gm 02/09

Summary
gm, Crypto investment products saw $2.5 billion in inflows despite fluctuating Bitcoin and Ethereum prices. Bitcoin is holding steady around $108,000-$109,000 with substantial institutional accumulation—businesses are reportedly purchasing Bitcoin at nearly four times the rate of new mining output, creating a notable supply-demand imbalance. Meanwhile, a major shift is evident as several prominent Bitcoin whales diversify into Ethereum, with one whale now holding $3.8 billion in ETH, reflecting what analysts call market maturation. In stablecoin developments, Japan is preparing to launch its first blockchain-based yen-pegged stablecoin at a strategic time as interest rates are expected to rise, while Bank of China's Hong Kong branch saw a 6.7% stock surge following reports of its plans to apply for a stablecoin issuer license.

News Headlines
🌐 EU Warns About Tokenized Stock Risks

• The European Securities and Markets Authority cautioned that investors may misunderstand tokenized stocks, as these crypto tokens typically don't confer the same rights as direct share ownership.
• While ESMA acknowledges tokenization's potential benefits like 24/7 access and fractional ownership, Executive Director Natasha Cazenave emphasized that investor protection and clear communication must remain paramount.

🚨 Bitcoin Bulls Must Defend $100,000 Level to Maintain Bull Market

• After a 15% drop from all-time highs above $125,000, Bitcoin is facing a crucial test at the $100,000 support level, with trader Roman warning that losing this level would confirm a bearish trend reversal.
• Some analysts remain optimistic, pointing to bullish divergences in the RSI indicator, while Michaël van de Poppe suggests the $102,000-$104,000 range could provide an ideal buying opportunity.

💰 Wealthy Bitcoin Holders Spending BTC on Luxury Travel Despite Tax Implications

• A growing number of Bitcoin-wealthy individuals are choosing to spend their BTC on luxury experiences like private jets and yacht cruises, despite potential significant capital gains tax implications in countries like the U.S. and U.K.
• Some view this as a rational choice to lock in gains at recent price highs, while others warn of potential regret similar to Bitcoin's historical "pizza story" as companies like FXAIR and Virgin Voyages increasingly accept crypto payments.

📊 Binance Becomes First Centralized Exchange to List Trump-Linked WLFI Token

• Binance has begun listing the World Liberty Financial (WLFI) token, trading it against USDT and USDC, allowing previously non-transferable tokens to become fully tradable assets.
• The token will launch across three blockchains (Ethereum, Binance Smart Chain, and Solana), with users required to complete quizzes acknowledging associated volatility and risk before participating in trading.

📈 Ethereum Poised for Growth as Real-World Assets and TradFi Integration Accelerate

• The stablecoin market has doubled to $280 billion since 2023 with projections reaching $2 trillion by 2028, while real-world assets (RWAs) on-chain have surged 413% to $26.7 billion, with over half operating on Ethereum.
• New legislation like the GENIUS Act and CLARITY Act further positions Ethereum as the primary smart contract platform for institutional adoption, transforming crypto into core financial infrastructure.

Market Metrics

Fundraising & VC
1. Everlyn (Undisclosed, $15M) - Open-source foundational video model and multimodal agential ecosystem
2. Credit Coop (Seed, $4.5M) - On-chain credit market
3. Lulubit (Seed, Undisclosed) - Latin America–focused crypto platform

Regulatory
💼 South Korea's FSC Nominee Critical of Crypto

• Lee Eok-won, nominee for South Korea's Financial Services Commission chair, stated cryptocurrencies have "no intrinsic value" and face challenges as stores of value or mediums of exchange.
• While critical of speculative crypto investments, Lee plans to foster innovation in stablecoins with adequate safeguards, aligning with recent changes allowing crypto companies to be classified as venture businesses.

⚖️ Former Cred Executives Jailed for Crypto Fraud

• Two former executives of failed crypto lender Cred received prison sentences totaling nearly eight years for a scheme that led to $140 million in customer losses.
• The case sets new precedents for executive accountability in crypto fraud cases, reflecting broader legal trends aimed at deterring misconduct in the emerging digital asset sector.

📊 Binance Invests $53M in Mexico's Financial System

• Binance is investing over $53 million to launch Medá, a regulated fintech entity in Mexico that will serve as a regional crypto hub for Latin America.
• Registered as an Electronic Payment Funds Institution, Medá will operate independently under Mexican regulatory oversight, allowing deposits and withdrawals in pesos.

🏦 UAE Real Estate Giant Accepts Crypto Payments

• RAK Properties, a major UAE real estate company, now accepts Bitcoin, Ethereum, and Tether for property transactions, leveraging the country's favorable crypto regulations.
• The transactions will be facilitated by Hubpay, which converts cryptocurrencies to local currency before depositing into RAK's accounts, furthering the UAE's position as a key player in the global crypto industry.

🏛️ Exchanges Push Crypto Into Australia's Retirement System

• Coinbase and OKX are launching services for Australia's self-managed superannuation funds (SMSFs), facilitating the inclusion of cryptocurrencies in retirement savings.
• These exchanges are simplifying the process by offering integrated services including compliance support, with over 500 investors reportedly on Coinbase's waiting list, each intending to invest up to A$100,000.

Technical Analysis
Bitcoin - Bitcoin has broken the ceiling of the falling trend in the short term, which indicates a slower initial falling rate. The currency has support at points 108000 and resistance at points 113500. The currency is assessed as technically slightly negative for the short term.

Ethereum - Ethereum has broken the floor of the rising trend channel in the short term, which indicates a weaker initial rising rate. The currency has support at points 3880 and resistance at points 4800. The currency is assessed as technically neutral for the short term.