Bitcoin wallets with 100+ BTC approach 20,000, Block cuts 4,000 jobs for AI transformation, and US lawmakers introduce a bill to protect non-custodial developers. Bitcoin recently challenged the $70,000 mark after a strong bounce from Tuesday’s lows near $62,500. However, the derivatives market shows a clear divergence from spot price action. This trend reflects deep caution among professional traders. U.S. spot Bitcoin ETFs recorded USD 764 million in net inflows over two days with a single-day peak of USD 506 million. This suggests strong institutional buying interest below $65,000. Despite this demand, the annualized futures premium remains stuck at 2%. This is well below the 5% neutral threshold. The options market also shows a 14% premium on put options. This indicates that a hedging sentiment still dominates the market. Total liquidations reached USD 243 million over the past 24 hours. Long positions accounted for USD 151 million while short positions totaled USD 92.5 million. This shows that leverage flushing remains aggressive during high-level volatility. Many analysts believe that risk-aversion from the Nvidia (NVDA) stock pullback is a major factor. Concerns over quantum computing and large institutional positioning also prevent BTC from holding above $75,000.

Ethereum (ETH) has remained relatively stable during this rebound and moved higher with the total crypto market recovery. ETH saw USD 39.02 million in long liquidations and USD 25.48 million in short liquidations over the last 24 hours. The market is now focused on whether ETF inflows can offset the bearish sentiment in on-chain derivatives. Data shows that U.S. spot Bitcoin ETFs ended a five-week streak of net outflows totaling USD 3.8 billion. BlackRock led Wednesday’s inflows with USD 297 million alongside contributions from Fidelity and Bitwise. Some analysts point out that trading volumes have dropped from early February highs even as selling pressure eases. This likely reflects lower market leverage rather than a full trend reversal. Investors need to watch if spot demand can create sustainable momentum. The broader macroeconomic environment and Federal Reserve policy uncertainty continue to impact risk assets.

Key News Highlights:

Bitcoin Wallets Holding Over 100 BTC Approach 20,000 Milestone

Data from Santiment shows that the number of unique wallets holding at least 100 BTC is near a historic milestone. There are currently 19,993 such addresses and the count should exceed 20,000 very soon. Each of these wallets holds assets worth roughly $6.71 million at current prices. Analysts view this growth in large-scale holders as a positive sign for market health. It suggests that Bitcoin supply is moving from a few "whales" to a broader group of major investors. This diversification helps reduce the risk of price manipulation by a single large entity. It also eases concerns about extreme supply concentration at the top of the market. Bitcoin is still down about 47% from its October 2025 all-time high and has dropped 24% in the last 30 days. However, the rise in these wallet numbers shows that institutions and high-net-worth individuals are buying the dip. Santiment noted that the total percentage of supply held by this group hasn't changed much. This implies that some long-term holders are still selling while new ones enter. This rotation is one reason why price action has remained suppressed lately.

Jack Dorsey’s Block Announces 4,000 Job Cuts in AI Transformation

Jack Dorsey’s payment company Block has announced a major restructuring plan to cut 4,000 jobs. This represents 40% of its total workforce. Dorsey explained in a letter that AI tools have rapidly changed how the company operates. These tools allow smaller and flatter teams to be much more efficient. Block’s headcount grew by 237% over the last four years and peaked at nearly 13,000 in 2023. Dorsey decided to act now rather than making gradual cuts over several years. He predicts that most other companies will realize the impact of AI and make similar changes within the next year. Block shares jumped over 31% to $96.58 following the news and a strong Q4 2025 earnings report. The company reported a gross profit of USD 2.87 billion which is a 24% increase year-on-year. Cash App was a standout performer with USD 1.83 billion in revenue. Block now plans to focus on streamlined operations driven by AI automation. The company also aims to let users build their own custom features directly on the platform.

US Lawmakers Move to Protect Blockchain Devs From Prosecution

A bipartisan group of U.S. lawmakers has introduced the Promoting Innovation in Blockchain Development Act. This bill aims to create clear legal boundaries for software developers. The proposal focuses on amending Section 1960 of federal law regarding unlicensed money transmitting. It specifies that legal liability should only apply to those with actual control or custody of digital assets. Under this rule, developers who only write code or maintain networks would not be seen as financial intermediaries. This would protect them from criminal charges if their software is used for illegal activities by others. Industry groups like the Blockchain Association and the DeFi Education Fund (DEF) have praised the bill. They see it as a vital step to keep technical innovation within the United States. This follows recent legal cases against the creators of Tornado Cash and Samourai Wallet. Those cases caused many developers to fear that writing code could be treated as a crime. It is not yet clear if the bill would apply to past convictions. However, it signals that lawmakers want to balance financial regulation with the freedom to create software.

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