Bitcoin has fallen below the $100,000 mark for the first time since June, driven by significant selling from long-term holders who offloaded approximately 400,000 BTC, valued at around $45 billion. This decline marks a 20% drop from its record high of over $126,000 reached just a month prior, with Bitcoin dipping as low as $99,075 during this sell-off. The market is experiencing heightened volatility, with total liquidations surpassing $2 billion, primarily affecting Bitcoin and Ethereum. The recent downturn reflects a broader market sentiment shift, as traders react to the massive sell-offs by whales and the ongoing macroeconomic pressures.
Sequans Communications, a French semiconductor firm, has sold 970 BTC, valued at approximately $100 million, to reduce its outstanding convertible debt by 50%. This strategic move has brought its Bitcoin holdings down from 3,234 BTC to 2,264 BTC, which are now worth around $228 million. The company's stock fell 16.6% following the announcement, indicating market sensitivity to its treasury management decisions. Additionally, the launch of BlackRock's iShares Bitcoin ETF in Australia is set to expand institutional access to Bitcoin, further intensifying competition in the ETF space.
This ETF will charge a management fee of 0.39% and aims to provide regulated exposure to Bitcoin for Australian investors, reflecting growing institutional interest in the cryptocurrency market.
The recent market dynamics have seen Bitcoin's price oscillate around the $100,000 level, with significant liquidations occurring as traders rushed to exit positions. Over the past 24 hours, liquidations exceeded $2 billion, with Bitcoin hitting a low of $99,000 before a slight recovery. Analysts are monitoring key support levels, with the next critical threshold identified at $98,000. Whale activity has intensified, with long-term holders selling off their positions, contributing to the price decline.
This selling pressure, combined with macroeconomic factors such as the U.S. government shutdown, has created a fragile market environment, prompting speculation about further price drops.
The overall cryptocurrency market has seen a significant downturn, with a total market cap loss exceeding $1 trillion since early October. This decline has been exacerbated by a combination of whale selling, liquidation events, and macroeconomic uncertainties, leading to a pervasive sense of fear among investors. As Bitcoin struggles to maintain its position, analysts suggest that the current market conditions could pave the way for a more sustainable recovery once the excessive leverage is flushed out. However, the sentiment remains cautious, with many traders opting to liquidate positions rather than hold through the volatility.
Berachain has executed an emergency hard fork to contain the fallout from a significant breach at the DeFi protocol Balancer, which resulted in over $128 million being stolen from its V2 Composable Stable Pools. This hard fork aims to trap the hacker's funds and freeze assets linked to the attack. The Bera Foundation confirmed that the hard fork binary has been distributed, with many validators already upgrading their systems to enhance security and stability. The chain's operations remain paused as the core team collaborates with infrastructure partners to ensure all necessary updates are completed before resuming activity.
Analysts have traced over $284 million in loans and stablecoin risk associated with Stream Finance, revealing intricate loops across various stablecoins and lending markets. This analysis highlights the interconnectedness of DeFi protocols and the potential systemic risks that arise from such exposure. Following Stream Finance's $93 million loss, the mapping of these debts underscores the vulnerabilities present within the DeFi ecosystem, indicating a need for enhanced risk management strategies across platforms.
DeFi analysts have identified over $285 million in potential cross-protocol exposure linked to the recent $93 million loss incurred by Stream Finance. This figure emphasizes the extensive reach of Stream Finance's financial activities across various DeFi platforms, raising concerns about the stability and risk management practices within the sector. The analysis serves as a critical reminder of the interconnected nature of DeFi protocols and the cascading effects that financial losses can have across the ecosystem.
Richard Teng, CEO of Binance, stated that the company did not influence the decision of an Abu Dhabi-based firm to invest $2 billion into the exchange through World Liberty Financial's USD1 stablecoin. This clarification comes amid allegations linking Binance to the promotion of a stablecoin associated with Donald Trump.
Norway has temporarily suspended the ethics rules governing its $2.1 trillion oil fund to prevent the divestment of stakes in major technology companies. This decision reflects a strategic move to maintain investments in sectors deemed crucial for future growth, particularly in the tech industry.
Ripple's RLUSD, a US dollar-pegged stablecoin, has successfully entered the top 10 stablecoins by market capitalization, reaching a valuation of $1 billion within less than a year of its launch. This rapid growth underscores the increasing demand for stablecoins in the cryptocurrency market.
Goldman Sachs Chairman and CEO David Solomon indicated a likelihood of a 10% to 20% drawdown in equity markets within the next 12 to 24 months. This forecast was shared during a financial summit organized by the Hong Kong Monetary Authority, highlighting concerns about market volatility and investor sentiment.
In ongoing legal matters, judges in an appeals court have expressed skepticism regarding claims made by former FTX CEO Sam Bankman-Fried about the company's solvency. This scrutiny raises questions about the financial health of FTX and the implications for stakeholders involved.
In a significant political shift, Zohran Mamdani has won the New York City mayoral race, defeating Andrew Cuomo. Mamdani's victory may influence future policies regarding cryptocurrency innovation and regulation in the city, particularly as he aligns with progressive stances on technology and finance.
Market maker DWF Labs allegedly lost more than $44 million in a 2022 cyberattack attributed to the North Korea-linked AppleJeus group. The breach reportedly dates back to September 2022, where bad actors targeted the address 0x3d67fdE4B4F5077f79D3bb8Aaa903BF5e7642751, primarily stealing USDC and USDT stablecoins.
Open-source crypto market intelligence delivered everyday.