Bitcoin Drops Below Critical Investment Threshold

  vor 9 Monaten

Bitcoin has dropped below the realized price for large Bitcoin investors. This decline implies potential temporary losses and increased stress for major investors. Continue Reading: Bitcoin Drops Below Critical Investment Threshold The post Bitcoin Drops Below Critical Investment Threshold appeared first on COINTURK NEWS .

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Bill Miller says BTC bottomed at $60K citing mining cost and Fed liquidity

  vor 9 Monaten

The cryptocurrency market has endured a white-knuckle ride in early 2026, punctuated by a rather dramatic correction that saw Bitcoin plunge to a staggering low of about $60,000 on February 5 th . This “flash crash” was triggered by a perfect storm of collapsing leverage, a temporary cooling of the AI-crypto narrative, and fears of a hawkish Federal Reserve. However, in a display of trademark resilience, Bitcoin staged a rapid-fire recovery – rallying back toward the $70,000 handle within days. As retail investor remains cautious, Miller Value Partners’ senior portfolio manager Bill Miller has a data-driven conviction: the $60,000 floor wasn’t a temporary pit stop – it was a definitive market bottom. Speaking with CNBC today, Miller offered three reasons why he believes BTC bottomed last week at the aforementioned price. Bitcoin mining cost According to Miller, the most fundamental pillar supporting the $60,000 bottom is the sheer cost of producing a single Bitcoin. For the first time in this cycle, BTC’s market price aligned with its “cash production cost” – a level that serves as a mechanical floor for the entire ecosystem. Miller explained that at $60,000, “weak miners start going out of business.” These undercapitalized operations, unable to maintain profitability, are forced to “shut down” their rigs. In doing so, the “main source of marginal selling pressure” is effectively eliminated. When these “weak hands” are purged from the network, the constant stream of forced liquidations dries up, allowing the Bitcoin price to stabilize against a backdrop of reduced supply. Fed’s liquidity pivot Beyond internal mechanics of the blockchain, Miller pointed to a significant “180-degree turn” in global monetary policy as the second reason why he believes BTC bottomed at the $60,000 level. On “ Closing Bell ”, Miller noted Bitcoin’s peak in the fall of 2025 coincided perfectly with the Fed draining $50 billion a month from its balance sheet. However, as short-term funding markets faced “extreme stress” in December, the central bank was forced into a radical policy shift. “What they’re doing now is buying $40 billion net a month,” Miller added, representing a massive $90 billion monthly swing in liquidity. This sudden influx of capital from the world’s largest liquidity provider has created a “huge floor”, which subsidizes risk assets, making a deeper drop below $60,000 fundamentally difficult. A key technical indicator Finally, Miller highlighted a rare technical phenomenon that has historically signalled the end of every major Bitcoin bear market: the inversion of holder profitability. On-chain data recently revealed a pivotal shift where the “percent of the supply in loss exceeds the percent of the supply in profit.” This metric is the ultimate gauge of market capitulation. When the majority of the circulating supply is underwater, the urge to sell has typically already been exhausted, leaving only long-term “HODLers” who are unwilling to realize losses. Miller argues that this “technical element” serves as a reliable historical marker, signaling that maximum pain has already been felt and the path of least resistance for BTC is now decisively upward. The post Bill Miller says BTC bottomed at $60K citing mining cost and Fed liquidity appeared first on Invezz

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Chainlink Founder Reveals: Why This Crypto Downturn Signals a Hopeful New Era of Stability

  vor 9 Monaten

BitcoinWorld Chainlink Founder Reveals: Why This Crypto Downturn Signals a Hopeful New Era of Stability In a significant statement from the blockchain frontier, Chainlink founder Sergey Nazarov presents a compelling case that the recent cryptocurrency downturn marks a pivotal departure from the destructive bear markets of the past. Speaking to industry media, Nazarov framed the current correction not as a crisis, but as a revealing case study in the sector’s hard-won evolution toward resilience. This perspective arrives at a critical juncture for digital assets in 2025, as investors and regulators alike scrutinize the market’s capacity for sustainable growth. Chainlink Founder Distinguishes Current Crypto Downturn from Historical Cycles Market cycles remain an inherent feature of the cryptocurrency landscape. However, Sergey Nazarov argues the defining characteristic of the 2024-2025 correction is the industry’s demonstrable stability throughout the process. Unlike previous downturns that exposed fundamental flaws, the current phase has not triggered a cascade of catastrophic failures. Nazarov specifically contrasted this period with the traumatic events of 2022, which included the collapse of the FTX exchange and a series of bankruptcies among major crypto lending platforms like Celsius and Voyager Digital. The absence of similar, widespread risk management failures or systemic contagion in the current cycle, he suggests, is not accidental. It directly results from improved infrastructure, more robust governance, and lessons harshly learned. This evolution is measurable. Consider the comparative data between the 2022 crash and the 2025 correction: Metric 2022 Bear Market 2024-2025 Correction Major Exchange Collapses FTX, others None of comparable scale Lending Platform Insolvencies Multiple (Celsius, Voyager, BlockFi) Isolated incidents, no systemic chain Primary Cause Leverage, fraud, poor custody Macroeconomic pressures, profit-taking Systemic Risk Spread High (contagion across sectors) Contained (sector-specific) Consequently, the market now absorbs volatility through a more mature framework. Institutional-grade custody solutions, widespread adoption of proof-of-reserves, and clearer regulatory guardrails in key jurisdictions have collectively created a stronger foundation. This foundational strength allows the core innovation—blockchain technology and decentralized applications—to continue developing, somewhat insulated from pure speculative price action. The Path to Cryptocurrency Market Maturity The journey to this point involved navigating profound challenges. The series of crises in 2022 acted as a forced stress test, exposing critical vulnerabilities in centralized points of failure. In response, the industry undertook a multi-year consolidation and strengthening phase. Key developments that contributed to the current resilience include: Enhanced Transparency: Major exchanges and custodians now routinely provide proof-of-reserves and detailed financial audits, a practice that was not standard before 2022. DeFi Resilience: Decentralized Finance protocols, which operate via smart contracts and non-custodial models, demonstrated their inherent stability. They largely avoided the insolvency issues that plagued their centralized counterparts. Institutional Infrastructure: The arrival of regulated Bitcoin ETFs, established custody banks like BNY Mellon entering the space, and clearer accounting standards provided a more stable on-ramp for traditional capital. Regulatory Clarification: While ongoing, frameworks like the EU’s MiCA have begun providing legal certainty, reducing the “wild west” perception that fueled past panics. Therefore, Nazarov’s analysis aligns with observable trends. The downturn is primarily driven by global macroeconomic factors—such as interest rate policies and geopolitical tensions—affecting all risk assets, rather than crypto-specific implosions. This shift indicates the asset class is beginning to correlate more with traditional finance cycles for external reasons, while its internal structure has become less prone to self-inflicted collapse. Expert Analysis on Systemic Risk and Absorption Capacity Financial analysts corroborate the view that systemic risk has diminished. Dr. Lena Schmidt, a fintech researcher at the Digital Asset Research Institute, notes, “The correlation between price declines and operational failures has dramatically weakened. In 2018 and 2022, price drops triggered existential threats to core service providers. Today, those providers are better capitalized, better regulated, and more operationally segregated. A price correction no longer automatically implies a collapse of infrastructure.” This decoupling is crucial for long-term viability. It suggests the underlying utility of blockchain networks—smart contract execution, decentralized oracle data from providers like Chainlink, and tokenized asset settlement—can continue functioning irrespective of speculative market sentiment. Furthermore, the developer activity metric, often seen as a leading indicator of ecosystem health, has remained robust. Data from Electric Capital’s 2024 Developer Report shows that monthly active developers in crypto have held steady or grown, even as prices corrected. This demonstrates that the builders driving innovation are not fleeing during downturns; they are continuing their work, supported by more sustainable funding models like decentralized treasuries and grants programs. This committed developer base builds the applications that will drive the next cycle of adoption, creating a flywheel effect that is less dependent on pure market hype. Conclusion Sergey Nazarov’s perspective reframes the current cryptocurrency downturn as a sign of strength, not weakness. The critical distinction he highlights is the absence of the catastrophic, industry-specific failures that characterized past bear markets. This resilience stems from tangible improvements in transparency, infrastructure, and risk management adopted across the sector since 2022. While market cycles will inevitably continue, the industry’s enhanced ability to absorb volatility without systemic breakdown marks a definitive step toward maturity. For investors and observers in 2025, this evolution suggests a market that is gradually transitioning from a phase of explosive, fragile growth to one of more stable, utility-driven development. The Chainlink founder’s analysis, therefore, points not to an end, but to a new and more hopeful chapter in the story of digital assets. FAQs Q1: What is the main difference between the current crypto downturn and the 2022 bear market according to Sergey Nazarov? The core difference is the absence of widespread systemic failures. The 2022 crash featured major exchange collapses (like FTX) and lending platform bankruptcies that crippled the ecosystem. The current downturn, while significant in price terms, has not seen a repeat of those catastrophic operational failures, indicating stronger industry infrastructure. Q2: How has the cryptocurrency industry demonstrated increased stability? Stability is demonstrated through improved practices like routine proof-of-reserves from exchanges, the growth of non-custodial DeFi protocols, the entry of regulated traditional finance custodians, and more robust smart contract security—all of which reduce single points of failure. Q3: Does this mean cryptocurrency markets are no longer volatile? No, price volatility remains high due to the asset class’s relative youth and sensitivity to macroeconomic factors. However, the argument is that this volatility is now less likely to cause the total collapse of major companies or protocols within the ecosystem, representing a shift from fragile to more resilient volatility. Q4: What role does regulation play in this increased maturity? Emerging regulatory frameworks, such as the EU’s Markets in Crypto-Assets (MiCA) regulation, provide clearer rules for operating. This reduces legal uncertainty for businesses, encourages better compliance and risk management, and helps protect consumers, contributing to a more stable operating environment. Q5: Why is developer activity an important metric during a downturn? Sustained developer activity shows that long-term building continues regardless of short-term price action. It indicates that innovation and utility development are becoming decoupled from market speculation, which is a hallmark of a maturing technology sector focused on real-world applications. This post Chainlink Founder Reveals: Why This Crypto Downturn Signals a Hopeful New Era of Stability first appeared on BitcoinWorld .

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Address Poisoning Scams Drain Millions as Crypto Attacks Surge

  vor 9 Monaten

Crypto users lost tens of millions of dollars in January to address poisoning and signature phishing scams, as attackers exploited lower transaction costs and user inattention to steal funds at scale. Scam Sniffer Warns of Spike in Address Poisoning Losses Crypto wallet scams intensified in January, with address poisoning and signature phishing attacks driving significant

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Binance Adds $300M in Bitcoin to User Protection Fund

  vor 9 Monaten

This acquisition is part of Binance’s plan to convert $1 billion of its protection fund into Bitcoin, even as prices recently slid. At the same time, Strategy, led by Michael Saylor, acquired 1,142 BTC for roughly $90 million at prices well above recent market levels, expanding its already massive holdings. Binance Boosts SAFU Reserves Binance added another $300 million worth of Bitcoin to its emergency reserves, as part of its ongoing experiment with a Bitcoin-backed protection fund. According to data from blockchain analytics platform Arkham , the exchange purchased 4,225 Bitcoin for its Secure Asset Fund for Users, commonly known as SAFU, which is a wallet that is designed to act as an emergency backstop for users in the event of extreme market disruptions or operational issues. With the latest acquisition, the SAFU fund’s Bitcoin holdings rose to more than $720 million at current market prices. Binance confirmed the move in a post on X, stating that it is continuing to buy Bitcoin for the fund and plans to complete the conversion within 30 days of its original announcement. The strategy is a big shift in how the exchange structures its user protection reserves, transitioning away from a more diversified setup toward a heavier reliance on Bitcoin as a long-term store of value. The move was first shared on Jan. 30, when Binance revealed plans to shift $1 billion of its protection fund into Bitcoin. The exchange framed the decision as a vote of confidence in Bitcoin’s durability and long-term role as the dominant digital asset. However, the strategy also introduces new risks. By concentrating the fund in Bitcoin, Binance exposes its emergency reserves to the asset’s inherent volatility. This means that sharp price swings could materially reduce the fund’s value during periods of market stress. To mitigate this risk, Binance said it would rebalance the fund back up to $1 billion if market volatility pushes its value below $800 million. This latest purchase comes against the backdrop of a crypto market correction. Bitcoin recently slid to around $59,930 , which was a level not seen since October of 2024, prior to the re-election of Donald Trump. Market sentiment is also shaky, with investors showing more sensitivity to macro uncertainty and the lack of clear bullish catalysts. BTC’s price action over the past month (Source: CoinCodex) Hina Sattar Joshi, director for digital assets at liquidity and data solutions firm TP ICAP, believes that many investors are still anchored to the traditional four-year Bitcoin cycle narrative, which historically features pronounced boom-and-bust phases. In this context, Binance’s continued accumulation of Bitcoin for its SAFU fund stands out as a long-term conviction play, even as near-term price action and investor confidence are under strain. Strategy Buys More Bitcoin Other companies are also not letting the current market volatility stop it from accumulating Bitcoin. Strategy, led by Bitcoin advocate Michael Saylor, added more Bitcoin last week, expanding its already massive holdings. According to a filing with the US Securities and Exchange Commission, the company acquired 1,142 BTC for approximately $90 million, paying an average price of $78,815 per coin. The timing of the purchase raised eyebrows across the market. Bitcoin spent most of the week trading well below Strategy’s acquisition price and even briefly dipped to around $60,000 last Thursday. Despite the pullback, Strategy executed its buy close to $79,000, which did little to lower the firm’s average cost basis. After the acquisition, Strategy now holds 714,644 BTC purchased for roughly $50 billion at an average price of $76,056 per coin. Strategy purchase price vs Bitcoin price (Source: StrategyTracker.com) People quickly pointed out that the purchase came during a time when Bitcoin was trading below Strategy’s average entry price, making it the second such acquisition under those conditions in the current cycle. Bitcoin fell sharply below $78,000 earlier in the week and has struggled to reclaim the $72,000 level since, according to CoinCodex data. By buying above its cost basis, Strategy avoided the optics of averaging down, even as prices offered opportunities to do so. The situation is similar to Strategy’s experience in 2022, when Bitcoin slid below $30,000 while the company’s average purchase price hovered slightly higher. At that time, Strategy slowed its accumulation but continued to make smaller buys. In the days leading up to the latest purchase, some traders speculated that Strategy might avoid buying below its average cost this cycle, which fueled jokes on social media suggesting Saylor might announce future purchases at even higher prices.

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Ripple Expands Custodial Solutions with Strategic Partnerships

  vor 9 Monaten

Ripple partners with Figment and Securosys to enhance its custody services for institutions. Figment's integration allows secure, validator-free blockchain staking activities for regulated entities. Continue Reading: Ripple Expands Custodial Solutions with Strategic Partnerships The post Ripple Expands Custodial Solutions with Strategic Partnerships appeared first on COINTURK NEWS .

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