Weekly Update: 20th of February
What happened between the 13th and 20th of February?
- Bitcoin continued sideways movement between $66,000 and $72,000 as extreme fear in the market persists despite the recovery. Read more
- CFTC announced Innovation Advisory Committee with 35 members including CEOs from Coinbase, Ripple, Uniswap, Solana and traditional exchanges. Read more
- X announced crypto and stock trading directly via the platform within weeks through Smart Cashtags functionality. Read more
- Trump announced APEX partnership with World Liberty Financial for USD1 stablecoin which again caused controversy due to conflicts of interest. Read more
Bitcoin remains sideways after recovery, fear persists
Bitcoin recovered above $70,000 on Friday, February 14, after dropping to $60,000, driven by weaker-than-expected U.S. inflation data. The crypto market then showed recovery but subsequently remained largely in a sideways range between $66,000 and $72,000. Despite the recovery, the Crypto Fear & Greed Index remains at extreme fear levels, comparable to levels during the 2022 FTX crisis.
Bitwise reported $8.7 billion in Bitcoin losses realized during that week, potentially signaling capitulation behavior as holders adjust positions. Analysts point to several factors explaining the caution, including weak employment data and concerns about capital rotation into the AI sector. However, BlackRock reported that only 0.2% of its IBIT ETF saw redemptions despite volatility, showing stability among ETF investors compared to leveraged platforms where larger liquidations occurred.
CFTC announces Innovation Advisory Committee with crypto leaders
The Commodity Futures Trading Commission announced on February 12 the formation of its Innovation Advisory Committee, an advisory body of 35 members bringing together prominent leaders from the crypto industry, traditional financial markets, and emerging trading platforms. The committee includes CEOs from Coinbase, Ripple, Kraken, Gemini, Uniswap Labs, Solana Labs, and Chainlink, alongside executives from CME Group, Nasdaq, ICE, and DTCC.
CFTC Chairman Michael Selig described the formation as an important moment for the agency, with the committee advising on emerging technologies such as AI and blockchain. The inclusion of both crypto-native companies and traditional financial players signals that the CFTC recognizes the convergence of these worlds. The committee will have input on regulations around tokenization, perpetual contracts, and blockchain market infrastructure as the agency strengthens its position as lead regulator for crypto markets.
X announces crypto and stock trading within weeks
X, formerly Twitter, is preparing to launch crypto and stock trading directly on the platform within weeks. Product lead Nikita Bier confirmed that Smart Cashtags will soon enable users to tap on a ticker symbol to see real-time prices and charts and place transactions without leaving the app.
The move marks a significant step in X's plan to become an all-in-one app, enabling buying and selling of Bitcoin and other assets directly from the timeline. The initiative comes as X expands its ambitions from a social media platform to a comprehensive financial ecosystem. The functionality will allow users to execute transactions while scrolling through their feed, further blurring traditional trading boundaries between social media and financial services.
Trump announces APEX partnership, USD1 stablecoin causes controversy
President Trump announced on Wednesday at the World Liberty Forum at Mar-a-Lago a partnership between Apex Group and World Liberty Financial for the USD1 stablecoin. Apex Group, which oversees more than $3.5 trillion in assets, will pilot the USD1 stablecoin as a payment rail for subscriptions, redemptions, and distributions within its tokenized fund ecosystem.
The announcement again caused controversy due to Trump's personal interests in the crypto market. Eric Trump emphasized during the forum that stablecoins can bring "literally trillions of dollars" to the U.S. economy and argued they could potentially save the dollar. The USD1 stablecoin has now reached a market capitalization of over $5 billion, making it the fifth-largest stablecoin. Critics, including senators like Elizabeth Warren, accused the Trump administration of conflicts of interest, while the White House denies any conflicts exist.
In other digital assets news
- Binance completed the conversion of its $1 billion SAFU user protection fund from stablecoins to 15,000 Bitcoin within 30 days, with the exchange buying at an average price of $67,000 to benefit from lower prices.
- Goldman Sachs CEO David Solomon confirmed at the World Liberty Forum that he personally owns a small amount of Bitcoin and indicated that even skeptical bankers now want to take a position in digital assets.
- Strategy announced that the company can survive even if Bitcoin drops to $8,000 and still has sufficient assets to cover its $6 billion debt.
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