Czech Central Bank Chief Considers Investing Billions of Euros in Bitcoin

The head of the Czech National Bank (ČNB), Aleš Michl, announced that he will present a proposal to the board of directors to allocate up to 5% of the bank’s reserves into Bitcoin, according to the Financial Times. If approved, ČNB would become the first Western central bank to invest in cryptocurrency.

Michl views Bitcoin as a diversification tool, despite its volatility, and highlights the growing institutional interest following the launch of Bitcoin ETFs in the U.S. He also pointed out the influence of crypto companies on the Trump administration.

"For diversifying our assets, Bitcoin seems like a good solution," he stated, adding that other central banks may follow this approach in the next five years.

ČNB manages €140 billion in reserves, with 22% already allocated to stocks. According to the bank’s calculations, if 5% of these reserves had been invested in Bitcoin over the last decade, the average annual return would have increased by 3.5 percentage points. However, Michl acknowledges that the investment could either be highly profitable or completely devalue.

Trump's crypto reserve plans could encourage other central banks worldwide to start buying BTC, according to Standard Chartered.

Trump Family’s Crypto Project Buys Blockchain Tokens on Condition of Selling Its Own

▪️The crypto platform World Liberty Financial (WLF), linked to Donald Trump’s family, is offering blockchain projects token swap deals, Blockworks reports.

▪️According to the publication, WLF representatives propose that projects purchase WLFI (the platform’s yet-to-be-launched token) for at least $10 million with a 10% premium—meaning that for $10 million, projects receive $11 million worth of WLFI. In return, World Liberty Financial promises to buy the project's native tokens for the same amount but does not disclose whether the purchase will be an OTC deal or a market buy.

▪️The deal does not involve vesting, meaning all WLFI tokens are immediately credited to the project’s balance. However, Blockworks sources say priority is given to those willing to invest $15 million or more.

▪️WLF’s publicly known wallet holds $355 million in crypto assets, including ETH, WBTC, USDC, TRX, LINK, AAVE, ENA, MOVE, and ONDO.

▪️The WLF website states that 24 billion WLFI tokens have already been sold at $0.05 per token, generating $1.2 billion in revenue. Among publicly known buyers is Tron founder Justin Sun, who announced a $75 million WLFI purchase.

▪️In World Liberty Financial’s official documents, Donald Trump is listed as the project’s "Chief Human Rights Advocate." His sons Eric and Donald Trump Jr. are named "Web3 Ambassadors," while Barron Trump holds the title of "DeFi Visionary."

FOX: A bill to regulate the stablecoin market has been introduced in the U.S. Senate!

✔️ Key points:

▪️Defines stablecoins as digital assets pegged to the U.S. dollar.
▪️Establishes licensing and reserve requirements for issuers.
▪️Federal Reserve regulations apply to issuers valued over $10B, while state regulations apply to issuers below $10B.
▪️Aims to promote financial inclusion, enable efficient transactions, and strengthen the dollar's position.
▪️The bill will be discussed today at David Sacks’ press conference

Tornado Cash Developer Alexey Pertsev to Be Released Under House Arrest

▪️Tornado Cash developer Alexey Pertsev announced that he will be released from prison on February 7 and placed under house arrest with an electronic bracelet. The Dutch court decided to suspend his pretrial detention.

▪️"This is not real freedom, but it's better than prison," Pertsev wrote on X, adding that he will now be able to work on his appeal and continue fighting for justice.

▪️Pertsev was arrested in August 2022 shortly after the U.S. imposed sanctions on Tornado Cash. In 2024, he was sentenced to 5 years and 4 months in prison for allegedly laundering $1.2 billion through the mixer he developed. This marks the first case where a software developer was convicted for how third parties used their code.

▪️Pertsev has received strong support from the crypto community, with his supporters arguing that he only wrote the Tornado Cash code and had no involvement in criminal activities linked to the mixer’s use.

Following the news, the TORN token surged nearly 40%.

Bitcoin Mining Difficulty Sets a New Record

▪️Bitcoin mining difficulty has increased by 5.6%, reaching a new all-time high of 114.7T (trillion). This means miners now need to perform an average of 114.7 trillion calculations to find a solution and mine a block, earning a reward of 3.125 BTC.

▪️The increase in difficulty is linked to the rise in the network's computing power. On February 4, Bitcoin’s hashrate also hit a record high, indicating high activity among major mining pools.

▪️At the same time, the Hash Ribbon indicator recorded a decline in activity among some miners. This indicator is based on two moving averages of the hashrate—30-day (green line) and 60-day (blue line). When the short-term average falls below the long-term average, it signals that some miners are shutting down equipment due to declining profitability.

▪️Historically, periods of reduced miner activity have coincided with local Bitcoin price lows. After these periods ended, price growth typically followed. For example, in October 2024, a similar signal preceded a 50% increase in BTC price.

▪️Glassnode analysts note that the current Hash Ribbon signal may indicate the formation of a local Bitcoin price bottom, which traditionally precedes a recovery. This is explained by the exit of less efficient miners from the market, reducing selling pressure and allowing the price to stabilize and begin rising.

Glassnode has published a new report and noted that altcoins were hit the hardest during the recent correction—their market capitalization saw one of the largest declines in recorded history (-$234 billion).

Bitcoin also faced pressure, but the majority of realized losses came from short-term BTC holders.

The market environment is becoming more challenging: high volatility and pressure on altcoins could impact the market’s further dynamics.

Trump Family's Crypto Project to Create a Reserve Fund to Support Cryptocurrencies

▪️The DeFi project World Liberty Financial (WLF), associated with Donald Trump’s sons, has announced the creation of a strategic reserve fund to support Bitcoin, Ethereum, and other cryptocurrencies, which, according to the project's representatives, are "at the forefront of transforming the global financial system."

▪️This reserve, named Macro Strategy, is intended to help the platform diversify assets and mitigate risks.

▪️Last week, Chase Herro, the project's co-founder, hinted at the possibility of such a reserve, but the official announcement does not specify the source of the funds. The project stated that it is in discussions with financial institutions that may contribute tokenized assets to the fund.

▪️"The contributed assets will be held in WLF’s public wallet, ensuring institutional investors have a transparent presence in the crypto community," the platform stated.

▪️Currently, WLF holds around $38 million in various tokens—90% less than a week ago. At that time, the platform managed $360 million in assets but later transferred them to Coinbase Prime addresses, where they may have been either sold or placed in custodial storage.

So far, World Liberty Financial has not launched its promised DeFi platform and is primarily known for making large token purchases, including Ethereum. The project is actively promoted by Trump's sons—Donald Jr., Eric, and Barron, who are officially listed as "Web3 ambassadors".

Additionally, WLF and Ondo Finance have announced a partnership to develop the tokenized real-world asset (RWA) market and integrate traditional financial instruments into blockchain.

Glassnode: Altcoins Experience One of the Largest Drops, While Bitcoin Holds Its Ground

▪️Analytics firm Glassnode has assessed (source) the impact of the crypto market downturn, recording one of the largest altcoin devaluations in history. Analysts use on-chain metrics for Bitcoin and Ethereum, examining capitalization, investor activity, and fund flows in these networks. A key metric in the report is altcoin volatility over 1,662 trading days since observations began.

▪️Over the past two weeks, altcoin market capitalization has dropped by $234 billion, with the current decline being stronger than in 41 out of 1,662 trading days. The report notes that the entire market was affected, with minimal differences in the performance of individual altcoins, indicating a broad sell-off.

▪️Meanwhile, Bitcoin has shown relative resilience. Last week, its price dropped to $93,000, then recovered to $102,000, and is now fluctuating around $96,000. Analysts attribute this volatility to macroeconomic factors, including the threat of new U.S. trade tariffs and the strengthening of the dollar.

▪️At the $93,000 low, Bitcoin investors recorded $520 million in realized losses, marking one of the largest loss events in the current market cycle. The losses were primarily incurred by short-term holders who bought Bitcoin less than 155 days ago. Glassnode notes that comparable losses were observed in August 2023, when $1.3 billion was lost in a single day.

▪️According to Glassnode’s metrics, the average purchase price for short-term holders is $92,200, which could become a key level determining Bitcoin’s next move.

The chart shows that Bitcoin (yellow line) remains stable, while Ethereum (black line) and all Ethereum-based token sectors are experiencing deep losses.

U.S. SEC Establishes New Unit to Combat Crypto Fraud and Cybercrime

The U.S. Securities and Exchange Commission (SEC) has announced the creation of a new division, the Cyber and Emerging Technologies Unit (CETU), which will investigate cybersecurity and digital asset violations.

CETU will focus on investigating securities and digital asset-related crimes, including:

▫️ Fraud involving blockchain, cryptocurrencies, and artificial intelligence
▫️ Manipulation through social media, the darknet, and fake websites
▫️ Account hacks for insider information
▫️ Attacks on retail brokerage accounts
▫️ Cybersecurity violations by regulated organizations

The new division will replace the Crypto Assets and Cyber Unit and will be led by Laura D’Allaird. Around 30 fraud specialists and legal experts from various SEC departments will join CETU.

"Under Laura D’Allaird’s leadership, the new unit will complement the work of the Crypto Task Force, headed by Hester Peirce. This will allow the SEC to allocate enforcement resources more effectively, protect investors, and foster innovation at the same time," said SEC Acting Chair Mark Uyeda.

The SEC is reassessing its approach to crypto regulation following the departure of Gary Gensler. Recently, the commission also launched the Crypto Task Force, which focuses on classifying digital assets and analyzing their legal status.

Bybit Crypto Exchange Hacked for $1.4 Billion – What We Know So Far:

▫️Over $1.4 billion stolen, including more than 400,000 ETH—potentially the largest hack in crypto history;

▫️Bybit claims that user assets are safe, and all wallets except the compromised one remain under control;

▫️Withdrawals are operational, with 70% of requests already processed, but delays are possible due to high demand;

▫️Bybit has sufficient reserves to cover the losses, with over $20 billion in assets under management. If needed, the exchange will secure additional financing from partners to maintain liquidity;

▫️The exchange will not immediately replenish its ETH reserves through direct purchases;

▫️Blockchain analytics firms have flagged known hacker wallets, enabling exchanges to identify and freeze stolen assets if necessary;

▫️Experts suspect the attack may be linked to the North Korean Lazarus Group, which has previously used similar hacking techniques.

The L2 project Linea by ConsenSys developers is postponing its airdrop indefinitely.

The team continues refining the launch based on community feedback. Initially, the TGE was planned for Q1, but the timeline has been revised.

Key reasons:
✔️ Technical improvements
✔️ Enhancing design and user experience
✔️ Focus on the project's sustainable development

The developers believe that thorough preparation will ensure the long-term success of Linea and its zkEVM technology.

Whales continue to sell the MELANIA shitcoin at massive losses:

🔴 A user spent 30 million USDC to buy 14 million MELANIA a month ago and sold it yesterday for 14.32 million USDC, losing $15.7 million.

🔴 Another trader spent 10 million USDC to buy 6.69 million MELANIA and sold it over the past two days, losing $3.73 million.

⚡️Trump Announced a U.S. Cryptocurrency Reserve Including XRP, SOL, and ADA

▪️U.S. President Donald Trump stated that his executive order on digital assets includes the creation of a strategic U.S. crypto reserve, which will consist of XRP, Solana (SOL), and Cardano (ADA) tokens. According to him, this initiative aims to strengthen the digital asset industry after "years of corrupt attacks from the Biden administration."

▪️"The executive order on digital assets has directed the Presidential Task Force to advance the U.S. strategic crypto reserve, including XRP, SOL, and ADA. I will make sure the U.S. becomes the crypto capital of the world," Trump wrote on Truth Social.

⚡️ Trump clarified that Bitcoin and Ethereum will also be included in the U.S. cryptocurrency reserve, along with other "valuable" cryptocurrencies.

Donald Trump stated that his cryptocurrency task force must "move forward" with the creation of a strategic digital asset reserve, which will include Solana (SOL), Ripple's XRP, and Cardano (ADA) tokens. Later, the U.S. president clarified that Bitcoin, Ethereum, and other "valuable" cryptocurrencies would also be part of the reserve.

"The U.S. cryptocurrency reserve will strengthen this critically important sector after years of corrupt attacks from the Biden administration," Trump wrote on Truth Social, adding that he intends to make the country the "crypto capital of the world."

All the cryptocurrencies mentioned by Trump saw a sharp price increase of 15% or more following his post, with Bitcoin also surging by approximately 3.5%.