Good Morning,

Here's a quick preview of today’s content: Israelis arrested over insider Polymarket trades on military secrets, Fiserv launches settlement platform for crypto companies, Banks urge regulator to slow crypto-linked charters, X article winner accused of profiting $600K from rug pulls, Crypto PAC seeks to force resistant Al Green from House, and so much more

It’s finally Friday - Let’s dive in.

Market Snapshot

Click here to learn more about the Gannon’s portfolios and subscribe to the strategies on Autopilot.* Since inception (7/7/25), Gannon’s Crypto Portfolio is up +0.36%

• Bitcoin plunges below $66,000 as crypto sentiment index hits historic low despite bulls ignoring 'extreme fear'

  • BTC trades down -5% on the week, tumbling back near last week's lows as miner outflows spike, though public sales remain limited

  • ETH falls -4% on the week, while XRP stands out with +4% weekly gains

  • Altcoin bounce emerges while BNB gains +2% daily despite -10% weekly loss

  • Total mcap holds around $2.33T even as investor sentiment deteriorates to unprecedented lows

• Crypto gloom endures on price cuts, downgrades, and stalled momentum as precious metals plunge alongside crypto

Prediction Markets

• Bettors on Polymarket are predicting Ethereum all time high by?

• Track and trade live odds on any event, only on Polymarket

Headline Roundup
^{_{The major headlines driving crypto markets}}

• Goldman Sachs cuts bitcoin ETF holdings by 40% (TB)

• Bitcoin route exposes Bukele’s gamble and hits El Salvador debt (BBG)

• Crypto PAC seeks to force resistant Al Green from House (CD)

• Trump-backed World Liberty rolls out foreign remittance service (TB)

• X article winner accused of profiting $600K from rug pulls (TB)

• Coinbase swings $667M loss as crypto slump drags revenue (TB)

• Banks urge regulator to slow crypto-linked charters (DC)

• Standard Chartered sees bitcoin sliding to $50K (CD)

• Fed proposes margin weights for crypto derivatives (CT)

• Only 5% of companies see AI improving profit (CD)

• Bitcoin treasuries add $3.5B in January (DC)

• Binance finalizes $1B SAFU reserve conversion (TB)

• Gen Z flirts with crypto to pay for dates this Valentine’s (CT)

• Ark Invest buys Bullish stock for 9th straight day (CD)

• Bitcoin advances toward quantum resistance (BM)

• Hyperliquid posts $318M net loss on $262M unrealized losses (TB)

• Solana DAT Upexi posts $179M loss (TB)

• Bitdeer swings to profit as revenue triples (TB)

• Coincheck posts $915M Q3 revenue (TB)

• Charles Hoskinson confirms deal to onboard LayerZero on Cardano (CD)

• OKX backs STBL in partnership with Hamilton Lane and Securitize (CD)

• Zerohash adds Monad to expand stablecoin payments (TB)

• Aave Labs proposes new DAO and framework (TD)

• 21Shares taps BitGo for expanded staking and custody support (CT)

Venture Capital

• Bitcoin miner Cango lands $75M equity backing from Enduring Wealth Capital Limited (TB)

• Inference Research, an AI quantitative trading startup, raises $20M seed round led by Avenir Group (PN)

• Stablecoin platform Levl raises $7M seed round led by Galaxy Ventures with participation from Protagonist, Deus X, Blockchain Builders Fund, and others (BW)

• Superset, a liquidity stablecoin startup, raises $4M seed round from 7RIDGE, Exponential Science Capital, and Charles McManus (CI)

• Onchain credit firm Birch Hill closes $2.5M pre-seed round co-led by ParaFi Capital and Castle Island Ventures (TB)

Access the complete VC deal flow on Fundable.

M&A Announcements

• Crypto social investing protocol PartyDAO acquires Stripe, a fintech payments processor (BL)

Launches

• Fiserv launches settlement platform for crypto companies (CT)

• Stripe adds x402 integration for USDC payments (TB)

• ETHZilla launches aviation token backed by jet engines (TD)

• Midnight blockchain goes live next month (CD)

• Lightning Labs releases AI agent tools (TB)

• Privacy stablecoin launches on Aleo mainnet (TB)

• Optimism taps Succinct to enable instant withdrawals (TD)

• Espresso token launches at $275M valuation (CD)

• Decibel launches protocol-native stablecoin (CT)

Regulation

• SEC Chair Atkins calls prediction markets a 'huge issue' (TB)

• Credit union regulator proposes stablecoin licensing path (CT)

• Russia pushes 100M users to state surveillance app (DC)

• Crypto execs among many named to CFTC advisory group (CD)

• UK selects HSBC for blockchain bond pilot (TB)

• Thailand's SEC clears path for crypto derivatives (DC)

• Agant registers with FCA for British pound stablecoin (CD)

Cybersecurity

• Israelis arrested over insider Polymarket trades on military secrets (DC)

• Crypto flows to human trafficking services jump 85% (DC)

• J5 warns that OTC crypto trading desks are used to move illicit funds (DC)

Extra Reads

• A mistaken Bitcoin payout revealed how exchange ledgers work and why South Korea is rethinking internal controls for crypto platforms - Here’s how a Bitcoin promotion error triggered a regulatory reckoning

• The current market downswing could be driven by institutional investors exiting positions, as crypto still presents too much risk for them - Is this crypto winter different?

Chart of the Day

ETH on exchanges hits levels not seen since 2016

Meme Dump

Pls send us crypto memes to be featured in the newsletter 🤝

🐦 Follow Us: Visit our X account for daily updates on all things web3, DeFi, & crypto.

💰 Gannon’s Crypto Portfolio: Trade alongside Gannon’s crypto on Autopilot

💵 Litquidity Ventures: Accredited investors & qualified purchasers within the Litquidity community can gain access to alternative investments such as venture, late-stage growth, and private equity through Litquidity Ventures. Interested? Fill out this form.

☎️ Book a call with Lit: Want to pick Litquidity’s brain on business advice, insights, or just chat to say what’s up? Buy his time here.

📧 Launch your own newsletter: Have great content ideas and looking to launch your own publication? We highly recommend Beehiiv to get started.

*DISCLAIMER: Investment advice provided by Autopilot advisers LLC, an SEC registered investment advisor. Past performance does not guarantee future results. Investing carries risks including the risk of the loss of principal. Performance doesn’t include fees. See more here.