Market Overview (24h)

  • Spot & Market Cap (data ≈2026‑02‑07 00:00 UTC, last quotes 20:01 EST 2026‑02‑06)
    • BTC ≈ 70.5k USD (+12.2% 24h), ETH ≈ 2.06k (+13.2%), BNB ≈ 657 (+8.7%), SOL ≈ 87.6 (+11.6%), XRP ≈ 1.47 (+20.8%), ADA ≈ 0.276 (+12.4%), DOGE ≈ 0.0985 (+11.3%).1234567
    • AVAX is a clear laggard, down ≈‑14.9% on 2026‑02‑06 vs prior close, unlike the rest of the watchlist bounce.89
    • Total crypto market cap is around 2.33T USD, down about 1.9% on the day and well below early‑January levels near 3.12T.101112
    • Dominant narrative: forced deleveraging + ETF outflows in a macro risk‑off tape, with a sharp but fragile bounce in majors and underperformance in some high‑beta alts.
  • Derivatives & Liquidations
    • Aggregate crypto futures open interest is about 98.7B USD with 24h perps volume ≈138B and total 24h liquidations ≈183M USD across assets—elevated but far below the ≈2.56B BTC liquidations seen in the Feb 2 flush.1314
    • Funding rates are mildly positive on BTC perps (around 0.01% per 8h on major venues), consistent with a modest long bias after the selloff, not euphoric leverage.1513
    • Options & on‑chain: Glassnode highlights accelerating realized losses, weak spot demand, and a futures‑led deleveraging phase, with downside skew bid and put demand dominating. Risk: Medium (further downside possible if spot demand does not re‑engage).1617
  • Stablecoins & Sentiment
    • USDT market cap ≈185.6B, USDC ≈72.6B; stablecoins remain structurally large, with USDT holding about 60.3% of the stablecoin market even as total crypto cap fell below 2.4T.181219
    • Crypto Fear & Greed Index dropped to 6–9 (Extreme Fear), matching lows only seen around the 2019 and 2022 crisis episodes.2021
    • Binance notes that despite the broader drawdown, aggregate stablecoin market cap remains elevated, and alternative USD1 stablecoin has grown its circulating cap by ~50.6% over the past month. Risk: Medium (extreme fear plus large stablecoin “dry powder” can amplify either capitulation or sharp squeezes).12

Top Headlines (What & Why it Matters)

  • Ethereum ERC‑4337 (Account Abstraction) high‑severity DoS vector disclosed and patched
    • Security firm Trust Security identified an attack path where valid, correctly signed account‑abstraction (UserOperation) transactions could be griefed into reverting while still paying gas, enabling censorship/harassment of ERC‑4337 accounts.2223
    • The ERC‑4337 team shipped EntryPoint v0.9 with execution‑safety changes, and the Ethereum Foundation paid a 50k USD bounty; EF and ecosystem teams are urging bundlers, paymasters, and smart‑account projects to upgrade promptly. Risk: Medium (no theft, but AA infra that lags upgrades could see reliability/censorship issues until fully patched).242523
  • UK formally publishes the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026
    • The statutory instrument (SI 2026/102), published 2026‑02‑04 (UK time), brings a wide set of “qualifying cryptoassets” and “qualifying stablecoins” under the FSMA perimeter.26
    • New regulated activities include issuing stablecoins, operating crypto trading platforms, dealing/arranging in qualifying cryptoassets, safeguarding/custody, and staking, all requiring FCA authorisation. Risk: High (material for any firm serving UK clients; medium‑term structural impact on exchange, stablecoin, and staking business models).
  • FCA consultation & application window for UK crypto regime
    • Recent FCA consultation papers (CP25/40–42) and new CP26/4 set out detailed rules for cryptoasset trading platforms, admissions/disclosure/market abuse, prudential requirements, and when stablecoin issuers/custodians become “Enhanced” SM&CR firms; consultation responses are due by 2026‑02‑12.272829
    • Law‑firm summaries note the FCA has also announced that the main authorisation window for crypto firms wishing to operate under the new regime will run from 2026‑09‑30 to 2027‑02‑28, ahead of the regime going live on 2027‑10‑25. Risk: High (sets the implementation calendar for UK‑facing venues and stablecoin issuers).3029
  • Tether invests in t‑0 network to build USD₮‑settled institutional payments rails
    • On 2026‑02‑06, Tether announced a strategic investment in t‑0 network, a USD₮‑powered settlement platform aimed at licensed financial institutions, enabling netted cross‑border payments with local‑currency legs on each side.31
    • The network is positioned as non‑custodial infra connecting institutions via a single API, settling net balances in chosen currencies while using USDT on‑chain for movement. Risk: Medium (reinforces the “USDT as wholesale settlement asset” narrative; long‑term infra story more than 1–3‑day price driver).
  • Illicit flows: Chainalysis highlights Chinese‑language laundering networks handling 16.1B USD in 2025
    • Chainalysis’ latest crime research finds Chinese‑language money laundering networks processed about 16.1B USD of illicit crypto in 2025 (~44M/day), accounting for ~20% of all laundered crypto volume; total laundered volume across all actors exceeded 82B USD in 2025.3233
    • These networks use specialized service types (gambling, OTC, money mules) and increasingly rely on crypto vs traditional informal banking, complicating sanctions and AML enforcement. Risk: Medium (regulatory and banking‑partner pressure on exchanges and OTCs servicing these corridors may increase).
  • US spot BTC ETFs: from inflow spike to sustained outflows; rotation into ETH/SOL
    • After a strong net inflow of ≈562M USD on 2026‑02‑02 (one of the largest since January), U.S. spot BTC ETFs have since seen sizable net outflows—including net redemptions on Feb 4–5 totalling roughly 913M USD—pulling total BTC ETF AUM down below ~100B from mid‑January peaks above 125B.343536
    • ETF flow trackers note that while BTC products bleed, some flows are rotating into spot ETH and SOL ETFs rather than exiting crypto entirely. Risk: Medium (ETF tapes currently reinforce downside bias for BTC but support relative‑value rotation into ETH/SOL).35

Exchanges

  • Binance (spot, margin, futures)
    • Spot: Binance is delisting 20 spot pairs (mainly low‑liquidity BTC/alt and FDUSD pairs including AUDIO/BTC, SUSHI/BTC, RONIN/BTC) at 2026‑02‑06 08:00 UTC as part of periodic liquidity reviews. Risk: Low (localized liquidity/fee‑routing impact in affected pairs).3738
    • Margin: Cross/isolated margin pairs including several BTC/alt and GRT/ETH will be removed at 2026‑02‑06 06:00 UTC; margin borrowing on these pairs was suspended from 2026‑02‑04 06:00 UTC. Risk: Low (position‑management issue for margin users in niche pairs).39
    • Futures: Binance Futures listed USDⓈ‑M TRIAUSDT perpetuals (max 50x leverage) on 2026‑02‑06 at 12:15 UTC (20:15 UTC+8), expanding small/mid‑cap perp coverage. Risk: Low.4038
  • OKX
    • Listed TRIA/USDT perpetual futures on 2026‑02‑05 at 07:30 UTC.41
    • For EEA users, OKX is adding SENT on its Buy/Sell & Convert (BSC) platform, with listing time 2026‑02‑06 08:00 UTC.4243
    • Other recent notices (within last week) include fee‑group adjustments and contracts for metals‑linked products (XAUUSDⓈ, XPD/XPT perps), but no major outage incidents flagged. Risk: Low.4445
  • Operational status
    • Solana’s official status page reports no incidents or degraded performance for Feb 6–7, 2026.46
    • No new critical outage advisories surfaced in this sweep for Binance, Coinbase, Kraken, Bybit, Deribit, or CME within the last 72 hours. Risk: Low.

Regulation / Law

  • UK: FSMA Cryptoassets Regulations 2026 (in force‑setting instrument) – see above under Top Headlines. Risk: High.26
  • UK: FCA regime build‑out
    • FCA consultation packages (CP25/40–42 and CP26/4) flesh out trading‑platform rules, market‑abuse/disclosure standards, prudential rules, and SM&CR categorisation for crypto firms, with consultation deadline 2026‑02‑12.2827
    • Commentaries stress that UK‑facing exchanges, custodians, stablecoin issuers, and staking providers must align with MiFID‑style conduct, best‑execution, transparency, and prudential standards. Risk: High (medium‑term compliance and structural cost impact).2930
  • US: SEC Crypto Task Force – written input
    • The SEC’s “Crypto Task Force Written Input” page lists new submissions dated 2026‑02‑05 on topics including crypto ETPs, custody models, and regulatory sandboxes, indicating ongoing policy work even as crypto is de‑emphasized in 2026 examination priorities. Risk: Medium (directional for rulemaking, but not an immediate enforcement shock).4748

Research / White Papers (last ~14 days)

  • Glassnode – “Bears In Control” (Week On‑chain, 2026‑02‑03)
    • Finds sustained realized losses, a decisive break below “True Market Mean,” weak spot volumes, and futures markets in forced deleveraging, with downside skew and front‑end implied vol elevated; any durable bottom likely needs a clear resurgence in spot demand and ETF inflows. Risk: Medium (supports cautious bias, highlights need for real capital, not just short squeezes).16
  • Kaiko – Data Debrief (2026‑02‑02): Fed reforms & cross‑asset volatility
    • Details how recent Fed policy shifts sparked synchronized volatility across crypto and traditional assets, with particular focus on tokenization themes and the fragility of liquidity in tokenized RWA markets versus the depth and scalability of stablecoins. Risk: Low (structural; context for RWA and stablecoin narratives rather than an immediate catalyst).49
  • Chainalysis – 2026 Crypto Crime Report & CMLN deep dive (2026‑01‑07 & 2026‑02‑01)
    • Intro chapter notes that stablecoins now account for ~84% of all illicit transaction volume, mirroring their broader ecosystem dominance; the dedicated CMLN piece quantifies Chinese‑language laundering networks at 16.1B USD laundered in 2025 and frames their operational typologies. Risk: Medium (drives policy, bank‑partner, and KYC/monitoring pressure).5032

Security Incidents

  • ERC‑4337 Account‑Abstraction vulnerability (griefing/DoS)
    • See Top Headlines: an execution‑phase vector allowed attackers to force valid UserOperations to revert while paying gas, effectively enabling targeted DoS of smart‑account transactions until EntryPoint v0.9 mitigations; bug bounty paid (50k USD) and upgrades recommended for all ERC‑4337 infra. Risk: Medium (operational risk for AA users until ecosystem fully upgraded).232224
  • Aperture Finance multi‑protocol exploit and laundering
    • Aperture Finance and related protocols were exploited for ~3.67M USD in late January; follow‑up analysis on 2026‑02‑05 reports the attacker has laundered around 2.4M USD via Tornado Cash (≈1,242.7 ETH), according to PeckShield.51
    • No broad contagion reported beyond affected protocols. Risk: Medium (localized TVL/credibility hit in impacted DeFi cluster; contributes to regulatory and counter‑party‑risk narratives).
  • No new large CEX hacks surfaced in this 24–48h window
    • The major Bybit cold‑wallet hack (≈1.5B USD) and subsequent coverage remain historically important but occurred in 2025 and are outside the defined recency window. Risk: Low (legacy trust/supervision implications rather than fresh flows).5253

What to Watch (next 24–72h)

  • ERC‑4337 upgrade progress – Track EntryPoint v0.9 adoption by major smart‑account wallets, bundlers, and paymasters; elevated operational risk persists where older EntryPoint versions remain in production.5423
  • ETF flows & sentiment – Monitor daily US spot BTC ETF flows (Bitbo, Coinglass) after consecutive large net outflows on Feb 4–5 and sub‑100B AUM; a return to net inflows would be a key signal that institutional dip‑buying is returning.365535
  • UK regulatory feedback loop – FCA consultation responses due by 2026‑02‑12; any early speeches or hints from FCA/HM Treasury could move UK‑exposed exchange tokens or listed crypto‑adjacent equities.2726
  • Binance derivatives clean‑up – Binance Futures will delist USDⓈ‑M RVVUSDT and YALAUSDT perps on 2026‑02‑10 at 09:00 UTC after automatic settlement; watch for liquidity migration into substitute perps/spot on mid‑caps.38
  • Macro & cross‑asset vol – Kaiko and Glassnode both emphasize that crypto is trading within a broader cross‑asset risk‑off move; further instability in AI‑linked equities or metals (as highlighted in recent selloffs) could keep pressure on crypto until a new macro equilibrium is found.144916

Confidence: High confidence; all items cross‑checked against primary or first‑tier research sources within the specified recency windows. 5657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130131

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