BlockBeats News, February 28th, Nir Kaissar, head of asset management company Unison Advisors, believes that President Trump may have finally found a way to compel the Federal Reserve to lower interest rates: fiscal tightening.

Nir Kaissar stated that in recent years, the impact of fiscal policy has been at least as significant as the Fed's historic actions. Now, fiscal policy and monetary policy may be on the verge of swapping roles. Treasury Secretary Scott Bessent has indicated that the government aims to reduce the deficit to 3% of GDP. This would require Trump's Department of Government Efficiency (DOGE) to cut $1 trillion in spending. It is not yet clear to what extent this target can be achieved, but the mere threat of spending cuts may already be dampening market sentiment and hindering economic growth.

Through expenditure cuts, Trump may be pushing for monetary policy to ease in support of fiscal tightening. Whether Trump's spending cuts result in economic slowdown or are inconsequential may not matter. As long as these cuts (or the threat of cuts) coincide with an economic slowdown, the Fed may take action. (Jinse)

BlockBeats News, on February 28th, Zhu Su posted on X, stating: "Now may be a good time to buy short-term call options for BTC and ETH."

BlockBeats News, February 28th, according to Coinglass data, in the past 24 hours, the total amount of liquidations across the network reached $950 million, with long liquidations accounting for $827 million.

A total of 228,023 people were liquidated globally. The largest single liquidation occurred in a HTX - BTC-USDT position, amounting to $38.007 million.

BlockBeats News, February 28th, according to DefiLlama data, the protocol fee revenue of pump.fun was $1.1 million yesterday, a 92.84% decrease from its all-time high on January 25th ($15.38 million).

Yesterday, pump.fun's trading volume was $86.18 million, a 77.92% decrease from its all-time high on January 24th ($390.3 million).

BlockBeats News, February 28th, according to Dune Analytics data, AI Agent platform Virtuals Protocol's daily transaction revenue plummeted by 96.8% from its peak. The daily revenue peaked on January 2nd, surpassing $1 million and has since dropped to below $35,000 as of yesterday.

On February 27th, Virtuals Protocol had a total revenue of $28,492 on the Base network and $6,300 on the Solana network. However, the revenue from the Virtual App on the Base chain has been particularly bleak, with daily revenue remaining below $1,000 for 10 consecutive days. In the past 10 days, the platform has seen fewer than 10 new AI agent additions daily.

BlockBeats News, February 28th, Matrixport released a daily analysis report stating that the Bitcoin ETF has achieved tremendous success, attracting $39 billion in inflows in fourteen months. However, as Wall Street fully embraces Bitcoin, it is increasingly influenced by global liquidity, macroeconomic conditions, central bank policies, and institutional capital flows. The strength of the dollar has led to a decrease in this liquidity metric, indicating that the Bitcoin price may face downward pressure. Global liquidity peaked by the end of December 2024, and the significant strengthening of the dollar provides a clear explanation for Bitcoin's ongoing pullback. Looking ahead, the forward-looking nature of this time series suggests that once this pullback ends (which may last until March or April), Bitcoin may attempt to retest previous highs. Analyzing macroeconomic trends and central bank policies gives us a distinct advantage in forecasting Bitcoin price trends. Particularly as Wall Street investors begin to daily monitor these macro factors and actively engage in Bitcoin trading, this analysis becomes especially crucial.

Wall Street investors entering the Bitcoin market are divided into two categories. One is wealth and asset managers who see Bitcoin as digital gold and a long-term investment. These investors likely represent the group of wallet holders with 100-1000 Bitcoins, which has become the largest group of Bitcoin holders, surpassing the once dominant whale wallets.

The second category of Wall Street investors entering the Bitcoin market is hedge funds, who focus on non-directional income through arbitrage strategies rather than betting on Bitcoin's long-term price appreciation. When crypto traders are bullish, they often exploit futures positions to raise the funding rate. This provides arbitrage opportunities for hedge funds, which short Bitcoin futures while simultaneously buying Bitcoin spot or Bitcoin ETF, thus earning profits through the funding rate difference. These hedge funds collectively hold $10 billion in Bitcoin ETF, and the total inflow has reached $39 billion, indicating that at least 25% of the Bitcoin ETF funds are related to arbitrage trading. Based on calculations, 55% or more of the ETF inflows may come from arbitrage-focused hedge funds, rather than investors who truly believe in Bitcoin's long-term growth potential.

Since the December FOMC meeting, yield opportunities have significantly decreased, followed by a decline in trading volume, so it's not surprising that hedge funds are unwinding arbitrage positions. This trend is manifested through record outflows from Bitcoin ETFs, as these funds exit unprofitable trades.

BlockBeats News, February 28th. According to Yonhap News Agency, Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, has filed a lawsuit with the Seoul Administrative Court to seek the repeal of part of the business suspension order implemented by the Korea Financial Intelligence Unit (FIU) and has requested a stay of execution.

BlockBeats previously reported that on February 25th, the Korea Financial Intelligence Unit (FIU) announced regulatory measures against Upbit, South Korea's largest cryptocurrency exchange. According to the regulations, Upbit will be restricted from new user cryptocurrency deposits and withdrawals for the next 3 months.

Upbit has stated that it has taken necessary improvement measures and believes that certain factors were not adequately considered by the FIU. It will formally clarify its position through the appropriate procedures. The FIU's sanctions may change, and if lifted, new users will regain full service access. Existing users are not affected.

BlockBeats News, February 28th, according to CoinDesk, analyst Omkar Godbole stated that "financial markets, which are often driven by human emotion, frequently exhibit a tendency to retrace after an asset's price breaks above a long-term resistance level. This retracement is to confirm the validity of the breakout and such a test of the 'resistance-turned-support' level may set the stage for a larger subsequent rally. The 'breakout and pullback' phenomenon is commonly seen across various asset classes, and Bitcoin's current sell-off may be just such a healthy retest of this pattern: the price is probing the key resistance-turned-support level at $73,835, which was breached back in November 2024. Back then, Bitcoin's breakout above this level marked the end of a multi-month consolidation phase coinciding with Trump's win in the U.S. presidential election."

"The market tends to retest after a breakout to confirm the support's validity, driven by investors' risk-averse behavior. According to prospect theory, traders tend to quickly secure profits when in profit rather than letting the gains run, leading to a sudden stall in the post-breakout rally and triggering a pullback. For example, Bitcoin holders have been taking profits around the $100,000 mark since December 2024."

"Bitcoin has now dropped over 15% from its February high, falling below $80,000 and approaching the $73,835 support area. If this level manages to halt the decline, sidelined investors who missed the initial bull run may step in, triggering a rebound and attracting more buying interest, thereby setting the stage for a larger rally. However, it is important to note that if the retest fails or the rebound is weak, it may signal a risk of trend reversal. The Bitcoin weekly chart shows a typical breakout retest structure, and if $73,835 holds, it may pave the way towards the $150,000 target. This analysis is in line with the technical formations of 2020 and 2023, but traders should be wary of risks stemming from macroeconomic policy changes and market sentiment fluctuations."