By Shikha Singh
Headline 1
Crypto Market Cap Falls To November 2021 Levels Following Bybit Hack, Memecoin Bust.
Over the past 24 hours, financial markets, including cryptocurrencies, experienced a sharp selloff. The total crypto market capitalization dropped 8% to $2.86 trillion, reaching a three-year low.
Bitcoin fell to $86,700, its lowest since November 2021, and other cryptocurrencies like Ether, XRP, and Solana saw declines between 8-10%.
This decline followed U.S. President Donald Trump’s announcement that tariffs on imports from Canada and Mexico would proceed next week, spooking investors.
However, Binance CEO Richard Teng emphasized that this is a short-term dip, not a structural decline, as crypto markets have historically bounced back.
Bitcoin’s market dominance has risen from 41% to 61% since November 2021, while Ether’s share has dropped from 20% to 10%.
Cryptocurrencies outside the top nine have also lost ground, indicating Bitcoin’s growth at the expense of smaller assets.
US Spot Bitcoin ETFs See Record Outflows Worth $1 bn.
On Tuesday25th feb, U.S. spot Bitcoin exchange-traded funds (ETFs) saw their largest-ever daily net outflows, totaling $1.01 billion, with 10 out of 12 funds reporting outflows.
Fidelity’s FBTC led the way with $344.65 million, followed by $164.3 million from BlackRock’s IBIT fund.
Other notable outflows came from Valkyrie’s BRRR, Bitwise’s BITB, and Grayscale’s Mini Bitcoin Trust. These outflows exceeded the previous record of $671.9 million from December 2021.
Leveraged ETFs Tied to Bitcoin Stockpiler Strategy Drop Nearly 50% in Just Five Days.
Two leveraged Bitcoin-linked exchange-traded funds (ETFs), MSTX and MTSU, saw their prices drop nearly 50% over the past five days, following Bitcoin’s decline below $87,000.
MSTX, which was trading above $43 last week, fell to $23.83, and MTSU dropped from $9 to $4.94, reflecting a surge in trading volume.
The broader equity markets also faced a selloff after U.S. President Donald Trump announced plans to impose tariffs on Canada and Mexico next week.
Leveraged ETFs, which use derivatives and debt to amplify returns, carry higher risks, and this drop reflects the broader “risk-off” sentiment in the market.
Additionally, Strategy (formerly MicroStrategy), which holds nearly 500,000 bitcoins, saw its stock price fall nearly 10% to around $255 per share.
PayPal To Expand PYUSD Stablecoin Across Products to Serve 20 mn Merchants.
PayPal is expanding its PYUSD stablecoin integration to more products this year, aiming to serve its 20 million merchants.
The integration will include a new bill-pay feature, allowing merchants to pay and receive payments in stablecoins, reducing currency conversion fees and payment delays.
Additionally, PayPal plans to incorporate PYUSD into Hyperwallet, enabling faster, cheaper global payouts to freelancers and businesses without relying on banks.
PYUSD has grown rapidly, surpassing a $1 billion market cap by September 2024. The stablecoin market is becoming increasingly competitive, with major players like Tether, Circle, and Ripple expanding amid regulatory changes.
Financial Institution Shifts Millions in Crypto to Coinbase.
BlackRock’s Digital Asset Strategy has come under scrutiny after the financial giant moved approximately $204 million in digital assets, likely tied to its two spot crypto ETFs, IBIT and ETHA.
The transfers, made to Coinbase Prime, have sparked speculation about BlackRock’s intentions, with some analysts suggesting it could be rebalancing, redistributing, or simply custodying its assets.
While BlackRock has not confirmed its plans, the moves coincide with a broader market downturn following U.S. President Trump’s tariff threats.
The development has led to discussions in the crypto community about whether this marks a shift in traditional finance’s involvement in digital assets.
Upbit, South Korea’s Largest Crypto Exchange, Sanctioned from Accepting New Users.
South Korea’s Financial Intelligence Unit (FIU) has imposed sanctions on Upbit, the country’s largest cryptocurrency exchange, for violations of Know Your Customer (KYC) regulations.
The FIU found that Upbit’s operator, Dunamu, failed to properly verify customer identities, processing transactions for users with blurry or incomplete identification, leading to 34,777 KYC violations.
The exchange also facilitated transactions with unregistered foreign service providers, violating compliance laws.
As a result, new users will be restricted from making crypto deposits or withdrawals from March 7 to June 6, though existing users can continue trading.
Upbit plans to appeal the sanctions, arguing they are excessive and asserting that it has already made necessary compliance improvements.
This penalty follows previous warnings, and further violations could lead to significant fines, with penalties potentially reaching $34 billion.
EU Includes Crypto Exchange Garantex in Its New Russian Sanctions Package.
The European Council has sanctioned Moscow-based cryptocurrency exchange Garantex as part of the EU’s 16th package of sanctions against Russia. Garantex is linked to Sberbank, T-Bank, and Alfa-Bank, all of which have been under EU sanctions since 2014.
The EU claims that Garantex has been facilitating access to the global financial system for these banks’ customers by converting rubles into cryptocurrency.
Garantex had already been sanctioned by the U.S. and the UK, and it has been accused of enabling illicit financial activities, including ransomware transactions and cybercrime.
Despite these sanctions, Garantex continues to process billions of dollars in transactions annually. The exchange is considered a significant player in Russia’s illicit cyber networks, with ties to dark web markets like Hydra.
SEC Drops Uniswap Labs Investigation as Agency Continues Crypto-Friendly Push.
The U.S. Securities and Exchange Commission (SEC) has ended its investigation into Uniswap Labs, with no enforcement action planned.
This follows a trend where the SEC recently closed similar probes into other major crypto entities, including Coinbase, OpenSea, and Robinhood.
Uniswap had received a Wells notice from the SEC in April, which indicated the agency was considering a lawsuit over allegations that its decentralized exchange (DEX) operated as an unregistered securities exchange and broker-dealer.
This move provides reassurance for DeFi companies, signaling a more favorable stance toward decentralized technology.
Bank of America Ready to Issue A Stablecoin If Regulations Allow, Says CEO Brian Moynihan.
Bank of America CEO Brian Moynihan expressed the bank’s readiness to launch its own stablecoin, contingent on a favorable regulatory framework.
He emphasized that a fully dollar-backed stablecoin could function similarly to existing financial products, like money market funds or bank accounts.
Moynihan also highlighted the shift toward a digital economy, with most large transactions already being digital, and noted that US banks would embrace crypto payments if clear regulations are established.
While digital payment methods dominate, he acknowledged the continued importance of cash, especially for small businesses and consumers.
ARK Invest Bought Coinbase Dip as Bitcoin Fell o Multi-Month Lows.
ARK Invest, led by Cathie Wood, recently purchased 41,032 shares of Coinbase (COIN) for $9.3 million, despite a dip in tech stocks and Bitcoin falling to multi-month lows.
This move follows a previous sale of $4.3 million worth of COIN shares in December. The purchase was made through ARK’s Next Generation Internet ETF, which focuses on companies in the next-gen Internet sector.
Coinbase’s stock has struggled recently, with a 6.42% drop on February 25 and a 20% decline in the past week.
However, ARK remains bullish on Coinbase, partly due to its strong Q4 earnings and the SEC dropping its lawsuit against the exchange. ARK also sold shares of its Bitcoin ETF.
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