By shikha Singh
Bitcoin and Ethereum See Historic February Losses as Liquidity Concerns Grow.
In February 2025, Bitcoin dropped over 17%, its largest monthly decline in a decade, falling from $101,000 to around $84,000.
The decrease marked the second-largest February drop for Bitcoin, with its biggest decline in 2014. Ethereum also saw a 32% drop, its worst February performance since 2018.
The declines were driven by factors such as President Trump’s tariff announcements, the $1.5 billion ByBit hack, and broader macroeconomic concerns. Despite these losses, Bitcoin remains above its November 2024 value.
The market is seeing a small rebound, with Bitcoin leading, but bearish sentiment and concerns over liquidity, especially with Binance’s stablecoin reserves, may hinder recovery.
Furthermore, On Sunday, March 2, 2025, Bitcoin prices surged nearly 9%, surpassing $92,000, following an announcement by Donald Trump about creating a US Crypto Strategic Reserve. The cryptocurrency market’s benchmark, Bitcoin, saw a 5% rise to $89,400, up from $85,166, as per CoinMarketCap data.
Crypto Liquidity Surges as Stablecoin Supply Hits Record $217.8 bn.
Stablecoin activity has surged, with supply reaching an all-time high of $217.8 billion, signaling rising liquidity in the crypto market.
Tether (USDT) and USDC dominate, but newer stablecoins like USN and FRAX are also growing. This increase in stablecoin supply is expected to influence market prices and liquidity movements.
Tron (TRX) has seen the largest inflows of stablecoins, particularly USDT and USDC, followed by Ethereum-compatible Layer-2 solutions like Base, Polygon, and Optimism. Solana (SOL) experienced more modest growth. In contrast, some blockchains like Avalanche and TON saw declines in stablecoin reserves, highlighting challenges in their current market positions.
Federal Judge Dismisses SEC Case Against Richard Heart, Citing Lack of Jurisdiction.
A federal judge has dismissed the SEC’s lawsuit against Richard Heart, the founder of HEX, PulseChain, and PulseX, ruling that the SEC lacked jurisdiction.
The judge found that the project’s communications were not specifically targeted at U.S. investors and were globally available.
Heart’s statements did not target the U.S. market, and U.S. exchanges did not list the tokens, as the SEC failed to demonstrate. The court also ruled that U.S. participation in the project did not grant jurisdiction. The SEC can appeal or amend the ruling within 20 days.
Trump Directs Working Group To ‘Move Forward’ on SOL, XRP, and ADA Crypto Strategic Reserve.
On March 2, 2025, President Trump announced the creation of a “Crypto Strategic Reserve” through his Presidential Working Group on Crypto. The reserve will include Bitcoin, Ethereum, Solana, XRP, and Cardano.
This move aims to position the U.S. as the “Crypto Capital of the World.” Trump’s post led to significant price surges for these cryptocurrencies. The reserve is based on Trump’s January executive order to evaluate a national digital asset stockpile, potentially derived from seized crypto. The announcement comes ahead of Trump’s White House Crypto Summit, where he’ll meet key industry figures.
FTX Estate to Unlock $1.57 bn in Solana Tokens.
Solana is set to release 11.2 million SOL tokens today, valued at around $1.57 billion, as part of the FTX bankruptcy process.
This unlock represents 2.2% of Solana’s circulating supply, with additional smaller unlocks scheduled for April and May.
These tokens were sold at discounted prices in previous auctions, with major buyers including Galaxy Digital and Pantera Capital.
While the release of these tokens could put downward pressure on Solana’s price, concerns about increased supply are present. Recently, Solana’s price dipped to a four-month low of $136 but has since rebounded to around $140. Legal fees for FTX’s bankruptcy proceedings have approached $1 billion, making them among the most costly in US history.
Trump to Host First Crypto Roundtable at White House Next Week.
U.S. President Donald Trump will host a crypto summit on March 7, with White House Crypto and AI Czar David Sacks and Bo Hines leading the meeting. Trump will also speak at the event, which will include prominent crypto industry founders, CEOs, and investors, as well as members of the President’s Working Group on Digital Assets. The summit follows Sacks’ recent remarks emphasizing keeping digital asset innovation in the U.S.
This announcement comes after a week of positive developments for the crypto industry, including a federal judge allowing the SEC to withdraw its case against Coinbase and the SEC ending investigations into ConsenSys and Gemini.
AI Agent Token Creation Drops to Near Zero.
AI agent tokens have experienced a significant decline, with daily token creation dropping 99.5% since December, signaling a loss of momentum in the sector.
Despite AI’s potential, short-term interest is waning, as reflected in the shrinking market cap of AI tokens.
Meanwhile, memecoins are making a comeback, fueled by renewed hype and a key SEC ruling that exempts them from securities regulations.
The ruling, which classifies memecoins as collectibles rather than securities, could unlock new liquidity and speculative activity.
Dogecoin, Shiba Inu, and Pepe are seeing increased social volume, particularly among whales.
Solana, a leading blockchain for memecoin launches, stands to benefit from this renewed interest, with platforms like Pump.fun already seeing increased activity. As AI tokens fade, Solana could become the focal point of the next memecoin boom, driving up demand for SOL.
U.S. spot Bitcoin ETFs Record First Day Of Net Positive Inflows After Shedding $20 bn in Overall Value.
On Friday, U.S.-based spot Bitcoin ETFs saw $94 million in net inflows, ending an 8-day streak of outflows. Ark and 21Shares’ ARKB fund led with $194 million in inflows, and Fidelity’s FBTC followed with $176 million. However, BlackRock’s IBIT fund continued its struggle, setting a record single-day outflow of $244.5 million on Friday, totaling $1.175 billion in outflows for the week. Despite this, IBIT still holds more assets than FBTC. Overall, spot Bitcoin ETFs now hold around $95 billion, about $20 billion less than their value on February 20. Broader market selloffs, including movements driven by the Solana meme coin, have contributed to the decline in Bitcoin’s price.
BlackRock Incorporates Bitcoin ETF in $150 bn Portfolio Strategy.
BlackRock has added its iShares Bitcoin Trust ETF (IBIT) to its $150 billion model portfolio, allocating 1% to 2% of the portfolio to Bitcoin. This move signifies a step toward mainstream adoption of Bitcoin as an investment asset. Despite Bitcoin’s recent price dip, including IBIT, which saw over $37 billion in inflows since its January 2024 launch, highlights growing institutional interest in digital assets and strengthens Bitcoin’s long-term investment case.
Donald Trump-Linked Firm May Be Looking to Start NFT and Metaverse Platform.
DTTM Operations, which manages Donald Trump’s intellectual property, has filed a trademark application with the U.S. Patent and Trademark Office (USPTO) that suggests potential involvement in NFTs and the metaverse.
The filing includes blockchain-based products such as NFTs, cryptocurrency transactions, virtual reality software, and game software for online virtual worlds.
The trademark also mentions the creation of digital collectibles featuring images and media from Trump.
This move follows Trump’s engagement with crypto, including launching his TRUMP memecoin and NFTs offering exclusive access to Trump-themed experiences.
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