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This week in crypto highlights how quickly markets, geopolitics, and regulation are colliding. Bitcoin has rebounded above US$73,000 (AU$103,809) after weeks of losses, but traders remain cautious as the US$70,000 (AU$98,582) level continues to act as a key battleground between buyers and sellers looking to profit. At the same time, global tensions and the latest escalation involving Iran have shown how crypto's 24/7 markets react instantly to major events while traditional financial markets remain closed. The industry is also seeing major structural shifts, from Kraken securing direct access to the US Federal Reserve's payment rails to renewed political momentum behind the CLARITY Act and tighter oversight emerging in markets like South Korea. Meanwhile, the stablecoin race continues to heat up, with Sui launching its USDsui digital dollar as blockchain infrastructure deepens its penetration of global finance.
What's Happening On The Wayex Platform
Bitcoin Turns Positive Amid Global Turmoil
According to CoinTelegraph, Bitcoin has surged 8% to trade above US$73,000 (AU$103,809), but analysts are warning that holding the US$70,000 (AU$98,852) level is critical for any sustained recovery. The jump comes after six straight weeks of losses, and on-chain data firm Glassnode notes that every time Bitcoin approached US$70,000 (AU$103,852), heavy profit-taking kicked in, stalling the rally. Essentially, too many holders were cashing out at that level before fresh buyers could absorb the selling pressure, making it tough for BTC to break through cleanly.
CoinDesk interviewed Analyst Owen Lau, who speculated that crypto may be emerging from a months-long downturn, attributing the positive price action to improved market sentiment, government support for crypto legislation in the US, continued institutional adoption, and deeper integration of traditional financial markets with crypto companies.
On the other side of the token, CoinTelegraph didn't have such a positive take on the latest green candles. They argued that if Bitcoin can't hold US$70,000 (AU$98,852) as solid support, traders should expect a pullback to the US$65,000 (AU$91,791) to US$66,000 (AU$93,203) range. On the flip side, if profit taking cools off and buyers step up, analysts see a clear path to US$83,000 (AU$117,210) and potentially US$110,000 (AU$155,339) further down the line. A key level to watch is the 200-day exponential moving average sitting at US$68,000 (AU$96,028). Analysts say BTC needs to flip that from resistance to support before any real bull run can kick off.
Where to next, who knows?
Crypto Markets React To Rising War Tensions
The latest escalation involving Iran has highlighted a key weakness in traditional financial markets: they close when the world keeps moving. As geopolitical tensions rose following US and Israeli strikes on Iran, traders locked out of traditional markets turned to crypto alternatives. According to DLNews, Bitwise chief investment officer Matt Hougan said trading activity surged on platforms such as Hyperliquid's crude oil contract and Tether's tokenised gold, showing how blockchain markets can provide continuous price discovery during global events. Hougan argued this moment could accelerate the shift towards tokenised real-world assets, with commodities, stocks and gold potentially moving on-chain far faster than the previously expected five-to-ten-year timeline.
At the same time, Bitcoin's reaction to the news reinforced its growing role as a real-time gauge for global risk sentiment. While traditional stock markets were closed over the weekend, Bitcoin quickly dropped from around US$72,708 (AU$102,676) to roughly US$63,000 (AU$88,967) as traders priced in the geopolitical shock, demonstrating how crypto's 24/7 trading allows markets to react instantly to major events. Traders also turned to crypto-native derivatives platforms to gain exposure to commodities and macro trades while traditional exchanges remained offline. Reuters reported that Blockhead said Iranian crypto users withdrew around US$10 million (AU$14 million) from local exchanges amid missile strikes. Analysts say this continuous trading environment is increasingly positioning Bitcoin as an early indicator for broader financial markets, giving investors a live read on sentiment before equities, commodities and other assets reopen.
Trump Pushes Momentum Behind The Clarity Act
US President Donald Trump has urged lawmakers to move quickly on the Clarity Act, accusing banks of trying to slow crypto regulation and undermine the stablecoin framework created by the GENIUS Act, which he signed into law last year. In a post on Truth Social (notably posted after a private meeting with Coinbase CEO Brian Armstrong), Trump said the banking sector is effectively holding market structure legislation "hostage" due to concerns that crypto platforms such as exchanges could offer yield on stablecoin deposits, potentially pulling funds away from traditional bank accounts.
Crypto companies argue that users should be able to earn yield on their holdings, while banks fear it could accelerate deposit flight from the traditional financial system. According to CoinDesk, negotiations between the White House, banks and crypto industry representatives are ongoing as lawmakers work through the bill's language, with Trump warning that delays could push digital asset innovation to other countries if the US fails to act quickly.
Kraken Wins Early Reserve Approval As Banks Push Back
Kraken has become the first cryptocurrency company to receive a Federal Reserve master account, giving its banking arm, Kraken Financial, direct access to the Fed's payment rails, including Fedwire, which moves trillions of dollars every day. This means Kraken can now settle US dollar payments directly without relying on intermediary banks, reducing delays, fees and the risk of losing banking partners.
The banking industry has reacted strongly to this news, with industry groups warning that the move could introduce new risks to the financial system. Organisations such as the Independent Community Bankers of America (ICBA) and the Bank Policy Institute (BPI) argued that granting crypto firms access to Federal Reserve master accounts, which have traditionally been reserved for highly regulated banks, could weaken safeguards designed to protect the banking system. They also raised concerns that crypto companies gaining direct access to these payment rails may increase competition with traditional banks as stablecoins continue to grow in popularity. Banking lobby groups are now urging lawmakers to tighten stablecoin rules and close what they describe as loopholes that allow exchanges to offer yield-style rewards, warning this could trigger large deposit outflows from banks and reduce lending capacity across the broader economy.
Sui Joins The Stablecoin Arms Race
Sui has joined the growing stablecoin race with the mainnet launch of USDsui, a digital dollar issued by Bridge, Stripe's stablecoin platform. The token, first announced in late 2025, is designed to comply with the GENIUS Act and serve as a unified stable asset across the Sui ecosystem while enabling scalable financial activity such as cross-border payments, remittances and peer-to-peer transfers. At launch, USDsui is integrated across major wallets and DeFi protocols, including Slush, Aftermath, Alphalend, Bluefin, Cetus, NAVI, Scallop and Suilend, giving users access to liquidity, trading and yield opportunities across the network. Built using Bridge's Open Issuance platform, the stablecoin is also interoperable with other Bridge-issued digital dollars, connecting it to a broader ecosystem of stable assets. The rollout comes as stablecoin activity on Sui accelerates, with the network recording more than US$111 billion (AU156 billion) in stablecoin transfer volume in January 2026 alone and growing institutional interest from firms such as 21Shares, Bitwise, Franklin Templeton, Grayscale, and VanEck.
South Korea Tightens The Screws On Crypto
South Korea plans to cap ownership in local crypto exchanges at 20% under its upcoming Digital Asset Basic Act, a broader framework aimed at strengthening oversight and protecting investors. Regulators approved the proposal at the Financial Services Commission (FSC) and by lawmakers from the ruling party's Digital Asset Task Force. Once the law is finalised, exchanges will have three years to comply, with smaller platforms potentially receiving an additional three years. The rule could force major stakeholders to restructure or reduce their holdings, including Bithumb Holdings, which owns more than 70% of Bithumb, and Binance, which holds over 65% of Gopax.
Regulators say the move aims to reduce risks associated with concentrated ownership and to bring crypto exchange governance closer to traditional financial standards. In some cases, ownership of up to 34% may be allowed, though only for new business owners. The proposal has faced pushback from the industry, with groups such as DAXA, which represents major exchanges including Upbit and Bithumb, warning the rule could weaken property rights, slow industry growth and make it harder for South Korean platforms to compete with global rivals.
UK and USA Split On Crypto Collaboration
The United States and the United Kingdom are working together on crypto regulation. Still, new reports from Reuters suggest they are not fully aligned on how to test blockchain-based financial assets such as tokenised stocks and bonds. Both countries created a joint task force last year to improve cooperation on digital assets and make it easier for companies to operate across both markets, particularly in stablecoins and other crypto infrastructure. However, UK regulators want to test tokenised securities through a regulatory sandbox, a controlled environment used to trial new financial products, while the US Securities and Exchange Commission is reportedly exploring a different approach called "exemptive relief", which the American crypto industry supports. The disagreement highlights the broader challenge regulators face as crypto adoption accelerates, with the US taking a more pro-crypto stance under President Donald Trump while UK authorities, including the Bank of England, remain cautious about protecting market stability and investor safety.
Things That Made Us Laugh This Week
Founder's Corner
What stood out to me this week is how quickly crypto continues to move from the edge of the financial system toward its centre.
The geopolitical events over the weekend were a reminder of something many people underestimate: crypto markets never close. While traditional markets wait until Monday morning, global risk is already being priced into digital assets in real time. That dynamic is gradually turning crypto into an early signal for broader market sentiment.
At the same time, the regulatory conversation is clearly shifting. The debate over the CLARITY Act and banks' reactions show that stablecoins and blockchain-based payment rails are now firmly on the radar of policymakers and the traditional financial sector. The Kraken news is another example. Direct access to Federal Reserve payment rails for a crypto firm would have seemed unlikely not long ago, yet it is now becoming a reality.
For us at Wayex, these developments reinforce why we have been focused on building infrastructure that connects these two worlds. Crypto rails are improving quickly, but for most people, the real challenge is still making them usable in everyday financial life. Our goal has always been to bridge that gap, enabling users to move between stablecoins and traditional payment networks seamlessly.
As the financial system continues to evolve, the platforms that matter most will be the ones that sit at that intersection. That is exactly where we are building.
Andrew Grech, Co-Founder, Wayex
**All information in this article is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by Wayex to invest, buy, or sell any coins, tokens, or other crypto assets. Any descriptions of Wayex products or features are merely for illustrative purposes. Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. It is essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.
