Bitcoin Rises on Bullish News, But Faces Resistance

DAILY MARKET OVERVIEW

Gains, Hacks & Regulatory Shifts

👋 Hey Crypto Enthusiasts! The market saw a burst of positive momentum today, but an unexpected security breach in Bybit has caused some turbulence. Let’s break it down.

Bitcoin saw an early rally today, reaching $99K, driven by a mix of bullish catalysts:

• Michael Saylor Buys $2B in Bitcoin 📈
  Historically, Saylor’s $2b Bitcoin purchases push BTC prices by around 4%. At the time of the announcement, BTC was sitting at $94K, and today’s push to $99K aligns with that trend.
  

• FTX Repayments Injecting Liquidity 💰
  The return of funds from FTX to creditors has provided additional liquidity, which likely contributed to today’s price appreciation.
  

• SEC Drops Case Against Coinbase 🚀
  The SEC has agreed in principle to dismiss its case against Coinbase, a major victory for the crypto industry. Market confidence has improved as regulatory pressure eases.

😨 Then the Bybit Hack Happened…

Just as things were looking good, Bybit was exploited for $1.5B in Ethereum, causing panic in the market and a sharp sell-off.

• What Was Stolen?
  The hacker took over $1.4 billion in ETH and stETH from a single compromised cold wallet. Bybit has confirmed that other wallets remain secure.
  

• How Did It Happen?
  Bybit was attempting to move ETH from their cold storage to a warm wallet. The hackers fooled Bybit’s signers into approving a fake, harmless-looking transaction, which secretly gave them full access to the funds.
  

• Bybit CEO reassures users:

  Bybit remains solvent even if the funds are not recovered. Client assets are fully backed 1:1, and operations will continue as normal.

• What Happens Next?

  • Crypto investigators are tracking the hacker’s wallets and reporting them to exchanges.

  • Exchanges are blocking suspicious transactions to prevent mass liquidation.

  • Market panic is slowing down, but traders remain cautious.
    

⚠️ While today started off strong, the Bybit hack has put the market on edge again. Investors should stay cautious, focus on capital preservation, and watch for macro liquidity shifts that could influence altcoin performance in the coming months.

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Altcoin Market Still Struggling 📉 

Despite Bitcoin’s recent push, altcoins remain weak, with most losing steam. However, a few projects are standing out:

🚀 Sonic, Kaito, and Story (IP) – These chains are showing relative strength in a weak market, attracting attention from traders looking for short-term gains.

Investors Waiting for Quantitative Tightening to End 💵

One of the biggest concerns in the market right now is liquidity. Many investors are holding back, waiting for quantitative tightening (QT) to end before making big moves.

🔍 What is Quantitative Tightening (QT)?

• QT is when central banks reduce liquidity by selling assets or raising interest rates.

• This makes money more expensive to borrow, slowing down economic activity and reducing investments in riskier assets like crypto.

📅 When Will It End?

• Many analysts expect QT to end around Q3 2025, which could bring a flood of new liquidity into the market.

• Until then, traders should remain cautious and focus on high-conviction plays rather than speculative bets.

The market continues to face challenges, making it difficult for traders to secure consistent gains. For now, the best approach is to prioritize capital preservation and remain patient until there are clear signs that quantitative tightening (QT) is nearing its end, which could bring much-needed liquidity back into the market.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Franklin Templeton Expands Crypto ETF Lineup with Bitcoin & Ethereum Combo
Franklin Templeton launches its spot Bitcoin and Ethereum ETF, following Hashdex’s debut. The SEC-approved fund offers market cap-weighted exposure with future asset expansion potential.

Russia’s Crypto Crime Surge Prompts Supreme Court to Draft New Legislation
Russia sees a rise in crypto-related crimes, prompting the Supreme Court to propose recognizing digital assets as property in criminal cases while cracking down on illegal mining.

Hong Kong in Talks to Introduce ETF Staking and Crypto Derivatives
Hong Kong’s SFC is in discussions with crypto firms to enable ETF staking and derivatives trading, aiming to enhance the city’s digital asset market.

Canary Capital’s Spot Litecoin ETF Gains Traction with DTCC Listing
Canary Capital’s proposed Litecoin ETF appears on DTCC’s list, signaling progress toward potential SEC approval and marking Litecoin’s possible entry into the spot ETF market.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Bitcoin: What to Expect (21.02.2025 Summary)

Benjamin Cowen analyzes Bitcoin’s price movement, market conditions, and the impact of macroeconomic trends. He highlights Bitcoin’s strength relative to altcoins and the factors that could influence its next move.

1. Bitcoin Consolidating Near Key Levels

• Bitcoin has been stuck in a tight range, frustrating traders.

• The 20-week SMA and 21-week EMA sit at 90K, a level Bitcoin often revisits.

• Bitcoin’s price moves tend to be less extreme with each cycle, making this consolidation expected.

• The market appears to be waiting for a catalyst to trigger the next major move.

2. Altcoins Struggling While Bitcoin Holds Up

• Bitcoin continues to outperform altcoins, with dominance at 61 percent.

• Ethereum is still trading near August 2024 levels, showing weakness.

• Many altcoins have already broken key support levels, while Bitcoin remains stable.

• Traders calling for an altcoin season may have to wait longer.

3. Macro Factors Could Dictate Bitcoin’s Next Move

• The Federal Reserve is expected to end quantitative tightening around mid-year.

• Rising bond yields and stock market performance may impact Bitcoin.

• If stocks weaken in March, Bitcoin could also see downside.

• The upcoming labor market report may serve as a catalyst for movement.

4. Key Scenarios for Bitcoin’s Price Action

• A breakout above 100K could trigger a new market rally.

• A pullback to 90K could lead to another sharp decline in altcoins.

• If Bitcoin does not push higher in March, it could begin resembling the slower correction of 2019.

🔥 Final Take: Bitcoin remains the strongest asset in crypto. Altcoins continue to struggle, and history shows that Bitcoin leads before altcoins recover. Traders should stay cautious and avoid premature bets on altcoins..

Coin Bureau – Ethereum’s Biggest Pump Incoming? (21.02.2025 Summary)

Coin Bureau discusses Ethereum’s lackluster performance, its potential for institutional adoption, and how the launch of Etherealize could be a major turning point.

1. Ethereum’s Price Action Has Been Disappointing

• Ethereum has lagged behind Bitcoin and Solana, frustrating investors.

• High fees, slow transactions, and complex scaling solutions make Ethereum difficult to use.

• Solana has gained traction by being faster, cheaper, and easier to use.

• Unlike Bitcoin’s simple “digital gold” narrative, Ethereum lacks a clear message for investors.

2. Etherealize Could Help Drive Institutional Adoption

• Etherealize is a new initiative backed by the Ethereum Foundation and Vitalik Buterin.

• Its goal is to position Ethereum as the top blockchain for tokenized real-world assets.

• Many financial institutions already use private Ethereum-based blockchains.

• With layer two solutions providing scalability and privacy, Ethereum could become more attractive to institutional investors.

3. Real-World Assets on Ethereum Could Be a Game Changer

• The tokenization of real-world assets is expected to reach between 4 to 30 trillion dollars by 2030.

• Assets like stocks, bonds, real estate, and commodities could be moved onto the blockchain.

• BlackRock, JPMorgan, and other major financial institutions are already exploring this space.

• Ethereum has the strongest infrastructure for smart contracts and compliance-friendly token standards.

4. Upcoming Ethereum Upgrades Could Boost Adoption

• The Pectra upgrade will improve scalability, security, and transaction flexibility.

• Users will be able to pay gas fees with multiple tokens, making Ethereum more accessible.

• The increase in validator stake limits will make staking more efficient for institutions.

• If successful, these upgrades could significantly increase Ethereum’s appeal to large investors.

5. Ethereum’s Price Could Surge if Institutions Get On Board

• Institutional adoption could lead to a massive increase in Ethereum network activity.

• More transaction volume would result in higher ETH burns, potentially making it deflationary again.

• Data suggests that Ethereum is currently undervalued and primed for a breakout.

• If Etherealize succeeds, it could mark a turning point for Ethereum’s price and overall market sentiment.

🔥 Final Take: Ethereum is at a critical moment. Institutional adoption through Etherealize and tokenized real-world assets could be the catalyst ETH needs. If Ethereum captures even a small share of this multi-trillion-dollar market, its price could see a significant move upward.

CRYPTO MEMES

POV: When Your Coin Finally Pumps 🟢