The Blockchain Bulletin, Feb 28: BTC Crashes While U.S. House Repeals DeFi Rule

Hey Folks! Welcome to the latest edition of The Blockchain Bulletin, which gives information on the prominent happenings that took place in the crypto space over the last 24 hours. Our first insight is that Bitcoin faced a steep 10.61% drop, marking the end of its consolidation phase. A symmetrical triangle breakdown suggests further downside, with the Fear Greed Index plunging to 10, indicating extreme fear. 

Historical trends suggest panic often precedes rebounds, but technical indicators still lean bearish. Key support levels now hover around $79,000, while resistance at $89,000 could determine the next price movement. Adding some extra information, Bitcoin has declined 6% in the last 24 hours, trading at $79,895, during press time. The market cap dropped to $1.59 trillion, while 24-hour trading volume fell 20% to $67 billion, according to CoinMarketCap.

Meanwhile, the U.S. House Ways and Means Committee has advanced a resolution to repeal the controversial DeFi broker rule, calling it impractical. The rule mandates digital asset users to report transactions to the IRS, a requirement that faced criticism for its broad scope. Initially approved under the Biden administration, the rule could have forced decentralized exchanges to disclose user data starting in 2027. The resolution now moves to the House floor, followed by the Senate, before reaching President Donald Trump for approval. If enacted, this shift could redefine tax obligations for digital asset platforms. 

As regulatory battles intensified, Gemini Trust Company secured a major victory as the SEC dropped its long-running case against the crypto exchange. Co-founder Cameron Winklevoss announced the decision on X, revealing that after nearly 700 days of investigation, the agency had abandoned its legal pursuit without providing a clear explanation. The case, which cost Gemini millions in legal fees, raised concerns about regulatory overreach. Winklevoss called for major reforms, including reimbursement of legal costs for firms wrongly targeted by the SEC.

Related: SEC Moves Toward Resolution in Justin Sun Case

As these legal battles unfold, XRP struggles with a downtrend, with its price slipping to $1.77 before gaining traction at $2.22. Weak trading volumes and concerns have added to the instability, including Trump’s new trade tariffs and the latest CPI inflation data. Analysts point to $2.16 as a key support level, with a potential surge toward $3.40 if market conditions improve.

On the other hand, Bitcoin’s role in U.S. strategy continues to gain traction as Washington, D.C., prepares to host a big forum on March 11. Organized by the token’s Policy Institute, the event will feature Senator Cynthia Lummis and Michael Saylor discussing Bitcoin’s potential to offset the national debt. Lummis has pledged to make 2025 the “year of Bitcoin digital assets,” pushing for legislative clarity to secure the U.S.’s competitive position in the global crypto space.

Related: Solana Faces Critical Breakdown: Could the Price Fall to $80?

Adding to this wave of crypto diversification, Bitwise has filed to establish an Aptos ETF in Delaware, marking its entry into direct APT exposure. The move aligns with a broader trend of crypto ETFs gaining traction, fueling APT’s 13% price surge following the announcement.

Meanwhile, the costliest crypto bankruptcy in U.S. history continues to unfold, as FTX’s restructuring expenses surpass $948 million. The case now ranks among the most expensive bankruptcies, trailing only Lehman Brothers’ 2008 collapse. However, FTX creditors could recover 118% of their claims, an unusual outcome in Chapter 11 cases. The mounting legal fees make FTX’s downfall one of the most financially complex failures in the crypto sector.

In another market shift, the Solana-based memecoin frenzy on Pump.fun is losing steam, with new token launches plummeting from 24,008 to 11,532 in a month. Fewer tokens are achieving “graduation,” suggesting investors are focusing on more established altcoins. This slowdown, paired with shifting investment trends, could signal the beginning of an altcoin-driven market cycle.

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