Daily Crypto Signals: Bitcoin Holds $64K Amid Selling Pressure, Ethereum Slides to $1,800 Support
The digital asset market faced intense volatility this week as Russian authorities launched a criminal investigation into Telegram CEO Pavel
Quick overview
- The digital asset market is experiencing significant volatility due to legal issues involving Telegram CEO Pavel Durov and Terraform Labs' lawsuit against Jane Street.
- Bitcoin remains below $65,000 despite signs of stabilization, while Ethereum has dropped to $1,800, prompting defensive actions in the derivatives market.
- Durov faces criminal charges in Russia, which may impact perceptions of decentralized communication platforms and related assets.
- Ethereum's fundamentals are weakening, with a decline in Total Value Locked and institutional interest shifting towards safer assets.
The digital asset market faced intense volatility this week as Russian authorities launched a criminal investigation into Telegram CEO Pavel Durov and Terraform Labs initiated a high-profile legal battle against Jane Street. Amidst these legal tensions, Bitcoin BTC/USD remains suppressed below $65,000 despite stabilizing on-chain signals, while Ethereum’s ETH/USD descent to $1,800 has triggered a defensive scramble in the derivatives market.
Crypto Market Developments
The world of cryptocurrencies is presently going through a time of major legal and regulatory change. According to reports, Telegram co-founder Pavel Durov is facing criminal charges from Russian authorities for allegedly aiding terrorist activity. “Telegram stands for freedom of speech and privacy, no matter the pressure,” Durov said, characterizing the probe as part of a push to move users to state-backed messaging alternatives. The market’s perception of decentralized communication platforms in general as well as TON-related assets have been impacted by this event.
At the same time, legal conflict is still being caused by the aftermath of the Terra environmental collapse. The well-known trading company Jane Street is being sued by Terraform Labs’ court-appointed administrator, who claims that the company used private insider knowledge to manipulate prices just hours before the blockchain’s historic collapse. Even though Jane Street deemed the allegations “baseless,” the lawsuit draws attention to the industry’s persistent systemic dangers and transparency problems. The Trump family-backed company World Liberty Financial also disclosed a “coordinated attack” on its USD1 stablecoin. The team maintained that their “mint-and-redeem mechanism” effectively alleviated the situation, despite the token momentarily losing its peg.
Bitcoin Holds Above $64,000
As traders await a clear demand recovery, Bitcoin is still in a “neutrally defensive” phase, trapped below the $65,000 barrier. Following a period of overvaluation, investor profitability has been essentially reset by the Market Value to Realized Value (MVRV) ratio normalizing toward its historical mean, according to on-chain statistics. Notwithstanding the fact that realized capitalization has decreased by about $33 billion since its peak in November 2025, this reset points to a better risk-reward profile for new capital.
A ray of optimism is provided by the current exchange flow data, which indicates a little increase in the spot cumulative volume delta (CVD), indicating that strong selling pressure is starting to abate. The price stabilization within the $62,000–$64,000 range suggests that supply is being absorbed more effectively, even though spot trading volume has decreased to $6 billion. This technical consolidation may be the basis for a trend reversal, according to analysts, if spot participation improves.
Ethereum Slips to $1,800
Over a 48-hour period, Ethereum’s price action has been noticeably negative, dropping to $1,800 and wiping off $224 million in leveraged long holdings. Top traders have been forced into a defensive stance by this 14% drop over the last ten days, as shown by the abrupt increase in the put-to-call volume premium to 2.2x on Deribit. Market makers and institutional players are obviously actively hedging against additional downside volatility, as evidenced by the options delta skew of 18%.
With Total Value Locked (TVL) falling to $51 billion, its lowest level since May 2025, the network’s core fundamentals are also beginning to show symptoms of weariness. With the decline in decentralized application (DApp) activity, network fees have also plummeted, down to $13.7 million in the past 30 days. Additionally, notable withdrawals of $405 million from U.S.-listed Ether ETFs since mid-February indicate that institutional interest is waning in favor of more conventional safe havens like gold. Ethereum is still in danger of falling below the crucial $1,800 support level unless these derivatives and on-chain measures level off.
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