[1/2] Crypto/TradFi Merger Update | 2026-02-05 16:00 (Beijing Time) ━━ Important News ━━ 1. Sharp market decline coupled with large net outflows from ETFs: BTC once approached/fell below $70,000. BTC touched approximately $69,101 on Bitstamp, with market sentiment turning to "extreme fear"; meanwhile, in the second quarter of the Eastern Time, US spot BTC ETFs saw a net outflow of approximately $545 million (IBIT -$373 million, FBTC -$86.44 million, etc.), while ETH spot ETFs saw a net outflow of approximately $78-79 million (mainly ETHA and FETH). (CoinDesk | PANews | Foresight News | Odaily) 2. The SEC sues multiple market makers for alleged algorithmic money laundering; the FBI pursues criminal charges related to the fictitious token "NexFundAI" in a sting operation. The SEC has accused ZM Quant, Gotbit, CLS Global, and others of using algorithms to create false trading volumes and mislead investors; the FBI has used fictitious tokens to lure people into revealing their manipulative intentions. The entities and individuals involved face charges related to securities fraud, registration, and other issues, and have also been involved in criminal cases. (PANews | TechFlow | Odaily) 3. House of Representatives investigates WLFI, a Trump-related project: focusing on the UAE's $500 million investment and the funding chain of the stablecoin USD1. The House is demanding materials on WLFI's ownership, payment channels, and internal communications; the investigation also involves whether USD1 was used for large-scale transaction settlements and whether funds flowed to entities related to the Trump family. (CoinDesk | PANews | Odaily) 4. Market regulation is expected to be "completely overhauled": The CFTC withdraws its draft rules on event contracts (including political ones); Coinbase sues Nevada regulators. The new CFTC chairman withdrew the 2024 draft rules on event contracts and repealed related guidance, which the market interpreted as a loosening of regulation; Coinbase filed a federal lawsuit over the obstruction of event contracts in Nevada, arguing that it should be under the exclusive jurisdiction of the CFTC (the hearing will be held next week). (CoinDesk | TechFlow | Foresight News) 5. Tether releases Q4 2025 report: USDT market capitalization rises to $187.3 billion, BTC holdings increase to 96,184. The report discloses that USDT increased by $12.4 billion in the quarter to $187.3 billion; total reserves are $192.9 billion, net equity is approximately $6.3 billion, and BTC holdings increased (total holdings 96,184), with on-chain transfer value of approximately $4.4 trillion. (Tether | Foresight News | TechFlow) 6. Traditional financial institutions enter the market: Fidelity launches the USD stablecoin FIDD; CME explores "CME Coin" and collaborates with Google to develop tokenized cash. FIDD will be issued on Ethereum and pegged 1:1 to the US dollar; the CME CEO said that they are evaluating the issuance of "CME Coin" and working with Google to develop a "tokenized cash" solution, which is expected to move forward later this year. (Foresight News | Foresight News | TechFlow) 7. The Hong Kong Securities and Futures Commission (SFC) is reportedly considering allowing licensed VATPs to offer secondary trading of tokenized securities to retail investors. The regulator is studying the relevant requirements and risk management and is drafting a circular. Currently, retail investors can only subscribe to/redeem tokenized funds in the primary market. (Foresight News | TechFlow) 8. On-chain and regulatory events: Bhutan transfers BTC; South Korean regulators investigate abnormal fluctuations in ZKSync (ZK) on Upbit. On-chain data shows that the Bhutanese government transferred BTC to trading companies/exchanges during a market downturn; the Financial Supervisory Service of South Korea is collecting data to assess whether to initiate an investigation into the abnormal fluctuations of ZK, which saw a short-term surge of about 10 times followed by a decline. (CoinDesk | TechFlow) Market Analysis 1. Fear & Greed Index and Deleveraging: The Fear & Greed Index hit 12; the total liquidation across the network was approximately $700-850 million, with multiple sources indicating a surge in 24-hour liquidation (with a higher proportion of long positions), indicating a rapid weakening of risk appetite; BTC futures open interest fell below $50 billion, hitting a new low since March 2025. (CryptoRank | Foresight News | TechFlow) 2. CryptoQuant: BTC has fallen below the 365-day moving average for the first time since March 2022. Watch the $60,000-$70,000 resistance level. The report states that weakening institutional demand (a gap compared to previous ETF net buying) may bring continued selling pressure, and the market may enter a more bearish phase. (PANews)