OSL Research Daily Brief | 2026.02.06

Daily Crypto News Digest

1. Market Volatility: BTC and ETH crashed overnight, with BTC briefly dipping to $60,000 before recovering above $64,500 this morning amid high volatility. Silver plunged over 25%, recording a historic single-day drop. Warsh's nomination as Fed Chair boosted strong dollar expectations, slowing the rate cut path. Combined with rising tensions in Iran, risk aversion has spiked, pushing the Fear & Greed Index into "Extreme Fear."

2. Regulation: US Treasury Secretary Scott Bessent stated that some crypto industry participants are hindering legislative progress on market structure, emphasizing that failure to pass the Digital Asset Market Clarity Act will limit the growth of the US crypto industry.

3. Political Scrutiny: US House Democrat Ro Khanna has launched an investigation into a $500 million investment deal between the Trump-linked project World Liberty Financial and a UAE royal entity, citing potential violations of the Emoluments Clause and national security risks.

4. Stablecoin Growth: Tether's Q4 2025 report shows USDT market cap rising to $187.3 billion with reserves of $192.9 billion. Despite market pressure, it grew by 3.5%, further consolidating its dominance.

5. TradFi Adoption: UBS Group AG CEO Sergio Ermotti revealed the bank is actively advancing crypto asset trading access and tokenized deposit services, and has become an early design partner for Stripe's stablecoin blockchain, Tempo.

6. Hong Kong Compliance: The HK SFC is studying allowing licensed virtual asset trading platforms to offer secondary trading services for tokenized securities to retail clients, with a specific focus on listing local tokenized money market funds.

7. Mining Struggles: Bitcoin mining hash price has hit a historical low (~$0.03 per TH), with mining difficulty expected to drop by over 13%. Many mining companies have been forced to shut down equipment due to rising electricity prices and extreme weather.

8. Infrastructure: Japanese giant SBI Holdings and Startale Group have partnered to launch a Proof of Concept for Strium Network, a Layer 1 blockchain for tokenized stocks, positioned as a foundational trading layer for the Asian on-chain securities market.

9. Vitalik's Critique: Ethereum founder Vitalik Buterin criticized current L2s for merely copying the EVM and connecting via optimistic bridges, calling for more innovative L2s focused on privacy, application-specific efficiency, or institutional needs.

10. Institutional Risk: Multiple US public pension funds lost approximately $337 million investing in MicroStrategy during the Bitcoin downturn, exposing the high risks associated with allocating pension funds to crypto assets.

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