Stablecoins, at the current $222.208 bn market cap, represent just over 1.03% of the US M2 money supply, which includes cash, savings accounts, money market accounts, and time deposits.
While stablecoins have seen significant growth in the crypto space, their real breakthrough potential for the USA lies in democratizing access to US dollars globally. Instead of relying solely on nation-states' demand for USD, stablecoins could allow individuals in countries with higher inflation rates to directly access dollar stability. This is evidenced by the fact that stablecoin issuers Tether (USDT) and Circle (USDC) are already among the top 20 buyers of US Treasury Securities, suggesting this transition is already beginning to happen. As USDT and USDC adoption grows, these stablecoin issuers could become major players in US Treasury markets, potentially rivaling traditional nation-state buyers. The key accelerator for this transformation would be supportive US government policy, which looks like it's already starting to happen.
Documents released by Acting FDIC Chairman Travis Hill revealed evidence of "Operation Chokepoint 2.0" including 23 "pause letters" from 2022 that urged FDIC-supervised banks to halt crypto-related activities. These documents, obtained through a Freedom Of Information Act lawsuit by History Associates Inc., support crypto industry claims about regulatory pressure to minimize involvement with cryptocurrency businesses.
Meanwhile, before Wednesday's Senate Banking Committee hearing, Hill announced a shift in policy, saying the FDIC will be "providing a pathway for institutions to engage in crypto- and blockchain-related activities while still adhering to safety and soundness principles".
BlackRock plans to launch a Bitcoin ETP in Europe with the launch of a bitcoin strategy, domiciled in Switzerland.
Bitcoin continues to trade sideways in a volatile, range-bound pattern, as uncertainty, and speculation dominate the market.
Crypto liquidations over the past 24h reached $179.73m, with 63% consisting of long positions. In the past hour, BTC related liquidations reached $1.18m, with $1.17m of those being short positions.
US BTC and ETH Spot ETFs recorded weaker inflows on Feb 5 compared to one day prior, but remained net positive. BTC ETFs recorded $66.4m of inflows, while ETH ETFs recorded $18.1m inflows.
The US Securities and Exchange Commission (SEC) has now launched a dedicated email address for direct communication with the crypto industry: crypto @ sec . gov.
Bitcoin mining company Bitdeer has acquired a $21.7m Alberta power facility, marking a key step in their vertical integration strategy - by owning and operating their own power infrastructure, they want to have complete control over their mining operations, potentially leading to better efficiency and cost management: power generation costs are estimated to fall between $20 and $25 per megawatt-hour, and as part of the project acquisition, Bitdeer will deploy a carbon utilization system that captures CO2 making the project a net zero carbon producer, aiming to offset Canada’s carbon tax obligations and generate future revenue through carbon credits.
MicroStrategy has rebranded to "Strategy", emphasizing its dual focus on Bitcoin and AI with a new orange-themed brand identity featuring a stylized "B" logo. Strategy's Q4 earnings showed mixed results: while subscription services grew strongly (+48.4% to $31.9m), overall revenue fell 3% year-over-year to $120.7m, missing analyst estimates of $123.25m, with declines in product support and consulting services. CEO Phong Le remained optimistic, stating "looking ahead to the rest of 2025, we are well-positioned to further enhance shareholder value by leveraging the strong support from institutional and retail investors for our strategic plan".
