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Political risk returned to focus as a Trump-linked crypto venture faced congressional scrutiny, underscoring how governance and national security concerns are increasingly intersecting with digital asset markets.
Stablecoins emerged as a counter-trend, with Tether reporting record user and supply growth despite broader market weakness, reinforcing their role as core financial infrastructure.
Meanwhile, sovereign Bitcoin movements, exchange inflows, and heavy ETF outflows reflected a market prioritizing liquidity management and risk control over directional exposure.
The cryptocurrency market saw major developments through political scrutiny, institutional positioning, sovereign asset movements, and shifting on-chain behavior. While prices remain under pressure, developments across regulation, stablecoins, ETFs, and network activity highlight how crypto’s role in finance is evolving.
World Liberty Financial has come under investigation by US lawmakers following reports of a major foreign-linked investment.
Democratic Congressman Ro Khanna has requested detailed disclosures after media reports revealed a $500 million stake that allegedly belongs to UAE-linked entities.
Khanna raised concerns that the transaction could intersect with US national security interests, as it involved export controls on advanced AI chips and foreign entities that tried to interfere with US policy decision-making.
The lawmaker also questioned the role of World Liberty’s USD1 stablecoin, which was reportedly used in a multi-billion-dollar investment into Binance.
Tether reported record user growth in Q4 2025, even as the broader crypto market suffered a sharp downturn.
USDT market capitalization reached a new peak of $187.3 billion. It grew by $12.4 billion in the last quarter.
Tether estimates it added more than 35 million new users in Q4 alone, bringing its total user base to over 534 million. On-chain wallet holders rose to 139.1 million, accounting for more than 70% of all stablecoin wallets.
The company reported total reserves of $192.9 billion, including major US Treasury holdings, Bitcoin, and gold assets.
The Royal Government of Bhutan has transferred more than $22 million worth of Bitcoin from state-linked wallets over the past week, according to Arkham.
One transaction was linked to addresses associated with QCP Capital, reigniting speculation around potential sales.
Bhutan has mined Bitcoin since 2019 and remains one of the world’s largest government holders.
Although its crypto portfolio has declined significantly from its 2023 peak due to market depreciation, analysts note that recent transfers resemble past custodial or internal reallocations rather than liquidation.
Data from CryptoQuant shows that ETH inflows to Binance surged to approximately 1.63 million ETH, the highest daily level since 2022.
The price increase comes amid Ethereum's downtrend at $2,100 after experiencing price declines for several weeks.
Analysts believe that major exchange inflows usually indicate selling activity, but they also note that such movements may represent liquidity rebalancing or traders preparing for short-term trades.
The downtrend shows that holders have increased their caution because of the timing of the inflows.
Also Read: Ethereum Sees Strong Network Growth: Is the Crash Finally Over?
According to SoSoValue, Bitcoin spot ETF saw a total net outflow of $544.94 million yesterday. BlackRock's ETF IBIT saw the highest net outflow at $373.44 million.
The second highest was Fidelity's ETF FBTC with $86.44 million, and the total historical net inflow of FBTC currently stands at $11.19 billion.
The total net asset value of Bitcoin Spot ETFs is $93.51 billion, with an ETF net asset ratio of 6.36%. The historical cumulative net inflow has reached $54.75 billion.
Also Read: Bitcoin Price Falls Near $72,000 After Heavy Market Selloff
Justin Sun publicly endorsed Tron Inc.’s strategy of accumulating TRX as a treasury asset.
The Nasdaq-listed firm has acquired an additional 1,75,000 TRX tokens, bringing its total holdings to approximately 680 million.
This year TRX has declined modestly compared to Bitcoin which has suffered more extensive losses, leading to analysts considering TRX a safe asset during times of market turmoil.
1. Why is World Liberty Financial under investigation?
US lawmakers are probing reported foreign-linked investments and stablecoin usage tied to the project, citing concerns around national security, AI export controls, and policy influence.
2. How is Tether growing during a market downturn?
Tether added over 35 million users in Q4, pushing USDT supply to a record $187.3 billion as traders and institutions sought dollar-linked liquidity.
3. Did Bhutan sell its Bitcoin holdings?
Blockchain data suggests recent Bitcoin transfers likely reflect custodial or internal reallocations rather than outright liquidation by the Bhutanese government.
4. What do Ethereum inflows to Binance indicate?
Large ETH inflows often signal selling pressure or short-term positioning, highlighting increased caution among holders amid ongoing price weakness.
5. Why are Bitcoin ETFs seeing heavy outflows?
Rising risk aversion and macro uncertainty have driven investors to reduce ETF exposure, resulting in nearly $545 million in net outflows in a single session.
