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Crypto transfers tied to suspected human trafficking networks surged 85% year over year in 2025, according to Chainalysis.

Reports say the total volume reached hundreds of millions of dollars across services that investigators have linked to forced labor operations, prostitution rings, and the sale of child sexual abuse material.

The firm said much of the activity it tracked was concentrated in Southeast Asia, where trafficking networks have been connected to scam compounds and cross-border fraud hubs.

The flows were identified through wallet clustering, transaction tracing, and analysis of services believed to be facilitating exploitation.

Stablecoins Dominate Payment Channels

Based on reports, international escort services and prostitution networks operated almost entirely using stablecoins. These tokens were preferred over more volatile cryptocurrencies, allowing operators to receive payments without sharp price swings.

Chainalysis said that labor placement agents — some accused of kidnapping workers and forcing them into scam operations — also relied on crypto to collect and move funds.

Messaging platforms such as Telegram were cited as distribution points for certain services, including escort listings and recruitment ads. Crypto wallets linked to these listings showed repeated payment patterns and connections to broader illicit clusters.

Links To Scam Compounds And Laundering Networks

Reports note that many of the identified wallets were closely aligned with online casinos and Chinese-language money-laundering groups.

Scam compounds, which have drawn global attention for coercing victims into running online fraud schemes, appeared interconnected with trafficking-related payment flows.

In several cases, funds moved between services before being routed toward exchanges or converted into other digital assets.

Chainalysis noted that the convergence of the networks indicated that there is a shared financial infrastructure. Instead of individual operations, the data indicated that there are clusters of wallets that overlap and interact with each other under different categories of illicit activities.

Blockchain Transparency As An Investigative Tool

However, Chainalysis asserted that even with the increase in crypto-related trafficking flows, there were advantages to blockchain investigation. For instance, digital assets are permanently recorded and publicly visible, unlike cash.

This record enables compliance and law enforcement to track movement, detect transaction patterns, and recognize suspicious activity.

The firm advised monitoring for large, recurring transfers to labor brokers, wallet clusters active across several illicit service types, and repeated stablecoin conversion patterns.

The exchanges are seen as strategic choke points, where intervention is possible when funds try to re-enter the traditional financial system.

The Chainalysis findings are a reflection of the increased use of crypto currencies in criminal activities and the increased ability to track them.

Chainalysis argues that although digital assets are utilized in these trafficking networks, the transparency of these systems will aid in the disruption of these networks.

Featured image from Pixabay, chart from TradingView

Bitcoin continues to struggle below the $70,000 level as persistent selling pressure keeps the market in a defensive posture. The inability to reclaim this psychological threshold has weighed on sentiment, with traders increasingly cautious amid elevated volatility and tightening liquidity conditions. While corrective phases are common after strong rallies, the current environment reflects sustained stress rather than a brief pullback, leaving investors closely monitoring key structural support levels.

A recent report from Axel Adler highlights the extent of the ongoing downtrend. According to the analysis, Bitcoin has fallen from roughly $125,000 in October last year to around $66,400 today — a decline of approximately 47% over four months. The report emphasizes two critical on-chain levels now shaping the market outlook: Realized Price, which is trending downward, and the Long-Term Holder (LTH) cost basis, which continues to rise.

If current trajectories persist, these levels are expected to converge within a quarter into a key support corridor estimated between roughly $43,000 and $51,000. This zone could represent the last major structural support before a deeper bearish phase develops. For now, as long as Bitcoin remains above the Realized Price near $55,000, broader market structure remains intact, though continued weakness keeps downside risks elevated.

On-Chain Cost Basis Signals Compression of Bitcoin’s Long-Term Support Zone

Adler further explains that the Bitcoin On-chain Cost Basis 7-day Rate of Change chart provides a clearer view of how key structural support levels are evolving. The metric tracks weekly percentage changes in Realized Price, Short-Term Holder (STH) cost basis, and Long-Term Holder (LTH) cost basis, allowing analysts to assess not only absolute levels but also the speed at which they are converging.

Currently, LTH cost basis is rising about 0.96% per week, placing it near roughly $43,223 on a quarterly horizon. Meanwhile, Realized Price is declining around 0.55% per week, projecting a level near $51,157 over the same period. As a result, the support corridor between these levels is compressing from roughly $16,700 today to under $8,000, indicating tightening long-term structural support.

This development is not an immediate trading signal but rather a forward-looking framework. Within a quarter, the $43K–$51K zone could become a decisive structural boundary. Sustained price action below that range would significantly increase the probability of a deeper bearish phase.

Short-term pressure remains elevated as STH cost basis continues falling near 1.77% weekly. However, Realized Price remains the first major support, with LTH cost basis representing the deeper long-term defense level.

Bitcoin Breaks Key Support As Downtrend Pressure Intensifies

Bitcoin’s price action on this chart reflects persistent downside pressure following the rejection from higher levels earlier in the cycle. After peaking near the $120,000 area, BTC entered a sustained corrective phase characterized by lower highs and accelerating downside momentum. The latest decline has pushed price decisively below the $70,000 region, a psychological level that previously acted as intermediate support.

From a technical perspective, BTC now trades beneath the shorter-term moving averages, which are turning downward and reinforcing bearish momentum. The longer-term trend line remains above the current price, highlighting that the broader market structure has weakened significantly compared with earlier bullish phases. This configuration typically signals continued caution until price can reclaim key averages and stabilize.

Recent selloffs have been accompanied by noticeable spikes in trading activity, indicating forced liquidations or panic-driven positioning rather than orderly distribution. Such behavior often appears during late-stage corrections, though it does not necessarily mark an immediate bottom.

If Bitcoin fails to recover the $70,000 level soon, attention may shift toward deeper historical support zones. Conversely, sustained consolidation above current levels could help reduce volatility and form the basis for a potential stabilization phase before any renewed directional move.

Featured image from ChatGPT, chart from TradingView.com 

A fresh debate has been ignited by the CEO of Ripple across the crypto market after delivering what many are calling a major bombshell for XRP holders. This new debate is centered around major upcoming updates that could shape the future of the token and its robust ecosystem.

Ripple CEO’s Update Has XRP Holders Buzzing

Given the latest update from Ripple Chief Executive Officer (CEO) Brad Garlinghouse, its ecosystem and XRP are poised for a bullish future. In a remark that swiftly went viral on social media and trade desks, the executive unveiled developments that could reshape expectations around XRP’s trajectory. 

Stern Drew, a market expert and investor, stated that this update from the CEO is a massive bombshell for XRP holders. Regardless of its connection to institutional adoption, regulatory advancement, or strategic growth, the announcement has added a fresh round of speculation to the token’s future prospects.

According to Brad Garlinghouse, Ripple’s mission is to propel XRP and its ecosystem to success. The CEO expressed his confidence in a crypto company becoming a trillion-dollar firm, and Ripple is positioned and has the opportunity to reach this milestone.

In addition, Garlinghouse made references to XRP ecosystem initiatives without mentioning any; this is a relatively new technology. Meanwhile, Ripple’s aim is to champion this new technology, which would propel the payment firm to become a trillion-dollar company over the years.

As the crypto landscape evolves, it just so happens that every chain is trying to implement zk-privacy on its blockchain. However, as of 2026, the XRP Ledger (XRPL) is at the forefront of this trend, being the only project that is close to launching zk-privacy with DNA Protocol, a platform championing blockchain bio-identity.

XRP Could Outperform Bitcoin And Ethereum

Despite the ongoing downward pressure, XRP appears to be approaching a pivotal moment as its behavior in relation to Bitcoin indicates a possible breakout. After a protracted period of consolidation, relative strength indicators and changing capital flows indicate that momentum is starting to change in XRP’s favor.

The chart shared by crypto expert Bird shows a lengthy descending trend line that has formed since the beginning of 2025. Once this move kicks off, the altcoin is likely to surge to $27, flipping BTC and ETH. 

Looking at the chart against Ethereum, Bird predicts that the altcoin’s price is on the verge of a breakout after 7-8 years. Numerous indicators indicate that XRP is poised to make a significant move and start heading in the direction of the final fifth wave, which is expected to reach the $27 price mark.

At the time of writing, the price of XRP was trading at the $1.35 level, with a nearly 2% drop in the last 24 hours. Investors’ sentiment remains bearish as indicated in its trading volume, which has fallen by more than 19% over the past day.

Efforts to advance the long‑anticipated crypto market structure legislation, known as the CLARITY Act, are running into renewed headwinds as Washington’s attention gradually turns toward the 2026 midterm elections. 

Despite ongoing discussions at the White House and behind‑the‑scenes negotiations among lawmakers, banking and crypto industry leaders, the bill remains stalled, with bipartisan consensus still out of reach.

Clock Ticks For Crypto Market Structure Bill 

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, cautioned that time is becoming a critical factor. 

Speaking on Yahoo Finance’s Opening Bid, Witt urged policymakers not to lose momentum. “Let’s not let any moss grow here,” he said, warning that the opportunity to pass the legislation is “rapidly closing” as campaign season approaches. 

Midterm election cycles, he noted, tend to dominate Capitol Hill’s agenda, leaving little room for complex policy debates. Witt emphasized that moving the bill forward will require flexibility from both the cryptocurrency sector and traditional financial institutions. 

One of the primary sticking points centers on stablecoins and their potential impact on the banking system. Lawmakers, along with representatives from the banking industry, have raised concerns about a major drop in deposits from traditional banks if stablecoins are not subject to clear and appropriate regulations. 

The issue of whether stablecoins should be permitted to offer yield has emerged as a particularly contentious obstacle, complicating efforts to secure enough votes for passage.

Coinbase CEO Sees ‘Win‑Win’ Path Forward

While recognizing the current challenges for the bill’s approval, Coinbase CEO Brian Armstrong expressed optimism that lawmakers could reach an agreement within months. 

He told investors during the company’s earning call on Thursday that he is “quite optimistic” that some form of legislation will be approved “in the next few months,” pointing to what he described as a unified stance among major crypto companies. 

Armstrong framed the situation as an opportunity to create balanced rules that benefit both financial institutions and digital asset firms. “There’s an opportunity to make a win‑win outcome here for everyone, for banks and crypto companies and the US citizen and everyone,” he said.

Despite the delays, Witt said the administration remains committed to refining the proposal and working with lawmakers on both sides of the aisle. The goal, he said, is to improve the legislation where necessary while preserving its core objectives. 

In his view, the bill represents “a good product at the end of the day,” and the administration intends to keep pushing forward even as the political calendar grows more crowded.

Featured image from OpenArt, chart from TradingView.com 

Ripple has entered a new institutional partnership aimed at converting conventional fund structures into digital tokens issued and managed on the XRP Ledger. The initiative marks a tangible step in the financial sector’s shift toward blockchain-based fund infrastructure, where asset creation, distribution, and settlement can operate with greater speed, lower costs, and enhanced operational transparency.

Ripple Drives Institutional Fund Tokenization Through Aviva Investors 

In a post shared on X on February 11, 2026, Ripple announced its partnership with Aviva Investors to develop tokenized versions of traditional funds, immediately framing the collaboration as a strategic move into blockchain-enabled asset infrastructure.

At its core, the collaboration is built around converting fund units into digital tokens capable of operating on blockchain infrastructure instead of legacy administrative systems, thereby restructuring how issuance, ownership, and transfers are handled. The deal also represents Ripple’s first partnership with a Europe-based investment manager, extending its institutional tokenization footprint into a new geographic market.

For Aviva Investors, the project represents its first formal step into tokenized finance, aligning with its broader objective of integrating emerging technologies into established investment frameworks. Rather than launching isolated experimental vehicles, the firm intends to embed blockchain-based structures directly into its existing product lineup, ensuring continuity with current offerings while enabling operational efficiencies. 

The partnership was also spotlighted during XRP Community Day, where Ripple’s Markus Infanger and Aviva Investors’ Alastair Sewell outlined how institutional assets are progressively moving on-chain and what fully operational tokenized fund structures could look like in live production environments.

Why The XRP Ledger Is Central To The Initiative

According to Ripple’s official statement, the tokenized funds will be issued and managed on the XRP Ledger, Ripple’s decentralized public blockchain built for financial transactions. Speed and cost efficiency are core advantages of this. Transactions on the XRPL settle quickly and carry low fees, which can reduce the administrative burden tied to subscriptions, redemptions, and transfers in traditional funds. Because the network does not rely on mining, it also consumes less energy—an operational factor that matters to large financial firms with sustainability targets.

Compliance tooling is built into the ledger’s design. Institutions can implement controls aligned with regulated markets, including permissioned access and asset tracking. This functionality is essential for asset managers operating under strict regulatory oversight.

The network’s operating history adds another layer of institutional comfort. Since launching in 2012, the XRPL has processed more than 4 billion transactions, supports over 7 million active wallets, and runs on a validator network of more than 120 independent operators. That scale demonstrates production readiness rather than early-stage infrastructure risk.

Moreover, Ripple has been expanding across custody, payments, and asset issuance, and this collaboration strengthens its positioning in the fund tokenization segment. By combining Aviva Investors’ asset management capabilities with XRPL’s settlement infrastructure, the initiative moves tokenized funds closer to mainstream financial distribution—bridging traditional investment products with blockchain execution layers.

After a sharp pullback in Bitcoin’s price, there are speculations that the cryptocurrency market has shifted into a bearish phase, marking an end to the bull market. Despite this significant drop, a key metric is showing signs that the market pain is likely to continue, reinforcing this current downward pressure.

Bitcoin Metric Warns The Pullback Isn’t Over Yet

Bitcoin’s ongoing downside movement does not seem to have reached its climax yet. An indicator of the Bitcoin market that is closely monitored indicates that the current dip has not ended, and the correction may continue for a short time.

This data from the Bitcoin Z-Score metric suggests that selling pressure and weak demand conditions are highly likely to continue in the upcoming days, weeks, or even months. Following an analysis of the metric, On-Chain Mind disclosed that BTC has hit a -3σ downside deviation in the recent crash.

The -3σ downside deviation, which is sitting at the $60,000 price mark, is the most extreme statistical stretch in the history of BTC. On-Chain Mind outlined that a continued severe breakdown below this level now would be historically unprecedented.

Given the data from the metric, the crypto expert predicts that the negative chop will continue for a little while longer. Interestingly, the final bottoms are created by monotonous, choppy compression and now vertical crashes. In the meantime, the possibility of a continued short-term weakness before a stronger recovery emerges remains high.

Darkfost, a market expert and author at CryptoQuant, has shed light on the current state of the BTC environment using the Bull Score Signals metric. This metric provides an overview of the market’s on-chain health and highlights multiple key elements affecting Bitcoin’s price behavior.

It further covers a variety of significant information regarding demand, liquidity, and the value of Bitcoin. Currently, the majority of these indicators are still in the red, which suggests that the environment is not improving yet. As long as this is the case, Bitcoin’s difficulty of reaching a new all-time high in the short term becomes extremely hard. 

Whales Under Pressure Due To BTC’s Drop

With a temporary break below $60,000, a wave of nervousness has been ignited across the market, putting Bitcoin whales under pressure. Despite popular opinion, these big holders do not consistently constitute a type of patient and logical smart money because they react to market shocks either opportunistically or under pressure.

Examining their inflows on the Binance platform, Darkfost has highlighted an increase in the monthly time frame. The monthly inflow rose from around 1,000 BTC to nearly 3,000 BTC, with a notable spike of roughly 12,000 BTC on February 6 alone. When there is significant price stress, this kind of action indicates that transfers to exchanges are more intense.

Since February 1, more than 50,000 BTC inflows were observed from this group, suggesting sensitivity to rapid market swings from the investors as they adjust their positions. These investors can abruptly influence price dynamics, which can be good in gauging the forces shaping the market. In an environment where overall market liquidity is tightening, rising inflows are often a sign of increased selling pressure.

American multinational investment bank Goldman Sachs recently disclosed its massive altcoin holdings, revealing a substantial stake in XRP. The bank reportedly invested $152 million in Spot XRP ETFs, shocking the broader crypto market. Given the altcoin’s ongoing price slump, many in the crypto community see Goldman Sachs’ new interest as a major bullish development that could help propel the cryptocurrency forward. 

Goldman Sachs Unveils Massive XRP Bet

In a recent regulatory filing, Goldman Sachs disclosed a whopping $152 million exposure to XRP. This disclosure became public on February 10, based on the US SEC 13F filing. Many in the crypto space, including popular journalist Eleanor Terrett, shared the story on X, with community members expressing their views on why the traditional Wall Street bank is now dipping its toes into alternative cryptocurrencies. 

Terrett clarified that Goldman Sachs does not hold the altcoin directly but has exposure to the cryptocurrency through Spot XRP ETFs. The American bank acquired XRP ETFs from issuers such as Bitwise, Franklin Templeton, Grayscale, and 21Shares. Its largest investment is a 1.9 million-share position in the Bitwise XRP ETF, which is worth $39.8 million. 

In addition to the token, Goldman Sachs has also invested heavily in Solana Spot ETFs, highlighting a growing interest in altcoins. The SEC filing shows that the bank purchased approximately $108 million in Spot Solana ETFs from asset management firms such as Bitwise, Franklin Templeton, Grayscale, Fidelity, VanEck, and 21Shares. This recent disclosure of interest in altcoins indicates a strong shift toward broader crypto adoption, particularly from traditional financial institutions, which are typically cautious about digital assets 

Exposure Comes Before White House Stablecoin Meeting 

According to Terrett, Goldman Sachs’ unexpected XRP disclosure comes as the bank appears as a representative in the latest White House meeting concerning stablecoin yield. Many community members view the bank’s disclosure of its crypto holdings right before the meeting as a bullish sign. One member said, “It felt less like transparency and more like positioning,” suggesting possible preparation for future regulatory changes. 

Others have suggested that Goldman Sachs’ XRP bag could signal that the CLARITY Act bill currently under discussion may be passed. On Tuesday this week, the White House held a meeting between banking and crypto stakeholders to discuss stablecoin yield. During the meeting, contrasting opinions were shared. However, Ripple’s CEO Brad Garlinghouse later revealed that bank representatives may finally be coming to a compromise. 

With a stablecoin regulatory bill still in the works and globally recognized institutions like Goldman Sachs zeroing in on the cryptocurrency, market uncertainty persists. Crypto commentators say this is a sign that institutions are finally returning to the altcoin. Specifically, market analyst Xaif Crypto stated that Wall Street is no longer watching but is now allocating capital to cryptocurrencies. He added that this marks a notable step for institutional adoption within regulated markets.

Organisations around Cardano, Avalanche, Sui and IOTA have filed a joint response to the UK Financial Conduct Authority’s CP25/40 consultation, arguing that the rulebook should draw hard lines around “custody and control” and avoid sweeping non-custodial crypto activity into regimes designed for intermediaries.

The submission, led by the IOTA Foundation alongside the Sui Foundation, Cardano Foundation and the Avalanche Policy Coalition, is a targeted push on two areas the group says are most exposed to “scope, proportionality and technical interpretation” problems: staking and decentralized finance.

In a post on X, IOTA framed the core message as a scoping exercise as much as a policy one: “focus on custody & control, keep it proportionate, and support non-custodial, decentralized innovation for UK.”

Cardano, Avalanche, Sui And IOTA Warn Against Overregulation

The open letter expands that into a broader architecture: “A consistent theme across our feedback on both staking and decentralized finance is the importance of clearly distinguishing between infrastructure functions and intermediary functions. We recommend that regulatory obligations remain focused on entities that exercise custody, discretion, or commercial intermediation, while preserving the neutrality of public blockchain infrastructure.”

The letter adds that developers and infrastructure providers should be exempted: “[They] deliver software development, validation, communications, or other protocol-level services without controlling client assets or exercising unilateral decision-making are performing infrastructure roles rather than financial intermediation, and warrant a proportionate and differentiated regulatory treatment.”

That distinction matters, the group argues, because staking and DeFi aren’t single business models. They sit on a spectrum from fully custodial services where a firm safeguards assets and intermediates execution to protocol-native activity where users retain control of keys and assets.

On staking, IOTA’s X thread distilled the policy ask into a binary: “regulation must clearly distinguish custodial vs non-custodial/models.” It adds that custodial staking “where firms safeguard assets” warrants “appropriate retail disclosures, consent + record-keeping,” while “non-custodial/protocol-level staking (no control of user assets/keys) should not be swept into the same regime.”

The letter mirrors that framing and narrows it to where the risk sits: “Where staking is provided through a custodial arrangement, and the firm safeguards client assets and intermediates the staking process, we recommend applying the proposed requirements on information provision, key contractual terms, express prior consent for retail clients, and record-keeping.”

It then draws the line the signatories want the FCA to adopt: “For non-custodial and delegated staking arrangements, where firms do not control client assets or private keys, we recommend that such activities remain outside the scope of regulated staking activity, as this maintains proportionality and aligns regulatory obligations with the actual sources of risk.”

The second pressure point is the FCA’s concept of a “clear controlling person” in DeFi. IOTA’s post argues the term needs a “technical, objective definition,” warning that obligations should scale with “custody, discretion, and unilateral control; not with writing code, participating in governance, or providing neutral infrastructure.”

The open letter keeps the same structure: it accepts the FCA’s intent to capture cases where an identifiable party is “effectively carrying on regulated cryptoasset activities,” but pushes back on triggering regulatory status based on development and infrastructure. Instead, it urges the FCA to anchor expectations to “demonstrable, unilateral control over protocol operation, governance or economic outcomes,” particularly because DeFi “rel[ies] on self-custody, automated execution and open participation.”

IOTA positioned the argument as pro-scope, not anti-rules: “smarter scoping = better consumer protection where risk is real, plus legal certainty that keeps non-custodial innovation from being regulated out of existence.” The letter closes on the same trade-off: obligations tied to “custody, discretion and unilateral control” would, the group says, “strengthen legal certainty, enhance consumer protection where it is most needed, and reinforce the UK’s position as a jurisdiction that understands the architectural realities of decentralized technologies.”

At press time, Cardano traded at $0.264.

The Commodity Futures Trading Commission (CFTC) moved this week to build a new bridge with the crypto industry, naming a 35-member Innovation Advisory Committee that includes top exchange and blockchain leaders.

Reports say the roster gives industry executives a formal line into policy talks, and it lists a mix of crypto founders, exchange bosses and traditional market players.

CFTC Execs Granted A Seat At The Table

Among those tapped are Coinbase chief executive Brian Armstrong and Ripple chief executive Brad Garlinghouse, whose firms have been central to recent debates over how digital assets should be regulated in the US.

.@CFTC Announces Innovation Advisory Committee Members: https://t.co/Inpqzo0ujd

— CFTC (@CFTC) February 12, 2026

The committee’s purpose is to give the regulator up-to-date industry perspective as it considers rules for derivatives, market structure, token classification and other technical issues.

CFTC Chair Mike Selig said Thursday that the committee’s 35 members will help “align the CFTC’s decisions with real market conditions” and allow the commission to “establish clear guidelines for what he called the Golden Age of American Financial Markets.”

Honored to be named to the @CFTC Innovation Advisory Committee. Thank you @ChairmanSelig and look forward to working alongside @passalacqua_mj and this impressive group to help the CFTC develop clear rules of the road for crypto founders. https://t.co/ZO9mcyORZN

— Chris Dixon (@cdixon) February 12, 2026

What The Roster Looks Like

The membership list reads like a cross-section of the market: centralized exchanges, DeFi founders, trading-venue operators and a handful of established financial firms.

Some reporting highlights that around 20 members have direct ties to crypto firms, while others represent legacy market infrastructure, which creates a mix of viewpoints the commission can tap when drafting guidance or vetting ideas.

Why Industry Leaders Joined

Reports note executives accepted the roles for different reasons. For some, it is an opportunity to press for clearer rules. For others, it may be a way to protect business models as regulators decide which activities fall under commodity rules and which fall under securities laws.

The move follows a period of public lobbying and high-profile disputes over jurisdiction that have left firms searching for predictability.

Voices And Risks

Giving industry a formal advisory channel can shorten feedback loops. But it also raises questions about how the regulator will manage conflicts and preserve impartiality.

Some observers say close engagement may help craft workable policy that recognizes market realities.

Others warn that heavy industry presence could shape rules in ways that favor incumbents over smaller innovators or the public interest.

Reports say the commission will have to balance open input with careful governance.

What Comes Next

The committee will begin meeting in the coming weeks, and the public will be watching for the topics it raises and the recommendations it produces.

Meetings are likely to focus on custody rules, how tokenized assets are classified, oversight of derivatives, and the handling of market data.

Whether those talks lead to concrete rule proposals will show if this new advisory setup truly shifts how digital asset policy is shaped in the US.

Featured image from V-graphix | Istock | Getty Images, chart from TradingView

Bitcoin’s quantum-security discussion just gained a concrete new artifact in the code-and-spec pipeline: an updated draft of BIP-360 has been merged into the official Bitcoin Improvement Proposals repository, proposing a Taproot-adjacent output type designed to limit exposure to future quantum key-recovery attacks.

The change matters less because it “solves” quantum risk today, and more because it formalizes a specific, opt-in path that preserves Taproot’s script-tree functionality while removing the spending route considered most problematic under a quantum-threat model.

Bitcoin Devs Make First Formal Quantum-Resistance Move

Anduro, a research-focused platform incubated by Marathon Digital (MARA), said on X that the merged update “introduces Pay-to-Merkle-Root (P2MR), a proposed new output type that omits Taproot’s quantum-vulnerable key-path spend while preserving compatibility with Tapscript and script trees.”

In BIP terms, the proposal is scoped as “Consensus (soft fork)” and defines P2MR as a new SegWit v2 output that commits directly to the Merkle root of a script tree, rather than to a tweaked public key as in Pay-to-Taproot (P2TR). The practical implication is straightforward: P2MR outputs can only be spent via script-path logic; the key-path spend is removed entirely.

The BIP’s abstract frames the goal in terms of minimizing changes while providing an option set for users who want additional protection:

“This document proposes a new output type: Pay-to-Merkle-Root (P2MR), via a soft fork. P2MR outputs operate with nearly the same functionality as P2TR (Pay-to-Taproot) outputs, but with the key path spend removed.” It adds that the intended protection is against “long exposure attacks by Cryptographically Relevant Quantum Computers (CRQCs),” as well as “future cryptanalytic approaches that may compromise the elliptic curve cryptography (ECC) used by Bitcoin.”

A key element of the BIP is definitional discipline: it distinguishes “long exposure” attacks (where public keys are available on-chain for extended periods) from “short exposure” attacks, which would target public keys revealed briefly in the mempool during an unconfirmed spend.

The document is explicit that P2MR is not a complete quantum shield. “It is worth noting that proposed P2MR outputs are only resistant to ‘long exposure attacks’ on elliptic curve cryptography; that is, attacks on keys exposed for time periods longer than needed to confirm a spending transaction,” the BIP states.

“Protection against more sophisticated quantum attacks, including protection against private key recovery from public keys exposed in the mempool while a transaction is waiting to be confirmed (a.k.a. ‘short exposure attacks’), may require the introduction of post-quantum signatures in Bitcoin.” The authors add they “intend to offer a separate proposal for this purpose upon further research.”

That split is also why the proposal emphasizes tapscript compatibility. It positions P2MR as a script-tree output type that could, if Bitcoin ever adopts post-quantum signature opcodes, provide a cleaner upgrade runway than older script mechanisms that don’t support tapscript’s evolution path.

Anduro highlighted that the change is designed as a soft fork and “does not affect existing Taproot outputs.” P2MR would be a new output type (with bech32m addresses starting with bc1z) rather than a retrofit of existing bc1p Taproot UTXOs.

The proposal also doesn’t pretend the swap is free. By removing key-path spends, P2MR gives up Taproot’s most compact witness path (a single Schnorr signature). The BIP estimates that a minimal P2MR spend witness is 37 bytes larger than a Taproot key-path spend, though it can be smaller than an equivalent Taproot script-path spend because P2MR’s control block omits an internal public key.

Privacy shifts too. Because every spend is script-path, P2MR users necessarily reveal they are spending from a script tree—something Taproot key-path spends can avoid signaling.

Anduro said the update also “addresses criticism about Bitcoin devs not taking the quantum threat seriously,” and noted the addition of Isabel Foxen Duke as co-author to make the BIP clearer “to the general public, not just the Bitcoin developer community.”

BIP-360 remains in “Draft” status. But its merge into the canonical repository is still a meaningful process marker: it moves the quantum-safety conversation from abstract worry and mailing-list hypotheticals toward a specific consensus change proposal that wallets, libraries, and reviewers can now analyze line-by-line.

If the debate has a next phase, it’s likely to center on whether “prepared not scared” opt-ins like P2MR are sufficient groundwork or whether Bitcoin will eventually need to grapple directly with post-quantum signatures and the operational realities of migrating value at scale.

At press time, BTC traded at $66,558.

The XRP Ledger has activated Token Escrow (XLS-85) on mainnet on Feb.12, extending the network’s native escrow mechanics beyond XRP to Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs). The amendment was enabled today with 88% consensus (30/34 validators) and was introduced in rippled v2.5.0 under the XLS-85 specification.

Escrow, But For Every Asset On XRP Ledger

RippleX framed the change as a broadening of XRPL’s settlement primitives from one native asset to the wider token stack via X:

“Token Escrow (XLS-85) is now live on XRPL Mainnet! This feature extends native escrow functionality beyond XRP to all Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs). From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional, onchain settlement for all assets.” It added: “The toolbox for Institutional DeFi just got bigger.”

Token Escrow (XLS-85) is now live on XRPL Mainnet!

This feature extends native escrow functionality beyond XRP to all Trustline-based tokens (IOUs) and Multi-Purpose Tokens (MPTs).

From stablecoins like RLUSD to Real World Assets, the XRPL now supports secure, conditional,… pic.twitter.com/DNCJxZsoK2

— RippleX (@RippleXDev) February 12, 2026

XRPL.org describes escrow in familiar terms, then emphasizes what the ledger automates: “Traditionally, an escrow is a contract between two parties to facilitate financial transactions… The XRP Ledger takes escrow a step further, replacing the third party with an automated system built into the ledger.” With the TokenEscrow amendment, that same approach now applies to fungible tokens, not just XRP.

For Trust Line Tokens, the issuing account must enable the Allow Trust Line Locking flag so the issued token can be escrowed. For MPTs, the issuer must set Can Escrow and Can Transfer flags at issuance so those tokens can both be held in escrow and transferred when released. One notable constraint: issuers cannot create escrows using their own issued tokens, though they can receive escrowed tokens as recipients.

Authorization gating also matters. If a token requires authorization, the sender must be pre-authorized by the issuer before creating an escrow, and must be authorized to receive the tokens back if an expired escrow is canceled—regardless of who submits the cancellation. Separately, the recipient must be pre-authorized before an escrow can be finished.

XRPL supports time-based, conditional, and combination escrows. The flow is anchored around EscrowCreate to lock funds, EscrowFinish to release them when conditions are met, and EscrowCancel to return funds once an escrow expires. For token escrows specifically, an expiration time is mandatory.

The feature is not free. XRPL.org flags that escrow “requires two transactions” and that Crypto-Conditions increase fees. While the ledger supports Crypto-Conditions, it currently only supports PREIMAGE-SHA-256, and fulfillment verification raises EscrowFinish costs. The documentation gives a concrete minimum: an EscrowFinish with a fulfillment requires at least 330 drops of XRP plus an additional amount based on fulfillment size, with the formula scaling if fee settings change.

RippleX highlighted use cases spanning vesting and grants, conditional payments and OTC-style swaps, treasury workflows like legal holds and collateral, and tokenized rights and RWA-style unlocks. The common thread is a native, on-ledger “lock until X” mechanism now available to the token layer, useful for structured settlement, compliance-shaped flows, and predictable release conditions without relying on a third-party custodian or purely off-chain coordination.

At press time, XRP traded at $1.35.

On-chain analytics firm Glassnode has highlighted how the Bitcoin Spot Volume spiked during the price drawdown, but it has since cooled off.

Bitcoin Spot Volume Shot Up During The Selloff

In its latest weekly report, Glassnode has talked about the latest trend in the Bitcoin Spot Volume. This on-chain indicator measures the total amount of BTC becoming involved in trading activity on the various spot exchanges.

When the value of this metric rises, it means more of the cryptocurrency is being involved in spot trading. Such a trend can be a sign that interest in the asset is going up.

On the other hand, the indicator witnessing a decline indicates investor attention may be moving away from the cryptocurrency as less spot trading activity is taking place.

Now, here is the chart shared by Glassnode that shows how the 7-day moving average (MA) value of the Bitcoin Spot Volume has changed over the last few years:

As displayed in the above graph, the 7-day MA Bitcoin Spot Volume observed a notable spike alongside the price crash toward the $60,000 level. This would suggest that investors made a large amount of trades during the volatile move.

But what exactly did this activity correspond to? According to the report, it didn’t reflect a broad wave of fresh conviction buying. Instead, the Spot Volume increase was a result of traders panic reacting to the price drawdown.

This is backed by the trajectory followed by the indicator. From the chart, it’s apparent that while the initial Spot Volume increase was sharp, it was quick to cool down. The trend would imply that while the move drew attention from investors, it didn’t translate into sustained demand. “The lack of follow-through indicates that absorption remains shallow relative to the scale of selling pressure,” noted Glassnode.

In the past, price moves have generally only been sustainable for Bitcoin when backed by spot trading activity. With the recent Spot Volume increase likely only a sign of short-term repositioning and liquidation churn, the market is yet to see a wave of persistent volume. “For now, spot flows reflect engagement during stress, not a decisive shift toward constructive demand,” explained the analytics firm.

In the same report, Glassnode has also discussed how Bitcoin is currently looking from the perspective of the UTXO Realized Price Distribution (URPD), an indicator tracking the amount of the cryptocurrency that was last purchased at the various levels visited by it in the past.

As is visible in the chart, Bitcoin has recently found support inside a thick supply zone between $60,000 and $72,000. This band on the URPD formed as a result of investor accumulation in the first half of 2024. According to Glassnode, the fact that the price has stabilized here could suggest that “prior buyers in this range are actively defending their positions.”

BTC Price

Bitcoin has been on the way down again as its price has dropped to the $65,900 mark.

Ethereum’s network dynamics are shifting in a way that could reshape its market structure. On-chain data shows that roughly 30% of all Ethereum (ETH) supply is now locked in staking contracts, marking a record high for the protocol’s proof-of-stake ecosystem.

Related Reading: Bitcoin Is ‘No Longer Digital Gold,’ Deutsche Bank Strategist Says

Even as ETH prices have struggled, trading below the $2,000 level in recent sessions, activity around staking continues to rise. According to analytics data, about 36.6 million ETH is currently staked, meaning a significant portion of the circulating supply is effectively removed from liquid markets.

The increase in staked supply appears to be driven in part by institutional and whale accumulation. Large entities such as BitMine and others have been adding to their staked holdings, while smaller wallets have also shown interest in locking up ETH for validator rewards.

Ethereum Staking Demand and Supply Impact

The record staking ratio, now above 30% of total supply, shows a structural change in Ethereum’s supply dynamics. Validators locking ETH must commit to long lead times before withdrawing, and the current exit queue remains minimal relative to new stakes.

From a liquidity perspective, staking removes tens of billions of dollars worth of ETH from active circulation. Reduced liquidity could amplify price moves if demand resurges, but it also raises questions about near-term volatility amid current macroeconomic conditions and broader crypto market pressures.

Recent price weakness has seen ETH trade below key support levels, with analysts noting a mix of technical vulnerability and potential for renewed accumulation at lower levels.

Whale behavior also underscores this theme. On-chain metrics show that larger holders have been modifying their exposure, with some reducing reserves while others increase positions, particularly via staking channels that minimize selling pressure.

Market Outlook on ETH Price Amid Locked Supply

Ethereum’s price action remains sensitive to broader market drivers, including macroeconomic data and liquidity flows within the crypto sector. However, the growing share of staked ETH alters the supply picture: with nearly one-third of tokens locked, immediate sell pressure may be constrained.

Analysts suggest that this supply tightening, combined with whale accumulation, could play a significant role in price behavior if market sentiment shifts.

Related Reading: Bitcoin Buying Spree May Continue With New Preferred Stock Plan: Strategy CEO

The convergence of record staking levels and targeted accumulation creates a backdrop in which Ethereum’s fundamental network engagement strengthens even as prices lag, setting the stage for a potentially different phase in the asset’s market cycle.

Cover image from ChatGPT, ETHUSD chart on Tradingview

Speaking before the House Financial Services Committee on Wednesday, US Securities and Exchange Commission (SEC) Chair Paul Atkins outlined plans to develop formal guidance on token classification, aligning the agency with the anticipated crypto market structure legislation known as the CLARITY Act. 

Aiming For Lasting Crypto Clarity

Atkins told lawmakers that regulatory certainty for digital assets is long overdue and pledged that the Commission is prepared to act once Congress finalizes the CLARITY Act. He emphasized that a comprehensive federal framework would provide much‑needed clarity for both investors and innovators. 

While noting that SEC staff—under Commissioner Hester Peirce’s leadership of the agency’s Crypto Task Force—have offered more guidance over the past year than in the previous decade, Atkins argued that durable reform ultimately requires bipartisan legislation. 

In his view, no regulatory adjustment undertaken solely by the Commission can “future‑proof” the rulebook as effectively as a clear market structure law passed by Congress.

As lawmakers continue their work, Atkins said the SEC intends to collaborate closely with the Commodity Futures Trading Commission (CFTC) to bridge the gap until legislation is enacted. He and CFTC Chairman Mike Selig plan to coordinate through a joint initiative known as Project Crypto. 

As part of that effort, regulators will examine the development of a token taxonomy designed to define digital assets more precisely and clarify which rules apply to different categories. 

The agencies are also considering tailored exemptions that could allow market participants to transact directly on blockchain networks, a move aimed at accommodating innovation while maintaining oversight.

Atkins Signals Regulatory Overhaul 

Beyond digital assets, Atkins used his testimony to signal a broader reassessment of existing regulatory systems. He announced that he has directed SEC staff to conduct a comprehensive review of the Consolidated Audit Trail (CAT), the market surveillance system launched in November 2016. 

The review will examine the following areas: governance, funding, cost efficiency, system design, scope, regulatory utility, and cybersecurity safeguards, encompassing the crypto sector as well.

Throughout his remarks, Atkins reiterated his broader regulatory philosophy. He said oversight should be intelligent, effective, and carefully tailored within the SEC’s statutory authority. 

In his view, the existing framework has at times made the path to becoming a public company more restrictive and expensive, layering on requirements that may create more friction than benefit.

Meanwhile, the broader market has seen a notable downtrend, with crypto prices sharply retracing and sparking fears of an unfolding bear market. As of this writing, Bitcoin (BTC) has returned to the $65,000 level after failing to surpass the $70,000 resistance level earlier in the week. 

Ethereum (ETH) has followed suit, mirroring BTC’s price action and currently trading at around $1,916 per token. Consequently, the total market capitalization has plummeted to nearly half of its October highs, currently valued at $2.23 trillion. 

Featured image from OpenArt, chart from TradingView.com 

Thailand has taken a further step toward integrating crypto into its mainstream financial system, after the Cabinet approved changes that allow digital assets to underpin regulated derivatives contracts. The move positions the country among a growing number of Asian markets adapting crypto-linked financial products.

On Feb. 10, Thailand’s Cabinet endorsed a Finance Ministry proposal to expand the scope of assets permitted under the Derivatives Act B.E. 2546 (2003). The amendment enables digital assets, including cryptos such as Bitcoin, to serve as underlying instruments for futures and options traded on regulated platforms.

The Securities and Exchange Commission (SEC) will now amend the Derivatives Act and draft supporting regulations to govern participation, licensing, and supervision.

Thailand Integrates Crypto Into Regulated Derivatives Market

Under the revised framework, digital assets will be recognized as permissible underlying assets for derivatives products listed on exchanges such as the Thailand Futures Exchange (TFEX).

The SEC said it will revise derivatives business licenses to allow digital asset operators to offer crypto-linked contracts and will review supervisory standards for exchanges and clearinghouses.

SEC Secretary-General Pornanong Budsaratragoon said the expansion is intended to strengthen the recognition of cryptocurrencies as an investment asset class, broaden investor access, and enhance risk management tools.

The regulator will also work with TFEX to determine contract specifications that account for the volatility and risk characteristics of digital assets. Officials indicated that supervisory safeguards and investor protection measures will remain central as the market evolves.

In addition to cryptocurrencies, the amendment reclassifies carbon credits, enabling the introduction of physically delivered futures contracts alongside cash-settled products. The measure aligns with Thailand’s draft Climate Change Act and its broader carbon-neutrality objectives.

Growing Institutional Focus and Market Expansion

Thailand’s latest reform builds on a regulatory framework introduced in 2018, when the country enacted rules governing digital asset businesses. Oversight has since expanded to include stricter operational requirements and investor protection measures, while crypto payments remain prohibited by the central bank.

The SEC’s broader 2026 capital markets roadmap includes plans to introduce crypto exchange-traded funds (ETFs), subject to legal amendments. Officials have indicated that crypto ETFs could launch later this year.

Thailand’s domestic crypto market has also grown steadily. As of August 2025, the SEC valued the market at approximately $3.19 billion, with average daily trading volumes near $95 million. Active accounts rose to 230,000, reflecting increased participation from retail investors, foreign entities, and domestic institutions.

Industry participants say integrating crypto into the derivatives market could improve liquidity and provide hedging tools, but some have cautioned that capital requirements and disclosure standards must keep pace to manage systemic risk.

Cover image from ChatGPT, BTCUSD chart from Tradingview

The US’s largest banking lobby has requested the Office of the Comptroller of the Currency (OCC) delay its approval of crypto bank charter applications, suggesting the regulator wait until regulatory uncertainty is cleared.

US Banks Call For Crypto Charter Reviews Delay

On Wednesday, the American Bankers Association (ABA) asked the OCC to pause the review of national bank charter applications for crypto firms, citing uncertainty surrounding emerging business models, the need for greater transparency in charter application and decision-making processes, and a lack of finalized federal oversight.

In a letter, the banking lobby urged the US’s top bank regulator to “ensure that robust, broadly applicable safety and soundness standards are well understood and upheld during this period of rapid innovation to provide greater transparency throughout its charter application and decisioning processes.”

As reported by Bitcoinist, the OCC approved conditional bank charters for Ripple, Circle, BitGo, Paxos, and Fidelity in December, raising concerns that the approvals could blur the lines of banking activities and lead to regulatory arbitrage.

The ABA now calls for patience as emerging crypto regulatory frameworks take shape, suggesting that the review process must be delayed until Congress finishes the rules that many recent OCC charter applicants will ultimately be subject to.

“We urge the OCC to be patient, not measure its application decisioning progress against traditional timelines, and allow each charter applicant’s regulatory responsibilities to come fully into view before moving a charter application forward,” ABA wrote.

The banking association emphasized that appropriate safety and soundness protections, including effective measures against conflicts of interest, and for compliance with other applicable consumer protection laws and regulations, must be in place from the beginning.

Notably, the Trump Family’s main crypto venture, World Liberty Financial, applied for a national trust charter in January. US Senator Elizabeth Warren sent a letter to Comptroller Jonathan Gould asking the agency to pause its review of the application until President Donald Trump divests from the crypto company, arguing that it could create a government ethics problem.

In addition, the association recommended an amendment to the OCC’s regulations to ensure new charter applicants’ names “do not misrepresent the nature of the financial services they intend to offer.”

They suggested that the agency prohibit any charter applicant that limits its activities to either fiduciary activities or trust company operations from including the word “bank” in its name.

ABA argued that “such entities would not be engaged in the business of banking and should, therefore, ‘not have a title that misrepresents the nature of the institution or the services it offers.’”

“Skinny” Accounts Clash

US banks have recently shared their opposition to granting crypto and fintech companies direct access to the Federal Reserve (Fed)’s payment systems, according to Bloomberg.

Earlier this week, the Bank Policy Institute, Clearing House Association, and Financial Services Forum sent a joint letter to the Fed, demanding a 12-month waiting period before firms are eligible to apply for payment accounts.

The banking groups argued the Fed “should block access until newly licensed stablecoin issuers prove they can operate safely.” As Bloomberg noted, crypto and fintech firms currently rely on partner banks for access and compliance infrastructure. However, the Fed’s “skinny” master accounts proposal, first introduced in October, would allow these crypto companies to bypass the intermediation.

Moreover, recent reports from Eleanor Terret claim that the tensions between the US banking sector and the crypto industry have extended from Stablecoin rewards to include the skinny master accounts proposal.

While the digital assets side was “largely positive,” Terret affirmed the banking side worried that crypto’s “less robust regulatory status could pose a problem,” with Better Markets CEO Dennis Kelleher calling the proposal “a reckless giveaway to the crypto industry that unnecessarily expands the Fed’s mandate without justification and undermines the Fed’s true mandate.”

Even with the broader cryptocurrency market becoming highly volatile and bearish, the Spot XRP ETFs are still displaying remarkable performance. In the unfavorable conditions, capital from both retail and institutional investors continues to flow into the funds, and they are drawing the attention of Wall Street.

Institutional Capital Still Following Into XRP Spot ETFs

XRP may be experiencing steady downside action in price, but the Spot XRP Exchange-Traded Funds (ETFs) are still riding the broader bullish wave, drawing in huge capital. Interestingly, as they continue to gain momentum across the sector, traditional finance is paying close attention to the newly launched products.

In a post on the X platform, market researcher and investor Tokenicer highlighted that the funds have been recording inflows over the past few days despite the ongoing volatile crypto landscape. Specifically, this fund has been seeing steady capital inflows since January 27.

The consistent flow of funds into these regulated instruments demonstrates the rising conviction of traditional and institutional market players looking to gain exposure to XRP without taking on direct custodial risks. In contrast to transient speculative surges, persistent inflows usually signify more profound strategic allocation choices.

Since January 27, Canary Capital has recorded inflows of over 7.66 million XRP, Franklin Templeton has amassed over 18.9 million, Bitwise added more than 17.74 million, and 21Shares saw inflows of +4.31 million of the token. As seen on the chart shared by the expert, there has been a total of 48.7 million XRP across 4 ETFs in a 9-day period.

According to the expert, all of these inflows are taking place in a market that is laced by downside pressure. This period is where most of the retail interest in crypto has been sucked out, bringing the market back to the point where players are making fun of crypto again. “Now just imagine what these numbers look like during a euphoria run as we saw in Nov 2024,” Tokenicer added.

Goldman Sachs Expands ETF Exposure

The recent capital flows indicate that rather than buying tokens directly, Wall Street investors are growing more at ease exposing themselves to XRP through regulated investment vehicles. An indication of this trend is Goldman Sachs’s significant investment in the funds and the token.

Xaif Crypto, an investor and crypto analyst, reported that Goldman Sachs has invested over $152 million in XRP Spot ETFs. This was disclosed in the firm’s Q4 2025 13F filing. With this substantial amount invested in the funds, Wall Street is no longer just watching the altcoin; instead, it is allocating its capital into the token. 

Such a move marks a notable step for institutional adoption of the altcoin within regulated markets. As inflows increase and liquidity deepens, its increasing position in mainstream portfolios may signal a new stage in its integration with conventional financial markets.

On-chain data shows the Bitcoin whales have ramped up their exchange outflows recently, a potential sign that big-money hands are accumulating.

Bitcoin Whale Exchange Outflows Have Hit The 3.2% Mark

In a new post on X, Glassnode lead research analyst CryptoVizArt has talked about the latest trend in the Exchange Whales Outflow indicator. This metric tracks, as its name suggests, the Bitcoin withdrawals being made by whale entities from centralized exchanges. Whales are defined as investors carrying more than 1,000 tokens of the asset in their balance.

The indicator doesn’t simply measure the total amount of outflows being made by entities of this size, however, but rather the ratio between them and the total BTC reserve sitting on exchanges.

When the value of the metric rises, it means the whales are taking out a higher amount of the exchange supply to self-custodial wallets. Such a trend can be a sign that the big-money hands are looking to hold into the long term, which is something that can be bullish for the asset’s price.

On the other hand, the indicator going down suggests whales are reducing their withdrawals. Depending on whether they are ramping up inflows, this kind of trend can be either neutral or bearish for the cryptocurrency.

Now, here is the chart shared by CryptoVizArt that shows the trend in the 30-day simple moving average (SMA) of the Bitcoin Exchange Whales Outflow over the last few years:

As displayed in the above graph, the Bitcoin Exchange Whales Outflow has witnessed a surge recently, indicating that whales have been increasing their outflows relative to the exchange supply.

Currently, the 30-day SMA value of the indicator is sitting at 3.2%, which is the highest level since late 2024. The rise in the metric to this level has arrived as the cryptocurrency’s spot price has gone through a notable drawdown.

Given the timing, it’s possible that the outflows are an indication of dip-buying behavior from the whales. “This mirrors the structure seen in H1 2022, when whales accumulated for several months and in multiple waves, before the next bull market began,” noted the analyst.

In the 2022 bear market, it took a while before Bitcoin reached its bottom. It now remains to be seen how long whale accumulation will have to go this time around for the cryptocurrency to arrive at a cycle low.

BTC Price

Bitcoin recovered above $71,000 earlier, but the coin has since seen a retrace as its price is now back at $68,000.

The meme coin market has been shedding value for much of the past year. According to the Meme Coin Index (MEMECOIN) by MarketVector, which tracks the six largest meme coins by market capitalization, the sector has been in a prolonged downturn. The index is down by 22.44% in year-to-date numbers, with a larger 67.65% decline within a 365-day timeframe. 

Those numbers highlight just how far the sector has fallen. However, current market conditions across the industry offer little encouragement that Dogecoin, the original meme coin, can quickly reverse sentiment and lead a meaningful recovery for the meme coin niche.

Memecoins Struggling Than Most Cryptos

Meme coins have been hit harder than most corners of the cryptocurrency market, and the gap in performance is becoming increasingly difficult to ignore. Although large-cap assets like Bitcoin, Ethereum, and XRP are struggling after recent pullbacks, data show that meme tokens have been on a long stretch of weakness. This persistent underperformance is clearly reflected in the Meme Coin Index (MEMECOIN) by MarketVector.

The MEMECOIN index is market-cap weighted, meaning larger assets such as Dogecoin carry more influence over its movement. As it stands, the meme coin index is at a one-year low of -66.80%, with the data showing a consistent decline of lower highs and lower lows since July 2025. Notably, the Meme Coin Index has fallen by 75.81% since its inception on October 31, 2021.

It’s been only two months into 2026, but the MEMECOIN index is already down 22.44% year-to-date. Such an early decline shows that traders and investors are unwilling to invest in meme coins, which is a negative precedent for the rest of the year.

Can Dogecoin Lead Meme Coins Back To Glory?

As the largest meme coin, Dogecoin has the highest percentage weighting and thus a greater impact on the performance of the meme coin index. However, Dogecoin’s price momentum over recent weeks has been nothing to write home about for bullish investors. 

As it stands, Dogecoin has now lost the 10 cent price level and has been hovering in the ballpark of about $0.093. Nonetheless, a resurgence in the meme coin index is dependent on Dogecoin due to its reputation as the king of meme coins. 

Dogecoin brand recognition is unmatched in the meme coin world, and its presence is steadily growing into spaces outside the crypto industry. Dogecoin, for one, is the only meme coin with Spot ETFs tied to it, although that structural advantage has not translated into sustained bullish price action so far.

If anything, Dogecoin’s current trajectory shows that it is not yet showing the kind of price leadership or market momentum that could single-handedly revive the meme coin niche. However, a large part of this can be attributed to the current sentiment surrounding the entire crypto industry.

Bitcoin remains under selling pressure below the $70,000 level as the market confronts renewed uncertainty and weakening liquidity conditions. The inability to reclaim this key psychological threshold has reinforced a cautious tone among investors, with price action reflecting a broader struggle across risk assets. While volatility remains elevated, the current environment suggests that market participants are increasingly focused on liquidity trends and capital flows rather than short-term price momentum alone.

An analysis by Axel Adler highlights two important liquidity indicators pointing to ongoing market weakness. The Stablecoin Supply Ratio (SSR) Oscillator has moved back into negative territory after briefly turning positive in January, indicating that Bitcoin continues to underperform relative to stablecoin dynamics. Historically, positive SSR readings have coincided with stronger price appreciation, while persistent negative readings tend to align with periods of price stagnation or decline.

At the same time, the 30-day change in USDT market capitalization has fallen to approximately -$2.87 billion, signaling capital outflows from the crypto ecosystem. Together, these indicators suggest that January’s attempted recovery lacked sustained liquidity support. Unless stablecoin inflows return and the SSR oscillator stabilizes in positive territory for several weeks, the broader market context may remain risk-off, leaving Bitcoin vulnerable to continued pressure in the near term.

Stablecoin Liquidity Trends Reinforce Bitcoin Market Weakness

Axel Adler’s analysis emphasizes the importance of stablecoin liquidity as a leading indicator for Bitcoin market conditions. The 30-day change in USDT market capitalization functions as a directional gauge of dollar liquidity entering or leaving the crypto ecosystem. Positive readings typically signal fresh capital inflows that can support price appreciation, while negative values indicate liquidity contraction and reduced risk appetite among market participants.

According to the data, January briefly showed signs of recovery. The 30-day USDT market cap change moved into positive territory, reaching approximately $1.4 billion during the first week of the month. This inflow coincided with the Stablecoin Supply Ratio (SSR) Oscillator’s attempt to move into positive territory, alongside a short-term rebound in Bitcoin price. However, the trend reversed later in January, and the latest reading near -$2.87 billion confirms renewed capital outflows.

The alignment between these two indicators appears consistent rather than coincidental. Liquidity inflows helped support January’s temporary recovery, while the return of outflows accompanied the subsequent market weakness.

As long as the 30-day USDT change remains negative, a sustained SSR recovery appears unlikely. Together, these signals suggest the market has shifted back into a risk-off environment, reinforcing the view that the recent rebound lacked durable liquidity support.

Bitcoin Remains Under Pressure After Breakdown Below Key Averages

Bitcoin’s daily chart continues to reflect sustained bearish momentum following the loss of the $70,000 level, with price now consolidating in the mid-$60,000 range after a sharp decline. The recent breakdown below this psychological threshold coincided with a decisive move under major moving averages, which have shifted from support to resistance. This structural change typically signals weakening bullish control and increasing caution among market participants.

Price action shows a sequence of lower highs since late 2025, suggesting a gradual deterioration in market structure rather than an isolated correction. The latest drop was accompanied by a notable surge in trading volume, often associated with forced deleveraging or defensive repositioning rather than steady accumulation. This dynamic can increase short-term volatility while delaying meaningful recovery attempts.

From a technical perspective, the $60,000–$62,000 region now represents the primary support zone. This area aligns with prior consolidation ranges and historically strong liquidity clusters that could attract demand. Holding this zone would support a stabilization scenario, potentially leading to sideways consolidation. Conversely, a decisive break below it could open the door to deeper retracement phases.

Until Bitcoin reclaims key moving averages and restores higher-high price structure, the market is likely to remain sensitive to liquidity conditions, macro sentiment, and derivatives positioning.

Featured image from ChatGPT, chart from TradingView.com