Crypto Morning Brief: US stocks plunge, Nvidia drops over 8%, BitMEX seeking sale
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Crypto Morning Brief: US stocks plunge, Nvidia drops over 8%, BitMEX seeking sale
The U.S. SEC classifies meme coins as non-securities, leaving investors to bear their own risks.
Navigating Web3 tides with focused insightsAuthor: TechFlow
Yesterday's Market Dynamics
U.S. Stocks Plunge:Nasdaq Drops 2.78%, "Magnificent Seven" Tumble, Nvidia Falls Over 8%
According to Jin10 News, U.S. stocks fell sharply again on Thursday, with the S&P 500 closing down 1.59%, the Nasdaq Composite Index down 2.78%, and the Dow Jones Industrial Average down 0.45%. The so-called "Magnificent Seven" tech giants collectively declined, wiping out nearly $550 billion in market value. Nvidia reversed from a 2% gain at open to close down over 8%, losing more than $270 billion in market cap in a single day.
Morgan Stanley’s Quantitative and Derivatives Strategy team warned that the S&P 500 has broken below the key mid-term CTA liquidation trigger level of 5887 (closed at 5861.57 on Thursday). They expect macro systematic strategies to sell over $40 billion in equities in the coming week, mostly driven by CTAs as U.S. equity futures triggers begin flipping. An estimated $12.6 billion and $58 billion will be sold in the next week and month, respectively.
Market sentiment deteriorated sharply. The latest survey from the American Association of Individual Investors shows investor sentiment has turned extremely bearish. Expectations for stock prices to fall over the next six months surged more than 20 percentage points to nearly 61% in the week ended Wednesday. JPMorgan data shows retail investors sold $1.1 billion worth of stocks in the first two hours of Monday’s trading—the largest single-day outflow since the March 2020 pandemic outbreak.
Analysts point out that concerns over economic slowdown and trade uncertainty triggered by Trump-era policies are hurting equities, killing momentum trades that previously drove the market. The S&P 500 is now down 0.3% year-to-date in 2025; another 1.4% decline would erase all gains since Trump’s election victory.
Deribit: Market Officially Turns Bearish Based on Data and Indicators, Short-Term Outlook Negative
Lin Chen, Head of Asia-Pacific Business at Deribit, stated via social media that based on data and indicators, the market has officially shifted from bull to bear, with a pessimistic short-term outlook and significant selling pressure expected during any rebound. However, she remains optimistic long-term, believing that once macro conditions improve—including tariffs, inflation, rate cuts, geopolitical conflicts, and AI breakthroughs—Bitcoin could resume its upward trend.
As an industry participant holding Bitcoin, Lin Chen plans to continue holding BTC over the next few months, generating yield by selling call options while purchasing small amounts of long-dated put options to increase her spot holdings.
Data: Among 16 Popular Bitcoin Miners, 7 Have Already Exceeded Shut-Down Prices, Lowest at $51,617
Bitdeer data shows that at a Bitcoin price of $84,859.69, seven out of 16 popular Bitcoin mining machines have reached or exceeded their shut-down prices. The WhatsMiner M53s, with a shut-down price of $83,878.96, is already at critical levels, earning just $0.17 per day. Six other models—WhatsMiner M50, Antminer S19 Pro Water-cooled, Antminer S19j Pro, Antminer S19 Pro, WhatsMiner M30S++, and Antminer S19—are fully unprofitable, with electricity costs exceeding 110% of revenue.
Among currently profitable miners, the Antminer S21 Water-cooled has the lowest shut-down price at $51,617.82, with power costs accounting for 60.72%. Sealand Miner A2 Water-cooled and A2 Standard Edition have shut-down prices of $53,230.88, with power costs at 62.61%. WhatsMiner M63S and M60S shut down at $59,683.11, with power costs reaching 70.20%.
Crypto Exchange BitMEX Seeking Buyer, Has Hired Investment Bank to Assist Sale Process
According to CoinDesk, BitMEX, the cryptocurrency exchange and derivatives platform co-founded by Arthur Hayes in 2014, is seeking a buyer. Sources say the veteran exchange, which popularized perpetual futures among leveraged traders, hired boutique investment bank Broadhaven Capital Partners late last year to assist with the sale process.
BitMEX pleaded guilty in 2020 to charges of failing to implement adequate anti-money laundering measures. Following criminal indictments in the U.S., Hayes and co-founders Ben Delo and Samuel Reed stepped down as CEOs. Neither BitMEX nor Broadhaven commented on the acquisition plan.
The crypto derivatives space has seen active M&A recently, with major exchanges Kraken and Coinbase reportedly bidding for leading crypto options exchange Deribit, while FalconX acquired Arbelos Markets earlier this year to expand its derivatives business.
Argentine President Milei Under FBI Investigation Over Libra Promotion Incident
According to Bitcoin.com News, Argentine President Javier Milei is under investigation by the U.S. Federal Bureau of Investigation (FBI) for promoting Libra, a failed cryptocurrency project, on social media. The report notes that the Libra project was linked to an unregistered company and lacked necessary compliance measures.
Mask Network Founder: Phone Wallet Hacked 3 Hours Ago, Private Key Possibly Stolen During Birthday Party
Suji Yan, founder of Mask Network, posted that today is his birthday and approximately three hours ago, a public wallet on his phone was hacked, resulting in the theft of over $4 million in assets.
Suji Yan said all stolen transactions appear to have been manually executed and lasted over 11 minutes. Therefore, either the private key was leaked on his birthday, or it may have been an offline attack.
Suji Yan said he was at a private gathering with around a dozen friends and left his phone unattended for several minutes while going to the restroom. He trusts his friends, but acknowledges this is a nightmare scenario for anyone. He has contacted SlowMist and ZachXBT to assist with the investigation.
U.S. Initial Jobless Claims for Week Ending February 22 Rise to 242,000, vs. 221,000 Expected, Prior Revised to 220,000
According to Jin10 data, U.S. initial jobless claims for the week ending February 22 came in at 242,000, higher than the expected 221,000, with the prior figure revised from 219,000 to 220,000.
U.S. Senate Digital Assets Subcommittee Holds First Hearing Focused on Stablecoin Regulation
According to CoinDesk, the first digital assets subcommittee under the U.S. Senate Banking Committee held a hearing on February 27 to discuss stablecoin regulation and a legislative framework for digital assets, chaired by Republican Senator Cynthia Lummis of Wyoming.
In her opening statement, Lummis said, "We are at a pivotal moment to finally create a bipartisan legislative framework for stablecoins and market structure." She described her joint bill with Democratic Senator Kirsten Gillibrand of New York as a natural counterpart to the House’s FIT21 Act. Senator Tim Scott, Republican of South Carolina and chairman of the Senate Banking Committee, confirmed that stablecoins will be a top committee priority.
Former CFTC Chair Timothy Massad advised lawmakers to prioritize stablecoin regulations and delay market structure-related legislation "by several years." He noted, "The SEC has withdrawn enforcement cases and formed a crypto task force to address these issues—we should allow these regulatory efforts to progress rather than rush to rewrite securities laws." Massad warned that current proposals might "create more confusion than clarity," especially regarding the classification of digital asset properties.
U.S. SEC Classifies Meme Coins as Non-Securities, Investors Assume Full Risk
According to Jin10 News, the Division of Corporation Finance at the U.S. Securities and Exchange Commission (SEC) released guidance on memecoins, stating they do not qualify as securities but are instead akin to collectibles. The division concluded that transactions involving memecoins as described in the guidance do not constitute offers or sales of securities under federal securities laws.
Therefore, individuals involved in issuing or selling memecoins are not required to register their transactions with the Commission under the Securities Act of 1933, nor must they meet registration exemptions under the Act. As such, buyers or holders of memecoins are not protected under federal securities laws.
Pump.fun Officially Regains Control of X Account, Confirms Hack Limited to Social Platform
According to an official statement, the Pump.fun team has successfully regained control of its compromised social media accounts and confirmed that the security incident was limited solely to the X platform account, with no impact on other systems.
Per the disclosed investigation, the team became aware of the breach around 15:20 UTC on February 26, 2025. Despite implementing strict security measures—including physical security keys, Google two-factor authentication, and regularly changing complex passwords—the hacker managed to bypass these defenses.
On-chain analyst ZachXBT found that this attack may have been carried out by the same group behind previous hacks targeting Jupiter and WIF, possibly using social engineering tactics to deceive X platform employees or exploiting system vulnerabilities to gain account access.
The Pump.fun team reminded users that official accounts and associated personnel will never publish contract or wallet addresses, urging the community to verify information through multiple channels before taking any action.
Babylon Foundation: Will Expand Airdrop Eligibility to All NFT Holders
The Babylon Foundation announced on X that Cuneiform Assets Limited has decided to expand the airdrop scope, acknowledging that community feedback matters.
After extensive evaluation, Cuneiform Assets has decided to remove the staking history requirement. This means all NFT holders are now eligible for the NFT airdrop, subject to all other eligibility criteria and airdrop terms.
Market Updates
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