Category: Cryptocurrency News

The disagreement over whether the SEC or CFTC should regulate memecoins points to confusion arising from the lack of a clear regulatory framework for digital assets.

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Shares of Strategy (NASDAQ: MSTR) have dropped by over 55% from the November 24 high at $543 to around $250. With the software intelligence firm now holding approximately 499,096 Bitcoin—worth around $44 billion at current prices—market participants are wondering whether the company could ever face a forced liquidation of its massive Bitcoin treasury. On Tuesday, analysts from The Kobeissi Letter (@KobeissiLetter) took to X to provide a comprehensive thread analyzing this scenario. Here’s what they had to say: “The MicroStrategy liquidation: As MicroStrategy, MSTR, falls over -55%, many are asking about ‘forced liquidation.’ The company now holds $44 BILLION worth of Bitcoin, could they be forced to sell it? Is liquidation even possible?” Is A Forced Bitcoin Liquidation Possible? According to The Kobeissi Letter, MicroStrategy’s Bitcoin holdings total approximately 499,096 BTC, currently worth $43.7 billion. The firm’s average cost basis sits around $66,350 per Bitcoin. This naturally raises concerns about what happens if Bitcoin’s price were to drop significantly below MicroStrategy’s average entry point. “Let us begin by stating that this isn’t the first time liquidation is mentioned. MSTR has been buying Bitcoin for years and there have been MULTIPLE bear markets since then. This includes the 2022 bear market when Bitcoin fell from ~$70K to ~$15K. Is this time different?,” the analysts write. Related Reading: Market Signals Point To Caution: Bitcoin’s 3-Day Chart Shows Potential Sell Alert Critically, MicroStrategy’s operations rely on raising capital—often through convertible notes—to buy more Bitcoin. The Kobeissi Letter points out that MicroStrategy currently carries about $8.2 billion in total debt for its $43.4 billion Bitcoin holdings, representing a roughly 19% leverage ratio. Much of this debt is held in convertible notes maturing around 2028. “Just about the only way a ‘forced liquidation’ occurs if there is a ‘fundamental change’ at the company. This COULD require MSTR to liquidate Bitcoin holdings if an early redemption is called on the notes,” the experts from The Kobeissi Letter argue. A “fundamental change” could include corporate bankruptcy, or a vote by shareholders to dissolve the company—both scenarios that The Kobeissi Letter stresses are remote under the current structure. Michael Saylor, MicroStrategy’s Executive Chairman and prominent Bitcoin advocate, holds 46.8% of the company’s voting power, meaning he could effectively block decisions leading to liquidation. Related Reading: Bitcoin Crashes: Experts Warn Of 6-Month Slump To $73,000 Despite the steep share price decline, The Kobeissi Letter suggests that an outright forced liquidation is “highly unlikely.” The structure of the convertible notes and MicroStrategy’s ability to raise capital give the firm significant flexibility. Even so, if Bitcoin were to experience a protracted and severe price drop—well below its current levels—MicroStrategy might face challenges in servicing its debt and raising fresh capital: “However, what if these convertible bonds remain below the conversion price at maturity, beginning in 2027+? For this to happen, Bitcoin would need to fall well over 50% from current levels and remain there.” Michael Saylor has repeatedly brushed off the liquidation scenario. According to The Kobeissi Letter: “Michael Saylor was asked about liquidation recently. His answer was that even if Bitcoin fell to $1, they still would not get liquidated. They would ‘just buy all of the Bitcoin.’ While this sounds good in theory, the convertible note holders cannot be forgotten.” MicroStrategy’s business model—raising funds to buy Bitcoin, potentially driving the price higher, and then issuing new shares at a premium—depends on investor confidence. If shares continue to falter, or if Bitcoin dives well below MicroStrategy’s average entry price, the firm’s ability to attract capital could be severely tested: “We are now witnessing the first ‘bear market’ in MicroStrategy since it gained popularity in 2024. The question becomes: will investors continue to buy the dip here? Michael Saylor says ‘Bitcoin is on sale.’” However, with Saylor’s voting power and the long-dated convertible notes, a forced liquidation seems highly unlikely in the near term. At press time, BTC traded at $89,245. Featured image created with DALL.E, chart from TradingView.com

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Richard Teng, Binance’s CEO, firmly believes that the current crypto dump won’t last long. Referencing crypto’s historical performance, Teng said that, just like traditional assets, crypto reacts to changes in the outside world, but it also bounces back. In anticipation, we highlight four top new crypto tokens to buy now. Crypto Always Rebounds ‘It’s important to view this as a tactical retreat, not a reversal. Crypto has been here before and bounced back even stronger.’ – Richard Teng said on X Another piece of positive speculation from Teng is that the Fed could very quickly change its stance on rate cuts. He says the Fed’s pause on interest rate cuts is temporary and ‘a cautious approach.’ Once the job market weakens, the Fed will eventually cut rates, which could result in a reversal into the green again. What’s more, crypto ETF filings are growing by the day, and there’s been a steady inflow of new users into Binance. Both are good signs. With things shifting direction on a fundamental level, the crypto market looks ripe for fresh buys. That’s why we’ve cherry-picked four of the best cryptos worth buying while there’s still blood on the street. 1. BTC Bull Token ($BTCBULL) – Best New Crypto to Buy Right Now When we say ‘crypto’ is about to have a comeback, we’re really talking about the King of Crypto, $BTC. As the OG crypto, Bitcoin is always at the heart of the discussion. Where Bitcoin goes, the rest of the cryptos follow. This is why BTC Bull Token ($BTCBULL) is set to be one of the best meme coin presales this month.  Holders not only benefit from the hype and growth of Bitcoin, but also from that of this low-cap meme coin riding in its wake. If you’re a $BTCBULL holder, you’ll be rewarded with free $BTC every time Bitcoin breaks through new milestones, such as $150K, $200K, and $250K. All you have to do is store your $BTCBULL tokens in Best Wallet. With Bitcoin predicted to reach the $200K mark by year-end – and cross $1M in the next few years – BTC Bull Token offers another potentially lucrative opportunity for bullish crypto investors to profit off Bitcoin’s upward trajectory. Its presale has already raised over $2.8M, and you can join the ‘bull army’ for just $0.002385 per token. 2. Solaxy ($SOLX) – First-Ever Layer 2 Solana Solution Don’t mistake Solaxy ($SOLX) for just another meme coin. It has a solid proposition. As the first-ever Layer 2 solution on Solana, it’s in a pole position to benefit from the market’s shift towards utility-based tokens. Even though the Solana blockchain has been a massive success, it’s been struggling with slow transaction speeds and scalability issues in the face of huge traffic surges. Essentially, its own success has overwhelmed the network. This is where $SOLX comes in. $SOLX is an innovative blockchain project that aims to remove ongoing congestion issues on Solana. It’ll offload the workload from Solana’s primary blockchain and execute transactions on a sidechain. This will ease the pressure on Solana, making transactions quicker and potentially cheaper, too. With over $23.5M in funding already raised, $SOLX is easily among the best crypto presales live right now. You can back this revolutionary meme coin project for only $0.001646. Here’s more on how to buy $SOLX. 3. Catslap ($SLAP) – Combines Meme Appeal with an NFT Ecosystem Catslap stands out as a breath of fresh air in the world of altcoins with its ridiculously entertaining and rewarding slap-to-earn mechanism. Inspired by the viral ‘slapping cat’ meme, Catslap offers token holders the opportunity to earn real money by slapping a character as many times as they can. There’s a slapometer to keep score. The Catslap team has paid out $100K worth of USDT to top ‘slappers’ in January. That’s some serious marketing game. What’s more, the project team also organizes regular buybacks and token burns to support $SLAP. $SLAP has been off to a great start and rose by 33x almost immediately after listing. This means early presale investors made almost 90x returns on Catslap. Insane. Even though the token’s price has been trending downward in the last few weeks, the Catslap team’s dedication, combined with the project’s amusing mechanics, serves as reasons to remain bullish on this low-cap meme coin. You can buy 1 $SLAP for just $0.0006400 if you get in now. 4. Book of Ethereum ($BOOE) – Repository for Meme Sharing and Engagement As memes become a vital part of the modern investing landscape, a digital repository of memes makes financial sense. Book of Ethereum ($BOOE) will be a collection of all Ethereum-related memes. The project aims to promote a vibrant community around memes and digital art. Additionally, it will also serve as a decentralized platform for engagement within the Ethereum community. Gotta love the token name, too! $BOOE even received a follow from none other than Ethereum’s founder, Joseph Lubin, himself, and there are rumors of other connections between $BOOE and other $ETH founders. After reaching a peak of around $0.75 in October 2024, $BOOE finds itself among the top gainers once again. It has jumped by a mind-boggling 70% in the last seven days. Each token is currently priced at $0.2457, making $BOOE one of the best cryptos under $1. Final Verdict Even though the market is like a lion leaning back before it leaps, there’s as much need for caution as there is for optimism at this time. Volatility, after all, is ever-present. The momentum needed to propel the market forward is not yet here, but experts agree it’s just a matter of time. Even so, any investment you make must be one you don’t mind letting sit for a few months at least. Additionally, and most importantly, always do your own research before investing. The above article isn’t a substitute for financial advice.

Bitcoin is down 1.9% against the greenback trading between $87,739 to $88,156 over the last hour on Feb. 26, 2025, extending losses amid U.S. economic policy anxieties and fluctuating consumer confidence. Bitcoin Navigates Bearish Terrain The leading cryptocurrency’s price declined from the previous day, marking a 24-hour drop of approximately 1.9%, according to the latest […]

Circle co-founder Jeremy Allaire says all dollar-based stablecoin issuers should register in the US, citing consumer protection and fair competition in the crypto market.

Pectra Testnet Updates: Holesky (Heski) Public Testnet Upgrade: Activated on February 24th, 2025 at 21:55 UTC. Testing Concerns: Some developers wanted more testing due to bugs in the Prysm client (related to EIP-7549). Decision to Proceed: Developers agreed to move forward, noting that testnets exist to catch bugs. Upcoming Testing: After Holesky, Sepolia testnet will…
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