Crypto Weekly Market Wrap February 9: Global Crackdowns, Capital Shifts, and Market Volatility

The crypto market last week was rattled by regulatory developments, massive fund movements, and high-stakes policy debates. From U.S. Treasury testimony to China’s renewed crackdown and Binance’s BTC pivot, headlines shaped sentiment. Meanwhile, Bitcoin volatility dominated trading floors, with prices whipsawing between $60,000 and $78,000 before rebounding above $70,000. In the section below, we will discuss key developments that made headlines last week.

Treasury Clarifies Bitcoin Seizure Policy, Rejects Bailout Authority

U.S. Treasury Secretary Scott Bessent said that the government would hold confiscated Bitcoin under asset forfeiture cases. He, however, noted that the Treasury does not have the authority to order private banks to retain Bitcoin during market downturns.

During a congressional hearing, Bessent highlighted that the Financial Stability Oversight Council does not have a mandate to “bail out Bitcoin.” The topic was brought up by Congressman Brad Sherman, and Bessent disclosed that the value of the confiscated Bitcoin had surged from $500 million to more than 15 billion.

White House Hosts Stablecoin Reward Talks With Industry Leaders

The White House held a meeting on February 2 to discuss the regulation of stablecoin rewards with Coinbase, crypto lobby groups, and banking associations. The session was headed by Patrick Witt, a member of the President’s Council of Advisors on Digital Assets.

The meeting indicated a clear divergence, although no agreement was reached. Banks were worried about losing deposits, while crypto firms demanded that third-party firms offer yield products. The parties plan to get a solution before the end of February.

CFTC Reverses Ban on Prediction Markets as States Tighten Control

CFTC Chairman Michael Selig reversed an earlier decision that sought to prohibit prediction contracts tied to politics and sports. He also suspended a similar advisory issued last year. Even though the CFTC relaxed its position, several states took a different direction. Prediction markets were labeled as illegal gambling by the New York Attorney General. Moreover, Nevada courts restricted Polymarket from offering Super Bowl contracts, while Connecticut issued a cease-and-desist order.

China Details Regulatory Oversight of RWA Issuance Overseas

A framework related to the offshore tokenization of domestic real-world assets was issued by Chinese regulators. The regulations place the responsibility on various agencies in accordance with the asset category. Debt instruments will be regulated by the NDRC, while equity-type and securitized RWAs will be regulated by the CSRC. Moreover, capital repatriation and fundraising must comply with the State Administration of Foreign Exchange.

Hong Kong Monetary Authority Eyes Stablecoin Licenses by March

The HKMA Chief Executive Eddie Yue confirmed that 36 institutions had filed applications for a stablecoin license. The authority is reviewing the applications, and the first licenses will be given out in March.

According to Yue, the majority of applicants submitted basic documentation. As a result, the HKMA demanded post-follow-up information, particularly on the risk controls and reserve asset composition.

Vietnam Considers Taxation, Capital Requirements for Crypto Firms

The Ministry of Finance in Vietnam proposed a 0.1% tax on personal income tax on crypto transactions. The regulation covers transactions conducted through licensed platforms by individuals, irrespective of residency. A 20% corporate income tax will be imposed on institutional investors. In addition, the draft establishes a minimum capital requirement of $408 million on the exchanges and restricts foreign ownership to 49%.

Russia’s MOEX to Expand Crypto Derivatives Lineup in 2026

The Moscow Exchange announced that it plans to introduce Solana, Ripple, and Tron indices and futures. These new contracts will be settled in cash and reserved for professional investors. Bitcoin and Ethereum products are already available on MOEX under similar conditions. The exchange is also looking at perpetual futures to cater to the institutional demand.

SBI Holdings and Startale Launch Blockchain for Tokenized Stocks

SBI Holdings and Startale Group of Japan released a proof-of-concept for the Strium Network. The new Layer 1 blockchain is focused on tokenized equity markets in Asia. Strium provides cross-border settlement, round-the-clock trading, and DeFi compatibility. It extends its existing partnerships, such as the yen-backed stablecoin and a platform for trading real-world assets.

MetaMask and Ondo Link Up to Offer Tokenized U.S. Securities

MetaMask collaborated with Ondo Finance to let users access tokenized stock, ETFs, and commodities. The integration facilitates qualified users outside the U.S. to use both traditional and tokenized assets in a single wallet. The trading takes place via Ondo Global Markets and uses USDC on Ethereum. Assets include Apple, Amazon, and popular ETFs such as QQQ and SLV.

Trump Responds to Questions Over Investment Ties

Claims of involvement in World Liberty Financial were dismissed by President Donald Trump. A company associated with the UAE Sheikh Tahnoon bin Zayed recently acquired a 49% stake in the firm. Trump said his sons handle family investments and added that he was not aware of the deal. He recognized the increasing significance of crypto without elaborating further.

Russia’s Largest Bank Tests Bitcoin-Backed Loan System

Russia’s Sberbank proceeded with its plans to provide crypto-backed loans. In January, the bank issued a Bitcoin-backed loan to IntelionData during the pilot program. Authorities said that they are collaborating with the Central Bank of Russia to align with the changing rules. Sberbank also believes that crypto lending is going to play a major role in financial innovation.

Bithumb Error Sends 620,000 BTC to Users in Promotion Glitch

Bithumb, a South Korean exchange, mistakenly credited users 2,000 BTC each during a giveaway. The mistake led to 620,000 Bitcoins being sent. Bithumb restored 99.7% of the tokens and froze affected accounts within 35 minutes. Regulators are currently investigating internal controls and promotional procedures.

Polymarket Advances Token Launch Despite Legal Challenges

Polymarket filed trademark applications for “POLY” and $POLY with the U.S. Patent Office. The submissions coincide with the platform being sued in several states. Despite regulatory scrutiny, Polymarket is still working on its branding and moving toward a native token launch.

Senator Lummis Calls on Banks to Embrace Stablecoins

Senator Cynthia Lummis urged banks to embrace the use of stablecoins, viewing them as a modern extension of the U.S. dollar. She highlighted the benefits, such as faster payments and new revenue through custody services. Lummis claimed that digital assets are efficient and do not jeopardize the banking system.

Gemini Shuts Down Services in Three Major Markets

Gemini stated it is halting operations in the UK, EU, and Australia. It cited high operating expenses and regulatory delays among the main factors. As of March 5, the accounts will switch to withdrawal-only mode. Moreover, all the remaining accounts will be closed by April 6. Instead, the company will concentrate on the U.S. and Singapore markets.

Ripple Integrates Hyperliquid DEX Into Institutional Platform

Ripple integrated support for Hyperliquid’s decentralized exchange into its Ripple Prime brokerage platform. The move allows institutional customers to trade perpetual futures on-chain. Ripple Prime remains the sole counterparty to its users despite the DEX integration. The model seeks to provide institutions with a familiar trading experience in DeFi markets.

Epstein Investment in Coinbase Raises Old Questions

According to new emails released by the U.S. Department of Justice, Jeffrey Epstein invested in Coinbase in 2014, worth around $3 million. The investment was made through Blockchain Capital, developed by Brock Pierce. This news has stirred controversy, leading to questioning of the sources of past funding. Meanwhile, one Bitcoin Core contributor stepped down following an association with Epstein’s money. Michael Saylor was also mentioned in relation to Epstein in an email about a charity in 2010.

Ripple Secures Full EMI License in Luxembourg

Ripple was granted a complete license as an Electronic Money Institution by the Luxembourg financial regulator. This was based on a preliminary license issued in January. This license will now allow Ripple to expand payment services and digital asset products throughout the European Union.

Binance Converts SAFU Fund Into Full Bitcoin Reserve

As a part of its SAFU fund strategy, Binance acquired 3,600 BTC valued at $250 million last week. The exchange plans to hold $1 billion in Bitcoin to improve user protection. The SAFU fund, which was established in 2018, previously held stablecoins. Bitcoin is now seen by Binance as a more secure long-term reserve asset.

Strategy to Launch Bitcoin Security Program for Quantum Era

Strategy (formerly MicroStrategy) announced its plans to launch a quantum threat-oriented security program. Michael Saylor said that the project would involve international experts. The company focused on teamwork instead of making immediate changes to the protocols. Strategy holds more than 713000 BTC after acquiring 855 Bitcoin last week despite the broad market volatility.

BitMine Faces $6.6B ETH Loss, Chairman Defends Strategy

BitMine Immersion Technologies is sitting on an unrealized loss of $6.6 billion on Ethereum. Critics assert the loss might trigger a sell-off. Chairman Tom Lee defended the approach of the company, stating that BitMine is a reflection of index funds. He also added that losses during downturns are normal in long-term holdings.

Bitwise Applies for Uniswap ETF With SEC

Bitwise Asset Management filed a registration to launch a Uniswap ETF. The ETF would contain UNI tokens and enable traditional investors to gain exposure. Token storage will be handled by Coinbase Custody. The ETF aims to eliminate the dependency on users to manage their own private keys or wallets.

Nevada Files Complaint Against Coinbase Over Prediction Markets

The Nevada Gaming Control Board filed a lawsuit against Coinbase to prohibit its prediction market products. According to the regulator, providing event-based contracts without a gaming license is against state law. The board is seeking a permanent injunction and restraining order. Coinbase launched its market in January through Kalshi, a registered CFTC platform.

Tether to Hire 150 More Staff as Business Expands

Tether plans to expand its workforce by 50% within the next 18 months. The growth will add 150 jobs, such as engineers and regulatory experts. The issuer of the stablecoin has already hired 300 employees. The market capitalization of USDT has increased from $140 billion to $185 billion over the last year.

Crypto.com Buys AI.com Domain for $70M in Crypto

Crypto.com CEO Kris Marszalek announced the acquisition of the AI.com domain for $70 million in crypto. The platform will be introduced at Super Bowl LX. Marszalek plans to establish a consumer AI agent service under the brand. Through their own AI, users will be able to send messages, trade, and build products.

Fidelity Launches Dollar-Backed Stablecoin for All Users

Fidelity Investments introduced its stablecoin FIDD, making it accessible to retail and institutional clients. The token is issued on Ethereum. FIDD can be purchased or redeemed by users in a 1:1 ratio. This move was facilitated by the GENIUS Act, which provided clear legal instructions on the issuance of stablecoins.

Canada Sets Rules for Crypto Custodians to Prevent Losses

Canadian investment watchdog CIRO unveiled new guidelines for custody. The framework places the custodians into four levels depending on strength and supervision. Dealer members are obliged to adhere to tough regulations regarding cybersecurity, insurance, and audits. The new regulations are meant to safeguard investors without compromising innovation.

South Korea’s KBank Prepares Stablecoin Wallets Before IPO’

KBank filed for 13 trademarks for stablecoin wallet services before its March IPO. Some of the names include KSC Wallet and KStable Wallet. The filings suggest a complete set of services that includes payments, settlements, and remittances. KBank also aims to leverage the IPO funds to expand its digital asset offerings.

Digital Asset Investment Products Market Overview

The latest report by CoinShares shows that digital asset investment flows displayed signs of stabilizing despite the current price weakness. Outflows decreased by a wide margin to $187m, a reversal that usually precedes sentiment reversals. Historically, a shift in flow momentum was more important than prices.

The recent correction also dragged assets under management to $129.8 billion, the lowest since March 2025. Trading meanwhile rose sharply, with volumes of exchange-traded products hitting a record high of $63.1 billion across the week across the global markets broadly.

In addition, trends in regions varied, as Germany, Switzerland, Canada, and Brazil registered inflows locally. Bitcoin experienced weekly outflows of $264 million. In comparison, XRP, Solana, and Ethereum experienced fresh demand, with XRP leading with year-to-date inflows of $109 million.

Bitcoin Price Performance

Bitcoin slid toward a local low near $60,000 after heavy selling shook the crypto market. Over seven days, prices revisited levels last seen in September 2024, while liquidations reached billions. Earlier in the week, Bitcoin hovered below $80,000 before momentum turned sharply lower.

On February 3, sellers drove BTC from $78,000 to $73,000, signaling rising pressure. The following day, losses deepened as the price slipped to $70,000. By February 5, a sharp flush dragged Bitcoin from $73,000 to $60,000. However, buyers have stepped back in, lifting Bitcoin above $70,000, despite an 8.80% weekly drop.

Technical indicators on the daily chart display a bearish sentiment for the cryptocurrency. BTC has formed a series of red candlesticks as the bulls and bears battle for control. Indicators such as the MACD and the RSI suggest the price could correct further if the current trend doesn’t shift.

The 14-day RSI has dropped into the oversold region at 28 levels. Meanwhile, the MACD line continues to drop further below the signal line, which is a sign of a lack of buying pressure.