title: Bitcoin (BTC) Market Captures Some Poise as On-Chain Indicators Show Signs of Capitulation

The crypto market is looking to regain some poise after yesterday's tumble with on-chain indicators showing signs of capitulation in bitcoin. Some tokens, like MakerDAO's MKR

The crypto market is slowly recovering after yesterday's significant sell-off, which saw on-chain indicators point towards capitulation in bitcoin.

Some tokens are showing promising gains, including MakerDAO’s MKR, which surged more than 20% with the DAO set to vote on an upgrade that would rename FXS to FRAX.

IP, the native token of decentralized intellectual property-focused blockchain Story Protocol, is also in the green, having risen nearly 40%.

The token's price has more than doubled in two weeks after being listed on South Korean exchanges.

Other notable outperformers include Celestia's TIA as well as XDC, QNT and HYPE.

Data tracked by blockchain sleuth Lookonchain shows whales have been buying the dip in the HYPE token.

Meanwhile, XRP is hanging on to a key Fibonacci level, keeping bulls' hope for bigger gains alive.

According to Matthew Hougan, chief investment officer at Bitwise Asset Management, the crypto market is still digesting the end of the recent memecoin frenzy.

It could now be pivoting to more productive sectors like stablecoins, real-world assets and DeFi.

But until they start making their presence felt, the loss of energy will create a drag on the market, Hougan said on X.

On the macroeconomic front, the optimism seen after the Nov. 4 election is quickly evaporating with the release of December's U.S. consumer confidence.

The gauge dropped to an eight-month low, and the one-year inflation expectations were the highest in 1.5 years.

President Donald Trump's tariffs were also a primary concern in nearly every household and business survey.

The dour sentiment and a strengthening yen might keep the upside in risk assets limited for some time.

Earlier this week, Belgium's central bank's head, Pierre Wunsch, said the European Central Bank risks sleep-walking into too many interest-rate cuts.

The Federal Reserve, for its part, is unlikely to do quantitative easing anytime soon. (The January meeting minutes did discuss an end of quantitive tightening, but that does not mean quantitative easing.)

Key Events

The Senate Banking Committee, led by Senator Cynthia Lummis, will be discussing crypto regulations further.

The committee is scheduled to hold a hearing on Wednesday to "Exploring Bipartisan Legislative Frameworks for Digital Assets."

The hearing will be chaired by Lummis and will continue the committee's examination of legislation to regulate the digital asset industry.

The panel will also be examining the administration's priorities for financial technology.

The hearing is part of the committee's broader efforts to craft legislation to regulate cryptocurrencies and other digital assets.

Lummis has been a leading voice in the Senate on crypto issues and has introduced several bills to regulate the industry.

She is the sponsor of the Lummis-Gillibrand Responsible Financial Innovation Act, a bipartisan bill that would create a comprehensive regulatory framework for cryptocurrencies.

The committee has also been examining the administration's priorities for financial technology as part of its oversight of the administration.

In December, the committee held a hearing on the administration's approach to financial technology.

The hearing examined the administration's priorities for financial technology and how they intersect with the committee’s own legislative agenda.

The panel discussed the role of new technologies in facilitating financial inclusion, promoting economic growth, and strengthening national security.

The committee is also interested in examining the administration's views on legislation to regulate cryptocurrencies and other digital assets.

The House Financial Services Committee recently advanced a bill that would put the U.S. Securities and Exchange Commission in charge of registering and regulating crypto asset trading platforms.

The bill, known as the "Digital Asset Anti-Money Launderung Safety Act of 2024," would also require crypto exchanges to follow the same anti-money laundering rules as traditional financial firms.

The bill is part of a broader effort by Congress to regulate the cryptocurrency industry.

The Senate Agriculture Committee is also considering legislation to regulate cryptocurrencies.

Lummis has said she hopes to see a bipartisan bill on crypto regulation pass the Senate by the spring.

What to Watch

Crypto:

Feb. 26, 8:30 a.m.: Cosmos (ATOM) network upgrade (to version v22.2.0).

Feb. 26: RedStone (RED) farming starts on Binance Launchpool.

Feb. 27, 4:00 a.m.: Alchemy Pay (ACH) community AMA on Discord.

Feb. 27: Solana-based L2 Sonic SVM (SONIC) mainnet launch (“Mobius”).

March 1: Spot trading on the Arkham Exchange goes live in 17 U.S. states.

March 5 (provisional): At epoch 222464, testing of Ethereum’s Pectra upgrade on the Sepolia test