📈 Bitcoin Hashrate Declines Amid Arctic Storm in the U.S.

📉 As an Arctic storm impacts several U.S. states, bitcoin mining activity has significantly decreased. Operators are reducing their operations to alleviate pressure on the power grid, leading to a notable decline in Bitcoin's network hashrate, which now ranges between 800 and 875 exahash per second (EH/s).

🌪 The storm is particularly severe in the South and lower Ohio Valley, affecting states like Tennessee, Texas, Louisiana, Mississippi, Kentucky, Georgia, Alabama, and West Virginia. These states host large bitcoin mining facilities, with Texas being a major hub.

⏳ Three days prior, Foundry USA, the world's largest mining pool, reduced a significant portion of its hashrate in anticipation of the storm. Since then, the downward trend has continued. Over a one-year window, Bitcoin has lost 385 EH/s since October 15, 2025.

📊 The most significant decline occurred after January 22, 2026, when the total hashrate was 1,053 EH/s. Today, it stands at 805 EH/s using a three-day simple moving average (SMA). Of the total decline of 385 EH/s from the all-time high of 1,190 EH/s, approximately 248 EH/s were lost between January 22 and January 28.

⏱️ This slowdown in hashrate has resulted in longer block intervals, exceeding the usual 10-minute target. Average block times have surpassed 12 minutes and are currently around 12 minutes and 12 seconds. If this trend continues, the upcoming difficulty epoch around February 8, 2026 could see one of the largest adjustments in years.

📉 Recent projections indicate a potential difficulty reduction of more than 18% due to the ongoing Arctic storm. This adjustment could provide immediate relief for bitcoin miners facing lower BTC exchange rates and thin revenue margins. A significant decrease in difficulty would ease competitive pressure and improve the chances of earning block rewards with existing infrastructure.

📌 Ripple Co-Founder Leads $40M Push to Counter California Wealth Tax

🌐 Ripple co-founder Chris Larsen and venture capitalist Tim Draper have launched Grow California, a $40 million political initiative designed to elect moderate state legislators and push back against labor unions, with a proposed wealth tax serving as the primary catalyst for Silicon Valley’s latest political mobilization.

❗️ According to NYT, the effort, which began with $5 million checks from each founder in September, represents one of the most significant financial commitments from the tech and crypto sectors to reshape California politics. The ballot measure that triggered this response, backed by Service Employees International Union-United Healthcare Workers West, would impose a one-time 5% tax on net worth exceeding $1 billion, including unrealized gains on assets not yet sold.

📊 “Whoever designed that wealth tax in the unions — wow,” Larsen said. “They woke up the sleeping giant like I have never seen.“

⚠️ Larsen, whose net worth is nearly $15 billion from Ripple holdings and crypto assets, said he expects to personally commit $30 million to the organization.

🔼 “If it takes a couple of cycles, fine — that’s what we’re here for,” he told The New York Times when asked about potential November losses.

🔔 The group plans to target about a dozen state legislative seats this year, focusing on public safety, homelessness, and budget discipline, according to Shaudi Fulp, the former Sacramento lobbyist leading daily operations. While Democrats control more than two-thirds of seats in both legislative chambers, Grow California will not engage in the 2026 gubernatorial race or expensive ballot proposition campaigns.

➡️ Both founders come from the crypto industry, though they stress that the initiative does not represent the interests of the crypto sector specifically.

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⚠️ Bitcoin Enters Bear Market Territory as Institutional Demand Reverses

⚡️ Bitcoin may be entering a renewed bear market phase, according to new research from CryptoQuant, as on-chain indicators, weakening institutional flows, and tightening liquidity conditions point to broad structural downside risk. In its latest Crypto Weekly Report, CryptoQuant said multiple on-chain metrics now confirm a bear market regime. The firm noted that Bitcoin peaked near $126,000 in early October, when its Bull Score Index stood at 80, indicating a strong bullish environment. CryptoQuant pointed out a material reversal in institutional demand, particularly through U.S. spot Bitcoin ETFs. At the same point last year, ETFs had purchased roughly 46,000 BTC, but in 2026, they have instead become net sellers, offloading around 10,600 BTC.

❗️ That shift represents a 56,000 BTC demand gap compared with 2025, contributing to persistent selling pressure across the market. Despite lower prices, CryptoQuant said U.S. investor participation remains weak. The Coinbase Premium, often used as a proxy for American spot demand, has stayed negative since mid-October. Historically, sustained bull markets have coincided with a positive Coinbase Premium driven by strong U.S. buying. CryptoQuant noted that this pattern has not returned, suggesting retail and institutional dip-buying remains limited.

❓ Liquidity conditions are also tightening, according to the report. CryptoQuant pointed to USDT’s 60-day market cap growth turning negative by $133 million, marking the first contraction since October 2023. Stablecoin expansion peaked at $15.9 billion in late October 2025, and the reversal is consistent with liquidity drawdowns typically seen in bear markets.

📊 The firm added that one-year apparent spot demand growth has collapsed 93%, falling from 1.1 million BTC to just 77,000 BTC, reinforcing the slowdown in new capital entering the market.

☄️ Coinbase UK CEO Says Tokenised Collateral Is Moving Into Market Mainstream

❗️ Tokenised collateral is shifting from experimental pilots into core financial market infrastructure, according to comments from Keith Grose, UK CEO of Coinbase, as central banks and institutions accelerate real-world deployment. Grose explains growing engagement from central banks signals that tokenisation has moved beyond the crypto-native ecosystem and into mainstream financial plumbing, particularly around liquidity and collateral management.

📌 “When central banks start talking about tokenised collateral, it’s a sign this technology has moved beyond crypto and into core market infrastructure,” Grose said. He pointed to new data from Coinbase, showing that 62% of institutions have either held or increased their crypto exposure since October, despite periods of market volatility.

🔔 According to Grose, this sustained institutional presence reflects a shift in priorities. Rather than speculative exposure, firms are increasingly focused on operational tools that allow them to deploy digital assets at scale within existing risk frameworks. Coinbase said it is seeing growing institutional demand for services such as custody, derivatives and stablecoins, which Grose said are essential for managing risk and supporting day-to-day financial activity. “That tells us the market is building for real-world use,” he said.

🕯 He added that tokenised assets and stablecoins are expected to move from being conceptual possibilities to becoming everyday instruments for liquidity and collateral management. This transition, Grose said, will define the next phase of market development through 2026 as infrastructure matures and regulatory clarity improves.

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🌐 Post-Quantum qONE Hyperliquid Token Sells Out in 24 Hours, Raises $950,000

⚠️ If the record sell-out of the qONE token presale is anything to go by, the interest in Post-Quantum Cryptography (PQC) solutions is off the charts right now.

📊 qONE token lists today at around 2pm UTC. To claim tokens, presale contributors are recommended to use the Hyperliquid-compliant Rabby Wallet. More details about the token generation event can be found at the official qLABS website. qLabs is the company behind a new token that has just raised $950,000 from contributors in a public sale that sold out in 24 hours. Two percent of the total token supply was available to contributors.

🔔 qONE is the first quantum-resistant token on Hyperliquid. It is an ERC-20-focused PQC solution developed in partnership with publicly listed Canadian quantum-resilience-focused cybersecurity company 01 Quantum. In what has been an unusually strong presale, given the bearish backdrop that has descended on crypto markets, the project may have made a wise choice in going for what it describes as a ‘limited’ presale.

🔴 qLABS says that the relatively small allocation was designed to reduce early speculative volatility, preserve long-term alignment, and ensure sufficient treasury and ecosystem funding. Arguably, the crypto industry is belatedly waking up to the threat it poses. Although tech notables such as Nvidia CEO Jensen Huang think that useful quantum computers will not be with us for 15-30 years, others believe it could be more like 5-10 years.

✨ Either way, companies need to start planning now, in crypto and beyond, wherever public-key cryptography is being used.

📈 Argentina's Labor Law Reform: Digital Wallets Excluded Amid Bank Pressure

🚫 Argentina's recent labor law reform has resulted in the exclusion of digital wallets as a payment option for workers' wages. This decision came after significant pressure from banks on lawmakers. The approved reform only permits wage payments through traditional banking institutions, effectively sidelining fintech companies.

➡️ The initial draft of the reform included a provision that allowed for wage payments through Payment Service Providers (PSPs) that met regulatory requirements set by the Central Bank of Argentina (BCRA). However, banks opposed this clause, arguing that it would drain liquidity from the banking system.

Marcelo Mazzon, executive manager of the Association of Public and Private Banks (Abappra), stated that this measure would jeopardize the liquidity of the system and the existence of productive credit facilities.

⚠️ Abappra also raised concerns about the safety of funds held by fintech companies. They claimed that these funds do not have the same protections as those in banks and could be included in bankruptcy proceedings without priority in case of insolvency.

In the event of insolvency, workers’ funds would be included in the bankruptcy estate without priority

it declared.

💔 The Argentine Fintech Chamber criticized the decision, arguing that it prioritizes banks' interests over user security. They warned that this reaction does not protect users' funds but rather ensures that banks have access to free funds for their business model.

Their business model relies on maintaining regulatory privileges rather than offering better services than fintech companies

the chamber concluded.

🔖 Prospera's Future in Jeopardy After Supreme Court Ruling

⚖️ Prospera, a self-governing city in Honduras that utilizes bitcoin as legal tender, faces significant uncertainty following a recent ruling by the Honduran Supreme Court. The court declared the Zone for Employment and Economic Development (ZEDE) law, which enabled Prospera's establishment, unconstitutional. This decision was made by a majority vote and has raised questions about the governance of such operating zones.

➡️ The ZEDE law allowed for the creation of autonomous zones with their own political, judicial, economic, and administrative systems, while still being subject to the Honduran government. However, the new administration under President Nasry Asfura may approach Prospera differently due to its connections with former President Donald Trump and his administration.

💼 Prospera has filed a dispute with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), seeking billions in damages as it navigates this changing legal landscape. The city has attracted significant investment from U.S. figures like Peter Thiel and Marc Andreessen, who would benefit from a favorable outcome that allows Prospera to continue operating as it has.

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💼 Peter Thiel's Founders Fund Exits ETHzilla Corp Amid Crypto Downturn

📉 Billionaire investor Peter Thiel and his Founders Fund have completely divested from ETHzilla Corp., as revealed in a recent U.S. Securities and Exchange Commission filing. This marks a significant shift from their previous 7.5% stake reported in August. ETHzilla, based in Palm Beach, Florida, transitioned from a biotech firm to a digital asset treasury focused on ether holdings in 2025.

🔄 At its peak, ETHzilla held over 100,000 ETH tokens. However, the recent downturn in the crypto market forced the company to liquidate assets, selling $40 million worth of ether in October and an additional $74.5 million in December to support buybacks and repay debts. This situation reflects the broader challenges faced by digital asset treasuries since the historic flash crash on October 10, 2025, which resulted in a significant contraction of the crypto market.

📉 Following this event, the total valuation of the crypto market has decreased by more than 40%, now standing at approximately $2.4 trillion. This prolonged compression has put immense pressure on institutional players and digital asset treasuries, including Strategy, the world's largest bitcoin treasury firm, which is currently facing unrealized paper losses exceeding $6 billion.

✈️ In response to these challenges, ETHzilla is shifting its focus towards a new strategy: tokenizing real-world aviation assets. Through its subsidiary, ETHzilla Aerospace, the firm is offering blockchain-based access to equity in leased jet engines. This move represents a significant departure from its original crypto-treasury model and positions ETHzilla as a pioneer in integrating digital assets with tangible infrastructure.

🌍 FATF Strengthens Global Crypto Oversight Amid Rising Illicit Finance Concerns

🔍 The Financial Action Task Force (FATF) has intensified its global oversight of cryptocurrencies, announcing new measures during its fifth Plenary under the Mexican presidency on February 20. The FATF, which sets international standards for anti-money laundering and counter-terrorism financing, highlighted digital asset risk reports, country evaluations, and specific actions regarding Iran.

📌 Two key reports were approved for publication:

the first assesses and proposes ways to mitigate illicit finance risks posed by the misuse of stablecoins and unhosted wallets

and

the second report is on good practices and challenges associated with mitigating risks associated with offshore digital asset service providers

Additionally, Mutual Evaluation Reports for Austria, Italy, and Singapore were adopted, showcasing peer review findings on their legal frameworks and implementation effectiveness.

🚫 Addressing geopolitical risks, the FATF reiterated Iran's status on its blacklist due to ongoing concerns over terrorist financing. The organization urged all jurisdictions to impose

additional countermeasures to restrict correspondent banking, digital asset transactions, and business relationships with Iran

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📈 Bitcoin ETFs Lead a Rare All-Green Day for Crypto Funds

📌 A significant wave of buying activity swept through the crypto ETF market on Tuesday, resulting in a total inflow of $258 million across major U.S. crypto ETFs, marking a rare all-green day. Spot bitcoin ETFs were at the forefront with $257.71 million in net inflows, indicating widespread demand across six funds. Fidelity’s FBTC led the pack with $82.81 million, followed by Blackrock’s IBIT at $78.94 million and ARK Invest & 21shares’ ARKB with $71.14 million. Additional contributions came from Vaneck’s HODL ($12.76 million), Grayscale’s Bitcoin Mini Trust ($8.56 million), and Bitwise’s BITB ($3.50 million).

📈 Ether ETFs also performed well, with a net inflow of $9.23 million despite a small outflow from Fidelity’s FETH. This was primarily driven by Grayscale’s Ether Mini Trust, which pulled in $11.08 million. The trading activity for ether totaled $550.23 million, bringing net assets to $10.47 billion. XRP ETFs joined the positive trend with $3.04 million in net inflows, largely due to Bitwise’s XRP product, while trading volume was $13.24 million.

📊 Solana ETFs continued their upward trajectory with $3.78 million in inflows, led by Bitwise’s BSOL ($2.62 million) and supported by Fidelity’s FSOL ($1.16 million). The total value traded for solana reached $26.11 million, increasing net assets to $697.12 million.

Tuesday marked a rare all-green session across bitcoin, ether, XRP, and solana ETFs.

💪 Overall, the broad-based inflows and healthy trading volumes suggest that investors are returning to crypto exposure with renewed confidence rather than making isolated tactical moves.

🔔 Bitcoin's Resilience Amid Middle East Tensions

📈 On Saturday, Bitcoin experienced significant fluctuations as tensions escalated in the Middle East and U.S. airstrikes targeted Iran. The cryptocurrency rose from an intraday low of $63,176 to $67,152 by 3:45 p.m. Eastern time, marking a 2% increase against the dollar and approaching the $67,000 threshold.

Bitcoin is now up on bad news, having fully reversed the initial crash,

the economist Alex Krüger told his 218,700 X followers.

First time this happens since March 2023,

he added.

📉 Earlier in the day, Bitcoin dipped to around $63,000 due to reports of U.S. and Israeli military strikes on Iran, which created a risk-off mood and led to nearly $250 million in Bitcoin derivatives positions being liquidated. This included $124.88 million in long bets.

🤔 The reason for Bitcoin's rebound is unclear. However, some suggest that the absence of an immediate escalation into a broader regional conflict following the strikes may have restored some confidence in the crypto markets.

Feel like, BTC has had a number of opportunities to go down the past couple weeks and hasn’t. When it stops reacting to news, good or bad, you typically end up with a move in the opposite direction more often than not,

wrote the X account Pentoshi.

🚫 Whether this recent bounce signifies the beginning of a broader upward trend or just a temporary pause remains uncertain. However, Bitcoin's ability to recover from geopolitical shocks has been noteworthy. As of 4:30 p.m. EST, Bitcoin was trading at $66,444 per unit, showing a more measured response to the surrounding uncertainties.

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🛡 VeryAI Secures $10 Million to Revolutionize Online Security with Biometric Technology

💰 VeryAI, a "proof of reality" platform, has successfully raised $10 million in seed funding, led by Polychain Capital with contributions from the Berggruen Institute and Anagram. This funding will be used to enhance its infrastructure and develop tools aimed at maintaining a human-centric internet.

📱 The announcement coincides with the launch of VeryAI's biometric verification system, which transforms a standard smartphone camera into a high-precision palm scanner. This innovative approach eliminates the need for specialized hardware, offering a seamless "human-only" layer for online interactions.

🔒 Traditional security measures like facial recognition and CAPTCHAs are becoming less effective due to advanced AI technologies. Zach Meltzer, founder and CEO of VeryAI, emphasized the need for updated solutions:

Privacy is a human right. But deepfakes and synthetic content present weaknesses that current systems simply can’t keep up with.