Week of February 25 - March 3, 2025

The world’s second-largest cryptocurrency exchange, was hit by a massive security breach on February 21, 2025, with hackers stealing over $1.4 billion worth of Liquid-Staked Ether (LSETH), Mantle Staked ETH (mETH), and other ERC-20 tokens. This is now the biggest hack in crypto history. Authorities suspect that the Lazarus Group, a notorious North Korean hacking organization, is behind the attack.

Meanwhile, regulation in the space is tightening. The European Union (EU) has officially announced the first 10 companies eligible to issue stablecoins under the MiCA framework, which came into full effect on December 30, 2024. Circle (USDC’s issuer) made the list, but Tether (USDT’s issuer) did not.

In other news, Hong Kong continues to push digital asset adoption, with its Secretary for Financial Services, Paul Chan Mo-po, reaffirming the region’s commitment to becoming a global leader in crypto. The government is rolling out tax exemptions on crypto profits for funds and institutional investors to boost market growth.

MicroStrategy is also making moves, announcing plans to raise another $2 billion through convertible bonds to buy more Bitcoin. These bonds will mature on March 1, 2030, and are part of the 21/21 plan, which aims to raise $42 billion over three years—more than half of that goal has already been reached.

Meanwhile, Ethereum (ETH) reserves on centralized exchanges (CEX) have dropped to a 9-year low, sitting at just 18.95 million ETH, the lowest level since July 2016. A continued decrease in ETH supply on exchanges could signal a potential supply shock.

Also, data from The Block reveals that Ethereum transaction fees have plummeted by over 70%—the lowest in four years since July 2020. At the same time, Bitcoin network activity has fallen by 55% over the past 12 months.

Finally, Franklin Templeton has filed a request with the U.S. SEC for a Spot Solana ETF that includes a staking feature—something previously proposed for a Spot Ethereum ETF. Analysts at Bloomberg believe approval of staking within ETFs is only a matter of time.

Technical Analysis

Bitcoin (BTC)

Bitcoin tested $100,000 but faced selling pressure without making a new low. The Bollinger Bands indicate a price squeeze, suggesting a major breakout is on the horizon

If the price moves downward, watch for support at $89,000. If it moves upward, the first resistance level is at $106,000.

• Support: 3,100,000 THB / 89,000 USD
• Resistance: 3,600,000 THB / 106,000 USD

Ethereum (ETH)

Despite the exchange hack, Ethereum has remained relatively stable, with some buying pressure emerging. Traders are watching for a clear breakout before making moves.

• Support: 80,000 THB / 2,125 USD
• Resistance: 100,000 THB / 2,940 USD
  
  

Maker (MKR)

Maker (MKR) MKR surged 50.28% last week, showing strong bullish momentum. The strategy is buying dips, entering at the support level of $1,220. A stop-loss should be set if the price falls below this level. For short-term profit-taking, the resistance level to watch is at $1,650. The overall trend is likely to remain upward.

• Support: 40,000 THB / 1,220 USD
• Resistance : 57,000 THB / 1,650 USD 

Sonic (S)

Sonic gained 40% in the past week and is showing signs of a continued recovery trend. The key strategy is to buy on dips, with the first support level at $0.630. If the price holds above this level, hold on and aim to sell for profits at the resistance level of $1.040.

• Support: 24 THB / 0.630 USD
• Resistance: 36 THB / 1.040 USD

Investment Trends

The crypto market has taken a hit following U.S. stock market declines, marking the largest correction since early 2025. The exchange hack, combined with economic uncertainty, has added to the selling pressure. However, Bitcoin (BTC) remains resilient, still holding near $99,000 despite market-wide corrections.

Historically, Bitcoin has only seen negative returns in February twice, and with BTC currently down 5% this month, a recovery could push prices back up to $102,500.

On the ETF front, Spot Bitcoin ETFs saw over $1.14 billion in net outflows over the past two weeks, largely due to concerns surrounding Donald Trump’s proposed import tax policies. However, historically, Spot Bitcoin ETFs have never had more than two consecutive weeks of outflows—meaning buying pressure could return this week.

Key Events to Watch This Week

 Nvidia’s earnings report – February 26, 2025

• If results are strong, U.S. stock markets and Bitcoin could see a boost.
• If results disappoint, tech stocks and crypto could take a hit.

 U.S. GDP forecast for Q4 – February 27, 2025

• Expected growth: 2.3%
• If growth slows, it could signal a positive move for the Federal Open Market Committee (FOMC) to lower interest rates again. 

References

• https://cointelegraph.com/news/lazarus-group-consolidates-bybit-phemex-hacker-wallet 
• https://cointelegraph.com/news/10-stablecoin-issuers-approved-under-eu-mica 
• https://cointelegraph.com/news/hong-kong-remains-open-vibrant-market-crypto-financial-secretary 
• https://cointelegraph.com/news/strategy-2-billion-convertible-note-buy-more-bitcoin 
• https://cointelegraph.com/news/ether-exchange-reserves-drop-nine-year-low-bullish-sentiment 
• https://www.theblock.co/post/341625/ethereum-transaction-fees-plummet-70-hitting-lowest-levels-since-2020 
• https://www.theblock.co/post/342781/franklin-templeton-seeks-sec-approval-for-a-solana-etf-involving-staking 

Disclaimers

• Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. It is important to study information carefully and invest based on your own risk profile.
• Past returns or performance of digital assets do not guarantee future returns or performance. 

Remark: The views, information, knowledge, and opinions expressed herein are those of the individuals involved and do not represent the views of Bitazza or its employees. Neither this email nor the content presented constitutes investment advice.