USDCoin360 Weekly Dispatch | Crypto Market Updates & Highlights | February 22-28, 2026
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Weekly Crypto Market Performance
Period: February 22-28, 2026
Total crypto market cap: $2.19T
Crypto Fear & Greed Index: 11 (Extreme Fear)
BTC.D: 58.48%
Price Action
Bitcoin closed the week down approximately 6.33%, sliding from $67,659 on Feb. 22 to $63,579 by Feb. 28, despite a sharp midweek rebound that briefly pushed prices toward $69,869 after dipping below $63,000 earlier in the week. Ethereum declined about 5.62% over the same period, falling from $1,957 to $1,861, with an intraday surge above $2,070 during the Feb. 25 relief rally before retracing. The overall tone was volatile and reactive rather than trend-driven, with sharp two-way swings tied to liquidity events and macro headlines.
Market Structure
ETF flows were net positive across the core trading week (Feb. 23–27), with U.S. spot Bitcoin ETFs recording a cumulative $787.31M in net inflows and spot Ethereum ETFs adding $80.46M, although in the monthly timeframe, both are suffering from the 4th consecutive month of outflows.
The Feb. 25 rebound coincided with heavy short liquidations totaling roughly $588.6 million in 24 hours, suggesting that leverage positioning amplified price acceleration rather than initiating it.
Attribution for the volatility remains shared and partially inconclusive. While social media speculation around potential selling pressure linked to Jane Street circulated around 10 a.m. during the sharp intraday drops, some market participants and analysts stated that the price decline reflected broad position unwinding and de-risking across leveraged books rather than concentrated selling by Jane Street or Binance. February’s broader sell-off was described as “sharp and disorderly,” characterized by high trading volumes and forced liquidations.
Macro Context
Risk appetite deteriorated across asset classes during the week. Trade-policy uncertainty intensified following the U.S. Supreme Court’s decision to strike down tariff authority under a 1977 emergency law, with subsequent statements regarding temporary tariffs renewing policy ambiguity.
On Feb. 27, a hotter-than-expected January Producer Price Index reading reduced near-term expectations for Federal Reserve rate cuts, with futures markets pricing a high probability of unchanged policy in March.
Sentiment further weakened due to mounting concerns about artificial intelligence’s impact on capital allocation in the technology sector. Market discussion referenced the growing influence of research questioning AI-driven valuations, including the “extreme bear” analysis circulated by Citrini, alongside comments from JPMorgan CEO Jamie Dimon cautioning about excessive enthusiasm and capital concentration in the AI ecosystem. Broader stock-market weakness in growth and tech sectors contributed to cross-asset risk reduction.
Geopolitical developments added to volatility on Feb. 28 following announcements of the U.S. and Israel’s joint strike on Iran, prompting immediate downside pressure in crypto markets, which trade continuously and price geopolitical risk in real time. Tokenized gold, on the contrary, saw an increase to near $5,500 at one point, further powering gold’s uptrend by the end of Friday.
Cross-Asset Comparison
For the week ending Feb. 27, the S&P 500 increased 0.52% and the Nasdaq rose 1.31%, while gold gained 3.12% and silver surged 10.15%. Bitcoin’s weekly decline exceeded equity losses but remained directionally aligned with broader risk-off sentiment during peak stress periods.
Wintermute noted a structural shift in retail behavior that may have compounded pressure. Historically, retail flows have been a primary driver of crypto momentum, but data since late 2024 shows retail increasingly favoring equities over digital assets. The firm observed that correlation between retail activity and altcoin market capitalization has turned negative, suggesting asset reallocation rather than simultaneous exposure. Retail participation in equities is now described as a leading factor influencing crypto liquidity, effectively pulling capital away from digital-asset markets.
Corporate Treasury Expansion and Institutional Balance Sheets
Strategy Logs 100th Bitcoin Buy as Holdings Reach 717,722 BTC; BitMine Lifts Ethereum Treasury to 4,422,659 ETH Amid Price Slump
Strategy disclosed its 100th Bitcoin purchase on Feb. 23, 2026, acquiring 592 BTC between Feb. 17–22 for $39.8 million at an average price of $67,286 per coin. The purchase was funded through the sale of 297,940 MSTR shares, generating $39.7 million in net proceeds, with $7.8 billion in stock still authorized for issuance. Total holdings now stand at 717,722 BTC, acquired for $54.56 billion at an average cost basis of $76,020 per coin.
BitMine Immersion Technologies separately expanded its Ethereum treasury by 51,162 ETH, deploying approximately $98 million and bringing total holdings to 4,422,659 ETH valued at about $8.5 billion. The company described the environment as a “mini crypto winter,” noted that a portion of holdings are staked with annualized revenue described as “in the hundreds of millions,” and said it plans to launch its MAVAN staking solution in early 2026.
Market Integrity and Insider Trading Allegations
Terraform Bankruptcy Estate Sues Jane Street Over Alleged Insider Trading in 2022 TerraUSD Collapse
Terraform Labs’ bankruptcy administrator filed an 83-page civil complaint in SDNY alleging insider trading and market manipulation by Jane Street and three individuals in connection with the May 2022 UST and LUNA collapse. The complaint references a May 7, 2022 liquidity event on Curve’s 3pool involving a 150 million UST withdrawal by Terraform followed shortly by an alleged ~85 million UST withdrawal tied to Jane Street. The estate seeks damages, disgorgement, and a jury trial. Jane Street rejected the claims as baseless.
ZachXBT Alleges Axiom Employee Misused Internal Tools for Insider Trading as $38.1M Polymarket Frenzy Unfolds
ZachXBT publicly alleged that employees at Axiom Exchange accessed non-public wallet data for trading advantage, citing internal screenshots, recordings, and documentation. The allegations reference access to wallet histories, referral codes, and user identifiers, and identify a senior employee in the claims.
The disclosure coincided with a Polymarket contract that reached $38.1 million in volume, including reported pre-reveal bets that generated significant profits. ZachXBT denied coordination with third parties and described tracing a separate $50,000 bet through timing analysis.
Stablecoin Infrastructure, Issuers and Corporate Adoption
Circle Posts $770M Q4 Revenue as USDC Hits $75.3B, Stock Jumps Up to 35.5% on Earnings Beat
Circle reported Q4 2025 revenue and reserve income of $770 million, up 77% year-over-year and above analyst expectations. Of that, $733 million came from reserve income tied to USDC backing assets. USDC circulation reached $75.3 billion by year-end 2025, reflecting 72% growth, while quarterly on-chain transaction volume climbed to $11.9 trillion, up 247% year-over-year. Net income from continuing operations rose to $133 million, while adjusted EBITDA increased 412% to $167 million. Shares moved between 30% and 35.5% on earnings day.
Barclays, Morgan Stanley and SoFi Advance Regulated Crypto Infrastructure With Stablecoins, Custody Charters and Direct Solana Access
Barclays began vendor consultations on Feb. 27, 2026 to build a blockchain-based platform supporting payments, stablecoins, and tokenized deposits, with provider selection expected by April. Morgan Stanley filed for a national trust bank charter to establish “Morgan Stanley Digital Trust National Association” to provide digital asset custody and staking services. SoFi enabled direct on-chain Solana deposits for more than 13.7 million customers and noted its SoFiUSD stablecoin launched in December 2025.
Meta Targets H2 2026 Stablecoin Integration via Third-Party Partners as Stripe Emerges in Early Talks
Meta is preparing a stablecoin-based payments rollout targeted for the second half of 2026, structured through third-party providers rather than issuing its own token. The plan follows the shutdown of Libra/Diem and includes an RFP process for infrastructure partners, with Stripe identified as a leading candidate after its $1.1 billion Bridge acquisition and conditional OCC trust approval. Stripe CEO Patrick Collison joined Meta’s board in April 2025. Neither company confirmed formal involvement.
Trump-Affiliated USD1 Stablecoin Briefly Slips Amid Alleged Coordinated Attack, WLFI Token Falls 7%
USD1, issued by World Liberty Financial, briefly traded down to $0.9942 on Feb. 23, 2026, with a deeper $0.9802 print reported on one exchange, before returning to parity. WLFI attributed the event to a coordinated misinformation campaign and alleged short positioning against its governance token, which fell around 7%. The project stated reserves remain fully backed 1:1 by cash and short-term U.S. Treasuries custodied via BitGo Trust and reported no breach of contracts or wallets. USD1’s market capitalization was cited at approximately $4.7 billion.
Ethereum Governance, Roadmap and Ecosystem Shifts
Ethereum Foundation Deploys 70,000 ETH to Validators as Strawmap Targets 10,000 TPS and Vitalik Buterin Completes Multi-Million ETH Sales
The Ethereum Foundation began staking an initial 2,016 ETH on Feb. 24, 2026 as part of a planned 70,000 ETH deployment, representing about 40.5% of deployable ETH previously estimated at 172,650 ETH. Rewards are slated to return to the treasury, with ecosystem staking yield referenced at roughly 2.8% APY.
The report also cited on-chain tracking indicating Vitalik Buterin sold between 10,723 and approximately 16,420 ETH beginning Feb. 2, 2026, for reported proceeds around $21.7 million at an average of roughly $2,027 per ETH. A “Strawmap” draft outlined seven potential hard forks through 2029, including performance targets of around 10,000 TPS on Layer 1 and up to 10 million TPS on Layer 2.
Enforcement, Litigation and Regulatory Pressure
Binance Denies $1 Billion Iran-Linked USDT Transfers as Blumenthal Launches Probe, Citing 97% Exposure Drop and $4.3 Billion Settlement History
Binance rejected allegations that more than $1 billion in USDT moved to Iran-linked entities between March 2024 and August 2025 as a U.S. Senate inquiry opened into potential sanctions violations. Sen. Richard Blumenthal requested documentation on Iranian usage and internal compliance controls, referencing Binance’s prior $4.3 billion U.S. settlement. Binance said direct exposure to major Iranian crypto venues fell about 97% since early 2024 and that roughly 25% of its workforce focuses on compliance and investigations. No new enforcement action tied specifically to the reported transfers has been announced.
South Korea Proposes Mandatory Crypto Influencer Asset Disclosures as Police Arrest Two Over 22 BTC Evidence Theft
South Korea’s ruling Democratic Party proposed amendments requiring financial influencers promoting crypto or stocks to disclose holdings and compensation, with thresholds to be defined by presidential decree. Official data cited complaints involving quasi-investment advisors rising from 132 in 2018 to 1,724 in 2024.
Separately, police arrested two individuals over the alleged theft of 22 BTC seized as evidence at Seoul’s Gangnam Police Station, valued between roughly $1.5 million and $2 million. A separate incident involved accidental publication of a wallet recovery phrase in a tax agency press release, followed by transfers totaling 4 million PRTG tokens, reported at about $4.8 million.
Automation and Market Volatility
AI Trading Agent Accidentally Sends Entire $441,780 Memecoin Stack to X User After Decimal Error, Triggers 190% Token Surge
An experimental AI trading agent transferred its entire 52.43 million $LOBSTAR token balance after misinterpreting a payment request equivalent to 4 SOL, reportedly due to a decimal-unit error. The bot, funded with approximately $50,000 in Solana, was designed to trade autonomously while posting publicly.
The recipient began liquidating within roughly 15 minutes, realizing about $50,000 due to slippage and thin liquidity. The token later rallied 190%, moving from $0.0038 to $0.011, temporarily implying the transferred balance was worth between roughly $420,000 and $550,000 at peak prices.
Top Weekly Altcoin Gainers and Losers
Gainers:
pippin PIPPIN (+21.09%)
Decred DCR (+19.21%)
Morpho MORPHO (+12.10%)
MemeCore M (+9.44%)
JUST JST (+8.67%)
Losers:
Cosmos ATOM (-24.78%)
Bitcoin Cash BCH (-21.72%)
Zcash ZEC (-20.62%)
Pepe PEPE (-19.74%)
Pump.fun PUMP (-17.02%)
This article has been refined and enhanced by ChatGPT.
