Bitcoin Dips Amid Market Turmoil as TRM Labs Becomes Unicorn
By John Nada·Feb 7, 2026·3 min read
Crypto markets are unsettled as Bitcoin dips to $60K while TRM Labs secures unicorn status with a $70 million funding round.
Cryptocurrency markets faced a significant sell-off this week, driven by investor fears over stagnating US liquidity following President Donald Trump's nomination of Kevin Warsh to lead the Federal Reserve. Bitcoin's price briefly dipped to $60,074 before recovering to over $64,930, indicating the volatility in the market.
Bitcoin exchange-traded funds (ETFs) experienced three consecutive days of outflows, with $431 million exiting on Thursday, according to data from Farside Investors. Warsh, a former Fed governor, is expected to maintain the interest rate cut trajectory, which could stabilize market liquidity rather than expand it, as noted by Thomas Perfumo, an economist at Kraken. The market also recorded its 10th-largest liquidation event on January 31, wiping out over $2.56 billion in leveraged positions, according to CoinGlass.
In a notable development, blockchain intelligence platform TRM Labs completed a $70 million Series C funding round, reaching a valuation of $1 billion and earning unicorn status. The investment round, led by Blockchain Capital, attracted participation from several major firms, including Goldman Sachs and Citi Ventures. TRM Labs aims to provide AI solutions to combat cybercrime, emphasizing the need for enhanced security against automation-driven illicit activities.
Avalanche also saw increased institutional adoption of tokenized assets, with a significant rise in the total value locked in real-world assets. This growth was bolstered by the launch of BlackRock's USD Institutional Digital Liquidity Fund, contributing to nearly 950% year-over-year growth in tokenized RWAs on Avalanche. Financial firms are increasingly confident in experimenting with tokenization, especially as regulatory attitudes shift.
In other news, ParaFi Capital made a $35 million investment in Jupiter, a Solana-based trading and liquidity protocol. This marks Jupiter's first external capital raise after years of bootstrapped growth, aimed at enhancing its product offerings and expanding its market reach.
Aave Labs announced the winding down of its Avara brand and Family wallet, refocusing on decentralized finance. Aave's CEO emphasized the need for purpose-built experiences in onboarding users, signaling a strategic shift towards its core lending protocol.
On a concerning note, Step Finance disclosed a security breach that led to the compromise of several treasury wallets, resulting in a significant sell-off of its native token. The breach, attributed to a sophisticated actor, is still under investigation, and the total scale of losses has yet to be confirmed.
Overall, most of the 100 largest cryptocurrencies ended the week in the red, with the privacy token Zcash experiencing the steepest decline. The tumultuous conditions highlight the ongoing challenges within the cryptocurrency landscape, as investors remain cautious amid regulatory and economic uncertainties. The developments underscore the importance of security and innovation in the crypto space, as firms strive to adapt to rapidly changing market dynamics.