A court ruling tied to US tariffs has injected new uncertainty into trade negotiations and weighed on broader market sentiment, with crypto moving lower alongside other risk assets. The source says the decision has weakened Donald Trump’s leverage on trade policy and prompted some counterparties to reconsider earlier agreements.
Bitcoin loses one support after another
The article says the latest sell-off did not come as a surprise to many close watchers of the market. Bitcoin failed to clear the $72,000 resistance level, a move described as necessary for any bullish reversal. After that rejection, price dropped below $69,000, then $66,000 and $65,000, before falling through $63,000. The same analysis pointed to a possible test of $56,000, arguing that current conditions favor lower lows rather than a push to fresh highs.
ETF outflows continue while Strategy and Buterin take different paths
Macro concerns are only part of the picture. Spot Bitcoin and Ethereum ETF outflows are still ongoing. At the same time, Michael Saylor’s Strategy increased its Bitcoin holdings to 717,722 BTC last week. Even so, the report notes that the firm’s average purchase price remains above spot, leaving MicroStrategy shareholders sitting on deep paper losses.
Ethereum co-founder Vitalik Buterin was also cited as reducing exposure after the market decline. According to the source, he sold another $7.3 million worth of ETH over three days. A separate pressure point comes from renewed scrutiny around the 2022 LUNA collapse. What had circulated as speculation about Jane Street’s role has now turned into formal legal action, drawing attention to major market makers and investment firms linked to that episode.
Insider trading allegations and stablecoin rule changes stir the market
On-chain investigator ZachXBT said he plans to reveal an insider trading case involving one of the crypto sector’s largest players, with details expected on February 26. The company has not been named. The source adds that if the party involved has its own token, or close exposure to token activity, volatility could rise sharply. There is also speculation around WLFI, while others argue the chatter may be market manipulation through “Pumpfun.”
Regulation added another catalyst. The US Securities and Exchange Commission reduced the mandatory reserve ratio for brokerage firms holding stablecoins from 100% to 2%. The article says that shift could increase demand for stablecoins in the near term.
Geopolitics and trade friction deepen the risk-off mood
The piece also points to rising tension between the US and Iran, saying senior Iranian officials are reportedly preparing for possible conflict. On trade, European officials were quoted as saying the court ruling has undercut Trump’s authority and emboldened trade partners to revisit their deals. Questions around US-China friction and the European Union’s investment commitments are feeding a market climate defined by uncertainty and caution.