BTC, ETH Slide as Altcoins Diverge; SEC Decision on IBIT Options Looms

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve is expected to keep rates unchanged in March, maintaining tight liquidity for crypto markets. Standard Chartered forecasts stablecoin growth could drive $1 trillion demand for US Treasuries by 2028, impacting DeFi yields. The SEC's exemption for WisdomTree's tokenized fund signals growing regulatory acceptance of blockchain-based financial products.

Crypto Market

Over the past 12 hours, the crypto market showed mixed performance with BTC down 1.64% at $64,104 and ETH down 1.73% at $1,840.82, both pressured by weak spot demand and ETF outflows. Altcoins diverged: PIPPIN surged 18.84%, JST rose 6.05%, and ETHFI gained 5.97% on strong DeFi and AI narratives, while GRASS fell 1.14%. OP climbed 4.36% ahead of its major token unlock.

Today's Outlook

Today, the SEC will decide on Nasdaq's request to quadruple IBIT options position limits, a move that could impact institutional crypto derivatives trading. Key US macro data releases—ADP employment, CB consumer confidence, and money supply—may drive volatility across both traditional and crypto markets.

Fear and Greed Index

78.00% Annual Percentile

14 Fear

Total Crypto Market Cap

$2.23T

2.72%

Total Market Trading Volume

$114.98B

130.54%

Altcoin Season Index

33.33%

Quarterly Percentile

31 / 100

Total Futures Market Open Interest

3.11B

0.23%

Futures

371.27B

4.07%

Perpetuals

II. Industry Updates

Macro-economic Policies

The CME FedWatch tool indicates a 96% probability that the Federal Reserve will keep interest rates unchanged in March 2026, signaling continued tight monetary policy and maintaining pressure on crypto market liquidity.

The SEC has granted an exemption for WisdomTree's Treasury Money Market Digital Fund, enabling intraday trading of tokenized fund shares at a fixed $1 price, which may enhance blockchain-based liquidity solutions for DeFi and stablecoin protocols.

Standard Chartered projects that stablecoin issuers could drive up to $1 trillion in new demand for U.S. Treasury bills by 2028, potentially tightening short-term liquidity and impacting stablecoin-backed DeFi yields.

Coinbase's stablecoin revenue outlook faces uncertainty as a draft bill proposes banning yield payments to stablecoin holders, which could reduce the attractiveness of stablecoins for DeFi users and impact on-chain liquidity.

Framework Ventures has invested $45 million in Better.com to tokenize $500 million in mortgage assets, aiming to lower financing costs and potentially increase real-world asset flows into DeFi markets.

Cryptocurrency Regulatory Trends

The SEC has granted an exemption to WisdomTree's Treasury Money Market Digital Fund, allowing intraday trading of tokenized fund shares at a fixed $1 price, increasing liquidity and regulatory acceptance of blockchain-based financial products.

Coinbase's stablecoin revenue outlook faces uncertainty as a draft bill proposes banning yield payments to stablecoin holders, potentially limiting growth and impacting the competitiveness of U.S. stablecoin offerings.

The Federal Reserve has removed 'reputation risk' from its banking oversight policy, making it easier for cryptocurrency firms to access banking services and improving integration with the traditional financial system.

The SEC clarified the application of a 2% regulatory 'haircut' for broker-dealers holding stablecoins, easing capital requirements and potentially increasing institutional participation in digital asset markets.

Brazil's central bank advanced new institutional crypto regulations, requiring VASP licensing, asset segregation, and stricter AML controls, signaling a more structured and compliant environment for digital asset firms in Latin America.

PIPPIN (PIPPIN): PIPPIN surged 18.6% in 24h, reaching $0.735, driven by strong community engagement and AI narrative. Trading volume hit $69.8M, ranking it among top gainers.

JUST (JST): JST rose 6.1% in 24h to $0.045, with 24h volume at $34.1M. The price jump is linked to renewed DeFi activity on TRON and increased liquidity on major exchanges.

Ether.fi (ETHFI): ETHFI gained 5.5% in 24h, trading at $0.45. The rise is supported by growing adoption of liquid restaking and integration with DeFi protocols, boosting user rewards.

Smart Money Movements

Bitdeer liquidated its entire Bitcoin treasury, selling 943.1 BTC worth over $60 million and reducing its holdings to zero as of February 20, 2026.

Strategy acquired 592 BTC for $39.8 million at an average price of $67,286, bringing its total Bitcoin holdings to 717,722 BTC valued at $47.5 billion.

A whale deposited 650.76 BTC, valued at $43.05 million, into Gemini after three years of inactivity, securing a profit of $25.37 million (144% gain).

A major Ethereum holder with 120,000 ETH, valued at $230 million, faced an unrealized loss exceeding $16.3 million as ETH hovered near $1,860.

Ondo Finance transferred 24.475 million ONDO tokens, worth $6.12 million, from its multi-signature wallet to Coinbase approximately six hours ago.

Events to Watch

Feb 24 (Tue)

SEC to decide on Nasdaq's request to quadruple IBIT options position limits; U.S. ADP employment change, CB consumer confidence, and money supply data releases.

Feb 25 (Wed)

U.S. Federal Reserve balance sheet for week ending Feb. 25 and Eurozone final core inflation rate YoY to be released.

Feb 26 (Thu)

U.S. Q4 2025 GDP second estimate and PCE Price Index; U.S. initial jobless claims; Tokyo February inflation data to be published.

Feb 27 (Fri)

U.S. Core PCE Price Index, Producer Price Index (PPI) MoM and YoY, and German preliminary inflation rate for February; Canada Q4 GDP annualized growth rate release.

Feb 28 (Sat)

Major token unlocks: Optimism (OP) unlocks $36.5M (1.93% supply) to core contributors; $GRASS unlocks $10.5M (13.15% supply); XPL unlock for US public sale purchasers.

Table of Contents