Crypto Compass by BitcoinWalletSG #107

Hello Fam,

Happy Lunar New Year! Took a break last week and we’re back in full force now. Immediately on the weekly open, the cryptocurrency market experienced a significant downturn, with liquidations potentially reaching up to $10 billion, according to Bybit CEO Ben Zhou. This market turbulence was largely attributed to President Donald Trump's announcement of substantial tariffs on imports from Canada, Mexico, and China, which intensified fears of a global trade war.

In response, major cryptocurrencies saw notable declines; for instance, Bitcoin fell to $91,000, and Ethereum dropped by 22% to $2,100. The overall market capitalization decreased from about $3.6 trillion to $3.1 trillion. This event underscores the heightened sensitivity of the crypto market to geopolitical developments and macroeconomic policies.

Crypto Market Sees $10B in Liquidations Amid Macro Concerns

The crypto market saw an estimated $10 billion in liquidations, far exceeding initial reports of $2.24 billion, as Bybit CEO Ben Zhou revealed that Bybit alone accounted for $2.1 billion in forced sell-offs. The sudden downturn was fueled by growing macroeconomic concerns, including President Trump’s new import tariffs on China, Canada, and Mexico. Over 730,000 traders were caught in the liquidation cascade, with the largest single order valued at $25.6 million on Binance’s ETH/BTC pair. While many faced heavy losses, some traders capitalized on the volatility—one Ethereum short trader reportedly made nearly $16 million using 50x leverage.

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MicroStrategy Expands Stock Offering to $563M, Strengthening Bitcoin Bet

MicroStrategy has significantly expanded its latest stock offering, raising $563.4 million from its 8% Series A perpetual preferred stock (STRK), nearly tripling its initial target. The company, which now holds 471,107 BTC worth over $46 billion, plans to use the funds for general corporate purposes, including acquiring more Bitcoin. The preferred stock offers indefinite fixed dividends and optionality for investors, aligning with MicroStrategy’s aggressive Bitcoin accumulation strategy. Analysts at Mizuho Securities predict Bitcoin’s price could rise another 30% in the next three years, positioning MicroStrategy’s stock for further gains.

Coinbase Gains UK Approval, Strengthening Global Expansion

Coinbase has secured approval from the UK’s Financial Conduct Authority (FCA) as a registered virtual asset service provider (VASP), solidifying its position as the country’s largest regulated crypto exchange. This milestone allows Coinbase to serve both retail and institutional customers in one of its most crucial international markets. The UK is now its biggest market outside the US, reinforcing Coinbase’s broader European and Southeast Asian expansion strategy.

Happenings of the week

• Wintermute CEO discusses the future of crypto trading

• Elliott Management warns of inevitable crypto collapse

• TON Foundation launches $100M VC fund

• Utah could be first U.S. state to pass Bitcoin reserve bill

Tether Brings USDT to Bitcoin’s Lightning Network for Faster Payments

Tether has officially integrated USDT with Bitcoin’s Lightning Network, enabling direct minting of the stablecoin on Bitcoin via the Taproot Assets protocol. Announced at the Plan B conference in El Salvador, this update enhances transaction speed and reduces costs, allowing merchants to accept USDT payments on Bitcoin while leveraging its security and decentralization. Whether this propels Bitcoin into mainstream global payments or remains a niche feature, the network’s utility continues to expand.

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