Bitcoin’s rebound masks weak technicals and onchain signals that point to continued downside risk, with miners and exchange flows reinforcing the bearish trend. Bitcoin (BTC) traded as high as $76,900 on Wednesday, up 4.5% above its 15-month low of $72,860, reached on Tuesday. However, there are increasing signs that Bitcoin’s price could experience a deeper correction over the following weeks or months. Key takeaways: Bitcoin confirms bearish technical patterns on multiple time frames, risking a deeper correction toward $60,000. Read more
The Canadian self-regulatory organization outlined custody limits, capital thresholds and reporting rules while long-term regulation remains in progress. The Canadian Investment Regulatory Organization (CIRO) has formalized its interim framework governing the custody of crypto and tokenized assets. The move outlined how dealer members are expected to safeguard client holdings while permanent crypto-specific rules remain under development. In a Tuesday notice, CIRO said the framework sets out its supervisory expectations for investment dealers operating crypto trading platforms, including custody limits, segregation standards, reporting obligations and tiered requirements for third-party crypto custodians. Read more
Base’s Jesse Pollak says L2s can’t be “Ethereum but cheaper” as builders respond to Vitalik Buterin’s call for specialization. Several layer-2 builders responded after Ethereum co-founder Vitalik Buterin said the original vision of L2s as the primary scaling engine “no longer makes sense,” calling for a shift toward specialization. In a Wednesday post, Buterin argued that many L2s have failed to fully inherit Ethereum’s security due to continued reliance on multisig bridges, while the base layer is increasingly capable of handling more throughput via gas-limit increases and future native rollups. The comments prompted responses from Ethereum layer 2s, who broadly agreed that rollups must evolve beyond being cheaper versions of Ethereum but diverged on whether scaling should remain central to their role. Read more
Tether CEO Paolo Ardoino scaled back the company's $20 billion funding plan, calling the target a "misconception," while maintaining a $500 billion valuation. Update (Feb. 4, 3:20 pm UTC): This article was updated to include a statement from Tether CEO Paolo Ardoino, and the headline has been revised to reflect the changes. Tether, issuer of USDt — the largest stablecoin by market capitalization — denied it had ever planned to raise up to $20 billion, contrary to reports that circulated last fall. “There has been a misconception around the capital raise, amplified by unnecessary noise and speculation rather than by anything that has materially changed,” Tether CEO Paolo Ardoino told Cointelegraph on Wednesday. Read more
Base is rolling out month-long infrastructure upgrades aimed at preventing future transaction delays and improving overall network reliability. Coinbase’s Ethereum layer-2 network Base said recent slow or missing transactions were caused by a configuration error that has been fixed. Over the weekend, Base users experienced elevated transaction drops and delays in getting transactions included onchain. Despite the slowdown, blocks continued to be produced and the network remained operational, suggesting that the incident didn’t cause a full outage. In a Wednesday post on X, Base explained that a change to transaction propagation led the block builder to repeatedly fetch transactions that could not be executed as base fees climbed quickly. Read more