ARP's Crypto Digest

General Digital Asset Market View:

BTC ETFs faced notable volatility last week, with outflows persisting for 8 consecutive days (Feb 24–28). On Feb 25, outflows hit a record $1,138.9M, driven by major institutions like Fidelity and BlackRock. Market uncertainty, fueled by macroeconomic concerns, Trump’s tax policies, and a drop in the Fear & Greed Index, led to risk-off sentiment as investors reduced exposure to Bitcoin and other risky assets.

Macro:

On February 27, 2025, U.S. President Donald Trump announced a 25% tariff on goods from Mexico and Canada starting March 4, 2025, and a 10% tariff on Chinese exports. Previously delayed from February 3 due to border security talks, the tariffs aim to address illegal drug flows. Trump warned additional tariffs on Mexico and Canada could follow on April 3 if issues persist, while the April 2 deadline for China’s reciprocal tariffs remains unchanged.

More Crypto:

Bybit, one of the largest crypto exchanges, suffered a massive hack, losing approximately $1.5 billion in ETH. This ranks among the largest crypto hacks in history, surpassing the infamous Mt. Gox collapse and FTX implosion. While broader contagion has been avoided, analyzing the on-chain activity and events surrounding the hack offers important insights into its causes and market impact.

No sector has outpaced BTC this year, with major losses recorded across various categories.

The biggest declines came from AI frameworks (-84.05%), agents (-70.27%), and memecoins (-51.74%).

Wallets holding at least 0.1% of the circulating BTC supply added nearly 15,000 BTC to their balance at prices below $90K, totaling $1.28 billion — a sign of strategic accumulation ahead of potential market shifts.

What Happened This Week:

• The forensic review of the Bybit hack concluded that the credentials of the Safe(Wallet) infrastructure developer were compromised.

• The SEC informed Gemini that it was closing its investigation and would not be filing enforcement charges against it.

• Ondo Finance has joined Mastercard’s Multi-Token Network (MTN).

• The US and Ukraine have agreed to terms on a deal over natural resources and reconstruction, according to a Ukrainian official.

• The Crypto Fear & Greed Index has fallen to 21, the lowest since Sep 2024, and the market is still in a state of extreme fear.

What to Look Out For:

• Trump announced an additional 10% tariff on China, which will bring the total tariffs on China to 20%, effective March 4th.

• Solana’s SIMD-0228 proposal, which aims to reduce unnecessary issuance by shifting $SOL emissions from a fixed schedule to a market-driven model, is currently under discussion.

• The SEC has acknowledged Grayscale’ proposal to permit staking on $ETH Spot ETF.

• President Trump has announced a Crypto Strategic Reserve consisting of Bitcoin, ETH, and other top cryptocurrencies.

What we enjoyed reading and listening to:

• Digital assets and smart contracts are transforming one of the world’s largest markets — Link

• USDC and EURC Become First Stablecoins Recognized by Dubai International Financial Centre — Link

• AI as the engine, humans as the steering wheel — Link

• The Age of On-chain Reputation Is Approaching — Link

• Stablecoin Playbook: Flipping Billions to Trillions — Link

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