The enforcement action over wagers on sports event contracts followed Coinbase announcing the launch of prediction markets in all 50 US states.
The Nevada Gaming Control Board announced that it had filed a civil enforcement action against Coinbase over wagers on sports event contracts.
In Monday filings in the First Judicial District Court of the State of Nevada in and for Carson City, the Nevada Gaming Control Board sued Coinbase Financial Markets over allegations the company offered unlicensed wagers on sporting events. Authorities followed by requesting that the court grant a temporary restraining order and preliminary injunction preventing Coinbase from “operating a derivatives exchange and prediction market” related to sporting bets.
“The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens,” said Mike Dreitzer, chair of the Nevada Gaming Control Board, in a Tuesday statement. “The action taken yesterday reinforces this obligation.”
Source: Nevada Gaming Control Board
The action came less than a week after Coinbase announced it had launched prediction markets in all 50 US states as part of a partnership with Kalshi. While the US Commodity Futures Trading Commission oversees Kalshi at the federal level, the platform can still face legal challenges filed by state-level regulators, including Nevada’s.
Related: Tennessee sends cease-and-desist letters to Kalshi, Polymarket, Crypto.com
Cointelegraph reached out to a Coinbase spokesperson for comment, but had not received a response at the time of publication.
Polymarket faces similar legal challenges in Nevada
Last week, a Nevada court granted a temporary restraining order against a Polymarket operator, blocking the platform from offering bets on event‑based contracts to state residents. The judge overseeing the case cited “immediate” and “irreparable” harm to authorities’ ability to regulate betting without a license.
The Coinbase and Polymarket cases and others like it at the state level could challenge the CFTC’s authority to regulate prediction platforms like Kalshi and Polymarket without clear laws.
Magazine: Davinci Jeremie bought Bitcoin at $1… but $100K BTC doesn’t excite him
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
Tether, the company behind the dominant stablecoin USDT, has put a full Bitcoin mining operating system out in the open. The software, called MiningOS or MOS, is available under an open-source license and aims to let miners run, monitor, and scale rigs without paying for closed vendor platforms.
MiningOS Brings A Modest, Practical Toolkit For Miners
Reports note MiningOS is designed as a modular, self-hosted stack that works from single-rig setups to large sites. It bundles device management, telemetry, energy controls, and developer hooks so operators can mix and match the pieces they need.
The code is open under the Apache 2.0 license and the project publishes docs and a GitHub-style workflow for community fixes and feature requests.
Tether ❤️ Bitcoin
Tether Mining OS is now fully opensource.
A complete operational platform that can scale from a home setup to industrial grade site, even across multiple geographies.
Super modular, P2P encrypted networking layer. It supports a long list of miners,… https://t.co/VzXywA6IZc
A Peer-To-Peer Backbone, Not Another Cloud Service
Tether says MOS uses Holepunch peer-to-peer networking so devices can talk directly to one another. That means fewer central servers and no forced dependence on a single provider.
The design is meant to avoid vendor lock-in and to give miners full control over their data and operations. Independent outlets covering the launch highlighted those points when describing how MOS differs from many commercial mining platforms.
⛏️ Bitcoin Mining is complex. ️⚡ Mining OS by Tether (MOS) makes it simple.
Introducing MOS — the open-source operating system for real mining infrastructure.
Modular. Scalable. Built for energy + hardware + data.
Many small operators struggle with the cost of managed platforms and the extra complexity when hardware, power systems, and telemetry come from several vendors.
Reports say MiningOS aims to lower that barrier by offering a free, extendable base that communities and integrators can adapt. That could make it easier for hobbyists and emerging miners to run efficient setups without buying expensive licenses.
BTCUSD trading at $78,256 on the 24-hour chart: TradingView
Supporting Open Infra For Bitcoin
According to Tether’s announcement, the project is led internally and presented by company leaders at recent Bitcoin gatherings where miners and builders meet.
Paolo Ardoino, Tether’s CEO, has been named among the public faces explaining the initiative, and the firm has tied the launch to broader efforts to support open infrastructure around Bitcoin.
Featured image from Verdict, chart from TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Bitcoin’s price dropped below $75,000 today, its lowest level in nearly a year, as global crypto markets endured a sustained wave of selling triggered by broader financial stresses and shifting investor appetite.
The bitcoin price has now retraced more than 40% from its all‑time highs reached in late 2025. According to Bitcoin Magazine Pro data, the one-year low for the bitcoin price is $74,747. Bitcoin is dancing near that number.
Recent trading data showed Bitcoin price slipping through key technical support levels, driving forced liquidations across derivatives markets and intensifying downside price pressure. Over roughly the past 24 hours, around $2.56 billion in Bitcoin positions were liquidated, according to market data.
This follows weeks of risk‑off sentiment across global asset classes.
The downturn in cryptocurrencies has coincided with stress in other markets like precious metals, tech sell-offs, and losses in equities.
Institutional players report losses as policy signals remain dubious
The market slide has had tangible impacts on key industry participants. Galaxy Digital, a major crypto investment firm led by Michael Novogratz, reported a $482 million loss for the fourth quarter of 2025, earlier today.
The firm attributed this to the decline in digital asset prices and a sharp drop in trading volumes, which fell more than 40% from the prior quarter. Galaxy’s stock traded lower following the earnings release, reflecting investor concern about the broader bitcoin price and crypto downturn.
Also, Bitcoin price currently trades below $76,000, which is roughly the average price at which Strategy acquired a portion of its BTC holdings and well below the cost of many of its accumulated coins.
Since Strategy owns hundreds of thousands of bitcoins at higher average purchase prices, the current market value is less than what was paid for much of its inventory, leaving a significant portion of its holdings “underwater.”
Market participants have also pointed to U.S. monetary policy developments as a significant driver of the sell‑off.
The recent nomination of Kevin Warsh as chair of the U.S. Federal Reserve by President Donald Trump has prompted forecasts of tighter monetary conditions.
A strengthening U.S. dollar in response to monetary policy shifts has also weighed on Bitcoin. A firmer dollar typically makes non‑yielding assets like Bitcoin less attractive, reducing inflows from investors seeking currency‑neutral hedges. Analysts noted that the dollar’s recent performance provided technical headwinds that amplified the crypto market’s decline.
The Trump administration has continued to engage with industry leaders on digital asset policy, including efforts to advance regulatory clarity through legislation such as the Digital Asset Market Clarity Act.
This dialogue has really slowed down over the last couple of months, it has not yet translated into stabilizing price action amid current conditions.
Bitcoin price in genuine ‘crypto winter’
Despite this, Bitwise CIO Matt Hougan said in a recent memo that the crypto market has been in a genuine “crypto winter” since early 2025, rather than experiencing a short-lived correction.
Hougan highlighted that bearish sentiment remains strong, as evidenced by the Crypto Fear and Greed Index, which shows near all-time fear levels despite positive developments like the appointment of a bitcoin-friendly Fed chair.
Hougan noted that institutional flows helped mask the severity of the downturn. U.S. spot bitcoin ETFs and digital asset treasury vehicles purchased over 744,000 BTC during this period—roughly $75 billion in demand — cushioning bitcoin price’s drawdown, which he estimated could have reached nearly 60% without this support.
He compared the current environment to previous downturns in 2018 and 2022, where markets remained depressed despite incremental positive news.
Looking ahead, Hougan suggested that crypto winters often end not with exuberance but with exhaustion. In his words, “It’s always darkest before the dawn.”
Bitcoin price is currently at $74,800, with a 24-hour trading volume of 55 B. BTC is -5% in the last 24 hours. It is currently -5% from its 7-day all-time high of $78,994.
The prediction market on Base recorded a spike in trading volumes at the end of January.
The native token of Limitless, a prediction market on Base, Coinbase’s Ethereum Layer 2 network, is soaring this week after trading volume on the platform hit an all-time high in January.
The LMTS token, which launched in October, has struggled until now, falling as much as 86% to $0.05. However, it’s up 135% this week and another 2% today amid rising platform activity, which cleared $200 million in notional volume in January, according to Dune Analytics.
This marks a 56% jump from December, when it processed $128 million in volume.
Limitless Notional Volume – Dune Analytics
The protocol launched its Season 2 airdrop claim on Jan 28, just a day after kicking off Season 3, which runs until May 25.
Limitless also allows users to stake their tokens in the protocol. Currently, more than 23 million LMTS are staked, earning a little over 9% APY and representing almost 18% of the circulating supply.
While the prediction market’s growth is in line with the sector’s rapid rise, Polymarket’s activity still dwarfs Limitless’, with the leading decentralized prediction market recording all-time high volumes of $3.4 billion in January.
Competition in the prediction market space is only set to increase, with Hyperliquid unveiling its upcoming HIP-4 markets yesterday, which will support prediction market-like “outcome trading.”
New York — WisdomTree’s crypto business is no longer an experiment but core to the firm’s strategy and on the verge of turning profitable, CEO Jonathan Steinberg said in a fireside chat at the Ondo Summit in New York on Tuesday.
“We want to continue to scale,” Steinberg said. “Last year, we went from like $30 million in assets to about $750 million in assets,” adding that he firm doesn’t currently make money on its digital asset efforts but is “in line of sight of taking this to a profitable business.”
The firm, $150 billion in assets under management, has been investing heavily in blockchain infrastructure, launching tokenized funds, and expanding to new chains like Solana SOL$104.79. Steinberg said the effort is driven by long-term conviction. “It’s still early days, but it’s not an experiment now. We have conviction. So we believe eventually everything will go on chain.”
It’s not hard to see why WisdomTree has been pushing further with digital assets. Most recently, during its earnings presentation, it said its total WisdomTree tokenized AUM grew to $770 million, up 25x from 2024.
WisdomTree digital assets snapshot as of end of last year (WisdomTree)
WisdomTree has taken an aggressive, early lead among traditional asset managers in digital assets, launching a suite of tokenized funds and recently expanding distribution via WisdomTree Connect, which enables those assets to move across self-custodied wallets and institutional platforms.
The firm also made a strategic bet on blockchain infrastructure by acquiring Securrency, a compliance-focused tokenization company, which it later sold to the DTCC. Steinberg said that move was a foundational step in enabling “compliance-aware tokens” and programmable finance, helping WisdomTree build a long-term, interoperable digital asset strategy.
For Steinberg, crypto represents more than a product opportunity — it’s a new financial infrastructure. “Really, this is bigger than asset management. This is really about financial services,” he said. “Financial services — some of these banks go back a couple of centuries. So they built on legacy, on top of legacy, on top of legacy. There is that modernization that has to happen.”
As for WisdomTree’s ambitions? “We just want to continue to scale what we’re doing,” Steinberg said.
Shares of Strategy plunged today, dipping more than 8% in trading as Bitcoin traded at new one-year lows and crypto risk assets came under renewed pressure.
The decline pushed MSTR’s share price to levels not seen since late 2024, deepening a multi‑month downtrend that has left the stock among the worst performers on the Nasdaq this year.
Bitcoin’s slump — dipping below key technical thresholds over the weekend and early week — has reverberated through markets, hitting crypto‑linked equities especially hard.
Shares of major crypto platforms, like Robinhood and Circle also lost ground, highlighting the increasing correlation between Bitcoin prices and related stocks.
With over 713,000 Bitcoins on its balance sheet, purchased at an average cost near $76,000 per coin, Strategy is grappling with unrealized losses after Bitcoin’s recent slide below that level.
Despite price dips, Chairman Michael Saylor has made it clear that Strategy won’t be selling its Bitcoin — and in fact is doubling down on purchases even as the market dips, signaling his intent to keep accumulating more.
In his messaging, he’s basically said he’s comfortable with holding and adding even on weakness, not cashing out when prices fall.
Strategy bought more bitcoin last week
Earlier this week, Strategy said it purchased 855 bitcoin for about $75.3 million, paying an average price of $87,974 per BTC, according to a Monday filing.
The acquisition came just days before bitcoin fell below $75,000 over the weekend on some rapid selling, briefly pushing Strategy’s treasury close to $1 billion in unrealized losses.
Now, the price of bitcoin is below those levels near $74,000.
The company now holds 713,502 BTC, acquired for roughly $54.26 billion at an average cost of $76,052 per coin.
Last week’s purchase was fully funded through the sale of common stock, following Strategy’s ongoing capital-raising approach to finance bitcoin buys. The purchase of 855 bitcoin was significantly smaller compared to prior company purchases.
At the time of writing, bitcoin’s price dropped below $74,000 today, its lowest level in a year. The bitcoin price has now retraced more than 40% from its all‑time highs reached in late 2025.
Prior to today, the one-year low for the bitcoin price was $74,747. Strategy shares started the day at $139.66, but are currently trading at $128.87. The shares 52-week high was around $450 per share.
President Donald Trump’s negotiators on the U.S. Senate’s crypto market structure bill refuse to sign off on legislation that goes after the president directly for his digital assets business ties — one of the chief points Democrats have demanded in talks over how the U.S. industry should be governed.
Some of the earlier proposals for the ethics provisions in the bill — especially those proposed by Senator Adan Schiff of California — were “completely outrageous,” Patrick Witt, the executive director of the President’s Council for Advisors for Digital Assets, told CoinDesk TV in an interview Tuesday at the Ondo Summit in New York.
“We’ve made clear that there are red lines,” he said. “We’re not going to allow the targeting of the president individually or his family members.”
He said he’s hopeful that Democrats will be pitching more reasonable versions “that feel a little bit closer to something that could ultimately be agreed to.” And he said he thinks a solution will be found.
“But at the end of the day, this is not an ethics bill,” he said.
Witt led a meeting of crypto policy experts and representatives of the U.S. banking industry on Monday, where the digital assets insiders left frustrated that the bankers hadn’t yet come to the table to offer a way forward on their stablecoin yield disagreements.
He told CoinDesk that the meeting “exposed some new areas of agreement,” but the White House is trying to thread the needle between bankers worried about protecting their own deposit businesses and clearing a path for stablecoin products
“We’re trying to broker a deal,” he said. “My No. 1 job is to get a bill to the president’s desk. He wants to see this bill get done.”
But it’s the Senate Democrats who may pose the tougher sell at this stage, as they continue to push for crypto limits for senior government officials, along with other major requests.
In the earlier proposals that would have limited government officials’ spouses from industry involvement, “a lot of senators’ wives and husbands maybe would have been put out of work by that,” Witt said.
Democrats met with industry representatives on January 16, two days after a Senate Banking Committee hearing on advancing the legislation fell apart. And the Democratic lawmakers are planning to meet again on Wednesday to keep talking about their approach, according to a person briefed on the plans. If they can’t embrace a compromise bill in the Senate Banking Committee, the legislation may have to be advanced with only Republican support, as a similar version already was in the Senate Agriculture Committee.
In the end, though, legislation will have to have significant Democratic support to pass the Senate, which generally demands a 60-vote majority to approve a bill. The White House directed industry insiders to get their compromise ideas together by the end of February, according to people familiar with the discussion. The longer this legislative process drags on, the harder it’ll be to pass a bill before Congress departs to campaign for this year’s midterm elections.
Witt was also asked on Tuesday whether he’d be willing to identify how much in crypto the U.S. government currently holds, an especially relevant figure in light of the ongoing presidential plan to set up federal stockpiles.
In a bid to respond more “quickly to crypto failures,” such as the collapse of QuadrigCX, Canada’s top investment industry regulator rolled out a new digital asset custody rules tightening standards on digital asset custody.
The industry-led Canadian Investment Regulatory Organization (CIRO) said its new Digital Asset Custody Framework is designed to allow it to respond more quickly to risks, including hacking, fraud, weak governance and insolvencies that have left investors exposed in past incidents.
“Many of the expectations in the framework were developed in close consultation with [crypto-asset trading platforms] and their custodians and reflect practices already in place,” a CIRO spokesperson told CoinDesk, adding that transition considerations will be applied on a case-by-case basis.
“The new framework also provides a balance between flexibility and risk management, supporting innovation while ensuring strong investor protection,” the spokesperson added.
Deeply involved in the collapse
The collapse of QuadrigaCX in 2019 remains one of the most notorious failures in Canada’s crypto history, with $123 million still unaccounted for. Its CEO, Gerald Cotten, died, and customer funds were found to be missing. Later investigations described co-founder Michael Patryn as allegedly being deeply involved in the exchange’s operations during the period when misappropriations occurred.
“Custody is one of the most critical points of risk in the crypto ecosystem,” said Alexandra Williams, CIRO’s senior vice president of strategy, innovation and stakeholder protection.
A central feature of the guidance is a tiered, risk-based structure that allows firms to diversify and strengthen custody arrangements while maintaining robust investor protections.
Early signs that expectations must be updated
CIRO said it would treat emerging custody and cyber risks, repeated supervisory issues across firms, or shifts in market practices as early warning signs that expectations may need to be updated.
“If we see that expectations are no longer aligned with how custody risk is manifesting in practice, CIRO would update the framework proactively, rather than wait for a failure to occur,” the regulator said.
Canada has taken a cautious approach to crypto regulation, bringing trading platforms under existing securities rules and emphasizing investor protection through registration, custody and disclosure requirements. More recently, federal moves on stablecoins and an expanded oversight role for the Bank of Canada suggest a slow shift toward a broader national framework for digital assets.
CIRO, a self-regulatory body that set standards for investment dealers, mutual fund dealers and trading activity in Canada, possessing the quasi-judicial authority to investigate misconduct and enforce disciplinary actions, including fines, suspensions, and permanent bans.
ThriveCart, the sales and payments platform for digital entrepreneurs, has launched ThrivePay Installments, a new card-linked payment solution designed to rival traditional Buy Now, Pay Later (BNPL) models by leveraging consumers’ existing credit limits.
The new feature allows customers to split purchases into 3, 6, or 12 monthly payments using the pre-authorized limits on their existing credit cards. Crucially, while the customer pays over time, the merchant receives the full funds upfront.
Tapping into pre-existing credit
Ismael Wrixen, CEO of ThriveCart
ThriveCart positions the tool as a solution to the limitations of standard BNPL providers, which typically rely on new consumer loans, underwriting, and geography-specific approvals. By utilising existing credit card limits instead, ThrivePay aims to unlock an estimated $3.3trillion in unused available credit in the US alone.
Because the system relies on pre-approved credit rather than new loan applications, ThriveCart reports significantly higher approval rates of approximately 85 per cent.
Ismael Wrixen, CEO of ThriveCart, explained that the move addresses a shift in the digital economy toward higher-ticket items where traditional BNPL often struggles.
“The digital economy has moved upmarket,” said Wrixen. “BNPL works well for smaller local purchases, but ThrivePay Installments extends installment payments globally and to higher-ticket products, with approval rates doubling to approximately 85%.”
No new consumer debt
The platform, which has processed over $8billion in sales across 70 million transactions to date, is targeting digital course creators, coaches, and cross-border businesses. These sectors often face high decline rates with traditional financing options due to high transaction values or cross-border complexities.
Georgios Kartakis, head of payments at ThriveCart, emphasised that the solution avoids originating new debt for the consumer.
“We designed ThrivePay to avoid originating new consumer debt,” Kartakis said. “This means we can unlock pre-existing credit available to a customer in the U.S., to a merchant based almost anywhere globally, all without creating new loan obligations. This is a huge advantage ThriveCart merchants now have over their competitors.”
The service supports one-time purchases for digital or physical goods, as well as subscriptions, offering a “pay-later” access point for merchants in markets that have traditionally been underserved by loan-based financing providers.
Bitcoin stabilized near the mid-$78,000 range on Tuesday, February 3, after a sharp weekend sell-off briefly pushed the token below $75,000. Analysts linked the recent sell-off to thin liquidity, forced deleveraging and broader risk-off positioning across markets. At the time of writing (11 am ET), Bitcoin was trading near $77,900, while Ethereum slipped to roughly $2,300.
The move leaves Bitcoin down roughly 40% from its recent peak around $125,000, showing how quickly sentiment has shifted from late-2025 momentum to early-2026 stress testing across risk assets.
Weekend liquidity meets leverage unwind
The latest downdraft had the familiar signature of a crypto weekend: traditional markets were shut, liquidity was thinner, and crypto became one of the few “open” venues where capital could be repositioned quickly. Diego Martin, CEO of Yellow Capital, framed the price action as a liquidity-driven event rather than a fundamental repricing.
“It has certainly been a tricky few months for the digital asset market… US Spot BTC ETFs have seen strong outflows, capital is increasingly moving into AI-linked equities and precious metals, and thinning liquidity has caused disproportionately large price drops… Weekends also matter more than people admit. Digital assets are one of the few open liquid markets when others are closed, so it often becomes the source of liquidity when capital needs to be quickly repositioned,” Diego said to AlexaBlockchain.
That “repositioning” showed up in liquidation data. Around $2.56 billion worth of Bitcoin-position were liquidated as traders unwound leveraged bets amid heightened volatility. Reuters described the episode as a deleveraging move amplified by a macro shock rather than a crypto-specific failure.
Tuesday’s tape: stabilization, not relief
By Tuesday, the selling pressure had eased into a cautious consolidation. According to CoinMarketCap data, Bitcoin was trading around $77,500 with a market cap of $1.55 trillion. The 24-hour trading volume was $49.94 billion, down over 36%.
Bitcoin was trading around $77,500 with a market cap of $1.55 trillion. Source: CoinMarketCap
That posture is reflected in sentiment gauges. CMC Crypto Fear and Greed Index which measures the prevailing sentiment in the cryptocurrency market is currently at 17/100, squarely in “Extreme Fear” territory. Extreme Fear is often associated with mechanical selling pressure, but also with fragile, headline-sensitive rebounds.
Ryan Lee, chief analyst at Bitget, characterized the environment as “Fear, Liquidations, and a Fed Reset: Crypto’s Macro Stress Test.” In his assessment shared with AlexaBlockchain, the drawdown below $75,000 for Bitcoin and sub-$2,200 prints for Ether were driven by negative sentiment and macro-liquidity concerns that turned routine volatility into a cascade.
Lee said he expects Bitcoin to oscillate between $70,000 and $80,000 in the short term, with downside spikes possible in thin liquidity, and Ether to trade in a wide $1,800–$2,600 band.
He added that stabilization would be supported by a rebound in the Fear & Greed index above 40 and reduced liquidation volumes, while persistent outflows from spot ETFs would be a potential warning signal.
The ETF story: outflows… then a sharp reversal
One reason traders continue to watch downside tail risks is the behavior of U.S. spot Bitcoin ETFs, which have become a visible transmission channel between macro risk appetite and crypto positioning.
After a stretch of net outflows late in January—including a large risk-off day on January 30—flows reversed sharply at the start of February. Farside Investors data showed U.S. spot Bitcoin ETFs recorded about $561.8 million of net inflows on February 2, 2026, snapping a multi-session outflow run.
That reversal can cut both ways: it suggests institutional bid still exists on drawdowns, but it also highlights how quickly flows can swing when macro headlines or positioning shifts—especially when leveraged derivatives are already unstable.
Macro is back in the driver’s seat: Fed chair uncertainty and the “AI trade” wobble
While crypto narratives often oscillate between internal catalysts and idiosyncratic shocks, this week’s price action has looked more like cross-asset risk management.
Part of the market’s focus has been on the U.S. central bank. President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair injected uncertainty into rate expectations and the policy path, at a moment when investors were already sensitive to liquidity conditions. The current chair, Jerome Powell, is set to conclude his term in mid-May.
Separately, concern about the durability of the equity “AI trade” has spilled into broader risk sentiment. Microsoft results and commentary around large AI spend and cloud growth have fueled periodic doubts about near-term payoff. It is worth noting because rotations away from crowded equity themes can tighten overall risk budgets and raise correlations across speculative assets.
Gold’s surge: hedge demand, then profit-taking
Crypto’s drawdown also arrived as gold traded at historically elevated levels, reinforcing the “risk-off” framing. Investors booked profit after record highs in precious metals, with U.S. gold futures settling around $5,318/oz on January 28 and UBS raising its forecast trajectory while still projecting some cooling into end-2026.
In mid-Jan, Bitcoin climbed above $99,000 alongside gold on softer U.S. inflation and unease about the Fed’s independence. This shows how tightly crypto has become tethered to the same macro forces driving cross-asset positioning.
In that January episode, expectations of easier financial conditions and a weaker dollar helped lift both hedges and high-beta proxies for liquidity, allowing Bitcoin to trade in sympathy with gold’s surge. The latest move has been the mirror image: as policy uncertainty and liquidity anxieties resurfaced, the market shifted into a risk-off posture, and Bitcoin behaved less like a “digital gold” co-beneficiary and more like a leveraged risk asset—where thin weekend liquidity and forced liquidations can magnify declines even as gold remains elevated.
The key takeaway is not that gold “caused” the move, but that elevated demand for hedges and capital preservation tends to coincide with tighter liquidity for high-volatility assets—especially when leverage is high and weekend order books are thin.
Markets now appear to be in a holding pattern: not outright panic, but not a clean reset either. Key signposts traders are monitoring:
Liquidity and leverage: whether liquidation pressure fades and funding/positioning normalizes after the weekend unwind.
ETF flows: whether Monday’s inflow strength persists or flips back to outflows.
Macro headlines: any further clarity on Fed leadership, rate-path expectations, and broader risk appetite.
Sentiment: whether “Extreme Fear” readings improve meaningfully—often a prerequisite for sustained rebounds rather than short-covering rallies.
Bitcoin’s current behavior in the $75,000-$79,000 range looks less like a decisive bottom and more like a contested zone—where spot buying, ETF flows, and macro risk management are all pulling at the tape in different directions.
The article “Fear, Liquidations, Fed Reset: Why Bitcoin Is Stuck Near $78K” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/fear-liquidations-fed-reset-why-bitcoin-is-stuck-near-78k/
Read Also:
Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.
Image Credits: CoinMarketCap, Shutterstock, Canva, Wiki Commons
