DeFi Exploit Drains $26M as Bitcoin Tests $90K Support: Crypto Market Update
Imagine waking up to a DeFi protocol drained of $26 million in a brazen exploit. That’s exactly what shook the crypto market over the last 24 hours. In today’s breakdown, we’ll cover the major hacks, ETF flows, regulatory shifts, and institutional moves shaping the digital asset landscape.
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Bitcoin & Ethereum: ETF Outflows Pressure the Market
Bitcoin experienced notable turbulence, briefly dipping below $90,000 before stabilizing around $90,500. This movement was largely influenced by continued outflows from U.S. spot Bitcoin ETFs, totaling approximately $400 million over 3 consecutive days.
Ethereum also faced headwinds, with its ETFs recording outflows of roughly $159 million. Despite this, ETH remained resilient above $3,000, showing relative strength compared to the broader market.
Bright spots:
Solana (SOL) ETFs saw net inflows
XRP ETFs also attracted fresh capital
This signals institutional rotation rather than full market capitulation.
DeFi Security Alert: TrueBit Exploit Sends Shockwaves
In one of the most alarming events, the TrueBit protocol suffered a devastating exploit:
8,535 ETH stolen
Estimated value: ~$26 million
TRU token crashed 99.9%
This breach highlights the ongoing security vulnerabilities in DeFi and reinforces the importance of smart contract audits and risk management.
Zcash Shakeup Sparks 20% Price Surge
Developers from Electric Coin Company resigned following a governance dispute with the board. They announced:
A new independent venture
Launch of a fresh Zcash wallet
Markets reacted positively, sending ZEC up 20% on the news — a reminder of how developer confidence impacts token valuation.
Regulation & Institutions: Big Moves Across TradFi & Crypto
Political Headlines
President Trump firmly stated he will not pardon Sam Bankman-Fried, former FTX CEO.
Major Institutional Developments
Binance launched TradFi perpetual contracts, starting with:
USDT-settled gold futures
USDT-settled silver futures
Available 24/7
Morgan Stanley announced plans to roll out a digital wallet in 2026 supporting:
Tokenized private equity
Other real-world assets (RWAs)
Barclays invested in Ubyx, a startup building:
Stablecoin clearing infrastructure
Optimism & JPMorgan Signal Market Stabilization
The Optimism Foundation proposed:
Allocating 50% of Superchain revenue
Toward OP token buybacks starting February
Goal: Align token value with network growth
Meanwhile, JPMorgan analysts noted:
Crypto de-risking may be nearing completion
ETF flows are stabilizing
Selling pressure is easing
This could indicate a macro shift toward accumulation.
Global Regulation: Colombia & South Korea Step Up
Colombia’s tax authority now requires:
Exchanges to disclose user data
Transaction records to combat tax evasion
South Korea fast-tracked approvals for:
Spot crypto ETFs
Including Bitcoin ETFs
Part of its 2026 economic blueprint
This marks a major leap in Asian institutional adoption.
Polymarket Expands Prediction Markets
Polymarket announced major partnerships:
Delphi Digital
Converts 2026 research forecasts into tradable markets
Dow Jones
Integrates prediction data into major publications
This signals the mainstreaming of crypto-based prediction markets.
Real-World Crypto Crime: Physical Risks Rise
In a chilling incident from France:
Masked attackers robbed a victim
Stole a USB device containing crypto
This highlights a growing concern:
Digital assets carry real-world security risks.
Cold storage security and personal safety are now more important than ever.
Current Crypto Prices
As of now:
Bitcoin: $90,500
Ethereum: $3,092
Solana: $136.50
XRP: $2.09
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Disclaimer
Quick disclaimer: I’m not a licensed financial advisor. This is for educational purposes only. Crypto is volatile—never invest more than you can afford to lose, do your own research!
