The popular AI framework Virtuals Protocol will host an in-person meet-up in Hong Kong on Friday, January 17.

**February 2nd Crypto Brief** Per Coinglass data, Bitcoin dropped below $75,000 at noon today—falling below the strategy’s cost basis—sparking widespread market panic. Current funding rates across major centralized (CEX) and decentralized (DEX) exchanges signal strong bearish sentiment: **none of BTC, ETH, or SOL funding rates are in positive territory**. Notably, bearishness toward altcoins lags that of mainstream coins; most major altcoins’ funding rates also remain non-positive. Specific rates are detailed in the attached chart. --- **BlockBeats Note** Funding rate is a perpetual contract mechanism designed to align contract prices with underlying asset values. It facilitates fund exchanges between long and short traders—exchanges do not collect this fee—adjusting traders’ holding costs/profits to keep contracts closely tied to underlying assets. **Rate Benchmarks**: - 0.01% = baseline - >0.01% = bullish trend - <0.005% = bearish trend

On February 2, QCP issued a brief noting that Bitcoin fell below the key $80,000 support level on Saturday, hitting a low of $74,500, while Ethereum also dropped below $2,170. This latest downturn came as Kevin Warsh was confirmed as the next Federal Reserve Chair, stoking market expectations of policy tightening. Reports indicate over $25 billion in leveraged long positions have been liquidated, amplifying downward price pressure. Bitcoin is currently stabilizing around $74,500—a level matching its 2025 cycle low. The options market remains cautious, though downside hedging intensity is lower than during the last period of market stress. Analysts note the near-term trend will hinge on three factors: whether institutional funds re-enter the market, geopolitical risks ease, and Warsh’s policy stance emerges clearly. Bitcoin has now posted four straight months of declines.

On Feb. 2, Caixin reported that earlier claims JD Coin Chain Technology (Hong Kong)—a JD subsidiary reportedly pulling out of Hong Kong’s first stablecoin license round—never actually withdrew its application. The firm is one of three key participants in the city’s stablecoin testing sandbox. Separately, Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue told reporters after a Feb. 2, 2026 Financial Affairs Panel meeting that 36 institutions have submitted stablecoin license applications. These include banks, tech firms, brokerages, asset managers, investment companies, e-commerce players, payment providers, startups and Web3 firms, among others. Standard Chartered Bank (Hong Kong) stands out as one of Hong Kong’s three note-issuing banks.

On February 2nd, cross-chain liquidity protocol CrossCurve released a security update confirming the previously exploited vulnerability has been patched. Hackers siphoned EYWA tokens from the Ethereum network bridge—but since XT exchange has frozen the token’s deposit function on Ethereum, the attackers cannot currently sell the stolen assets. CrossCurve emphasized EYWA tokens on the Arbitrum network remain secure. The team is now coordinating with centralized exchanges (CEXs) including KuCoin, Gate, MEXC, BingX, and BitMart to block the stolen tokens from entering circulation and disrupting supply. They’re conducting a full investigation into the exploit details and any other stolen assets to prevent future similar attacks.

Binance said Thursday, Feb. 2, that it will suspend trading and delist spot trading pairs for Acala Token (ACA), Tranchess (CHESS), Streamr (DATA), dForce (DF), Aavegotchi (GHST), and NKN (NKN) for all users starting at 11:00 AM ET on Feb. 13.

**February 2 – Russian cryptocurrency mining firm BitRiver is facing a bankruptcy crisis, with its parent company Fox Group now under a bankruptcy observation procedure, Russian newspaper RBC reported Wednesday.** The Irkutsk Region Arbitration Court launched the procedure against Fox Group, which holds a 98% stake in BitRiver. The lawsuit was filed by Siberian Infrastructure—an affiliate of En+—over total debts and penalties exceeding $9.2 million (approximately 700 million rubles). The debt stems from a 700 million ruble equipment supply contract, where BitRiver failed to deliver the equipment after receiving prepayment. Several BitRiver mining facilities across the Irkutsk Region, Republic of Buryatia, and other areas have been closed or suspended, and its partnership with Gazprom Neft has been terminated. By the end of 2025, around 80% of the company’s executives will have resigned. Founder and CEO Igor Runets has been placed under house arrest on tax evasion allegations. Sta