Clapp Weekly: Bitcoin's slump, LIBRA scandal, XRP ETF progress
Price dynamics
BTC price
Bitcoin has approached its lowest level in several months, despite US regulatory filings revealing a broadening base of buyers for BTC ETFs. Recent bouts of volatility have drawn comparisons to August 2023, suggesting a potential breakdown to $85k.
BTC snapped back to $98k on Thursday, February 13, before pulling back to $95.4k and reaching a high of $98,623.62 the following day. A steady decline ensued, with the price briefly dipping below $94k yesterday before rebounding.
Currently trading at $95,844.64, BTC has seen little change, up 0.2% over the past 24 hours and down 0.5% over the past seven days.
ETH price
Unlike Bitcoin, ether has gained some ground, supported by rising activity in futures markets. However, Monday’s quick surge toward $2,850 appears to have been a catch-up trade that may soon reverse.
ETH briefly climbed to $2,750 before rising further to $2,776.09 on Friday, February 14. Following a bearish weekend, it reached a 7-day high of $2,819.31 before pulling back to $2.6k yesterday.
Changing hands at $2,720.80, ETH is up 1.4% over the past 24 hours and 3.6% over the past seven days.
Seven-day altcoin dynamics
While Bitcoin has been increasingly rangebound, Solana ecosystem assets are feeling the pain. With Friday's LIBRA rugpull (more below), meme coins “may finally have reached peak grift and/or outright criminality,” as noted by CoinDesk.
The SOL price has slumped by 13.6%, falling against the USD and ETH, with all of its post-Trump election gains erased. The fallout has affected Solana-based tokens like RAY (-17.3%) and JUP (-17.3%), while JTO (-0.3%) has managed to recover.
XRP has jumped to a $157 billion market cap after the SEC's ETF acknowledgments (more below). That decision marks a pivot after dismissals of similar filings under former Chair Gary Gensler. Another bullish price rebound appears likely.
Winners & losers
TEL (+42.6%) surged after Telcoin became the first Digital Asset Depository Institution to receive a Bank Charter in the US, granting it authority to issue stablecoins and manage FDIC-insured deposits. S, formerly FTM (+38.4%), is catching up as its social dominance and total value locked (TVL) grow — the latter exploded beyond $400 million from just $27.5 million at the start of the year.
Meanwhile, OM (+28.8%) hit a new all-time high on February 15 following its Bybit integration as the community also anticipates an airdrop. Yet its overbought status led some whales to start offloading their holdings.
On the losing side, BGB (-19.5%) has struggled after a period of strong demand and outperformance, with its price steadily declining despite expectations of a new record. RAY (-16.4%) faced downward pressure due to ongoing concerns about the Solana ecosystem, including the LIBRA rug pull and TRUMP’s price crash. Similarly, BNSOL (-13.0%), a staked version of SOL, fell in line with other Solana-based assets as market sentiment around the blockchain weakened.
Cryptocurrency news
$LIBRA: crypto scandal rocking Milei government
Solana is engulfed in a scandal as LIBRA’s rug pull put high-profile figures, including Argentina's President Javier Milei, in the hot seat. Initially perceived as an official Argentine cryptocurrency, LIBRA wiped out $4.4 billion in investor funds.
Released on Friday, February 14, the meme coin amassed a $4 billion market cap after Milei's X post stated the project would support small and mid-sized local businesses. Nearly all the market value was eroded soon afterward as insiders cashed in $100 million.
Milei’s now-deleted post described LIBRA as a private initiative aimed at revitalizing the country’s economy. It also included a direct link to the project, sparking speculation about official government backing.
After backpedalling his support, Milei faces fraud charges and a possible impeachment. Meanwhile, Ben Chow, co-founder of Solana-based Meteora DEX, has resigned after also being implicated.
Alex Thorn, head of firmwide research at Galaxy, described LIBRA’s failure as "the latest sordid episode emanating from Solana’s memecoin complex." A popular hub for meme coin trading and token launch, it had already been hurt by the souring narrative after TRUMP’s "liquidity suck."
According to blockchain analytics, 74,000 traders collectively lost $286 million in the crash. This latest debacle could reduce the demand for Solana's SOL, previously driven by the popularity of SOL-denominated assets like memecoins.
SEC acknowledges requests to list new XRP ETFs
In a landmark decision, the US Securities and Exchange Commission (SEC) has acknowledged the request to list 21Shares’ spot XRP exchange-traded fund (ETF), received from Cboe BZX. The CEX sought permission to list this and three other spot ETFs tracing Ripple's native token on February 6.
21Shares initially filed to list its Core XRP Trust in November 2024, just days before Trump’s election victory. The SEC has also acknowledged Cboe's application for a Bitwise spot XRP ETF.
These filings are part of a broader wave of crypto ETF applications, including those for memecoins like Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK), alongside altcoins like Solana (SOL) and Litecoin (LTC). In particular, Grayscale’s ETF filings for XRP and DOGE were acknowledged last week.
In 2020, the regulator sued Ripple, alleging the launch of the XRP token had constituted sales of unregistered securities. In August 2024, a judge ruled that it is not inherently a security, although it could qualify as one under certain conditions.
While the acknowledgments do not guarantee the SEC’s approval, analysts believe that this could boost XRP’s price to new highs. Listing as a commodity trust would put XRP in one category with spot Bitcoin (BTC) and ether (ETH) ETFs, launched in the US last year. On the Polymarket betting site, the odds of an XRP ETF approval in 2025 have surged to 78%.
The existing crypto ETFs are expanding their offerings, with features like staking and in-kind redemptions gaining traction. The first spot crypto index fund, the Hashdex Nasdaq Crypto Index US ETF, began trading on Nasdaq on February 14, further underscoring the growing institutional interest in digital assets.
The SEC’s stance on digital assets is evolving under the Trump administration, which has pledged to make the country the world's crypto capital. Donald Trump has appointed pro-crypto leaders to key regulatory roles, fostering optimism in the blockchain community.
