Weekly Recap: Bitcoin Craters to $60,000
Plus, Vitalik says Layer 2 model no longer makes sense.
Happy weekend, Defiers!
The crypto selloff accelerated this week, with Bitcoin plunging to $60K on Thursday evening before recovering some losses. ETH and SOL traded as low as $1,750 and $68, respectively.
Ethereum co-founder Vitalik Buterin says that the Layer 2 model for scalability no longer makes sense due to successful scaling efforts on mainnet.
Crypto traders are trying to make sense of Bitcoin’s vicious downturn, with some speculating that the selloff may have been exacerbated by leveraged hedge funds being forced to unwind their positions.
Meanwhile, Hyperliquid is getting into the prediction market game with outcome trading.
Finally, MegaETH is set to launch its mainnet on Monday.
Enjoy!
👀 Don’t miss our newest newsletter, The Defiant: Real World, where we track how trillions of assets are coming on-chain. Each week, you’ll get a weekly summary of the high-signal RWA and stablecoin news you can’t miss, and in-depth analysis to put it all in context. Read the latest issue here.
https://thedefiant.io/newsletter/real-world/superstate-tests-rwas-composability
Top Stories This Week
Ethereum Falls Below $2,000 as Crypto Sell-Off Deepens
ETH plunged as low as $1,750 on Thursday for the first time since April 2025, amid a broader sell-off across crypto markets.
As prices fall, losses at crypto treasury companies are approaching $20 billion.
Vitalik Says Ethereum’s Layer 2 Vision ‘No Longer Makes Sense’
After years of Layer 2 networks popping up in an attempt to scale Ethereum and claim market share, Ethereum co-founder Vitalik Buterin says that the L2 model for scalability no longer makes sense due to the Layer 1’s scaling efforts.
Bitcoin Selloff Sparks Hedge Fund Speculation Around BlackRock ETF
Unusual trading in BlackRock’s Bitcoin ETF has led traders to speculate that this week’s sharp Bitcoin drop may have been triggered by one or more Hong Kong–based hedge funds blowing up.
Meanwhile, a JP Morgan strategist says Bitcoin is undervalued and looks “even more attractive compared to gold.”
Hyperliquid to Launch Prediction Market Outcome Trading
Hyperliquid announced the upcoming launch of HIP-4 markets, enabling prediction-market-like outcome trading.
MegaETH Unveils Token Buyback and TGE Plan
MegaETH, the real-time blockchain and Ethereum Layer 2, is launching its mainnet on Feb. 9, but its TGE will be dependent on network performance milestones.
Trending
- Bitcoin Selloff Sparks Hedge Fund Speculation Around BlackRock ETF
- XRP Jumps Nearly 20% as Ripple Teases Major XRPL Upgrades
- JP Morgan Strategist Prefers Bitcoin to Gold Long Term
- World Liberty Financial Offloads Bitcoin to Pay Debt
- ETHZilla to Tokenize $4.7 Million in Manufactured Home Loans on Ethereum Layer 2
- Polymarket Partners with Circle to Integrate Native USDC
That’s it for today — have a great weekend! If you enjoyed this newsletter, tell your friends! https://thedefiant.io/subscribe
Free newsletters
Good reporting. Delivered.
Choose your coverage: crypto and DeFi, the future of finance, or both.
Free. Unsubscribe anytime.
