Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

Weekly stablecoin inflows to exchanges doubled from $51 billion in late December to around $100 billion amid the recent crypto dip, surpassing the 90-day average of $89 billion. January transaction volumes reached $10 trillion, with USDC leading at $8.4 trillion, highlighting its speed and efficiency over traditional payments. U.S. Senator Cynthia Lummis urged banks to adopt stablecoins for custody and cheaper payment rails. Meanwhile, China banned unapproved yuan-linked stablecoins, and Binance CEO CZ is developing native stablecoins with multiple countries.

China has banned unapproved offshore yuan-pegged stablecoins to stop crypto-based capital flight and financial crime. The People’s Bank of China repeated its strict ban on crypto activity, citing risks tied to money laundering and foreign exchange fraud. Hong Kong regulators also warned that no licenses have been issued, and promoting such stablecoins is illegal. The move targets offshore RMB tokens like CNH stablecoins and supports China’s push toward its digital yuan, the eCNY.

A Bithumb employee accidentally sent around 2,000 $BTC to hundreds of users during an airdrop instead of the intended token, causing Bitcoin to drop about 10% on the exchange. Some users reported receiving 2,000 $BTC rather than the expected 2,000 KRW. The mishap triggered a sharp price reaction locally on Bithumb, though Bitcoin’s broader market remained relatively stable. The incident highlights the risks of human error in crypto operations and the potential market impact of large accidental transfers.

Metaplanet CEO Gerovich announced the company will continue steadily accumulating Bitcoin despite a 50% drop from October 2025 highs and shares nearly halving since mid-January. The Tokyo-listed firm, which began buying BTC in April 2024, now holds 35,102 BTC worth $2.2 billion, ranking fourth globally among public companies. With an average purchase price of $107,716 per BTC, the firm faces $1.6 billion in unrealized losses. Gerovich emphasized long-term growth, mirroring strategies of other resilient Bitcoin holders like MicroStrategy.

Several Ethereum whales are at risk of major liquidations as ETH trades near $1,900. Trend Research leads with 356,000 ETH ($671 million) vulnerable between $1,562 and $1,698, followed by Joseph Lubin with 293,000 ETH ($553 million) and the “7 Siblings” group with 287,000 ETH ($541 million) exposed near $1,029 to $1,075. Trend Research recently sold 170,000 ETH ($322 million) and repaid $344 million in loans, reducing exposure. If ETH prices drop further, forced liquidations could trigger sell-offs, though adding collateral may help whales avoid wipeouts.

Cardano founder and former Ethereum co-founder Charles Hoskinson revealed in a livestream called Red Days that his crypto holdings have lost over 3 billion dollars as Bitcoin fell below 66,000 and ADA dropped to 0.25, down 92 percent from its 2021 peak. Hoskinson stressed his commitment to blockchain technology over profit, saying money is not his motivation, and he would stay dedicated even after such losses. He highlighted his clean record compared to scandals like FTX and urged the community to keep building despite market volatility.

The Crypto Fear and Greed Index fell to extreme fear levels of 5-9, the lowest since the June 2022 Terra and FTX crashes, as Bitcoin briefly dropped below $65,000 before recovering. The cryptocurrency saw a single-day decline of over $10,000, wiping out significant market value and triggering widespread liquidations. U.S. spot Bitcoin ETFs recorded $434.1 million in net outflows on February 5, led by BlackRock’s IBIT, reflecting growing caution among institutional investors.

Binance has boosted its Secure Asset Fund for Users by adding $233 million in Bitcoin, acquiring 3,600 BTC, and bringing total holdings to 6,230 BTC, worth approximately $404 million. This marks the third significant purchase in days, totaling nearly $430 million. The move is part of a strategy announced on January 30 to gradually convert SAFU reserves from stablecoins into Bitcoin amid market dips, reflecting strong confidence in BTC as a long term reserve asset.

Brazil’s congressional committee has approved Bill 4,308/2024 to strengthen stablecoin oversight. The law requires all stablecoins to be fully backed by reserves, banning unbacked tokens like Ethena’s USDe and Frax. Issuers of unbacked coins could face up to eight years in prison, and exchanges handling foreign stablecoins such as USDT and USDC must follow strict compliance and risk rules. This move is set to reshape Brazil’s crypto market.

Bitcoin briefly dropped below the $70,000 mark for the first time since November 2024 and is now trading at $70,131, down 5.34% in the past 24 hours. Ethereum also faced heavy selling pressure, sliding to $2,095 after a sharp 6.96% daily decline. Market volatility triggered massive liquidations, with CoinGlass data showing $951 million wiped out in the last 24 hours. Long traders were hit the hardest, accounting for $790 million of the total liquidations, as the sudden sell-off caught bullish bets off guard.