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We’re back, guys. And the crypto market just opened the week in full red mode 🙄 This morning, BTC dropped hard from $67,500 to below $64,500. In just the last 4 hours, over $370 million in long positions got liquidated… Why?

  • 🌎 Mexico geopolitical tensions escalated

  • 🇺🇸 US pending home sales hit record low (70.9)

  • 🏛 Trump raised global tariffs from 10% → 15%

  • 🇯🇵 Yen surged on BOJ tightening rumors → global deleveraging

  • 📊 ETFs saw 5 straight weeks of outflows

  • 💧 Spot volume down 59% → thin liquidity

Here’s what we got for you today:

  • 👀 High precision strategy for trend reversals

  • ⭐ U.S. Supreme Court vs Trump’s tariff

  • ⭐ Vitalik just made a big millions move

  • 🔥 Burning hot takes for the road

Market reversals are rarely a clean "V." Instead, they are a tug-of-war. If you jump in at the first sign of a reversal, you’re usually buying at the most expensive point of that move.

Do not make a trade until you see the first pullback. Waiting for this retracement does 2 things:

  1. It confirms the trend is real (filtering out "fakeouts")

  2. It gives you a mathematical advantage with a tighter stop-loss and a much higher Risk-to-Reward ratio

To trade this effectively, you need more than just "vibes." You need structure. Here’s how I break down a high-probability setup:

⚖️ THE SUPREME COURT VS TRUMP’S IMMEDIATE COUNTER-STRIKE

In a massive ruling on February 20, the U.S. Supreme Court officially rejected Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose those widespread global tariffs.

The judges argued that the U.S. isn't "at war" with the entire world, and since the IEEPA doesn't specifically mention tariffs, the administration essentially used a legal loophole to overstep its power.

👉 Washington might now have to refund between $150B and $175B in taxes collected over the past year.

1/ Trump’s Immediate Counter-Strike

President Trump didn't take the news sitting down. He called the ruling "ridiculous" on Truth Social and immediately signaled a 5-year legal battle against the Court.

But he didn't stop at words:

  • The 15% Hike: He immediately signed an order raising the global baseline tariff from 10% to 15%.

  • His Logic: He claims 15% is the "maximum allowed by law" and is necessary to stop other countries from "exploiting" the U.S.

  • The Target: These tariffs hit roughly 70% of goods coming in, specifically targeting China, Canada, Mexico, and nations linked to fentanyl trafficking.

2/ Market Reaction: A Tale of Two Cities

The markets are trying to figure out how to feel about this tug-of-war.

  • Wall Street: Traditional indices (S&P 500, etc.) saw a slight bump of 0.4% to 0.7%, likely relieved by the court's attempt to curb the trade war.

While some altcoins are seeing green, it’s not enough to erase the massive "dump" we saw earlier this month.

Crypto market today (Feb 23rd, 2026)

Analysts say crypto isn't rallying harder because everyone is looking at the Middle East. With U.S. military movements increasing near Iran, geopolitical jitters are keeping investors cautious.

Amidst the chaos, Treasury Secretary Scott Bessent is playing the role of the stabilizer.

→ He’s calling on international trade partners to stick to the agreements they signed over the past year, hoping to keep some semblance of order in global commerce.

So yes, equities cheered the court decision.

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📉 VITALIK IS MOVING MILLIONS

While the rest of the market is sweating a 30% price drop, Ethereum’s co-founder, Vitalik Buterin, has been busy on-chain.

On February 22, 2026, Lookonchain flagged that Vitalik withdrew 3,500 $ETH ( ▼ 2.51% ) (about $6.95 million) from the Aave DeFi protocol.

He didn't waste any time, within hours, he sold 571 ETH for roughly $1.13 million.

1. The Context: "Austerity" or a Fire Sale?

Back in late January, Vitalik announced a "mild austerity" phase for the Ethereum Foundation. He moved 16,384 ETH with the plan to use it strategically over "the next few years." But:

  • Since February 2nd, he has already sold over 7,380 ETH

  • That’s roughly $15.5 million at an average price of $2,100

  • He has burned through more than half of that "long-term" reserve in less than a month

Naturally, when the lead architect sells while the price is crashing below the $2,000 psychological support level, investors get nervous.

Institutional players usually see founder-selling during a dip as a massive "red flag," regardless of the official reason.

2. The Silver Lining: "Severely Oversold"

Analytics firms like Santiment are pointing to the MVRV (Market Value to Realized Value) ratio, which shows ETH is in a "severely oversold" technical position.

Look at the MVRV under-valuation levels:

Vitalik is selling, the price is hurting, but the technicals suggest that ETH is currently in "deep discount" territory compared to the rest of the market.

It looks bad when the "captain" seems to be jumping ship while the water is rising, but let's look closer.

With the Fear & Greed Index sitting at a staggering 5, we are in a historical "Buy the Blood" zone.

The market is currently punishing ETH more than any other major coin. If you believe in the tech Vitalik is building, this $2,000 level is likely a gift, not a curse.

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🔥 BURNING HOT TAKES FOR THE ROAD

Searches for “Bitcoin is Dead” just hit a new all-time high, even higher than during the FTX collapse. CZ: “Bad or good sign?” Read more

CryptoQuant says Bitcoin’s “final” bottom may form near $55K. But on-chain data says we’re not in full capitulation mode yet. Read more

Jupiter wants JUP net emissions at zero. Team tokens paused, vesting sales absorbed by Treasury, “Jupuary” delayed, Mercurial vesting restructured. Read more

OpenGuild and Web3 Foundation launched Polkadot Hub Codecamp + a 6-week Solidity Hackathon 2026. $30K prize pool. Read more

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⚠ This newsletter is for informational purposes only and should not be considered investment advice. Traders should conduct thorough research, understand the risks, and carefully evaluate their decisions before investing in cryptocurrency.

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