Encrypted News Highlights, February 5, 2026 Global financial markets are mired in deleveraging today. Hit by disappointing ADP employment data and earnings warnings from tech stocks, the crypto market experienced its most severe "pin-drop" decline since the beginning of the year, with BTC briefly falling below the $72,000 mark. However, amidst this extreme market panic, regulatory benefits from Wall Street and Hong Kong are being realized at an accelerated pace. 🏛️ Key News: Institutional Dividends and Policy Shifts: Trump May Sign "Crypto Law" Before April: White House officials revealed that Trump is expected to formally sign the Cryptocurrency Market Structure Act (CLARITY) before April. SEC Chairman Paul Atkins has also publicly called for allowing crypto assets to be included in the $12.5 trillion 401(k) retirement accounts. Hong Kong's stablecoin licenses will be piloted in a limited number of applications: The Hong Kong Monetary Authority (HKMA) has confirmed receiving 36 applications for stablecoin licenses and plans to issue the first batch of licenses in March. HKMA Chairman Eddie Yue emphasized that the initial phase will adhere to the principle of "few but high-quality" and will strictly scrutinize the quality of reserve assets and cross-border compliance. Fidelity's FIDD Officially Launched: Fidelity's first USD stablecoin, FIDD, has been launched on the Ethereum mainnet and is available to retail and institutional investors. Fully backed by cash and short-term US Treasury bonds, the coin offers daily transparency audits and aims to challenge USDT's market dominance. CFTC's regulatory overhaul: The U.S. Commodity Futures Trading Commission (CFTC) announced the withdrawal of its previous stringent regulatory proposals for prediction markets, signaling a more relaxed federal regulatory environment for the sector. 📊 Market Analysis: Leveraged Collapse and Bottom Testing BTC experienced a flash crash: BTC briefly plunged to $71,888 due to the negative impact of ADP employment data (an increase of only 22,000), ETH fell below $2,100, and SOL fell below $90. A massive $1 billion liquidation: The total liquidation volume across the network surged to $1.05 billion in 24 hours (another figure is $780 million), with long positions accounting for over 92%. The largest single liquidation occurred in HTX's ETH-USDT contract, involving approximately $8.4 million. The fear and greed index has fallen below 20, dropping to 16 (extreme fear). Arthur Hayes analyzed that the underlying logic for the plunge is that dollar liquidity has recently contracted by about $300 billion due to governments hoarding cash to mitigate the risk of a shutdown. The "resistance level" for spot ETFs: The average holding cost of BTC spot ETFs (approximately $84,100) has been broken. If BTC cannot quickly recover the $75,000 watershed, the technical outlook suggests it may seek support at $69,000 or even the 200-week moving average. 🚀 Project Updates and Safety Warnings CME plans to issue “CME Coin”: The CEO of CME Group announced at the earnings conference that the company is evaluating the issuance of its own token and is partnering with Google to launch “tokenized cash” for use as collateral. Tether's fundraising cools down: Reports indicate that Tether has reduced its fundraising target from $20 billion to approximately $5 billion, as investors question its high valuation of $500 billion. Its reserves currently hold approximately $193 billion, and its transaction volume hit a record high in Q4 2025. Multicoin founder Kyle Samani steps down from management to focus on his Solara ecosystem treasury. On-chain data suggests that his associated addresses recently converted $220 million worth of ETH into $HYPE. Coinbase's new listing roadmap: Announced that DOOD will be listed on the spot market on February 5th, and added projects such as Rainbow (RNBW) and Aztec (AZTEC) to its listing watchlist. Security Alert: Holdstation Hacked: Wallet compromised, resulting in a loss of approximately $100,000. Hackers transferred funds to the Bitcoin network via cross-chain bridges. Users are advised to exercise caution when authorizing cross-chain wallets. Recommendation: Pay close attention to the non-farm payroll data, which was postponed to February 11th. BTC is currently fluctuating wildly between $72,000 and $74,000. Avoid blindly buy the dips with leverage. Consider dollar-cost averaging opportunities near your cost basis.