In partnership with |  |
|
|
Reading time: 5 minutes |
News | Crypto Converter | Crypto Calculators |
10 A.M. dumps, two lawsuits, one debate: Jane Street in Bitcoin's crosshairs |
|
Key points: |
Bitcoin climbed about 10% over two days as U.S. spot Bitcoin ETFs recorded $506.5 million in daily inflows, led by IBIT. Traders linked the sudden pause in a rumored 10 a.m. ET sell pattern to a lawsuit involving Jane Street, though analysts say the data does not prove manipulation.
|
News - Bitcoin's rebound revived a persistent theory on X: that repeated weakness around the U.S. cash open at 10 a.m. ET was driven by quantitative trading firm Jane Street. The speculation intensified after February 23, when the plan administrator overseeing Terraform Labs' bankruptcy filed a lawsuit in New York alleging insider trading tied to Terra's 2022 collapse. Jane Street has denied wrongdoing and called the case an attempt to extract money. |
As news of the filing spread, traders claimed the intraday "metronome" selling pressure vanished. Bitcoin rose roughly 10% over two days and briefly approached $70,000, while the broader crypto market added about $170 billion to $200 billion in value. Ether gained more than 13% and Solana over 15% during the same move. |
Institutional flows turned at the same time. U.S. spot Bitcoin ETFs logged $506.5 million in daily inflows, the largest since early February, putting the group on pace for a first positive week after five consecutive weeks of $3.8 billion in outflows. BlackRock's IBIT led with about $297 million, and ETF trading volumes climbed above $4.3 billion. |
What the data shows - Despite viral claims of a daily 10 a.m. dump, intraday reviews did not confirm a consistent pattern. One analysis showed IBIT's 10:00 to 10:30 window slightly positive overall, with early volatility described as noisy and closely mirroring Nasdaq-style risk repricing, undermining the single-firm narrative. |
What the lawsuit alleges - The complaint, heavily redacted, alleges Jane Street used non-public information to avoid more than $200 million in losses. It cites May 7, 2022, when Terraform withdrew 150 million UST from Curve's 3pool and a wallet linked to Jane Street withdrew 85 million UST roughly 10 minutes later. |
India and structural concerns - Separately, the nation's Securities and Exchange Board of India (SEBI) issued a 105-page interim order in July 2025 barring multiple Jane Street entities, alleging manipulation of BANKNIFTY and NIFTY 50 derivatives across 18 expiry days between January 2023 and March 2025. |
SEBI estimated profits of 36,502 crore rupees (about $4.3 billion) and froze 4,843.57 crore rupees (about $566 million). Jane Street disputes the findings and has appealed. |
While the legal theories differ, both cases spotlight structural questions. Authorized participants in Bitcoin ETFs can hedge with futures and source Bitcoin through in-kind or OTC channels later, loosening the timing link between ETF inflows and visible spot buying. Analysts stress this framework is legal and industry-wide, but it continues to fuel debate over whether institutional plumbing, not conspiracy, is shaping Bitcoin's intraday moves. |
WLFI proposal ties governance power to $1M stake, redirects USD1 arbitrage |
|
Key points: |
World Liberty Financial has proposed mandatory 180-day staking for unlocked WLFI holders who want to vote, with tiered benefits linked to USD1 market access. A 10 million WLFI stake, roughly $1 million at current prices, unlocks Node status and 1:1 USD1 conversion privileges.
|
News - World Liberty Financial (WLFI) has introduced a governance overhaul that would require holders of unlocked WLFI tokens to stake them for at least 180 days to vote. Locked token holders remain eligible to vote without additional staking. The proposal moves to a seven-day Snapshot vote and requires a quorum of 1 billion WLFI tokens to pass. |
Voting power would be weighted using a square root formula that accounts for both stake size and remaining lock duration. Stakers who vote at least twice during the lock period would earn a base annual yield of about 2%, funded by the WLFI treasury. |
The plan also introduces tiered participation. "Node" status requires staking 10 million WLFI, which equals roughly $1 million at current prices. Node participants gain access to licensed market makers that offer 1:1 over-the-counter conversions of USDT and USDC into USD1, subject to compliance requirements. "Super Node" status requires 50 million WLFI and provides priority partnership discussions and potential economic incentives. |
Redirecting USD1 arbitrage - USD1 has grown to a circulating supply of over $4.7 billion, making it the fifth-largest stablecoin by market capitalization. The proposal aims to redirect arbitrage margins, estimated at 10 to 15 basis points per mint-and-redeem cycle, from institutional intermediaries to long-term token holders. |
The changes follow a recent episode in which USD1 briefly dipped to $0.99707 amid what the team described as a coordinated short and social media attack. More than $290 million reportedly exited the stablecoin after the incident, though it later returned to its targeted value. |
WLFI was recently trading near $0.11 with a market capitalization of about $3.2 billion. The governance reforms signal a push to tighten alignment between token holders and USD1 adoption, while raising the participation bar for decision-making within the ecosystem. |
Ethereum maps seven forks to 2029 as quantum resistance and 2-second slots take shape |
|
Key points: |
The Ethereum Foundation's draft "Strawmap" outlines seven forks through 2029, targeting faster slot times, near-instant finality, and quantum-resistant cryptography. Ethereum climbed above $2,000 amid renewed whale accumulation and improving U.S. investor demand.
|
News - Ethereum researchers have published a draft multi-year upgrade outline known as the "Strawmap," projecting roughly one hard fork every six months through 2029. The document, first discussed at a January workshop and later shared publicly, sketches a transition toward shorter slot times, finality measured in seconds, and post-quantum cryptography at the protocol level. |
Vitalik Buterin confirmed the direction on February 26, stating that Ethereum plans to incrementally reduce slot times from the current 12 seconds down toward two seconds. Finality, currently around 16 minutes, could eventually fall to a range of six to 16 seconds through a shift from Gasper consensus to a one-round Byzantine Fault Tolerant design known as Minimmit. |
The roadmap also proposes bundling major consensus changes with post-quantum hash-based signatures and a STARK-friendly hash function. Buterin noted that slot-level quantum resistance could arrive before finality-level upgrades, meaning the chain could continue operating even if finality guarantees were temporarily weakened by future quantum breakthroughs. |
Market reaction and investor positioning - The structural roadmap coincides with renewed price momentum. Ethereum rose above $2,000 during a broader crypto rally, trading near $2,054 at press time. On-chain data shows large holders accumulating, including a $14.57 million purchase of 7,008 ETH and a 20,000 ETH withdrawal from major exchanges within hours. |
The Coinbase Premium Index moved above zero for the first time since early January, signaling stronger U.S.-based demand. Santiment data indicates Ethereum's 30-day MVRV ratio has shifted from deeply undervalued territory to around negative 5.5%, suggesting rebalancing after prior weakness. |
While Ethereum's long-term roadmap centers on faster coordination and quantum readiness, corporate exposure to ETH remains volatile. Former treasury-focused firm ETHZilla recently rebranded as Forum Markets after scaling back its Ethereum balance sheet strategy, even as it continues holding 69,802 ETH worth about $143.7 million. |
Together, the Strawmap and market activity reflect Ethereum's push to evolve its base layer while navigating shifting investor sentiment across both crypto and public equity markets. |
OCC opens 60-day review of GENIUS Act rules, draws firm line on stablecoin yield |
|
Key points: |
The OCC has issued a 376-page proposal implementing the GENIUS Act, banning yield on payment stablecoins issued under its supervision. The draft introduces guardrails against affiliate reward loops and sets operating standards for U.S. and certain foreign issuers.
|
News - On February 25, 2026, the Office of the Comptroller of the Currency (OCC) released a proposed rule to implement the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), opening a 60-day public comment window following publication in the Federal Register. The 376-page draft seeks to formalize federal oversight of payment stablecoin issuers and related custody activities under OCC supervision. |
If finalized as drafted, OCC-supervised issuers would be barred from paying interest or yield tied solely to holding, using, or retaining a payment stablecoin. |
The proposal also introduces a rebuttable presumption against structures in which an issuer pays yield to an affiliate or related third party that then distributes rewards to stablecoin holders. Issuers may attempt to rebut that presumption through written submissions, though the OCC characterizes such arrangements as highly likely to evade the statute. |
The draft does allow merchant-funded discounts and does not prohibit non-affiliate whitelabel profit-sharing arrangements. |
What this means for CLARITY and market structure: By prohibiting yield at the issuer level, the framework effectively establishes a no-yield baseline for GENIUS-compliant payment stablecoins. Legal observers suggest this could ease friction within the Digital Asset Market Clarity Act (CLARITY Act) debate, where lawmakers have wrestled with whether digital asset service providers should be allowed to offer stablecoin rewards. |
The proposal outlines standards for permitted U.S. issuers, subsidiaries of national banks and federal savings associations, certain state-qualified issuers, and foreign payment stablecoin entities seeking U.S. access. It covers reserve asset standards, redemption at par, liquidity and risk management controls, audits, supervisory examinations, custody requirements, and capital and operational backstops. |
Bank Secrecy Act (BSA), Anti-Money Laundering (AML), and sanctions provisions are not included and will be addressed separately in coordination with the U.S. Treasury. Comptroller Jonathan Gould said the goal is a framework where stablecoins can flourish in a safe and sound manner. |
If adopted, the regime could take effect no later than January 2027, or as soon as 120 days after final regulations are issued. |
|
More stories from the crypto ecosystem |
|
Interesting facts |
Binance is thinking beyond licenses, it's picking a strategic European home: Binance's co-CEO Richard Teng revealed the exchange chose Greece as its EU regulatory base due to its talent pool and security advantages, even as it pursues a broader MiCA license that will be mandatory across the bloc by mid-2026. Bitcoin's price action shows real institutional patience in early 2026: Bitcoin jumped 5% to near $68,000 today, a rebound driven specifically by renewed ETF inflows, signaling that institutional vehicles remain a key price support mechanism even as retail momentum wanes. Stablecoins aren't just buzzwords in the UK, they're being trialed in real payment systems: UK fintech giant Revolut will begin testing a pound-pegged stablecoin in the FCA's regulatory sandbox this quarter, with use cases spanning payments, wholesale settlement, and trading, a rare pilot that could influence how European fiat-linked tokens integrate into broader financial rails.
|
Meet America's Newest $1B Unicorn |
|
It just surpassed a $1B valuation, joining private US companies like SpaceX and OpenAI. Unlike those companies, you can invest in EnergyX today. Industry giants like General Motors and POSCO already have. Why? EnergyX's tech can recover 3X more lithium than traditional methods. Now, they're preparing 100,000+ acres of lithium-rich Chilean land for commercial production. Buy private EnergyX shares alongside 40k+ people at $11/share through 2/26. |
Invest in EnergyX Today |
This is a paid advertisement for EnergyX Regulation A offering. Please read the offering circular at invest.energyx.com. Under Regulation A, a company may change its share price by up to 20% without requalifying the offering with the Securities and Exchange Commission. |
|
Top 3 coins of the day |
Ethena (ENA) |
|
Key points: |
ENA rallied to $0.119 after bouncing from the $0.105 area, posting a strong daily recovery within a broader downtrend. Volume expanded sharply while the Awesome Oscillator improved toward neutral territory, signaling fading bearish momentum.
|
What you should know: |
Ethena staged a decisive relief move after weeks of steady decline, rebounding from support near $0.105 and briefly testing the $0.12 zone. Despite the surge, the Supertrend indicator remained in sell mode above price, indicating the larger trend had not yet flipped bullish. |
Momentum showed signs of stabilization rather than full reversal. The Awesome Oscillator remained slightly negative but printed strengthening green bars, reflecting diminishing downside pressure. At the same time, volume rose noticeably during the breakout attempt, confirming that buyers participated in the move. |
Immediate support rests at $0.105, with deeper structure near $0.095. On the upside, $0.12 stands as the key level to reclaim. A sustained push above that zone would weaken the prevailing bearish bias, while failure to hold current gains could keep ENA within its broader corrective structure. |
Aerodrome Finance (AERO) |
|
Key points: |
AERO climbed to $0.38 after bouncing sharply from the $0.31 zone, pressing toward the $0.40 barrier. Parabolic SAR stayed beneath price and MACD maintained positive expansion, pointing to building bullish pressure.
|
What you should know: |
After weeks of lower highs, AERO began carving out a recovery from the $0.31 area and pushed as high as $0.39 before stabilizing near $0.38. The Parabolic SAR dots continued tracking below price, reinforcing that the short-term bias had tilted upward. |
Momentum had already shifted earlier in the advance. The MACD line remained above the signal line, and the green histogram gradually widened, suggesting that upside acceleration was strengthening rather than merely stabilizing. Volume also expanded during the latest leg higher, reflecting renewed participation and increased trading activity tied to Base ecosystem flows. |
From here, $0.40 represents the immediate ceiling to overcome. A decisive move beyond that level would reinforce trend continuation. On the downside, $0.36 serves as the first cushion, while $0.31 remains the broader structural floor that bulls would need to defend to preserve the recovery structure. |
Ethereum (ETH) |
|
Key points: |
ETH recovered toward $2,074 after rebounding from sub-$2,000 levels, but remained capped below the $2,158 Supertrend barrier. DMI reflected elevated trend strength with ADX above 50, while -DI continued to lead +DI, signaling that broader bearish control has not fully eased.
|
What you should know: |
Ethereum attempted to stabilize after finding demand near $1,980 and pushed back above $2,050, briefly trading near $2,083 before settling around $2,074. Despite the rebound, price continued to trade beneath the Supertrend resistance at $2,158, keeping the broader structure cautious. |
Trend intensity remained high. The ADX hovered above 50, confirming a strong directional phase, though -DI stayed ahead of +DI, indicating that sellers still held the structural edge even as buyers stepped in. Volume picked up during the recovery leg, reflecting renewed participation following the sharp prior decline. |
Immediate support now rests at $2,065, followed by the psychological $2,000 zone. On the upside, a sustained move above $2,158 is required to meaningfully shift trend bias. Failure to reclaim that level could keep ETH vulnerable to renewed pressure toward lower supports. |
Daily news for curious minds. |
Be the smartest person in the room. 1440 navigates 100+ sources to deliver a comprehensive, unbiased news roundup — politics, business, culture, and more — in a quick, 5-minute read. Completely free, completely factual. |
Sign up now! |
How was today's newsletter? |
|
No comments:
Post a Comment