Why they say TradFi and crypto are correlated

Hey folks,

Welcome back to your weekly snapshot of crypto insights, where we cover major trends, market moves, policy shifts, and must-know developments from the crypto space. Join us as we take you on a guided tour of the crypto world.

In the week that went by, the global crypto market witnessed volatility as liquidity dynamics took center stage. Macro events like the January US jobs report and the weakness in equity markets driven by AI stocks weighed on the crypto market, signaling the crypto market’s increased correlation with traditional markets. BTC traded within the $65K–$71K range last week, while ETH traded between $1.90K and $2.12K. 

BTC traded within the $65K–$71K range this week, reflecting a market driven more by positioning and liquidity dynamics. Early-week consolidation below $71K gave way to a liquidity flush toward $65K due to a broader risk-off move across global equities and commodities. The drawdown coincided with mixed macro signals from the US January jobs report as job growth came in at 130K, nearly double forecasts, while unemployment dipped to 4.3%, alongside AI-driven equity weakness, reinforcing cross-asset sensitivity. Technically, BTC traded below key moving averages, while RSI stabilization suggests momentum exhaustion rather than renewed impulsive selling. Positioning data suggests many leveraged longs sit between $65K and $67K, which could draw prices lower if $68K gives way. On the upside, a move back above $70K could trigger a squeeze toward $72K.

ETH traded between $1.90K and $2.12K this week, showing volatile but range-bound price action. Midweek buying pushed price above $2.05K, but resistance near $2.10K–$2.12K capped gains. Recent weakness has pulled ETH back toward $1.95K–$2.00K. In DeFi, Aave Labs has submitted a new proposal to the Aave DAO aiming to realign incentives and formalize future development around Aave v4. The framework proposes directing 100% of revenue from Aave-branded products to the DAO treasury under a token-centric model. The proposal seeks to strengthen governance alignment and position Aave to compete at the institutional scale as on-chain finance matures.

Lombard, with a TVL of $1B, has launched Bitcoin Smart Accounts, enabling institutions to use BTC in DeFi without moving assets out of custody. The product allows BTC held with custodians, MPC setups, or self-custody wallets to be recognized on-chain through a receipt token (BTC.b), while the underlying BTC remains securely with the custodian and legal ownership is unchanged. The solution aims to unlock institutional participation in DeFi without introducing operational or legal transfer risks. In Prediction markets, Open interest crossed $1 billion for the first time, reaching $1.1B on Feb. 7, largely fueled by elevated activity around the 2026 Super Bowl. Since then, participation has remained consistent with OI holding above $900M every day. In global news, Thailand’s cabinet has approved a proposal to allow digital assets such as BTC and carbon credits to serve as underlying assets in the country’s derivatives and capital markets. The Securities and Exchange Commission will amend the Derivatives Act to formalize this change, aiming to modernize Thailand’s financial markets, strengthen investor protection, and position the country as a regional hub for institutional crypto trading.

Top performers among altcoins were PIPPIN, STABLE, and MORPHO.

Weekly price movement: 

(All data here as of 3:00 p.m., 16 February 2026)

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

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

See you later, folks! 👋