Weekly Recap Research

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White House Remo's Jamie Dimon Knot Stablecoin Yield Pointing “Not a Bank” Ignites Crypto vs Bank War

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The conflict between the crypto industry and traditional banks has become more apparent after Jamie Dimon came out to comment that platforms that yield stablecoins should be regulated in the same way as banks, as they are structured similar to accepting deposits and paying interest. However, the White House side by Patrick Witt immediately came out arguing, stating that the view. This is “misleading” because the main factor that makes banks subject to strict supervision is the lending of deposits, not just the return to the asset holders.

The key issue is the GENIUS Act, which requires stablecoins to have 1:1 reserves and prohibits lending, resulting in a significantly different risk structure from the banking system. At the same time, platforms like Coinbase are able to offer a return on USDC of around 3.5%, which is higher than a typical deposit account, putting pressure on traditional banks. The controversy also remains. As a result, the push for important legislation such as the CLARITY Act has been delayed, reflecting that the competition between crypto and the traditional financial system is not just a technological issue, but a direct encroachment on future financial power structures.

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U.S. Bank Heavily Worried Fed Approves Kraken Entry Into Central Financial System, Ignites “Crypto vs Banks” Debate

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The Fed's decision to approve Kraken Financial's acquisition of a Federal Reserve master account immediately became a major issue in the financial industry, after a large group of US banks voiced clear concerns, seeing that opening the way for crypto companies to access the Fed's main payment systems, such as Fedwire, could increase risks to the stability of the financial system due to the crypto business. It is not yet under the same regulatory framework as traditional banks.

On the one hand, the banking sector also noted the transparency of the approval process, pointing out that the decision came before the Fed concretely established a policy framework for a “skinny account”. While some see the Kraken case as just a pilot example for giving non-banking institutions, including crypto companies, access to financial infrastructure in the future. Reflects broader issues than the company itself, and could become a major turning point in determining crypto's role in the global financial system, whether to step up as a major player or remain in the status of a contender.

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Top Net flows

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The overview of liquidity movements in the crypto market clearly reflects investors' “choose sides” behavior. Although the reference data is 1-month (1M) Top Net Flow, the direction remains consistent with the behavior during the week, with liquidity continuing to flow into an ecosystem with high use cases in trading and derivatives. Consistently, Hyperliquid had its highest inflow balance in the range of around $600—700 million, while Polygon PoS and Base followed in the range of around $150—250 million, reflecting growing demand in the DeFi and derivatives trading community amid volatile market conditions.

On the other hand, the Layer 2 group and some core ecosystems continue to face ongoing outflows, with Arbitrum peaking in the $700—$800 million range, while BNB Chain, OP Mainnet, and Avalanche all have minor outflows. The picture is consistent with market conditions in the same range where Bitcoin moves in the $65,000 — $70,000 range, and the market sentiment is still in the Fear zone. As a result, investors tend to shift liquidity to platforms that can generate more returns or leverage. In conclusion, the market is not lacking in liquidity, but is in a phase of rotation where capital flows into a responsive ecosystem. Making profits in the short term as efficiently as possible

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Fear & Greed Index

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The Crypto Fear & Greed Index is one of the tools used to assess the outlook and sentiment of the crypto market, referring to scores ranging from 0 to 100 (0 stands for Extreme Fear or Extreme Fear and 100 stands for Extreme Greed).

The crypto market continues to move amid macroeconomic uncertainty, especially the geopolitical tensions in the Middle East and the trend of US monetary policy not conducive to short-term interest rate cuts, causing the Crypto Fear & Greed Index to move at a low of around 9-21 points, before recovering to 27 points. Fear) echoes the sentiment of investors who are still in a state of caution, as Bitcoin price moves in the $65,000 — $70,000 range, without clearly establishing a new uptrend.

However, the market is beginning to show signs of institutional strength, with Bitcoin accumulations increasing at a high level, such as a total purchase of over 17,994 BTC, worth about $1.28 billion during that period, helping to keep the price from dropping to key levels. At the same time, the price remains stable, even if the sentiment is in the Fear zone, reflects the market structure that remains buoyant. Support at the lower level, keeping the overview in this range sideway with accumulation and still having to wait for new factors to enter the direction in the next phase.

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Bitcoin ETF Flow

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The flow of funds in the Spot Bitcoin ETF clearly reflects the volatility of market sentiment, starting the week with buybacks from institutional investors on March 2, with inflows reaching $458.2 million and continuing on March 4 at $461.9 million, led by BlackRock (IBIT) with $306.6 million in inflows and Fidelity (FBTC). $48.0 million, which helped support the Bitcoin price to move steadily in the $66,000 — $70,000 range. However, that momentum could not be sustained. Entering March 5, the market flipped back to an outflow of $227.9 million, with IBIT and FBTC having money. Outflows of $88.7 million and $48.0 million, respectively, reflecting profitable sales force and investor uncertainty.

The sell-off continued on March 6, with $348.9 million in outflows, marking one of the week's highest-ever cash outflows, sending the market outlook back into a state of caution, consistent with macro factors over the same period, both geopolitical tensions and interest rate trends that have not been conducive to risk assets, even during the period. The end of the week will begin to see some signs of recovery, but the overall structure continues to move in a sideway manner under pressure from uneven capital flows, reflecting that the market is still waiting for new factors to determine direction in the next phase.

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Ethereum ETF Flow

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The capital flow in the Ethereum ETF continues to reflect the volatility of investor sentiment, starting the week with a buying force on March 2 at around $38.7 million, before facing a sell-back on March 3 at around $10.8 million. However, the market was able to make a remarkable recovery on March 4 with a grain of cash flow. It reached $169.4 million, led by major funds like BlackRock and Fidelity, which played a key role in moderating market sentiment in the short term.

But the pressure returned again on March 5, with about $90.9 million in cash outflows and continuing on March 6 at around $82.9 million, reflecting an adjustment in investor portfolios amid macro-factor uncertainty, both in interest rates and geopolitical risks, even as the end of the week began to see signs of muted liquidity. The upswing is partially retraced, but the overall picture is still a sideway movement under rapidly alternating buying and selling forces, suggesting that the market is still in the waiting period for new factors to come in to determine direction.

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Important news:

TD Cowen points out 2026 could see a lot of crypto companies. Fed master account, even objectionable banks can't stop  

Strategy Pushes STRC to Core Yield-Based Stablecoin System After Fundraising Spikes, Boosting Thousands of BTC Demand  

Polymarket scrapped its “nuclear detonation” market after being heavily criticised for wartime ethical risks

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Source:

https://investingnews.com/cryptocurrency-market-recap-02032026-iran-war/

https://tokenterminal.com/explorer/projects/hyperliquid/metrics/active-addresses-daily

https://www.coindesk.com/business/2026/02/18/coinbase-s-base-moves-away-from-optimism-s-op-stack-in-major-tech-shift

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Note: This analysis is provided every Monday, so some articles may have data discrepancies.

Nota: Questo analisi è situato ogni monday, quindi alcuni parti del articolo possono contengono informazioni inaccurati

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WARNING: CRYPTOCURRENCIES AND DIGITAL TOKENS ARE HIGHLY RISKY. YOU MAY LOSE YOUR ENTIRE INVESTMENT. PLEASE STUDY AND INVEST ACCORDING TO THE ACCEPTABLE LEVEL OF RISK.

Thank you for following.

J.P. Daniel