Bitcoin Bleeds, SEC Backs Off, and MetaMask Expands

It's Friday, February 28th, 2025, and the crypto markets have been experiencing some turbulence. Bitcoin's spot ETFs have faced significant outflows, geopolitical concerns are weighing on investors, and regulatory clarity is shifting the landscape. Let's break it all down.

Bitcoin ETF Struggles and Market Sentiment

Bitcoin spot ETFs have seen net outflows of $3.2 billion over the past eight days, making this one of the longest stretches of negative movement since their launch. February has been rough, with only four days of net inflows and a total outflow of $3.65 billion. Tuesday saw record single-day withdrawals of $1.14 billion, and BlackRock’s iBit fund faced its worst day yet with $418 million in outflows.

Despite this, the total net inflows for the 12 Bitcoin funds remain at $36.85 billion, with $94.3 billion in assets under management—about 5.7% of Bitcoin’s market cap. Ethereum’s ETF hasn’t fared much better, with six straight days of outflows totaling $315 million.

Market uncertainty is being driven by fears of rising inflation, Trump’s potential tariff policies, and broader economic instability. Investors are watching to see whether the Federal Reserve raises rates again to counter inflation. February has seen Bitcoin fall 22%, including an 18% drop just this past week. Historically, however, early-year losses have been followed by rebounds in March and April.

My Take

The current market environment is filled with uncertainty, but history suggests a potential turnaround. Bitcoin has experienced early-year dips before, often followed by strong recoveries leading into the second quarter. If Bitcoin does enter a prolonged bear market this early in its halving cycle, it would be an unprecedented event in its history. Traditionally, Bitcoin sees bullish momentum after a halving, making this downturn an anomaly if it continues.

Institutions now have much more control over the market, and while that brings an element of stability, it also raises concerns about potential price manipulation. With billions of dollars now being managed through institutional ETFs, market movements may no longer be dictated by retail investors, but by financial giants leveraging trading strategies that could front-run major price swings. Additionally, the increasing correlation between Bitcoin and traditional equity markets raises questions about whether Bitcoin can still serve as an uncorrelated hedge against broader economic downturns. Investors are left to wonder: are we witnessing growing pains of a maturing asset, or a fundamental shift in how Bitcoin behaves as an investment

SEC Drops Lawsuit Against Coinbase

The U.S. Securities and Exchange Commission (SEC) has decided to dismiss its lawsuit against Coinbase, marking a major regulatory shift. Initially filed in 2013, the lawsuit accused Coinbase of operating an unregistered securities exchange and facilitating trades of at least 13 tokens that the SEC deemed securities. The agency also took issue with Coinbase’s staking program.

The dismissal comes as the SEC undergoes changes under Republican leadership, with crypto-friendly commissioner Paul Atkins now leading the agency. This shift signals a more open approach toward crypto regulation. The SEC has also paused its case against Binance, reinforcing the idea that regulatory attitudes are changing.

Meme Coins Classified as Collectibles

In another surprising move, the SEC has officially classified meme coins as collectibles rather than securities. While this removes them from strict securities regulations, it may subject them to higher capital gains taxes—potentially 28% instead of the usual 15-20%. This could discourage traders from engaging in meme coin speculation. Exchanges might also delist meme coins from fiat trading pairs, making it harder to buy and sell them.

Metamask Expanding Support for Bitcoin and Solana

Metamask is set to integrate Bitcoin and Solana into its wallet this year. Solana support is expected by May, and full Bitcoin functionality should roll out in Q3. This move will allow users to buy, sell, swap, and interact with dApps in these ecosystems without relying on other wallets or wrapped tokens. Metamask is also launching a physical crypto card in partnership with MasterCard.

AI and the Future of Work

The rise of AI is set to disrupt industries across the board, especially for entry-level jobs, as automation increasingly replaces traditional roles. In fields such as law, medicine, and finance, AI is already handling routine tasks like legal research, diagnostics, data analysis, and even content generation. This shift threatens conventional pathways for young professionals who rely on entry-level positions to gain experience and advance in their careers.

For instance, in the legal field, AI-powered research tools can quickly analyze case law and draft legal briefs, tasks that junior lawyers and clerks previously handled. In medicine, AI-driven diagnostic tools are being used to assist doctors in identifying illnesses more efficiently than human practitioners. Similarly, AI is streamlining financial modeling and risk assessment, reducing the need for large teams of analysts.

If you’re entering the workforce, the key will be to position yourself as the person who works with AI rather than someone who is replaceable by AI. This means learning how to use AI-driven tools, understanding how they function, and developing skills that AI cannot easily replicate—such as critical thinking, creative problem-solving, and interpersonal communication. Those who can leverage AI effectively will thrive, while those who rely on outdated job structures may struggle to find opportunities in a rapidly evolving labor market.

Crypto Prices (as of 9:26 AM CST)

• Bitcoin: $84,086 (-1.6% 24H, -14% 7D)

• Ethereum: $2,218 (-4.6% 24H)

• XRP: $0.214 (-2.4% 24H)

• BNB: $5.89 (-2.6% 24H)

• Solana: $1.46 (+6% 24H)

• Dogecoin: $0.197 (-5.2% 24H)

• Cardano: $0.631 (-5.2% 24H)

• Tron: $0.228 (+0.4% 24H)

Total crypto market cap: $2.76 trillion (-2.3%)

• Bitcoin market cap: $1.66 trillion

• Ethereum market cap: $267 billion

Summary

February has been a tough month for crypto, with Bitcoin ETFs seeing record outflows and the market facing macroeconomic uncertainty. However, regulatory clarity is improving as the SEC eases its stance on crypto firms. Meme coins are now classified as collectibles, bringing potential tax implications. Metamask’s expansion to Bitcoin and Solana signals broader crypto adoption. Meanwhile, AI continues to reshape the workforce, and those who adapt will be the ones who succeed.

Happy HODLing, everyone.