Earnio Market News: Crypto rebounds amid Jane Street drama, regulatory wins, and institutional momentum

The past two weeks delivered a rollercoaster for crypto markets: an early selloff pushed Bitcoin below $63,000 amid deleveraging and macro pressures, but a swift rebound added over $170 billion to the total market cap in a single day.

Below is a quick overview of the most relevant developments shaping market narratives recently.

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Market overview: sharp selloff gives way to rebound, BTC tests $70k

Bitcoin kicked off year 2026 in a downtrend, dropping roughly 19% year-to-date to trade in the mid-$60,000s by mid-February amid broad deleveraging and broader risk-off sentiment.

The cryptocurrency tested lows near $63,000, with the Fear & Greed Index plunging to extreme fear levels around 11—its lowest in the cycle. Ethereum and Solana followed suit, with ETH dipping below $2,000 and SOL testing $80 support.

However, sentiment shifted dramatically in the latter half of the period. Bitcoin surged more than 7% in a day to approach $69,000, while Ethereum climbed 12% to $2,075 and Solana jumped nearly 14% to just under $89.

Polkadot led altcoin gains with a 30.5% rally, driven by trading volume spikes and optimism ahead of its March halving event.

The broader market cap rose 4.3%, wiping out nearly $500 million in short positions.

Key catalysts included softer-than-expected U.S. tariffs (10% vs. 15% announced) and strong Nvidia earnings, which boosted risk appetite across equities and crypto.

Jane Street lawsuit: end of the "10 AM dump" sparks rally

A watershed moment came with the lawsuit against trading firm Jane Street, accused of using insider information during the 2022 Terra-Luna collapse. Traders noted a pattern of systematic Bitcoin selling at 10 a.m. ET for months, which vanished post-lawsuit , coinciding with a $200 billion market cap addition in just 48 hours.

Over $400 million in shorts were liquidated as prices surged, with Bitcoin rising 9%, Ethereum 14%, Polkadot 35%, and Solana 15%.

The lawsuit highlights how a single player's activity could drag markets down, raising questions about genuine sentiment versus manipulation.

Regulatory tailwinds: SEC pivots, White House pushes legislation

Under new Chair Paul Atkins, the SEC dismissed or closed over a dozen major crypto cases, including parts of actions against Binance and Coinbase—a historic policy shift signaling a more accommodative stance.

A high-stakes White House reunion on February 10 built bipartisan momentum for the Clarity Act, addressing regulatory deadlocks. President Trump confirmed the bill's finalization, set for signing before March 1, positioning the U.S. as a global crypto hub. He also signed an executive order aimed at making America the epicenter for Bitcoin and crypto innovation.

These moves reflect a transition from debate to implementation, with clearer frameworks like the UK's digital asset property law and EU's MiCA reinforcing global normalization.

Legal Battles: Bitfinex Case Threatens US Strategic Bitcoin Reserve

The ongoing Bitfinex restitution case intensified, potentially slashing the US Strategic Bitcoin Reserve by 30% through a single ruling. Legal complexities surrounding the recovery of significant BTC assets from the 2016 hack have put over 119,000 Bitcoin at stake, valued at around $8 billion at current prices.

This development raised alarms among policymakers and investors, as the reserve—intended to bolster national economic security—faces uncertainty amid court proceedings. Analysts warn that a unfavorable outcome could trigger short-term market volatility, though it underscores the growing integration of crypto into governmental strategies.

Viral Citrini Report: AI Crisis Scenario Signals Crypto Opportunity

Citrini Research released its highly discussed report titled "The 2028 Global Intelligence Crisis" on February 22, envisioning a dystopian future where AI agents trigger widespread white-collar unemployment, deflationary pressures, a severe stock market crash.

The 7,000-word piece quickly went viral, sparking an uproar online and even contributing to a stock market selloff on February 24, with the S&P 500 ending down, though it recovered above pre-report levels shortly after.

Paradoxically, the report highlights a bullish case for crypto, suggesting AI agents will favor stablecoins on platforms like Solana, Ethereum L2s, and XRP for cheaper and faster transactions, bypassing traditional credit systems and driving blockchain adoption amid economic disruption.

If you enjoy reading doomsday scenarios, this one might really intrigue you.

Summary

As February wraps up, investors should monitor key macro indicators, which could influence Fed rate expectations and crypto correlations. If Bitcoin's hold above $70,000 this might signal entry points for altcoin rotations, particularly in DeFi and AI-integrated projects, but beware of geopolitical risks (e.g., U.S.-Iran tensions) that could pressure riskier assets.

This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are highly volatile and may involve a risk of capital loss. Before making any investment decision, it is important to consult a professional and conduct your own research. Probinex assumes no responsibility for any losses that may arise as a result of investments in cryptocurrencies.