Trend Research's latest ETH liquidation range is $1430-1627

February 6: Boston Fed President stated, “I believe restoring a scarce reserve regime is feasible. I have no clue what Powell is planning for the Fed’s ‘regime change’.” Note: Following the 2008 financial crisis, the Fed adopted an “ample reserves” framework to stabilize markets. A shift back to “scarce reserves” would entail cutting reserves to pre-crisis levels—this could boost monetary policy transmission efficiency but demands careful liquidity risk management. The Boston Fed’s comments signal confidence in further balance sheet reduction.

Galaxy Digital announced on February 6 that its board of directors has greenlit a share buyback program authorizing up to $200 million in Class A common stock. The 12-month plan allows the crypto firm to repurchase shares via open-market purchases, privately negotiated deals, or other methods, subject to market conditions. Founder and CEO Mike Novogratz noted the program is rooted in Galaxy’s strong balance sheet and confidence in its long-term outlook, aimed at returning capital to shareholders when the stock’s price fails to reflect the company’s underlying value.

February 6 – The Federal Reserve Bank of Boston said Thursday that the impact of tariffs will fade by mid-year. The central bank also noted high inflation has persisted too long and reached a plateau, adding the Fed cannot ignore the inflation issue.

**February 6th** — Citigroup has sharply cut its price target for Coinbase stock, slashing it from $505 to $400. The revision ties to four key drivers: waning risk appetite in the crypto market, softer trading volume, reduced institutional activity, and uncertainty over the progress of U.S. crypto market structure legislation. Coinbase’s shares have retraced roughly 65% from their all-time high of ~$450, but the new target still implies a gain of more than 100% from its current closing price of ~$146. Notably, Citigroup is keeping its "Buy/High Risk" rating on Coinbase. The firm views the company as an industry leader, poised to benefit long-term from improvements to the U.S. crypto regulatory framework. (Source: CoinDesk)

**Feb. 6 Update** U.S. Treasury Secretary Janet Yellen said Tuesday Hong Kong is exploring a new digital asset-based financial system as a “sandbox” for financial innovation, sparking market concerns over potential impacts on Bitcoin and gold pricing. Yellen added there’s no conclusive evidence of the initiative yet, but related rumors are circulating, and the U.S. is closely monitoring the situation. Analysts note a future sovereign digital asset system tied to gold could long-term disrupt the dollar-dominated global financial system and crypto asset pricing logic. Still, the current landscape remains in early policy discussion and market speculation stages—short-term crypto market moves are driven by sentiment and expectations. (Forbes)

February 6th Per The Kobeissi Letter, institutional investors are actively offloading U.S. stocks. Hedge funds sold U.S. equities at the fastest clip since last October on Wednesday—marking their second straight day of selling, driven primarily by short-selling followed by long position unwinds. This is also the fifth net outflow for hedge funds in the past six trading sessions. As a result, five of the 11 U.S. stock market sectors have seen liquidations, with information technology, industrials, and materials hit hardest. Subsectors facing the most pressure include semiconductors & semiconductor equipment, communication equipment, and technology hardware. The report notes this signals a shift in hedge fund sentiment.