Crypto exchange Bybit has seen a dramatic drop in reserves, losing over $6 billion in just two days. The mass withdrawals came after a $1.4 billion exploit on 21 February, sparking panic among users. Data shows that Bybit processed $2.5 billion in withdrawals on 22 February and another $3.26 billion the following day, bringing its total assets down from $16.9 billion to $10.8 billion.
The biggest outflows were in stablecoins and Bitcoin, with users withdrawing more than $2.3 billion in USDT and over $1.5 billion in BTC. Some of these funds were reportedly transferred to Binance and over-the-counter (OTC) platforms, raising speculation over whether Bybit sold Bitcoin or used it as collateral to cover Ethereum withdrawals.
Despite the turbulence, the exchange managed to process all withdrawals without major disruptions. Bybit’s CEO, Ben Zhou, reassured users that the platform had resolved its Ethereum shortfall and maintained full backing of customer assets on a 1:1 basis. However, the incident has reignited concerns about security and liquidity in the crypto industry.
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Russia’s Energy Ministry claims that banning crypto mining in parts of Siberia has eased pressure on the region’s power grid. Officials reported a reduction of over 300 MW in electricity consumption since the restrictions took effect on 1 January 2025. The ministry insists this has prevented blackouts during peak winter months and has announced plans for ongoing meetings to assess the policy’s impact.
Despite government assurances, local reports suggest crypto mining remains strong in Siberia. Power provider Irkutskenergosbyt noted that household electricity usage increased by 1% in January compared to the previous year, despite milder winter temperatures. Industry analysts also estimate that Russia’s Bitcoin mining sector expanded by 7% in 2024, indicating continued activity.
Some experts argue the ban does little to curb mining operations, with many industrial-scale enterprises still running in parts of Irkutsk. While Bitcoin remains the dominant cryptocurrency for miners, there is also significant interest in Litecoin, Kaspa, Ethereum, and Monero. Meanwhile, the Energy Ministry is pushing for a national register of mining equipment to track legal operations and tackle illegal activity.
As debate over the effectiveness of the restrictions continues, Russian energy firms have approved plans that could see power allocated to mining increase significantly in the coming years. Experts remain divided on whether stricter regulations will stifle the industry or simply drive it further underground.
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According to Bitcoin exchange River, Microsoft’s latest quantum computing chip, Majorana 1, could accelerate the timeline for making Bitcoin resistant to quantum threats. While the risk of a quantum attack remains distant, experts warn that preparations must begin now. The chip, launched on 19 February, is part of a growing race in quantum technology, with Google’s Willow chip also making headlines in December.
River suggests that if quantum computers reach one million qubits by 2027-2029, they could crack Bitcoin addresses in long-range attacks. Though some argue such a scenario is still decades away, River insists early action is key. The potential threat has reignited discussions on BIP-360, a proposed upgrade to strengthen Bitcoin’s defences against future quantum advancements.
Critics remain sceptical, arguing that quantum computing is still in its infancy, with major technical challenges to overcome. Some believe traditional banking systems, which hold far greater assets than Bitcoin, would be targeted first. Others see quantum developments as an opportunity, suggesting they could help fortify Bitcoin’s security rather than weaken it.
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The United Arab Emirates saw a sharp rise in cryptocurrency app downloads in 2024, with a total of 15 million installations recorded. According to data from AppsFlyer, this marked a 41% increase compared to the previous year, with the biggest surge occurring in December when downloads hit 2.8 million.
Analysts attribute this spike to several factors, including growing interest in digital assets and global political shifts. The US presidential election in November, won by Donald Trump, was seen as a boost for the crypto industry due to his pro-crypto stance. His launch of a meme coin in January further fuelled global interest, drawing new investors into the market.
While adoption continues to grow, retaining users has proven to be a challenge. AppsFlyer reported that aggressive marketing campaigns contributed to 60% of downloads, yet one in five crypto apps was uninstalled within 30 days. Despite this, January saw another record high, with 3.5 million downloads in the UAE alone, setting the stage for what could be a record-breaking year for the industry.
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The Czech National Bank (CNB) is exploring Bitcoin’s potential as part of its reserve management strategy, according to Governor Aleš Michl. He emphasised that Bitcoin should not be dismissed outright and urged central bankers to study its underlying technology. While the CNB has not committed to buying Bitcoin, its board has approved an analysis of new asset classes, including the cryptocurrency.
Michl acknowledged Bitcoin’s extreme volatility and clarified that this initiative is not an endorsement but an effort to understand its risks and benefits. If CNB were to allocate even a small portion of its €140 billion reserves to Bitcoin, it could become the first Western central bank to invest in the asset publicly. However, sources suggest that potential exposure would be minimal, likely below 1% of total reserves.
Other European central bankers remain sceptical despite Michl’s openness to financial innovation. German central bank governor Joachim Nagel compared Bitcoin to the 17th-century tulip bubble, calling it neither safe nor liquid. European Central Bank President Christine Lagarde also dismissed Bitcoin as a reserve asset, stating that it fails to meet the ECB’s criteria for stability and transparency. However, Michl remains committed to diversifying CNB’s investments, including increasing its holdings in US stocks.
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Howard Lutnick has been confirmed as the 41st US Secretary of Commerce, marking a significant shift in trade and economic policy. The Senate approved his appointment with a 51-45 vote, placing the pro-crypto former chief executive of Cantor Fitzgerald at the helm of the department overseeing trade regulations and economic strategies.
Lutnick has long supported Bitcoin, calling it a global asset similar to gold, and has defended Tether’s reserves as fully backed by strong financial assets. He also dismissed concerns over stablecoins and illicit funding during his Senate hearing. With the SEC reviewing Ethereum staking ETFs, his leadership could shape the Commerce Department’s stance on digital assets.
Beyond cryptocurrency, Lutnick aligns with Donald Trump’s push for tariffs to protect British businesses, arguing that tariffs do not cause inflation. His appointment signals stronger trade policies that could benefit US industries but may also increase tensions with international partners. As Commerce Secretary, he will oversee economic regulations, technological exports, and trade negotiations, potentially reshaping global trade dynamics.
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Google is working on a major initiative to simplify Bitcoin usage for billions of users, according to Kyle Song, a Web3 specialist at the company. Speaking at the Hong Kong Bitcoin Tech Carnival on 18 February, he revealed that Google has been exploring ways to integrate Bitcoin into its ecosystem, aiming to lower entry barriers for mainstream users.
The plan includes embedding Bitcoin wallets directly into Google accounts, allowing users to access them as seamlessly as any other Google service. The company is also working on making crypto payments as intuitive as existing Web2 payment methods. Security remains a top priority, with Google looking to deploy Zero-Knowledge Proofs or similar encryption technology to ensure trust between on-chain and off-chain systems.
Although Song’s comments were not an official announcement, the impact of such an integration could be transformative. If Google successfully integrates Bitcoin with Google Pay, crypto adoption could accelerate like never before. Billions of users might suddenly find themselves with an easy and secure way to buy, exchange, and spend Bitcoin.
However, not all ambitious tech projects succeed. Facebook and Telegram both attempted to integrate cryptocurrencies in 2020 but were forced to abandon their plans due to regulatory pressures. The environment in 2025 is different, with Bitcoin ETFs already approved and crypto adoption more widely accepted. If Google follows through, it could mark a new chapter for digital assets, bridging the gap between traditional finance and decentralised money.
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Hong Kong has hinted at the growing acceptance of cryptocurrencies as proof of wealth for its New Capital Investment Entrant Scheme (New CIES). While cryptocurrencies are not listed as approved investment assets, a local accountant disclosed that bitcoin and ether were used successfully in two cases to demonstrate applicants’ wealth.
Authorities stated there were no specific restrictions on asset types for applications, leaving the door open for virtual assets.
The investment scheme, relaunched in March 2024, requires applicants to control assets worth at least HK$30 million (£3.9 million) and invest them in approved options to gain residency.
Competition with regional rivals like Singapore and Dubai has intensified Hong Kong’s efforts to attract capital. Analysts noted that the scheme excludes mainland Chinese applicants but revealed workarounds, such as securing permanent residency in third countries like Guinea-Bissau.
Data showed that nearly 80% of over 250 recent applicants were from Guinea-Bissau or Vanuatu, highlighting an emerging trend.
Cryptocurrency advocates praised Hong Kong’s openness, seeing it as a critical move in recognising digital assets on par with traditional ones. The development signals a potential shift in how virtual wealth is perceived globally and could boost Hong Kong’s appeal to investors.
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Tether has signed an agreement with the government of Guinea to support economic growth and digital transformation through blockchain and peer-to-peer technology. The memorandum of understanding focuses on education, innovation, and sustainable technology, with Tether aiming to promote blockchain adoption in both public and private sectors. The partnership may also involve the City of Science and Innovation in Guinea.
Paolo Ardoino, CEO of Tether, stated that the initiative reflects the company’s commitment to helping nations build strong digital economies. He emphasised that blockchain solutions could play a key role in Guinea’s technological development, paving the way for economic progress.
Tether has been actively expanding its global presence through similar partnerships. It recently relocated its headquarters to El Salvador, the first country to adopt Bitcoin as legal tender, and has also collaborated with governments and organisations in Switzerland, Turkey, Uzbekistan, and Georgia. Additionally, the company has launched educational programmes in several countries to encourage broader blockchain adoption.
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Germany’s central bank chief, Joachim Nagel, has reinforced his scepticism towards Bitcoin, dismissing it as unsuitable for central bank reserves. Speaking at an event hosted by the London School of Economics, Nagel argued that Bitcoin is not a genuine currency but rather an asset class lacking liquidity and security. He also criticised the pro-crypto stance of former US President Donald Trump, particularly proposals to establish a strategic Bitcoin reserve. Comparing Bitcoin to the Dutch Tulip Mania of the 17th century, he warned of its speculative nature and volatility.
In contrast, Nagel is a strong advocate for the digital euro, highlighting its potential to strengthen Europe’s financial sovereignty. He cautioned that reliance on private sector payment solutions, particularly from US firms, could expose Europe to geopolitical risks. While the long-term effects of central bank digital currencies (CBDCs) on interest rates remain uncertain, he emphasised their importance in ensuring a resilient financial system.
Meanwhile, the US is shifting its regulatory approach to cryptocurrency. Under Acting SEC Chair Mark Uyeda, new policies have allowed banks to re-enter the crypto custody sector. The SEC recently replaced its restrictive guidance, paving the way for regulated financial institutions to hold digital assets. As these developments unfold, Bitcoin is currently trading at $96,318, marking a slight decline over the past week.
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