Bitcoin dips below $96K as markets brace for volatility

Hola folks!

Welcome back! It has been a relatively calm week on the crypto front as benchmark cryptos displayed rangebound trade as the market awaits pro-crypto announcements from the US administration. 

On a positive note, the demand for Bitcoin on exchanges stayed strong throughout the week, signaling healthy interest in the asset. Today’s newsletter highlights significant crypto developments in the past week and how these might impact crypto prices. Read on to learn more.

Bitcoin tested support at $96,200 before briefly dipping to $93,000, reflecting ongoing market uncertainty. The fallout from the Argentine president’s memecoin scandal added to negative sentiment, but optimism returned after US President Donald Trump asserted his pro-crypto stance. 

Bitcoin supply on exchanges hit a multi-year low, signaling firm conviction among holders, while MicroStrategy, now Strategy Inc., announced a $2 billion convertible bond offering to increase its Bitcoin holdings. 

In another development, Texas lawmakers are debating a state-backed Bitcoin reserve, which could potentially pave the way for government adoption.

The broader crypto market faced a major security scare as Bybit suffered the largest digital heist in history, losing $1.5 billion in Ethereum, though the exchange assured customer funds were safe. 

Gold surged 45% in a year as investors sought safe-haven assets due to economic uncertainty. If aggressive US trade policies persist, markets could face volatility and inflationary pressure. The coming week could be pivotal in determining whether Bitcoin reclaims $100K or risks a deeper correction.

Ethereum gained 2.2% last week, with strong network activity and rising staking participation. Solana sentiment remained weak due to the $Libra controversy and an impending $2 billion token unlock in March. 

Meanwhile, XRP held steady as Ripple’s legal battle against the SEC fueled cautious optimism. In DeFi, Fluid, a money market protocol, reached a record daily DEX volume of $800 million, securing a 17% market share on Ethereum. Meanwhile, whale activity suggests capital rotation from TRX and ADA into a new memecoin, Catzilla, inspired by Japanese kaiju culture.

Weekly price movement: 

• BTC $95,456 ⏬ 0.66%

• ETH $2,681 ⏬ 0.25%

• XRP $2.45  ⏬ 7.41%

• ADA $0.7309 ⏬ 8.00%

(All data here as of 2.00 p.m., 24 February 2025)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Crypto firm Bybit said hackers stole $1.5 billion worth of digital currency in what could be the biggest crypto theft in history. Hackers stole from its Ethereum coin digital wallet. Bybit’s founder Ben Zhou said the money could be covered by the firm or by a loan from partners. Bybit holds $20 billion in assets. Read more here.

• The US SEC is closing its investigation into major non-fungible token (NFT) marketplace OpenSea, the platform’s founder and CEO Devin Finzer said on social media. The move will ease pressure on the NFT market. Read more here.

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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