Gate Institute: Bitcoin selling pressure temporarily alleviated | Crypto market structural bill may pass within months

Cryptocurrency Market Overview

• BTC (-2.43% | Current price 69,555 USDT): Bitcoin recently dropped sharply from the mid-$70,000 range to around $60,000, then rebounded back into the $70,000 to $71,000 zone and entered consolidation. Overall, this looks more like a re-pricing after market overheating rather than a breakdown of fundamentals. The current price fluctuates within a narrow range, with declining volume and Bollinger Bands converging, reflecting cautious market sentiment. Structurally, the $60,000 level forms a key panic low, defining the risk boundary of this wave of volatility; the $69,000 to $71,000 zone is the core area for bulls to verify the sustainability of the rebound; around $75,000, there is the first significant resistance, concentrated with trapped positions and short-term profit-taking demands. In the short term, prices may continue to oscillate around these levels.
• ETH (-1.62% | Current price 2,064 USDT): Currently trading near $2,050. On the 4-hour chart, the price is gradually stabilizing at lows, MACD has turned bullish (golden cross), and the trend is approaching the upper Bollinger Band, indicating a clear short-term recovery. However, on the daily chart, Ethereum remains within a clear downtrend channel, with rebounds limited by lower highs and dips continuously setting new lows, so the trend structure has not yet reversed. Notably, the $2,149–$2,150 range has repeatedly shown strong selling pressure, confirming it as a significant resistance zone at this stage. The market generally views $2,000 as a critical threshold: if broken, prices could fall further to deeper supports; if stabilized, it could lay the foundation for a more sustained rebound.
• Altcoins: In the past 24 hours, mainstream altcoins showed mixed oscillations, with XRP down 0.22% and SOL down 1.36%. The fear and greed index is at 10, indicating the market remains in “extreme fear.”
• Macro: On February 9, the S&P 500 rose 0.47% to 6,964.82 points; the Dow Jones increased 0.04% to 50,135.87; the Nasdaq gained 0.90% to 23,238.67. As of 12:15 AM (UTC+8) on February 10, spot gold is at $5,027 per ounce, down 0.62% in 24 hours.

Hot Tokens to Watch

POKT Pocket Network (+28.97%, Market Cap $37.62 million)

According to Gate data, POKT is currently priced at $0.01901, up 28.97% in 24 hours. Pocket Network is a decentralized blockchain API built for Web3 applications, transmitting data across blockchains via a network of thousands of nodes. The protocol verifies all relay data and rewards participating nodes with POKT proportionally.

Market confidence in POKT at this price is high, with 24-hour trading volume surging 807% to $59.2 million, well above average, indicating the rally is driven by substantial capital rather than a short-term spike. The price has broken out of recent consolidation, further fueling momentum buying.

ZKP zkPass (+32.80%, Market Cap $21.60 million)

According to Gate data, ZKP is currently at $0.10574, up 32.80% over 24 hours. zkPass Protocol is an innovative cryptographic structure leveraging TLS, MPC, and interactive zero-knowledge proofs (IZK). It enables users to convincingly prove that data accessed via HTTPS comes from a specific website, and to disclose relevant information about that data in a zero-knowledge environment, protecting privacy and avoiding sensitive data leaks.

This rally occurred amid a slight rise in the altcoin season index. A summary of X posts listed ZKP alongside NKN and GPS as “potential altcoins,” indicating increased sector attention and possibly fueling retail FOMO.

SAFFRONFI Saffron Finance (+40.33%, Market Cap $10.13 million)

According to Gate data, SAFFRONFI is currently priced at $109.68, up 40.33% in 24 hours. Saffron Finance is a peer-to-peer risk swapping protocol. Its main use case is acting as an intermediary between liquidity providers and lending protocols, where liquidity providers can supply liquidity via various SFI tranches.

The surge in SAFFRONFI is mainly driven by increased short-term trading activity and improved market sentiment. The 4-hour chart shows a trend reversal and breakout above the Bollinger upper band, with RSI at around 80, indicating high market heat. Additionally, the token has a very limited supply (max 100,000 SFI), and low-liquidity assets tend to exhibit significant price swings with small capital inflows.

Alpha Insights

Glassnode: Bitcoin Selling Pressure Temporarily Eases, Market Recovery Depends on Spot Demand

On February 10, Glassnode released its weekly market report, noting Bitcoin rebounded from $60,000 to $69,000, but spot trading volume remains low, indicating reduced selling pressure but cautious buyer participation. This reflects a market that is frequently revaluing after a decline, rather than a decisive accumulation. Off-chain indicators show futures and options positions are defensive, ETF trading volume surged to $45.5 billion but with slowing capital outflows, overall risk appetite remains low. On-chain activity has increased, but capital inflows are negative, dominated by unrealized losses.

From Glassnode’s data, this rebound appears more like a “technical correction after selling pressure release” rather than the start of a new trend. Despite the price recovery, unrealized losses on-chain still dominate, suggesting many holdings are passively under pressure, and market confidence has yet to fully recover. Derivatives open interest and funding rates have declined in tandem, indicating leveraged traders are actively reducing risk exposure rather than adding to positions. Spot demand has marginally improved but is insufficient to sustain accumulation. Overall, a sustained market recovery likely hinges on the revival of spot demand, stabilizing prices above recent lows.

Crypto Market Structure Bill May Pass Within Months; Stablecoin Yield as Key Dispute Point

On February 10, during the Ondo Summit, signals emerged that crypto legislation is accelerating. McHenry and White House advisor Witt stated that the Market Structure Bill has moved from principle consensus to drafting specific provisions, aiming to complete legislation within months, possibly submitting it for presidential signing before Memorial Day. The most contentious issue is stablecoin-related rules, especially regarding the legality of stablecoin yields. While there is consensus on banning misleading marketing, disputes remain over whether centralized exchanges can pay yields on idle stablecoins. McHenry emphasized DeFi as the institutional foundation of the market structure legislation.

This signals a shift: regulation is moving from “whether to legislate” to “how to implement.” The debate over stablecoin yields essentially involves the competition among banking systems, CEXs, and DeFi over capital attributes and yield distribution, directly impacting stablecoin business models and capital flows. McHenry’s positioning of DeFi as the regulatory bottom layer suggests future oversight may recognize on-chain finance’s structural value rather than solely suppress innovation. If legislation progresses smoothly, the crypto market could gain a clearer structural framework, though short-term battles over yields, custody, and intermediaries will likely continue.

Jump Trading to Provide Liquidity in Exchange for Minority Stakes in Kalshi and Polymarket

On February 10, Bloomberg reported that Jump Trading plans to provide liquidity to prediction markets in exchange for minority equity stakes in Kalshi and Polymarket. Jump will hold a fixed proportion of Kalshi shares, while its stake in Polymarket will depend on trading capacity provided. Valuations are approximately $11 billion and $9 billion respectively. This model resembles a “market-making for equity” venture, reflecting high reliance on quality liquidity and professional market-making in prediction markets. Jump has been increasing its investment in prediction markets, expanding teams and building compliant tech infrastructure, focusing on CFTC-regulated event contracts.

This move indicates prediction markets are transitioning from niche products to institutional-grade infrastructure. Using liquidity provision as a form of equity stake leverages Jump’s strengths in pricing, risk management, and compliance to position early in a high-growth sector. The high valuations of Kalshi and Polymarket also reflect rising market expectations for “event contracts” as a new financial instrument. More importantly, Jump’s focus on CFTC regulation suggests prediction markets are gradually integrating into mainstream finance rather than remaining in a gray area. If regulatory clarity and liquidity improve, prediction markets could become a key intersection of macro information, financial trading, and crypto infrastructure.
References:

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• Bloomberg, https://www.bloomberg.com/news/articles/2026-02-09/jump-trading-poised-to-gain-stakes-in-kalshi-and-polymarket
• Glassnode, https://insights.glassnode.com/btc-market-pulse-week-07-2026/
• CoinDesk, https://www.coindesk.com/coindesk-news/2026/02/06/mchenry-predicts-fast-crypto-deal-as-witt-brokers-talks

Disclaimer Investing in cryptocurrencies involves high risk. Users are advised to conduct independent research and fully understand the assets and products involved before making any investment decisions. Gate assumes no responsibility for any losses or damages resulting from such investments.