The Blockchain Association, which represents 76 cryptocurrency organizations, has urged U.S. congressional leaders to support Senator Ted Cruz’s efforts to repeal the IRS’s new decentralized finance (DeFi) broker rule.
Crypto Industry Pushes for Rule Repeal
On February 19, the association sent a letter to key lawmakers, including Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, House Speaker Mike Johnson, and House Minority Leader Hakeem Jeffries. The letter called for the repeal of an anti-crypto regulation finalized during President Joe Biden’s administration.
Notable signatories include 0x Labs, a16z Crypto, Aptos Labs, Crypto.com, Grayscale, and Dapper Labs, among others.
Concerns Over Innovation and Compliance Burdens
The IRS’s DeFi broker rule, set to take effect in 2027, expands the definition of a “broker” to include software providers facilitating DeFi transactions. The Blockchain Association supports Cruz’s Congressional Review Act (CRA) resolution, S.J.Res. 3, which seeks to overturn this requirement.
“Under the rule, software companies that never take custody or control of users’ assets will be required to radically rebuild their services in order to unnecessarily collect and then report to the government the personal identifying information and transaction details of potentially tens of millions of American users.”
Industry experts warn that these requirements could stifle DeFi innovation in the U.S., create an undue compliance burden, and weaken the country’s standing in global financial technology. The Blockchain Association has labeled the move as a “midnight rulemaking” attempt and insists that Congress should have the final say on policies with such widespread implications.
Cryptocurrency app downloads in the United Arab Emirates (UAE) have seen a massive uptick in 2024, according to data from app analytics firm AppsFlyer.
The report revealed that downloads of the top 49 crypto apps soared from 6.2 million in 2023 to 15 million in 2024, marking a 41% increase. This surge was particularly prominent in the latter half of 2024, with over 1 million installs per month in the final quarter. December alone recorded a staggering 2.8 million downloads.
Key Drivers Behind the Growth
AppsFlyer attributed this rapid adoption to a combination of favorable market conditions and significant political developments.
On November 6, 2024, Donald Trump secured the U.S. presidential election, which was widely seen as a positive shift for the crypto industry. Trump had vowed to end regulatory crackdowns on digital assets and position the U.S. as the global hub for crypto innovation.
“There has been a strong correlation between these market factors and the UAE’s crypto market momentum,” said Shani Rosenfelder, director of market insights at AppsFlyer.
Trump’s Memecoin and Investor Surge
Adding to the excitement, Trump launched his own memecoin in January 2025, attracting a wave of new investors. According to a survey by NFT Evening, many first-time crypto users entered the market following the launch.
The U.S. crypto app market also experienced a boom, with platforms like Crypto.com, Moonshot, and Coinbase dominating the Apple App Store’s finance category.
However, while Trump’s memecoin drew in fresh investors, a Chainalysis report indicated that 813,000 wallets suffered losses of up to $2 billion after purchasing the token, highlighting the volatile nature of the crypto market.
Bitcoin (BTC) has remained locked in a tight trading range for over two months, oscillating between $92,400 and $106,500 since December 18, according to Cointelegraph Markets Pro. Despite billions in institutional inflows, the cryptocurrency has failed to break out significantly.
A brief exception occurred on January 20, coinciding with U.S. President Donald Trump’s inauguration, when Bitcoin surged to an all-time high of $109,000 before swiftly retreating into its established range.
Market Manipulation Suspicions
Some industry leaders believe Bitcoin’s price stagnation may not be entirely organic. Samson Mow, CEO of Jan3 and founder of Pixelmatic, suspects deliberate price suppression. Speaking at Consensus Hong Kong 2025, Mow noted:
“If you look at the price movement, we peak, and then we stay steady and chop sideways. It just looks very manufactured.”
Mow further emphasized the unnatural nature of Bitcoin’s restricted price fluctuations, raising concerns about external forces shaping the market.
ETF Inflows and Institutional Buying Fail to Move Price
Despite steady accumulation by institutions and retail investors, Bitcoin’s price remains stagnant. Companies like Michael Saylor’s MicroStrategy continue to buy Bitcoin in large quantities, yet the price refuses to budge. According to Mow, this suggests that substantial selling pressure is counteracting these inflows.
“If Bitcoin’s price isn’t moving despite accumulation, then someone must be selling,” he explained.
FTX Repayments and Potential Sell-Off Pressure
Adding to market dynamics, FTX has begun repaying creditors, distributing over $1.2 billion based on Bitcoin’s November 2022 price of around $20,000. This could lead to increased selling pressure as recipients cash in on their gains. Mow pointed out that Bitcoin sales at mid-$20K levels are likely impacting market movements, preventing upward momentum.
Despite these concerns, analysts remain optimistic, with 2025 price targets ranging between $160,000 and $180,000. However, for now, Bitcoin remains firmly within its controlled price range.
Bitcoin (BTC) could drop as low as $77,000 and still maintain its bullish trajectory in 2025, according to CryptoQuant CEO Ki Young Ju. In a series of posts on February 19, Ju emphasized that a 30% correction would align with historical trends while keeping the uptrend intact.
No Bear Market in Sight
Despite Bitcoin’s sideways price action and failure to reclaim $100,000, Ju remains confident in its long-term growth.
“I don’t think we’ll enter a bear market this year,” he stated, analyzing investor cost bases.
According to Ju, even a drop to $77,000 would not signal a bear market but rather a standard correction within a broader bull cycle.
Key Support Levels and Market Dynamics
Ju highlighted key price levels, including the cost basis of U.S. spot Bitcoin exchange-traded fund (ETF) investors at $89,000, which has served as strong support since November. Other crucial levels include:
- $59,000 – Aggregate breakeven for Binance traders.
- $57,000 – Bitcoin mining companies’ profitability threshold.
Historically, falling below these levels has indicated bear markets, such as in May 2022, March 2020, and November 2018.
Post-Halving Performance Signals More Upside
According to CryptoQuant, Bitcoin’s post-halving performance remains “unfinished.” Contributing analyst Timo Oinonen noted that since the last halving in April 2024, Bitcoin has only gained 60%.
Oinonen expects a potential sell-off in May, followed by a sideways summer and a strong Q4 rally, as seen in past cycles. He emphasized that major corrections could be months or even a year away.
With historical patterns supporting continued bullish momentum, Bitcoin’s long-term outlook remains promising, even in the face of short-term volatility.
Bitcoin’s price action is showing similarities to August 2023, with on-chain data indicating that extreme volatility may be imminent. CryptoQuant’s research suggests that BTC/USD is “ready” for a significant move after a prolonged period of stagnation.
Choppiness Index Signals Incoming Volatility
Bitcoin has been trading within a narrow range with declining volumes, a setup that often precedes a major price movement. CryptoQuant contributor Percival highlighted the Choppiness Index, which currently sits at 62 on the daily chart and 72 on the weekly chart, indicating the need for a directional breakout.
“In 2023, before the uptrend, price cleared all traders of ‘boring’ positions in the opposite direction due to low volatility,” Percival noted. This suggests that another liquidity grab could be on the horizon before a decisive move.
Key Price Levels and Support Zones
Should BTC’s price follow a similar trajectory as August 2023, investors should watch critical support levels. The short-term holder (STH) cost basis at $92,000 is one area of interest, while the 200-day exponential moving average (EMA) at $85,000 serves as a key fallback level.
“The possibility of false moves before the bull run is strong, many breakout traders are positioned in these zones, and the sovereign market tends to blow up these positions and return to the expected course,” Percival concluded.
With traders bracing for a major shakeout, Bitcoin’s next move could define the trajectory of the broader crypto market in the coming months.
FTX Digital Markets, the Bahamian division of the collapsed FTX exchange, is set to issue its first round of repayments to creditors on Feb. 18. This marks a major development in the crypto industry’s recovery following FTX’s near $9 billion collapse.
The exchange’s downfall led to a series of insolvencies and the longest crypto winter in history, with Bitcoin bottoming at $16,000. Now, creditors owed less than $50,000 in claims will receive repayments, marking a critical step toward financial resolution.
$1.2 Billion in Capital Reintroduced to Market
According to Sunil, a member of the FTX Customer Ad-Hoc Committee, the first batch of repayments will amount to an estimated $1.2 billion. This could positively impact market liquidity and investor sentiment.
Bitget Wallet’s COO Alvin Kan noted, “The $1.2 billion repayments may see a significant portion reinvested into cryptocurrencies, potentially impacting market liquidity and prices.”
Controversy Over Repayment Valuation
Despite the positive impact, some creditors have criticized the repayment model, which bases reimbursements on cryptocurrency values from November 2022—when Bitcoin was trading nearly 370% lower than current prices.
Limited Market Impact, But a Victory for Justice
While these repayments may not significantly move the market, they represent an important step toward restoring trust in the crypto industry. Magdalena Hristova, PR manager at Nexo, stated:
“The collapse impacted many investors and cast a shadow over crypto. For retail investors, especially those without diversified portfolios, these repayments offer not just the return of funds but a sense of stability and peace of mind.”
Ether reserves across centralized exchanges have dropped to their lowest levels in nearly nine years, reinforcing optimism that the market may have reached a bottom. According to CryptoQuant data, Ether reserves across all exchanges fell to 18.95 million on Feb. 18, a level last seen in July 2016 when ETH was trading at approximately $14.
A declining Ether supply on exchanges often suggests an impending price rally due to a “supply shock.” This occurs when strong buying demand meets a decreasing available supply, potentially driving ETH prices higher.
Investors Move ETH to Cold Storage
The diminishing Ether supply indicates that investors are transferring their ETH holdings to cold storage for long-term security rather than preparing for short-term sales. Nicolai Sondergaard, a research analyst at Nansen, considers this trend “generally bullish,” noting a similar pattern for Bitcoin.
“We are seeing similar trends for BTC, which makes me think if we a) are seeing demand outpaces supply and, or, b) is this a natural shift toward self-custody and cold storage,” Sondergaard told Cointelegraph.
Resistance and Potential for Breakout
Despite this bullish indicator, Ether still faces significant resistance at $2,750 and $2,800. CoinGlass data suggests that a breakout above $2,800 could trigger liquidations of over $822 million in leveraged short positions, potentially accelerating an uptrend.
Ether ETFs Could Tighten Supply Further
Another key factor influencing ETH’s future price is the potential approval of staking for Ether exchange-traded funds (ETFs). Marcin Kazmierczak, co-founder at Redstone, believes this could significantly tighten Ethereum’s liquid supply, enhancing its appeal as an investment asset.
“The potential introduction of staking ETFs could be a game-changer, further tightening Ethereum’s liquid supply and reinforcing its value proposition as a prime investment asset,” he stated.
As of late 2024, twelve U.S. states have disclosed holdings in Strategy, formerly known as MicroStrategy, through their state pension funds or treasuries. Bitcoin analyst Julian Fahrer reported on February 17 that these holdings collectively amount to $330 million.
California Leads with Largest Holdings
Among the states, California has the highest exposure. The California State Teachers Retirement System holds 285,785 shares valued at $83 million, while the California Public Employees’ Retirement System owns 264,713 shares worth approximately $76 million.
California’s pension funds also have significant investments in Coinbase (COIN), holding over $155 million worth of stock.
Other Major State Investments
Florida’s retirement fund owns 160,470 shares of Strategy, valued at $46 million, while Wisconsin’s investment board holds 100,957 shares worth $29 million. Additionally, North Carolina, New Jersey, Arizona, Colorado, Illinois, Louisiana, Maryland, Texas, and Utah also have Strategy stock in their public investment portfolios.
Strategy’s Growth and Market Performance
Strategy, the largest corporate holder of Bitcoin with 478,740 BTC worth $46 billion, has seen its stock price surge by 16.5% in early 2025. Over the past year, its value has increased by an impressive 383%, significantly outperforming the broader crypto market’s 62% growth.
Following its rebranding to Strategy on February 5, the company has continued to position itself as a key player in Bitcoin-focused investments, attracting growing interest from institutional investors and pension funds.
Solana (SOL) has been one of the worst-performing cryptocurrencies over the past 24 hours, dropping 6.80% to $180.80 as of February 17. This decline stands in stark contrast to the broader crypto market’s 1.72% dip.
Link to High-Profile Rug Pulls
One major factor contributing to Solana’s struggles is its association with high-profile scams. A recent Bubblemaps investigation revealed that wallets linked to the fraudulent LIBRA token—associated with Argentine President Javier Milei—were also behind the Melania (MELANIA) memecoin, promoted by former U.S. First Lady Melania Trump.
The same wallet, labeled “0xcEA,” played a pivotal role in both scams, generating millions in profits through market manipulation and crosschain fund transfers.
Memecoin Hype Turning Toxic
Solana’s underperformance has been exacerbated by the launch of Pump.fun, a memecoin platform that made it easier and cheaper to create speculative tokens. This has led to an influx of low-quality projects, many of which turned out to be scams or pump-and-dump schemes.
Crypto analyst Benjamin Cowen pointed out that while Solana initially benefited from the memecoin frenzy, the trend is now backfiring. As speculative traders cash out, SOL’s price remains vulnerable to further corrections.
Scammers impersonating Saudi Arabia’s Crown Prince Mohammed bin Salman have launched a fraudulent cryptocurrency, capitalizing on the growing hype surrounding celebrity-backed memecoins. The so-called “Official” Saudi Arabia memecoin (KSA) emerged on February 17, promoted through a fake X (formerly Twitter) account, “SaudiLawConf.”
Red Flags and Impersonation Tactics
The first warning sign was the absence of any official government announcement or details regarding the token’s purpose and structure. The Saudi Law Conference, the legitimate entity behind the hacked X account, confirmed the breach via a February 17 LinkedIn post.
“The conference management announces that the official conference account in the X platform (@Saudilawconf) has been hacked and that any content currently published through the account does not represent our opinions or official orientations in any way,” the post stated.
Growing Trend of Political Figure Memecoins
This scam follows the rapid collapse of another high-profile political memecoin. On February 15, reports surfaced that the LIBRA token, linked to Argentine President Javier Milei, lost over 94% of its value within hours. Insiders allegedly cashed out $107 million in liquidity, leading to a sharp price drop.
Investor Losses and Market Impact
Another key indicator of fraud was the early creation of the token contract. On February 10, a week before its public announcement, the KSA token was deployed on the Solana-based memecoin launchpad Pump.fun. Despite the fraudulent marketing efforts, the scam token struggled to attract investors, reaching only $7,489 in market capitalization.
This incident adds to the growing concern over the risks associated with politically-linked memecoins, which continue to cause substantial financial losses for unsuspecting investors.