Crypto Market Sees Turmoil as Bitcoin Slides and Ethereum Co-Founder Sells

The cryptocurrency market is experiencing a period of turmoil, with bitcoin facing a potential fifth consecutive monthly decline and Ethereum co-founder Vitalik Buterin selling a significant portion of his ether holdings. According to data, Buterin sold 17,000 ETH, worth around $43 million, in February, coinciding with a 37% drop in ether's price over the past month to around $1,900 (Source 1).

This development comes as the broader crypto market is facing a downturn, with bitcoin sliding towards its fifth straight monthly loss. If February closes in the red, it would mark the longest stretch of monthly declines since 2018, when bitcoin posted six consecutive down months during the bear market (Source 4). The negative price streak is not the main story, however, as the bigger shift is that bitcoin is being priced in a different regime, one where ETF flows, rate expectations, and cross-asset risk sentiment are carrying more weight than crypto-native catalysts.

In other news, Anchorage Digital, the first federally chartered U.S. crypto bank, has added perpetual preferred stock in bitcoin treasury firm Strategy to its balance sheet (Source 2). This investment underscores institutional confidence in Michael Saylor's bitcoin treasury strategy and signals tightening ties among major bitcoin-focused firms despite market volatility.

Meanwhile, a solo bitcoin miner has scored a $200K BTC block reward after spending just $75 to rent Bitcoin mining power (Source 3). This unexpected windfall highlights the unpredictability of the crypto market, where even small players can experience significant gains.

However, not all players in the market are experiencing success. Terraform Labs' estate has filed a lawsuit against quantitative trading firm Jane Street, alleging that the firm abused insider knowledge to profit from Terra and inadvertently contributed to the downfall of the ecosystem (Source 5). The lawsuit claims that Jane Street exploited confidential information and manipulated market prices, leading to a steep selloff in UST that resulted in Terra's collapse.

As the crypto market continues to experience volatility, investors and traders are shifting their focus to where the next durable bid sits, and the level at which the market will stabilize. With bitcoin facing a potential fifth consecutive monthly decline, all eyes are on the market to see how it will respond to the current downturn.

References:

(1) "Vitalik Buterin sold 17,000 ETH this month as ether fell 37%" by Shaurya Malwa
(2) "Crypto firm with U.S. bank charter holds bitcoin holder Strategy's preferred stock" by Omkar Godbole
(3) "Solo Bitcoin Miner Nabs $200K After Renting $75 Worth of Hash Power"
(4) "Bitcoin slides toward fifth straight monthly loss as $4.5B ETF outflows put $58,000 on the line"
(5) "Jane Street Accused of Intentionally Attacking Terra"