It's been a dismal year for the crypto market. **Bitcoin** is down 25% for the year, while **Ethereum** is down 36% (as of Feb. 19). With these two market bellwethers struggling to find their footing, almost no major cryptocurrencies are in the green.

But there is one sector of the crypto market that is booming right now: **gold-backed stablecoins**. The two leaders here are **Tether Gold** and **PAX Gold**. Together, they account for 90% of the gold-backed stablecoin market. If you're looking to put $1,000 to work in the crypto market right now, this could be a good place to start.

## Tether Gold or PAX Gold?

It can be tough making the choice between Tether Gold and PAX Gold. Both are pegged 1-to-1 to the price of physical **gold**, and both are up 15% for the year. Both now rank among the top 35 cryptocurrencies in the world, and both have market caps of roughly $2.5 billion.

![Gold bars and coins.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F856321%2Fgold-bars-and-coins.jpg&w=3840&op=resize)

Image source: Getty Images.

But PAX Gold has one clear advantage over Tether Gold: it is **fully regulated by U.S. banking authorities**, and is generally more accessible than Tether Gold for U.S. investors. For that reason, PAX Gold gets my vote over Tether Gold. For a total cost of $1,000, you can pick up about 0.2 tokens at today's prices.

## Physical gold, Bitcoin, or tokenized gold?

A year ago, some investors touted Bitcoin as **digital gold**. It was presumed to be the one safe asset that you needed to have in your crypto portfolio. These enthusiasts considered it just as valuable and appealing as physical gold. But during the past 12 months, the prices of Bitcoin and physical gold have radically diverged, and that's leading investors to question the digital gold investment thesis.

During the past 12 months, gold is up a head-spinning 71%, while Bitcoin has taken a serious hit in value. For that reason, money has now been flowing into **gold-backed stablecoins**. At the end of 2025, this was a $4 billion market opportunity. Just two months into 2026, it's now a $5 billion market opportunity. As long as the price of gold continues to climb, so will the demand for gold-backed stablecoins.

Investors now have several different ways to get their gold exposure. They can buy physical gold bars. They can invest in **gold exchange-traded funds (ETFs)**. And now they can invest in **tokenized gold** in the form of stablecoins.

Investors in PAX Gold can exchange their tokens at any time for physical gold, just as owners of dollar-pegged stablecoins can exchange their tokens for physical dollars at any time. Think of it as owning the right to pick up physical gold at any time, without all the worries of actually owning physical gold bars.

At a time when nearly all major cryptocurrencies are trending down, there are few safe spots to park your money in the crypto market right now. That's why I'm keeping my eye on tokenized gold as a potential investment opportunity in 2026.

As long as the price of gold continues to soar, gold-backed stablecoins will remain an attractive investment opportunity.

Gold-Backed Stablecoins: The Crypto Market's Safe Haven Amid Bitcoin's Downturn

## A Gathering of Power Players at Mar-a-Lago

Rapper **Nicki Minaj**, FIFA president **Gianni Infantino**, and Goldman Sachs CEO **David Solomon** were among the high-profile attendees at Donald Trump's southern Florida resort this week. But this was no ordinary social event—it was a carefully orchestrated summit designed to position the Trump family's **crypto venture** as a global power player.

![Donald Trump Jr and Eric Trump interviewed by television presenter Erin Molan](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F0f72166e-cf4e-4121-827f-81a08edea8fc.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)

## World Liberty Financial Takes Center Stage

The inaugural conference hosted by **World Liberty Financial (WLF)**—the Trump family's main crypto venture—drew 400 dignitaries including two US senators, hedge fund manager Philippe Laffont, Franklin Templeton CEO Jenny Johnson, and billionaire **Binance founder Changpeng Zhao**, who was pardoned by Trump last year.

Donald Trump Jr, Eric Trump, and the sons of Steve Witkoff (Trump's special envoy to the Middle East) served as masters of ceremonies for what Eric Trump called "**retribution**" from the stage.

"When we lost the ability to bank, we created World Liberty Financial," Eric Trump declared, while Donald Trump Jr added that Wall Street's biggest lenders "wanted us to crawl into the corner and die. They created a monster."

![A large installation of World Liberty Financial’s logo at the Mar-a-Lago conference](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F37bfe7c3-7167-43cd-869d-559ad9c5c114.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)

## The Growing Clout of a Crypto Upstart

Wednesday's forum underscored the growing influence of a company that remains relatively small by industry standards. **WLF's dollar-pegged coin USD1 has a market capitalization of about $5 billion**, while stablecoins operated by competitors Tether and Circle are valued at $185 billion and $73 billion respectively.

The group's allure has been polished by its connections to the president, whose administration has put **crypto at the heart of its financial policies**. The Trump family's crypto empire reportedly reaped roughly **$1 billion in pre-tax profits** in the year to October 2025.

Earlier this month, WLF acknowledged accepting a **$500 million investment backed by an Abu Dhabi royal** days before Trump's inauguration last January, though the company denied any connection to later agreements granting the UAE access to US AI chips.

## Ignoring the Market Sell-Off

Between coffee breaks and a lunch of assorted meats and boiled vegetables, speakers largely ignored the **sell-off that has gripped bitcoin and other major digital tokens since October**. Instead, discussions focused on the impact of AI on US capital markets and the surging popularity of event contracts on sports and political developments.

![Guests dine outdoors at Donald Trump’s Mar-a-Lago resort](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F0359bc55-5542-402b-8871-b026abac868b.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)

Commodity Futures Trading Commission chair Michael Selig described prediction markets as a "check on our news media," while Republican Senator Bernie Moreno hit out at unidentified "maniacal lunatics" in the Biden administration. Nicki Minaj described her "love" for Treasury secretary Scott Bessent.

## The Crypto Legislation Battle

Crypto legislation proved another popular subject as traditional banks remain locked in a fierce fight with crypto players like **Coinbase** over the details of the **Clarity Act**. Coinbase's Brian Armstrong became a significant holdout on early drafts when Wall Street lenders pushed to close what they describe as a "loophole" that would allow crypto groups to offer rewards to customers holding dollar-pegged stablecoins.

Goldman's David Solomon presented the fight as one for an equal playing field: "If there are people that think we're going to operate without rules, they're probably wrong, and they should move to El Salvador."

![Cocktail shrimp and oysters served in an ice-sculpture featuring World Liberty Financial’s logo](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F395e5a79-6707-46e9-9235-5eed14d263d4.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)

## Building the Infrastructure for the Future

WLF co-founder Zak Folkman outlined ambitious plans for the company, which applied for a **US banking license in January** to broaden its access to the traditional financial system. He envisioned a future where retail traders could use "tokenised luxury floating villas in the Maldives" as collateral for loans extended by code, and where **AI agents would shop on investors' behalf using WLF's stablecoin USD1**.

"We're building the entire infrastructure for the future," Folkman concluded. At the drinks reception by the pool later that night, it was hard to find anyone who didn't think WLF was on the right track.

![The conclusion of the conference at Mar-a-Lago](https://images.ft.com/v3/image/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F069a63f5-5d1c-41aa-842f-8b975900200e.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1)

World Liberty Financial draws bankers, celebrities and digital market tycoons to US president’s Florida resort

Trump's Mar-a-Lago Crypto Summit: A 'Retribution' Show of Force with Global Elites

## Bitcoin's $40,000 Put Option Emerges as Second-Largest Bet Ahead of February Expiry

The **$40,000 put option** has become one of the most significant positions in Bitcoin's market ahead of the **February 27 expiry**, highlighting strong demand for **downside protection** following a significant selloff.

### Understanding Options and Their Role

Options are derivatives that give holders the right, but not the obligation, to buy or sell Bitcoin at a predetermined price before expiry. **Put options** act as insurance against price declines, paying out if BTC falls below a set strike price.

### Market Positioning and Key Data

The **$40,000 put** is now the **second-largest strike by open interest**, with approximately **$490 million in notional value** tied to that level. This underscores the appetite for **deep tail-risk hedges** as Bitcoin has declined by up to **50% from its October highs** and is currently trading around **$66,000**.

**Data from Deribit**, the Dubai-based exchange owned by Coinbase, reveals that roughly **$7.3 billion in Bitcoin options notional value** is set to expire at the end of the month.

### Max Pain and Market Dynamics

Meanwhile, **$566 million sits at the $75,000 strike**, which also represents the **max pain level**. Max pain refers to the price at which the greatest number of options expire worthless, minimizing payouts to buyers. With the spot price trading below $75,000, a move higher into expiry could reduce losses for call sellers.

### Call vs. Put Ratio and Market Sentiment

Although **calls outweigh puts overall** (63,547 call contracts versus 45,914 puts), positioning is not purely bullish. The **put-to-call ratio of 0.72** indicates that upside bets still dominate, but the concentration of sizable put open interest at lower strikes highlights clear demand for **downside insurance**.

Traders are maintaining exposure to a potential rebound while simultaneously **hedging against the risk of another sharp decline**.

Heavy positioning at lower strikes signals rising demand for downside protection for bitcoin. 

Bitcoin's $40K Put Option Surges as Second-Largest Bet Ahead of February Expiry - What This Means for BTC

## Bitcoin's Recent Plunge Sparks Panic Searches

Bitcoin's recent price decline has triggered a wave of concern among investors, with **Google Trends data** showing a significant spike in searches for terms like **'Bitcoin going to zero'** and **'Is Bitcoin dead?'** These queries have reached their highest levels since 2022, reflecting growing anxiety in the crypto market.

## Market Sentiment Hits 'Extreme Fear'

The **Crypto Fear and Greed Index**, which analyzes market sentiment using variables like volatility and social media activity, recently hit a score of 5—matching its lowest-ever mark from 2019. This indicates the market is in **'Extreme Fear'** territory, a stark contrast to higher scores that typically signal greed and rising prices.

## Price Predictions and Expert Analysis

As of Thursday afternoon, Bitcoin was trading around **$66,561**, down approximately **47%** from its October all-time high of $126,080. Predictors on platforms like **Myriad Markets** and **Polymarket** are leaning bearish:
- Myriad Markets gives about **64% odds** that Bitcoin will 'dump' to $55,000 before pumping to $84,000.
- Polymarket traders are even more confident, with **68% odds** that BTC will hit $60,000 before reaching $80,000.
- On Kalshi, predictors estimate a **36% chance** that Bitcoin will trade below $40,000 this year.

Despite the pessimism, experts don't foresee Bitcoin hitting zero. **Standard Chartered** analysis suggests a potential drop to **$50,000** before a rebound to all-time highs. Similarly, **CryptoQuant analysts** have identified **$55,000** as Bitcoin's 'ultimate bear market bottom,' a level that may serve as a consolidation point before recovery.

## Undeterred Advocates and Continued Accumulation

Prominent Bitcoin supporters remain steadfast. **Michael Saylor**, co-founder and Executive Chairman of **MicroStrategy**, continues to advocate for Bitcoin accumulation, stating the firm will buy Bitcoin **'every quarter, forever.'** MicroStrategy's Bitcoin holdings are valued at approximately **$47 billion**, underscoring long-term confidence despite recent losses.

Saylor addressed the 'going to zero' fears directly: **'If you think it's going to zero, then we'll deal with that. But I don't think it's going to zero.'**

## Current Market Snapshot

Bitcoin is down **0.6%** in the last 24 hours, highlighting ongoing volatility. The combination of rising panic searches, extreme fear sentiment, and mixed expert predictions paints a complex picture for Bitcoin's near-term trajectory.

Bitcoin's recent plunge has prompted a wave of investors and observers seeking answers about why the top cryptocurrency is cratering.

Bitcoin's 'Going to Zero' Searches Skyrocket as Market Plunges into 'Extreme Fear' Territory

## The Crypto-Loving Billionaire and the $400M 'Perfect Fraud'

Mexican billionaire **Ricardo Salinas Pliego**, known for his outspoken support of Bitcoin and cryptocurrency, found himself embroiled in a **transatlantic legal battle** after what he describes as a "perfect fraud" that cost him approximately **$400 million**.

### A Deal with 'Financial Royalty'

Salinas, who has publicly advocated for Bitcoin as a hedge against inflation and traditional financial systems, believed he was dealing with what he called "financial royalty" - sophisticated international investors and institutions. The businessman, whose net worth exceeds $13 billion, thought he had secured a lucrative financial arrangement that aligned with his crypto-forward investment philosophy.

### The Unraveling of a Complex Scheme

Instead of the promised returns, Salinas discovered he had become entangled in what court documents describe as an **elaborate international fraud scheme**. The case has revealed:

- **Complex financial instruments** that were misrepresented to the billionaire
- **False claims of institutional backing** from reputable financial entities
- **International money movements** across multiple jurisdictions
- **Documentation that appeared legitimate** but contained critical misrepresentations

### Legal Battles Across Borders

The case has sparked **legal proceedings in multiple countries**, with Salinas pursuing recovery of his substantial losses. The billionaire's legal team has characterized the scheme as particularly sophisticated, designed to exploit the trust of high-net-worth individuals interested in alternative investments like cryptocurrency.

### Implications for Crypto Investors

This case highlights the **risks facing even sophisticated investors** in the cryptocurrency and alternative investment space. Salinas, despite his financial acumen and experience with volatile markets, fell victim to a scheme that:

- **Exploited the growing interest** in cryptocurrency and digital assets
- **Leveraged the credibility** of traditional financial terminology and structures
- **Targeted investors** looking beyond conventional investment vehicles

### The Ongoing Investigation

Authorities in multiple countries are investigating the network behind what Salinas calls the "perfect fraud." The case has drawn attention to the **regulatory gaps** in international finance and the challenges of pursuing complex fraud cases across jurisdictions.

Salinas continues to be a vocal advocate for Bitcoin, recently stating that he keeps the majority of his liquid assets in the cryptocurrency, but this experience has added a cautionary note to his public commentary about investment risks.

Businessman Ricardo Salinas thought he was dealing with financial royalty, but found himself in a transatlantic legal fight

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