The market is risk-off as macroeconomic concerns drive investors to safe havens like gold, while Bitcoin decouples from the tech rally, causing anxiety among investors. Exchange volumes plummet as Bitcoin tests critical support at $74,000, impacting major exchanges like Coinbase, Gemini, and Bullish. CoinShares reports $1.7B in weekly outflows from digital asset investment products.

Corporate treasuries like MicroStrategy and Binance continue to deploy capital during the market dip, acquiring Bitcoin to bolster their holdings. However, BitMine Immersion Technologies faces $6.95B in unrealized losses on its ether holdings. Meanwhile, Tron founder Justin Sun plans to buy up to $100M in Bitcoin for the network’s treasury.

Global regulators are embracing artificial intelligence and stablecoin frameworks to stabilize markets, with South Korea upgrading its VISTA system to detect price manipulation. Hong Kong will grant its first stablecoin issuer licenses in March, and the Bank of England is exploring stablecoins for payment processing. The Federal Reserve nomination of Kevin Warsh is seen as a mixed signal by investors.

Analysts view the current market drawdown as a temporary phase of an institutional cycle, with Bernstein analysts predicting a reversal and long-term growth in early 2026. Regulatory hurdles are clearing, benefiting companies like Coinbase Global and Circle. H.C. Wainwright initiates coverage on Hut 8 with a Buy rating and $80 price target amid positive industry developments.

Bitcoin is trading at $79,005.08, while Ether is at $2,376.72. The market is closely watching the Federal Reserve nomination and the impact on liquidity. Published first on TheFly, the news provides real-time updates on market trends and financial news.

Read more at Yahoo Finance: Markets face liquidity strain amid regulatory shifts