Point as On-Chain Data Suggests Market Bottom Yet to Come

Bitcoin has been fluctuating between $60,000 and $70,000, reflecting concerns of further declines. The cryptocurrency is trading within a narrow range set by the Short-Term Holder Realized Price, with the -1.5σ level often indicating maximum market stress. Alphractal founder, Joao Wedson, refers to the Net Unrealized Profit/Loss (NUPL) metric for long-term holders, currently at 0.36, suggesting they remain profitable despite volatility. However, a negative turn in this metric, linked to extreme pessimism and seller exhaustion, typically signals the end of bear markets. Concurrently, miners are adjusting their strategies, with over 36,000 Bitcoin being withdrawn from exchanges since February, indicating a potential move to long-term storage and reduction in immediate sell-side supply.

Hayden Davis Returns to Trading Following LIBRA Scandal, With Recent Transactions Resulting in Significant Losses

Hayden Davis, the project creator behind the LIBRA meme coin, has returned to trading after a period of inactivity, according to blockchain analytics firm Bubblemaps. However, Davis' latest trades, primarily in Solana-based meme coins like PUMP, TROVE, and PENGUIN, have resulted in losses of roughly $3 million. Bubblemaps also revealed that Davis, who had previously made millions by sniping Kanye West's YZY token, didn't leave the market after the LIBRA collapse, which was linked to over $100 million in insider profits. Instead, he continued to generate profits through opportunistic trades, and has now re-engaged in routine on-chain trading activity.

Analyst Predicts Prolonged Market Readjustment as Bitcoin Activity Decreases

Bitcoin's Entity-Adjusted Liveliness metric, which tracks the ratio of spent coin days to created coin days, peaked in December 2025, indicating a shift from the distribution phase to an accumulation phase that historically lasts between 1.1 and 2.5 years. Analyst Axel Adler Jr. suggests this signals a potential prolonged market reset. Despite this, there's no consensus on the severity of the downturn. Factors such as improved infrastructure, the introduction of crypto ETFs, and increased institutional participation may alter the traditional cycle pattern. Crypto market cap has fallen by about 49% from its peak, though retail investors are actively buying the dip. Current conditions could lead to an extended slowdown as valuations adjust to clearer regulations and more focus on revenue. However, metrics tracking long-term investors indicate they remain in profit, suggesting major rallies may only occur after significant losses.

Matrixport: Extreme Crypto Fear Indicates Potential Turning Point Ahead

Matrixport's proprietary Greed and Fear Index indicates that Bitcoin sentiment is at a multi-year low, suggesting that the market could be nearing a turning point. Despite short-term uncertainty, the firm's analysis shows the index has fallen below zero on its 21-day average, a level previously close to price floors. However, prices could still drop before any recovery. The firm warns traders to be vigilant and prepare for conditions that typically precede a significant rebound. In the last week, Bitcoin investment products saw $380 million in outflows. Meanwhile, Bitcoin's value is down nearly 3% on the week and over 40% in the last six months. Other analysts have also noticed a mood of trepidation in the market, with shrinking open interest across exchanges indicating that investors are actively reducing exposure.

Strategy Amplifies Investment in Bitcoin Amidst Portfolio's Unrealized Loss of 2,486 BTC

Strategy, the world's largest corporate bitcoin holder, capitalized on the recent market downturn by adding to its BTC portfolio at less than $70,000 per unit. Co-founder Michael Saylor announced the purchase of 2,486 BTC for nearly $170 million, raising the company's total bitcoin holdings to 717,131 BTC, bought at an average price of $76,027. Despite the cryptocurrency market's decline, which has brought Strategy's holdings to a less than $49 billion value, the company remains committed to retaining its BTC investment, even as it faces an unprecedented unrealized loss exceeding $5 billion. The firm's stock price has experienced significant volatility, dropping from $140 to $120 before finding stability around $134.

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Pi Network's PI Token Rebounds while Bitcoin (BTC) Stagnates Below $68K: Market Observation

Bitcoin, after a failed attempt to breach the $70,000 resistance, has slipped below $68,000, with its market cap decreasing further to $1.355 trillion. Its dominance over altcoins is now under 56.5%. Meanwhile, most larger-cap altcoins, including XRP and DOGE, have underperformed this business week. On the other hand, the native token of Pi Network has shown positive momentum, reaching nearly $0.18 and returning to the top 50 altcoins by market cap, currently standing at $1.6 billion. Other notable gainers among the top 100 altcoins include STABLE, M, and NEXO. Despite these gains, the total crypto market cap has fallen back to $2.4 trillion.