GrowthMan's Profile | Binance Square

·

--

Crypto Market Wrap: Bitcoin Surges Past $68K as Institutional Interest ReturnsThe cryptocurrency market has staged an impressive comeback over the past seven days, with Bitcoin leading a broad-based rally that has reignited investor optimism. From pivotal regulatory developments to shifting institutional dynamics, here are the 10 most significant updates shaping the crypto landscape. Bitcoin Breaches $68,000 in Powerful Short Squeeze The marquee event of the week has been Bitcoin's forceful rebound, with the world's largest cryptocurrency climbing from recent lows near $62,000 to challenge the $70,000 resistance level. At the time of writing, BTC trades near $68,600 after briefly touching $69,953 during Wednesday's U.S. trading session. The move triggered a staggering $704 million in liquidations over 24 hours, predominantly affecting short sellers who had positioned for further downside. Analysts attribute the squeeze to a combination of factors: institutional accumulation, short covering, and improving macro sentiment. Orbit Markets co-founder Caroline Mauron characterized the move as "buying the dip" behavior following weeks of sustained selling pressure. "Bullish developments like the Coinbase Bitcoin Premium Index flipping positive and over $257 million inflows into Bitcoin ETFs have boosted investor confidence," noted Akshat Siddhant, lead quant analyst at Mudrex. Spot Bitcoin ETFs Record Largest Inflows Since January In a clear signal of returning institutional appetite, spot Bitcoin ETFs registered $257 million in net inflows on Wednesday; the strongest single-day showing since January. The influx coincides with broader improvement in risk appetite and suggests institutional investors are re-establishing exposure after weeks of tepid demand. The Coinbase Bitcoin Premium Index, which measures price differentials between Coinbase and Binance, has flipped positive for the first time since November, indicating resurgent U.S. institutional buying activity. This metric had remained deeply negative throughout much of February, reflecting sustained selling pressure from American investors. Despite recent volatility, cumulative net inflows into Bitcoin ETFs remain robust at approximately $530 billion since inception, far exceeding early projections of $50-150 billion over two years. USDT Supply Contraction Raises Liquidity Concerns A paradoxical development has emerged in the stablecoin sector: Tether's USDT supply has contracted sharply even as Bitcoin rallies. The 60-day market capitalization change for USDT has dropped below negative $3 billion, a phenomenon CryptoQuant analysts note has occurred only twice in history. The last such contraction occurred near the 2022 cycle bottom when Bitcoin traded around $ 16,000. Analysts interpret this as evidence of deleveraging and risk reduction among large holders, with multiple instances of single-day outflows exceeding $ 1billion. However, historical patterns suggest such forced deleveraging often precedes market bottoms. "When money is withdrawn from the stablecoin end back into the fiat system, available liquidity in the market decreases, making short-term prices more susceptible to selling pressure," analysts explained. "But if deleveraging is nearing its end, selling pressure may gradually dry up". Ethereum Defends $2,000 as Layer-2 Narrative Intensifies Ethereum has successfully reclaimed the psychologically critical $2,000 level, trading at $2,049 with a 7.4% daily gain. The recovery comes amid renewed focus on Ethereum's Layer-2 ecosystem and growing institutional interest in scalable blockchain applications. The Ethereum Foundation announced it is forming a dedicated DeFi team to support "DeFipunk" protocol development, appointing former DELV CEO Charles St. Louis as DeFi Protocol Specialist and Gearbox Protocol co-founder Ivan as DeFi Coordinator. The initiative emphasizes permissionless, censorship resistant, and self-custodial financial infrastructure. However, Ethereum ETFs continue to struggle, with assets under management contracting nearly 65% over four months; from approximately $30.6 billion at peak to current levels near $ 10.7 billion. This divergence between spot price recovery and ETF performance suggests retail and on-chain activity, rather than institutional flows, are driving the current rebound. Netherlands Backtracks on Unrealized Gains Tax In a significant regulatory development, Dutch Finance Minister Eelco Heinen announced plans to amend controversial legislation that would have taxed cryptocurrency holders on unrealized gains at 36%. The law, passed by the Dutch House of Representatives on February 12, required investors to pay taxes on paper gains even when assets remained unsold; a provision widely criticized as unworkable for volatile digital assets. "This law should not pass as it stands now," Heinen told RTL Nieuws. "It is clear that there are issues that need to be addressed". The legislation requires Senate review and was not scheduled to take effect until January 2028 at the earliest. The Finance Ministry will now reassess the law's content and determine whether to rewrite or partially revise it. UK Calls for Emergency Ban on Crypto Political Donations In a more restrictive regulatory development, UK National Security Council Chair Matt Western has called for an emergency ban on cryptocurrency political donations to prevent foreign interference in elections. Western argues that until risks including fund source verification are fully addressed, such contributions should be suspended. He also urged review of sentencing for election violations to strengthen deterrence. The move follows the Reform UK party becoming the first British political party to accept digital currency donations, having already received registrable contributions through its crypto portal. The current Election Bill does not restrict cryptocurrency donations, creating what critics view as a regulatory gap. Hong Kong to Finalize Digital Asset Rules, First Stablecoin Licenses Due in March Asia continues to emerge as a crypto-friendly jurisdiction, with Hong Kong Financial Secretary Paul Chan announcing that the government will submit digital asset policy within the year. The legislative package will establish licensing regimes for digital asset trading and custody service providers. Hong Kong has already implemented a licensing system for fiat-backed stablecoin issuers and plans to issue the first batch of licenses in March. Subsequently, authorities will work with licensed issuers to explore expanded application scenarios while maintaining compliance and controlled risk parameters. The move positions Hong Kong as a leading hub for regulated digital asset activity in Asia. Mining Difficulty Spikes 15% as Hashrate Recovers Bitcoin's mining ecosystem experienced its most significant difficulty adjustment since 2021, with mining difficulty soaring 15% to 144.4T. The increase reflects recovering network hashrate, which has climbed back to 1 ZH/s after temporarily declining to 826 EH/s. The difficulty adjustment occurs automatically every 2,016 blocks to maintain consistent block production times. The sharp increase indicates substantial new mining capacity coming online despite hash prices remaining near multi-year lows at approximately $23.9 per PH/s. The expansion suggests mining operators remain confident in long term $BTC appreciation despite current margin compression. DOT and UNI Lead Altcoin Surge on Network Developments Several altcoins have significantly outperformed the broader market on network-specific catalysts: Polkadot (DOT) jumped 21% ahead of March's planned 50% reward reduction, which investors anticipate will reduce selling pressure from miners and potentially support price appreciation. Uniswap $UNI gained 15% following a governance vote proposing increased protocol revenue capture across multiple Layer-2 networks, aligning protocol economics more directly with token holder value. Meanwhile, Cosmos (ATOM) bucked the positive trend, declining over 6% in what analysts describe as a reflection of "persistent altcoin vulnerability due to a lack of liquidity". Circle Reports Strong Growth Amid IPO-Related Loss In corporate news, USD Coin issuer Circle released its 2025 fiscal year financial results, revealing impressive operational metrics alongside accounting losses tied to its public listing preparations. USDC circulation reached $75.3 billion, representing 72% year-over-year growth. Fourth-quarter on-chain transaction volume hit $ 11.9 trillion, a staggering 247% increase. Total revenue and reserve income reached $2.7 billion, up 64%. However, the company reported a net loss of $70 million from continuing operations, primarily attributable to $424 million in IPO-related equity incentive expenses. This compares to a $ 157 million profit in 2024. Circle also disclosed that 55 financial institutions have registered for its Circle Payments Network (CPN), with 74 more undergoing qualification review. The Arc public testnet has attracted over 100 participants since launch. Market Outlook: Key Levels and Catalysts As February concludes, traders are watching several critical levels and catalysts: For Bitcoin, resistance sits between $69,000 and $72,900, with a breakout potentially targeting $74,000. Rejection could trigger consolidation or a pullback toward $66,000 support. Friday's $10.5 billion monthly BTC options expiry may determine the market's next directional move. For Ethereum, the $2,100–$2,220 range represents the next resistance zone. Sustainability of the rally depends on continued institutional inflows, macro stability, and the market's ability to absorb overhead supply. Derivatives data shows total crypto futures open interest increasing 6.6% to nearly $100 billion, outpacing market cap growth and indicating fresh capital entering the market. ADA and ETH futures stand out with OI increases of 21% and 15% respectively. However, caution persists. Wintermute OTC desk head Jake Ostrovskis warns against overinterpreting short term bounces after such significant drawdowns. "It's hard to see many people taking this rally seriously unless Bitcoin re-establishes above $75,000".

Crypto Market Wrap: Bitcoin Surges Past $68K as Institutional Interest Returns

The cryptocurrency market has staged an impressive comeback over the past seven days, with Bitcoin leading a broad-based rally that has reignited investor optimism. From pivotal regulatory developments to shifting institutional dynamics, here are the 10 most significant updates shaping the crypto landscape.
Bitcoin Breaches $68,000 in Powerful Short Squeeze
The marquee event of the week has been Bitcoin's forceful rebound, with the world's largest cryptocurrency climbing from recent lows near $62,000 to challenge the $70,000 resistance level. At the time of writing, BTC trades near $68,600 after briefly touching $69,953 during Wednesday's U.S. trading session.
The move triggered a staggering $704 million in liquidations over 24 hours, predominantly affecting short sellers who had positioned for further downside. Analysts attribute the squeeze to a combination of factors: institutional accumulation, short covering, and improving macro sentiment. Orbit Markets co-founder Caroline Mauron characterized the move as "buying the dip" behavior following weeks of sustained selling pressure.
"Bullish developments like the Coinbase Bitcoin Premium Index flipping positive and over $257 million inflows into Bitcoin ETFs have boosted investor confidence," noted Akshat Siddhant, lead quant analyst at Mudrex.
Spot Bitcoin ETFs Record Largest Inflows Since January
In a clear signal of returning institutional appetite, spot Bitcoin ETFs registered $257 million in net inflows on Wednesday; the strongest single-day showing since January. The influx coincides with broader improvement in risk appetite and suggests institutional investors are re-establishing exposure after weeks of tepid demand.
The Coinbase Bitcoin Premium Index, which measures price differentials between Coinbase and Binance, has flipped positive for the first time since November, indicating resurgent U.S. institutional buying activity. This metric had remained deeply negative throughout much of February, reflecting sustained selling pressure from American investors.
Despite recent volatility, cumulative net inflows into Bitcoin ETFs remain robust at approximately $530 billion since inception, far exceeding early projections of $50-150 billion over two years.
USDT Supply Contraction Raises Liquidity Concerns
A paradoxical development has emerged in the stablecoin sector: Tether's USDT supply has contracted sharply even as Bitcoin rallies. The 60-day market capitalization change for USDT has dropped below negative $3 billion, a phenomenon CryptoQuant analysts note has occurred only twice in history.
The last such contraction occurred near the 2022 cycle bottom when Bitcoin traded around $ 16,000. Analysts interpret this as evidence of deleveraging and risk reduction among large holders, with multiple instances of single-day outflows exceeding $ 1billion.
However, historical patterns suggest such forced deleveraging often precedes market bottoms. "When money is withdrawn from the stablecoin end back into the fiat system, available liquidity in the market decreases, making short-term prices more susceptible to selling pressure," analysts explained. "But if deleveraging is nearing its end, selling pressure may gradually dry up".
Ethereum Defends $2,000 as Layer-2 Narrative Intensifies
Ethereum has successfully reclaimed the psychologically critical $2,000 level, trading at $2,049 with a 7.4% daily gain. The recovery comes amid renewed focus on Ethereum's Layer-2 ecosystem and growing institutional interest in scalable blockchain applications.
The Ethereum Foundation announced it is forming a dedicated DeFi team to support "DeFipunk" protocol development, appointing former DELV CEO Charles St. Louis as DeFi Protocol Specialist and Gearbox Protocol co-founder Ivan as DeFi Coordinator. The initiative emphasizes permissionless, censorship resistant, and self-custodial financial infrastructure.
However, Ethereum ETFs continue to struggle, with assets under management contracting nearly 65% over four months; from approximately $30.6 billion at peak to current levels near $ 10.7 billion. This divergence between spot price recovery and ETF performance suggests retail and on-chain activity, rather than institutional flows, are driving the current rebound.
Netherlands Backtracks on Unrealized Gains Tax
In a significant regulatory development, Dutch Finance Minister Eelco Heinen announced plans to amend controversial legislation that would have taxed cryptocurrency holders on unrealized gains at 36%.
The law, passed by the Dutch House of Representatives on February 12, required investors to pay taxes on paper gains even when assets remained unsold; a provision widely criticized as unworkable for volatile digital assets.
"This law should not pass as it stands now," Heinen told RTL Nieuws. "It is clear that there are issues that need to be addressed".
The legislation requires Senate review and was not scheduled to take effect until January 2028 at the earliest. The Finance Ministry will now reassess the law's content and determine whether to rewrite or partially revise it.
UK Calls for Emergency Ban on Crypto Political Donations
In a more restrictive regulatory development, UK National Security Council Chair Matt Western has called for an emergency ban on cryptocurrency political donations to prevent foreign interference in elections.
Western argues that until risks including fund source verification are fully addressed, such contributions should be suspended. He also urged review of sentencing for election violations to strengthen deterrence.
The move follows the Reform UK party becoming the first British political party to accept digital currency donations, having already received registrable contributions through its crypto portal. The current Election Bill does not restrict cryptocurrency donations, creating what critics view as a regulatory gap.
Hong Kong to Finalize Digital Asset Rules, First Stablecoin Licenses Due in March
Asia continues to emerge as a crypto-friendly jurisdiction, with Hong Kong Financial Secretary Paul Chan announcing that the government will submit digital asset policy within the year.
The legislative package will establish licensing regimes for digital asset trading and custody service providers. Hong Kong has already implemented a licensing system for fiat-backed stablecoin issuers and plans to issue the first batch of licenses in March.
Subsequently, authorities will work with licensed issuers to explore expanded application scenarios while maintaining compliance and controlled risk parameters. The move positions Hong Kong as a leading hub for regulated digital asset activity in Asia.
Mining Difficulty Spikes 15% as Hashrate Recovers
Bitcoin's mining ecosystem experienced its most significant difficulty adjustment since 2021, with mining difficulty soaring 15% to 144.4T. The increase reflects recovering network hashrate, which has climbed back to 1 ZH/s after temporarily declining to 826 EH/s.
The difficulty adjustment occurs automatically every 2,016 blocks to maintain consistent block production times. The sharp increase indicates substantial new mining capacity coming online despite hash prices remaining near multi-year lows at approximately $23.9 per PH/s.
The expansion suggests mining operators remain confident in long term $BTC appreciation despite current margin compression.
DOT and UNI Lead Altcoin Surge on Network Developments
Several altcoins have significantly outperformed the broader market on network-specific catalysts:
Polkadot (DOT) jumped 21% ahead of March's planned 50% reward reduction, which investors anticipate will reduce selling pressure from miners and potentially support price appreciation.
Uniswap $UNI gained 15% following a governance vote proposing increased protocol revenue capture across multiple Layer-2 networks, aligning protocol economics more directly with token holder value.
Meanwhile, Cosmos (ATOM) bucked the positive trend, declining over 6% in what analysts describe as a reflection of "persistent altcoin vulnerability due to a lack of liquidity".
Circle Reports Strong Growth Amid IPO-Related Loss
In corporate news, USD Coin issuer Circle released its 2025 fiscal year financial results, revealing impressive operational metrics alongside accounting losses tied to its public listing preparations.
USDC circulation reached $75.3 billion, representing 72% year-over-year growth. Fourth-quarter on-chain transaction volume hit $ 11.9 trillion, a staggering 247% increase. Total revenue and reserve income reached $2.7 billion, up 64%.
However, the company reported a net loss of $70 million from continuing operations, primarily attributable to $424 million in IPO-related equity incentive expenses. This compares to a $ 157 million profit in 2024.
Circle also disclosed that 55 financial institutions have registered for its Circle Payments Network (CPN), with 74 more undergoing qualification review. The Arc public testnet has attracted over 100 participants since launch.
Market Outlook: Key Levels and Catalysts
As February concludes, traders are watching several critical levels and catalysts:
For Bitcoin, resistance sits between $69,000 and $72,900, with a breakout potentially targeting $74,000. Rejection could trigger consolidation or a pullback toward $66,000 support. Friday's $10.5 billion monthly BTC options expiry may determine the market's next directional move.
For Ethereum, the $2,100–$2,220 range represents the next resistance zone. Sustainability of the rally depends on continued institutional inflows, macro stability, and the market's ability to absorb overhead supply.
Derivatives data shows total crypto futures open interest increasing 6.6% to nearly $100 billion, outpacing market cap growth and indicating fresh capital entering the market. ADA and ETH futures stand out with OI increases of 21% and 15% respectively.
However, caution persists. Wintermute OTC desk head Jake Ostrovskis warns against overinterpreting short term bounces after such significant drawdowns. "It's hard to see many people taking this rally seriously unless Bitcoin re-establishes above $75,000".

GrowthMan

Crypto Market Wrap: Bitcoin Surges Past $68K as Institutional Interest Returns

Struggles of Bitcoin under the Trash

Trending Topics