Today in crypto: Bitcoin crashes below $80K, SEC drops major lawsuits

Bitcoin and Ethereum are facing a sharp downturn as risk aversion spreads across global markets. Bitcoin has fallen 5% to $80,100, marking its lowest price in over a year, while Ethereum has dropped 8% to $2,150, hitting its lowest point since 2023.

This slump follows record-breaking outflows from Bitcoin ETFs, which saw $759 million withdrawn yesterday, bringing total February outflows to over $2 billion. At the same time, gold ETFs are seeing inflows, suggesting investors are moving towards safer assets. Analysts warn that Bitcoin’s next key support level is $75,000—a critical point that could determine whether the downturn continues.

Market uncertainty is being fueled by wider economic pressures. The US stock market also fell on Thursday, with the S&P 500 down 1.6% and the NASDAQ sliding 2.8% as tech stocks faced a sell-off. Inflation concerns, fewer expected Fed rate cuts, and Trump’s latest tariffs on China, Mexico, and Canada have added to the pressure on risk assets like Bitcoin.

SEC backs down on crypto lawsuits

In a surprise move, the SEC has quietly dropped key lawsuits against major crypto companies, marking a major shift in its enforcement strategy. Cases against Coinbase, Binance, Uniswap, Robinhood, and OpenSea have all been either dismissed or placed on hold in the past two weeks.

This move has sparked optimism across the crypto industry, which has long battled regulatory uncertainty. However, legal experts warn that this does not mean crypto is fully in the clear. SEC Commissioner Hester Peirce has proposed a new classification system for digital assets, which could still label certain tokens as unregistered securities.

While the SEC appears to be easing its approach, the legal status of altcoins like Solana, Polygon, and Cardano remains unclear. Some legal experts believe the SEC won’t take further action against established tokens, while others warn that the industry is still “hovering in a zone of uncertainty.”

UK tightens crypto crime laws

While the US softens its regulatory stance, the UK is doing the opposite. The British government has introduced a new crime bill that expands police powers to seize and destroy cryptocurrencies linked to criminal activity.

The legislation aims to make it easier for law enforcement to confiscate illicit crypto assets and return them to victims. It grants UK courts expanded authority over crypto-related confiscation orders and introduces stricter oversight of how seized digital assets are handled.

This move follows a surge in crypto-related crimes in the UK, with illicit transactions estimated between $1.7 billion and $5.1 billion per year. The law is expected to bolster economic crime enforcement, but it also raises questions about how authorities will handle the destruction of seized assets.

Michael Saylor pushes for a US Bitcoin reserve

Strategy’s Michael Saylor has once again positioned himself at the center of Bitcoin advocacy, this time pitching a strategic Bitcoin reserve for the United States.

Saylor recently met with the US Financial Services Committee to propose a framework that would integrate Bitcoin into the US economy. His plan suggests that a government-backed Bitcoin reserve could generate up to $81 trillion for the US Treasury and help offset national debt.

His proposal comes as crypto leaders seek to influence policy amid Trump’s relaxed enforcement stance. With the SEC retreating from lawsuits, industry figures like Saylor are pushing for more ambitious institutional adoption.

Crypto’s turning point: A reset or just a dip?

Between major market corrections, shifting regulations, and security concerns, crypto is at a pivotal moment.

Bitcoin’s 27% drop from its all-time high remains mild compared to past corrections. Some analysts argue this shakeout is necessary to clear overleveraged positions and bring more sustainable price levels. However, the recent $1.4 billion Bybit hack has shaken confidence, highlighting persistent security risks in the industry.

As US regulators ease their crackdown, the industry now has breathing room to address these challenges. At the same time, global regulations are diverging, with the UK increasing oversight while the US considers looser rules.

The coming weeks will test whether this is a short-term correction or the beginning of a deeper shift in crypto’s trajectory. Investors are watching $75,000 as Bitcoin’s next critical level, while ETF outflows and regulatory moves continue to shape market sentiment.