Crypto World
Bitcoin Options Flag Traders’ Fear As Iran War Carries On
Key takeaways:
-
Bitcoin traders are turning cautious as high oil prices and Middle East tensions fuel inflation and stall US interest rate cuts.
-
The $254 million in spot Bitcoin ETF outflows is too small to confirm a bearish flip, yet options markets show heavy hedging.
Bitcoin (BTC) price stagnated near $70,000 during the Friday trading session after failing to reclaim the $75,000 level on Tuesday. The decline marked two days of net outflows from US-listed Bitcoin spot exchange-traded funds (ETFs), reversing the trend from the prior seven days. Traders are now wondering if institutional investors are turning bearish, especially as the US stock market showed signs of weakness.
The bearish sentiment across global markets is weighing on Bitcoin as the S&P 500 plummeted to its lowest level in six months. Even gold, which typically acts as a hedge, faced a 10% sell-off over three days. As the US and Israel-Iran war triggers a broad move toward risk aversion, Bitcoin derivatives data now reflect increasing fear among traders.
Demand for put (sell) Bitcoin options premiums at Deribit was nearly 2.5 times larger than equivalent call (buy) instruments on Friday, indicating increased demand for neutral-to-bearish strategies. The prior surge in the metric occurred on Feb. 27 after Iran rejected negotiations to dismantle its key nuclear facilities and export its enriched uranium.
Traders frustrated by Bitcoin’s 17% lag behind the S&P 500
To confirm if the increased demand for put options has effectively been used for downside protection, one should assess the delta skew metric. When market makers fear imminent Bitcoin price correction risks, the put options tend to trade at a 6% or higher premium relative to equivalent call instruments. Conversely, periods of bullishness push the indicator below -6%.
The Bitcoin options delta skew (put-call) stood at 16% on Friday, meaning professional traders were not comfortable that the $69,000 level will hold. While distant from the extreme panic levels seen in late February, the current conditions reflect the stress caused by the 21% price drop in three months, while gold and the US stock market held relatively steady.
Regardless of whether Bitcoin successfully defends the $70,000 level, traders are not pleased with the 17% underperformance relative to the S&P 500 over three months. More importantly, the recent rally to $75,000 on Tuesday was unable to move the needle in Bitcoin options markets, a strong indicator that traders are acting overly cautious.
Related: Crypto Biz–Institutions aren’t waiting for the bottom
Part of the pessimism can be attributed to the surge in energy prices. WTI oil prices have sustained levels above $94 since March 12, a 50% increase versus the prior month. The disruption of oil and gas production and logistics in the Middle East negatively impacts economic growth expectations and limits the ability of the US Federal Reserve to slash interest rates due to inflationary pressure.
The fuel price surge is expected to cause consumers to pull back on spending, according to a new Oxford Economics analysis. Analysts warned that US manufacturers who rely on imports will also be impacted, causing further price increases and potential “outright shortages of some products,” according to Yahoo Finance.
The mere $254 million net outflows in two days are unlikely to be a sign of institutional investors flipping bearish, but traders are not confident that Bitcoin will hold above the $68,000 level. Traders’ sentiment has been largely driven by worsening macroeconomic conditions and uncertainty caused by the prolonged war, driving increased demand for downside protection using derivatives.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
TLDR:
- Whale unrealized profit ratios remain between 1 and 1.5, showing balanced market positioning without excess pressure
- Historical data links low whale profit zones with accumulation phases and the start of upward price trends
- No spike above 3 suggests Ethereum has not reached overheated conditions seen in past cycle peaks
- Current structure supports gradual price growth rather than sharp rallies or immediate market reversals
Ethereum’s long-term market structure shows a steady recovery, with whale profitability pointing to a developing uptrend rather than a peak phase.
Data tracking price movements and unrealized profit ratios suggest that the market remains balanced, with no strong signs of distribution pressure.
The chart, covering 2016 through early 2026, aligns Ethereum’s price with the profitability of whale wallets. Large holders across multiple tiers appear to have returned to profit, a condition historically linked to early-cycle growth.
Whale Profitability Returns as Market Stabilizes
Ethereum’s price cycles have consistently moved alongside whale profit ratios. During previous bull runs, profit levels surged above 3, followed by sharp corrections. In contrast, bear market phases pushed ratios closer to zero, marking accumulation zones.
The current range sits between 1 and 1.5, which reflects moderate profitability. This level has previously appeared during transition periods between accumulation and expansion phases. As a result, the market structure appears stable rather than overheated.
A recent tweet by analyst CW noted that wallets holding over 100,000 ETH have moved back into profit. The tweet stated that past transitions from loss to profit often marked the beginning of upward trends. That pattern now appears to be forming again.
At the same time, earlier cycles show similar behavior. In 2019 and 2020, whale profitability remained low before gradually rising. Those phases later led to sustained price growth. The current setup mirrors those earlier conditions without showing excess momentum.
Mid-Cycle Structure Supports Gradual Price Movement
Ethereum’s present structure reflects a mid-cycle phase rather than a late-stage rally. Profit ratios have not reached extreme levels, which reduces the likelihood of immediate large-scale selling by major holders.
During the 2021 peak, profit ratios climbed above 3.5 as prices approached all-time highs. That environment encouraged distribution as whales secured gains. The absence of such levels today suggests a different market stage.
Price action between $2,000 and $3,000 aligns with this moderate profitability range. The market appears to be building strength gradually, instead of accelerating into a sharp rally. This behavior often precedes more extended upward movement.
The lack of rapid spikes in whale profit indicates steady accumulation or holding patterns. When combined with historical data, this condition has often led to continued price expansion over time.
If profit ratios begin rising toward 2.5 or higher, the market could enter a stronger growth phase. However, a sudden move above 3 would require close monitoring, as past cycles show such levels near turning points.
As of this writing, the structure remains balanced. Whale profitability supports a developing trend without signaling overheating. As a result, Ethereum appears positioned within an early growth phase rather than nearing a cycle peak.
TLDR:
- Every Pi Network DApp must lock Pi Coin as collateral before minting its own custom token.
- More DApps launching on Pi Network means more Pi Coin gets locked, reducing circulating supply over time.
- Pi Coin is being positioned as base money for the ecosystem, similar to how the USD functions globally.
- Pi traded at $0.1981 with a 3.45% price gain in 24 hours, reflecting growing market interest.
Pi Network is drawing attention as decentralized applications continue building on its blockchain. Each DApp introduces its own token economy, yet all remain anchored to Pi Coin as base collateral.
DApp Tokens on Pi Network Serve Distinct Economic Roles
Pi Network hosts a growing number of decentralized applications across gaming, e-commerce, and finance sectors. Each application operates its own token to manage incentives within its specific user base.
Gaming apps distribute reward tokens to active players on the platform. Shopping platforms issue loyalty points and digital vouchers to their customers.
Running all DApp activity exclusively on Pi Coin would create tokenomics management challenges. Custom tokens give each application the freedom to structure its own economy independently.
This separation allows developers to innovate without disrupting the broader Pi Network supply. The design supports diverse use cases while keeping Pi Coin’s central role intact.
According to a post by @fireside_pi on X, the Pi Core Team follows a clear strategic direction. “Each DApp runs its own mini-economy, needs its own token for flexibility,” the post stated.
This structure mirrors how layers in traditional financial systems operate. Base assets provide collateral while upper layers handle specialized transactions.
The token model benefits developers and users across the ecosystem simultaneously. Developers gain flexibility in designing reward systems suited to their platforms.
Users receive access to airdrops, staking opportunities, and platform-specific incentives. Pi Coin remains the foundational asset supporting every transaction layer above it.
Pi Coin Scarcity Increases as DApp Collateral Requirements Grow
Every DApp launching on Pi Network must lock an equivalent amount of Pi Coin as collateral. This mechanism directly reduces the circulating supply of Pi Coin over time.
As more applications succeed and expand, more Pi Coin gets permanently locked away. A shrinking supply combined with steady demand supports upward price pressure.
The @fireside_pi post described this as Pi Network’s path toward becoming base money for billions. “More DApps launching and succeeding means more Pi gets locked forever,” the post noted.
The comparison drawn is to how the US dollar serves as a global reserve currency. Pi Coin is positioned to fill that same foundational role within its own ecosystem.
At the time of writing, Pi Network’s price stood at $0.1981 per coin. The 24-hour trading volume reached $37,665,490, reflecting active market participation.
Pi recorded a 3.45% price increase over the past 24 hours. However, the seven-day performance showed a marginal decline of 0.03%.
The collateral-based token model places Pi Coin at the center of all ecosystem value. Every new DApp that scales adds locking pressure on the available Pi supply.
This creates a direct structural relationship between ecosystem growth and Pi Coin’s scarcity. Holders of Pi Coin stand to benefit as the network continues to expand.
Crypto World
Jerome Powell Honored With Paul Volcker Public Integrity Award at ASPA Annual Conference
TLDR:
- Jerome Powell received the Paul Volcker Public Integrity Award at the ASPA Annual Conference via video.
- Powell called Volcker the greatest public servant in economics, citing his non-partisan service under four presidents.
- Volcker held firm against political pressure in the 1980s, ultimately defeating double-digit inflation through high interest rates.
- Powell closed with a defining line: integrity is the foundation of every public servant’s lasting legacy and credibility.
Jerome Powell, Federal Reserve Chair, received the Paul Volcker Public Integrity Award at the ASPA Annual Conference.
Powell accepted the honor via a pre-recorded video, expressing deep gratitude for the recognition. He drew on Volcker’s legacy to reflect on core principles of public service.
His remarks centered on independence, integrity, and the courage to resist short-term pressures. The ceremony honored Powell’s commitment to non-partisan central banking leadership.
Powell Draws on Volcker’s Record of Non-Partisan Service
Jerome Powell described Paul Volcker as a towering figure in economics and central banking. He called Volcker “perhaps our greatest public servant in the economic arena.”
Volcker served at the Treasury under Presidents Kennedy, Johnson, and Nixon before leading the Federal Reserve. He chaired the Fed from 1979 to 1987, nominated by Carter and reappointed by Reagan.
Powell noted that non-political, non-partisan service forms the bedrock of the Federal Reserve. No one embodies that virtue more fully than Paul Volcker, he added.
Such service allows public institutions to earn lasting trust from leaders across both parties. Moreover, it gives those institutions the credibility needed to act in the broader public interest.
Volcker’s record of serving multiple presidents without compromising his principles stood out throughout Powell’s remarks.
That kind of commitment, Powell argued, defines what true public integrity means. It also shows how non-partisan dedication can produce results that outlast any single administration. Trust built steadily over time creates the space needed for bold and necessary decisions.
Powell further stated that “independence and integrity are inseparable.” He explained that public servants need independence to do what is right.
Integrity, in turn, ensures that independence is used wisely and not for personal gain. Together, these qualities define the standard Volcker set across his entire career.
Volcker’s Inflation Battle as a Lesson in Long-Term Leadership
Volcker’s defining test came during the double-digit inflation crisis of the early 1980s. Unemployment climbed above 9 percent, and critics loudly called for a change of course.
Yet Volcker held firm, committed to bringing inflation down through sustained high interest rates. His decision was painful in the short term but ultimately restored price stability.
Powell referenced a speech Volcker delivered at the Economic Club of Chicago on May 19, 1982. Speaking with unemployment above 9 percent, Volcker acknowledged “the pain of wringing out inflation through high interest rates.”
He also outlined the prospect of “a return to price stability, and with it a much brighter future.” That vision, Powell noted, ultimately proved correct.
Volcker’s resolve helped launch what economists now call the Great Moderation. This was a prolonged period of low inflation and steady, consistent economic growth.
Powell gave Volcker considerable credit for that outcome. Resisting short-term pressure, he argued, can yield lasting benefits for the broader economy.
Powell closed by quoting directly from his own acceptance remarks: “In the end, our integrity is all we have.” He framed Volcker’s career as the clearest living example of that principle.
Each public servant, he said, should look back and know they did the right thing. That standard, Powell argued, remains the truest measure of a life in public service.
The U.S. securities and commodities watchdogs have jointly published guidance that for the first time attempts a formal taxonomy for digital assets. Market observers welcomed the move as a material shift away from the prior Gensler-era posture, with Galaxy Digital’s Alex Thorn framing it as a step toward pragmatic regulation even as it stops short of giving permanent, court-binding rules.
The SEC guidance, issued this week, lays out a five-category framework for digital assets: digital commodities, digital collectibles like NFTs, digital tools, stablecoins, and tokenized securities. The document describes how these assets may fit under existing laws and where each category might draw regulatory lines. The fact sheet accompanying the guidance highlights the five buckets and how they align with the agency’s broader remit, while the linked materials emphasize that the interpretation is aimed at clarifying how the law applies rather than rewriting it.
The distinction matters enormously under the Administrative Procedure Act. A legislative rule or substantive rule goes through notice-and-comment rule-making, has the force and effect of law, and binds both the agency and regulated parties. The interpretive rule, by contrast, is exempt from those procedures and does not carry the same binding force for courts or firms.
In practical terms, the interpretive rule signals that the agencies are prioritizing clarity over breadth in the near term. It is not a binding mandate that courts must enforce; rather, it sets out how regulators currently interpret existing statutes and how they might apply them to different digital-asset structures. For the crypto industry, that creates a more predictable operating environment over the next several quarters, even as the longer-term regulatory architecture remains to be finalized.
Galaxy’s Thorn emphasized that while the interpretive stance provides meaningful guidance for the next 30 months, the broader path to stable, enduring regulation hinges on Congress codifying the CLARITY Act into law. The CLARITY framework is designed to codify market structure principles for crypto assets, but has stalled in recent months amid disagreements over stablecoin yield, open-source software protections, and other DeFi-related provisions. Thorn noted that while the new interpretive rule reduces immediate regulatory risk, a formal law would lock in a durable framework for decades to come.
The CLARITY Act stalls, but whispers of a possible deal surface
The push to pass a comprehensive crypto-market-structure bill faces political headwinds. In January 2025, industry insiders and lawmakers raised concerns that the CLARITY Act would hamper DeFi development through broad reporting and KYC requirements, and could restrict stablecoin operations. The industry’s pushback centered on provisions seen as disproportionate or technically onerous for decentralized finance and open-source tooling, even as they sought clearer guardrails against fraud and market manipulation. A recent Politico live update reported that a tentative agreement between the White House and lawmakers is being pursued to move the bill forward, though many specifics remain under wraps.
Public reporting on the deal suggests discussions include a potential ban on stablecoin yield from passive balances, a point highlighted by Senator Angela Alsoboorks as part of the ongoing negotiations. The broader question remains: can legislators craft a framework that satisfies consumer protections and financial stability concerns without stifling innovation in DeFi and open-source crypto tooling? Coverage from Cointelegraph notes that any final agreement will need careful balancing of these competing priorities, with industry observers watching for hidden provisions that could alter DeFi, custody, and settlement rights for participants across the ecosystem.
Industry observers view the potential deal as a litmus test for how aggressively regulators and lawmakers intend to police the sector while still enabling mainstream crypto adoption. The unfolding talks underscore a broader tension: the desire for a predictable, codified regime versus the organic, global nature of decentralized technologies. As policymakers debate stablecoin yield limits, disclosure standards, and on-chain compliance tools, market participants are parsing what a new law would mean for issuance, trading venues, and developer incentives alike.
What comes next for regulation and market structure
Today’s guidance represents a significant milestone in regulatory clarity, but it is not the final destination. Investors and builders now have a clearer benchmark for evaluating where a given asset sits within the SEC-CFTC taxonomy, and how existing securities and commodities laws might apply. Yet crucial questions remain about how the CLARITY Act will shape the long-term architecture of the crypto market, particularly in the DeFi space, where permissionless innovation has been a defining feature of the sector’s growth.
In practical terms, the new interpretive rule affords the industry a clearer window for planning and compliance over the next couple of years, while lawmakers push for a more permanent framework. This separation—clarity in the near term, codified law in the longer term—could help reduce the kind of regulatory guesswork that has previously unsettled projects, exchanges, and users. Still, until the CLARITY Act is enacted, firms must operate with the underlying statutes in mind and be prepared for future amendments that could reshape how tokens are treated, how disclosures are required, and how on-chain activity is monitored.
As the regulatory conversation evolves, observers will watch for signs of how the White House and Congress resolve key points of contention, including stablecoins, developer protections, and the balance between consumer safeguards and innovation-friendly policy. The next few months should yield a clearer picture of whether a bipartisan framework can emerge that satisfies financial-stability concerns while preserving the open, collaborative ethos that underpins much of the crypto ecosystem.
Readers should keep an eye on official updates to the CLARITY Act and related regulatory proposals, as well as the ongoing enforcement posture from the SEC and CFTC. The coming months will likely reveal whether the interpretive guidance suffices as a transitional tool or if a broader legislative settlement becomes indispensable for sustainable growth in the digital-asset economy.
Crypto World
Bitcoin Miners’ Position Index Hits Historic Low: Strength Signal or Early Warning Sign?
TLDR:
- Bitcoin Miners’ Position Index has dropped to -1.04, marking one of the lowest readings in its recorded history.
- Extreme low MPI reflects minimal miner selling pressure, suggesting miners may be holding rewards in anticipation of higher prices.
- Historically, Bitcoin price recoveries emerged as MPI rose from depressed levels, not at the moment it hit its floor.
- Low MPI removes a key structural headwind, but sustained price movement still depends on demand-side confirmation signals.
Bitcoin’s Miners’ Position Index (MPI) has fallen to -1.04, one of the lowest readings ever recorded in its history. This is only the third time the 30-day moving average has neared the -1 threshold.
At this level, miners are sending far fewer coins than their one-year average reflects. The sharp drop in outflows raises a critical question across the market: does extreme miner inactivity signal quiet accumulation and strength ahead, or does it mask a deeper structural warning?
The Case for Hidden Strength Behind Miner Inactivity
When miners hold block rewards rather than move them to exchanges, sell pressure from one of Bitcoin’s most consistent natural sellers drops sharply.
The Miners’ Position Index measures outflows against a one-year historical average, and a reading of -1.04 places current miner behavior near the bottom of its entire recorded range. That level of restraint does not happen frequently.
Analyst MorenoDV_ noted the reading publicly, describing it as one of the lowest MPI prints in Bitcoin’s history. He pointed out this is only the third time the 30-day moving average has approached the -1 mark.
Source: Cryptoquant
According to his analysis, miners appear to be either accumulating block rewards or anticipating higher prices ahead.
From a supply perspective, reduced miner distribution removes a persistent structural headwind. Miners have long represented a consistent source of selling in the market, given their need to cover operational costs. When that flow dries up at this scale, available sell-side supply contracts meaningfully.
That contraction does not guarantee price appreciation on its own. However, it does create conditions where demand-side forces face less resistance.
In that context, extreme miner inactivity can reasonably be read as a quiet form of market strength rather than passive behavior.
The Silent Warning Embedded in Extreme Low MPI Readings
Historical patterns complicate any straightforward bullish reading of extreme low MPI levels. Most Bitcoin cyclical price lows did not form precisely at the moment MPI hit its floor.
Instead, price recoveries tended to emerge as the metric began rising from those depressed levels, not while it sat at the bottom.
Extreme low MPI readings have also historically coincided with periods of miner stress, compressed margins, and macro uncertainty.
That context matters. Inactivity at this scale can reflect miners unable or unwilling to sell, rather than miners confidently holding in anticipation of gains.
MorenoDV_ acknowledged this nuance directly in his analysis. He noted that the absence of miner selling alone cannot sustain upward momentum without clear demand expansion.
Spot flows, ETF inflows, and derivatives positioning all remain necessary catalysts that MPI does not capture.
The signal becomes more actionable when MPI begins recovering from these lows alongside improving market conditions.
Until that recovery takes shape, extreme miner inactivity sits in an ambiguous space. It reduces one headwind, but it does not confirm the demand-side engagement needed to drive a sustained directional move.
TLDR:
- OpenAI plans to nearly double its workforce from 4,500 to 8,000 employees by the close of 2026.
- Most new hires will be deployed across product development, engineering, research, and sales divisions.
- OpenAI is recruiting “technical ambassadorship” specialists to help businesses maximize its AI tools.
- A $110 billion funding round valued OpenAI at $840 billion, backing its large-scale hiring strategy.
OpenAI is reportedly planning to nearly double its workforce from 4,500 to 8,000 employees by end of 2026. The Financial Times published this report on Saturday, citing two people with knowledge of the matter.The company did not respond to a request for comment by press time.
The expansion plan targets product development, engineering, research, and sales teams. This move comes as the company continues to scale its commercial operations across global markets.
A Focused Hiring Push Across Product, Engineering, and Sales
The company plans to direct most of the new hires toward product development, engineering, research, and sales. These four areas form the core of its technical and business growth strategy.
The ChatGPT maker operates as one of the most closely watched artificial intelligence firms globally. The Financial Times report, citing insiders, notes that the hiring plan is structured around these key functions.
The company is also stepping up recruitment for “technical ambassadorship” specialists. According to the FT report, these professionals are aimed at “helping businesses make better use of its tools.” This growing role reflects a broader push toward enterprise-level client support and integration.
The ChatGPT maker recently completed a $110 billion funding round that included Big Tech companies and SoftBank’s Masayoshi Son.
That round valued the company at $840 billion, making it one of the highest-valued private companies in the world. The capital raised provides the company with the financial resources needed to sustain large-scale hiring into 2026.
Internal Code Red and Market Competition Accelerate OpenAI’s Expansion
OpenAI CEO Sam Altman reportedly issued an internal “code red” directive in early December last year. The order paused non-core projects and redirected teams toward accelerating product development timelines.
This came as a direct response to Google’s release of Gemini 3, which intensified AI competition.
The code red move showed how seriously the company responds to competitive pressure in the AI sector. Redirecting internal resources and pausing non-essential work reflects a clear change in operational priorities.
It also signals that the company treats speed of delivery as a core part of its market strategy. This approach appears to be shaping how the company plans to scale operations in 2026.
SoftBank’s Masayoshi Son joined the $110 billion round alongside several major Big Tech investors. His participation, combined with broader tech involvement, pushed the valuation to “$840 billion,” as reported by Reuters.
With that financial base secured, OpenAI is well-placed to meet its workforce targets before the end of 2026.
Crypto World
Bitcoin options signal extreme fear as downside protection premium hits new all-time high, says VanEck
Bitcoin traders are paying record prices for downside protection, according to VanEck’s mid-March 2026 Bitcoin ChainCheck, a sign that investors remain defensive even as spot prices begin to stabilize.
In the report, senior VanEck analysts said bitcoin’s 30-day average price fell 19% from the prior period, while realized volatility dropped from about 80 to just above 50.
Futures funding rates also eased to 2.7% from 4.1%, suggesting leveraged speculation has cooled.
Options markets show investors are as cautious as it gets. VanEck said the put/call open interest ratio averaged 0.77 and peaked at 0.84, the highest level since June 2021, when China cracked down on bitcoin mining.
Traders spent about $685 million on put options over the past 30 days, while call premiums fell 12% to about $562 million, the report adds. Relative to spot volume, put premiums reached roughly 4 basis points, an all-time high in VanEck’s data.
“Relative to spot volume, put premiums reached an all-time high of roughly 4 basis points, roughly 3x the levels seen in mid-2022 following the Terra/Luna stablecoin collapse and the Ethereum staking liquidity crisis,” the report reads.
That means investors are paying up for insurance against further losses.
VanEck said that kind of fear has often marked turning points rather than fresh breakdowns. The firm found that, in the past six years, similar options that skewed readings were followed by average bitcoin gains of 13% over 90 days and 133% over 360 days.
The report also points out onchain activity has remained weak while miner selling remains contained.
TLDR:
- Tether holds $141B in U.S. Treasury exposure, ranking it 17th among all global government debt holders.
- The GENIUS Act legally requires stablecoin issuers to back every token with T-bills or dollar equivalents.
- China cut $86B in Treasury holdings as Japan signals drawdown, opening demand gaps stablecoins now fill.
- Apollo projects the stablecoin market could hit $2 trillion by 2028, potentially surpassing Japan’s Treasury position.
Stablecoins have quietly become a structural component of U.S. monetary policy. Tether and Circle now hold over $160 billion in U.S. Treasury securities combined.
That total places both companies above sovereign nations, including South Korea, Germany, and Saudi Arabia. A decade ago, neither existed in any meaningful financial capacity. Today, they rank among the most consistent buyers of American government debt on the planet.
The GENIUS Act Turned Stablecoin Reserves Into a Treasury Buying Mandate
The GENIUS Act, signed into law last year, reshaped how stablecoin issuers manage their reserves. The legislation requires each stablecoin token to be backed 1:1 with verified reserves.
Those reserves must be held in U.S. dollars, Treasury bills, or short-duration equivalent instruments. Congress did not only regulate stablecoins as it also created a legal mandate to buy Treasuries at scale.
Tether currently holds $141 billion in total U.S. Treasury exposure under this structure. Of that amount, $122 billion is held directly in T-bills.
The remaining portion is parked in overnight reverse repurchase agreements. That positions Tether as the 17th largest holder of U.S. government debt worldwide.
Circle’s USDC adds another $24.5 billion in Treasury reserves to the broader picture. About 93% of Circle’s total reserves sit in overnight repos and short-term government securities.
As TFTC noted on X, “Congress didn’t just regulate stablecoins. It created a legal mandate to buy Treasuries at scale.” Together, both issuers have become a growing class of captive Treasury buyers.
Tether also reported $10 billion in profit through the first three quarters of 2025. That result surpassed Bank of America’s earnings for the same period.
It also nearly matched figures posted by both Goldman Sachs and Morgan Stanley. Tether reached that level with a workforce of approximately 300 employees.
Stablecoins Fill the Demand Gap as Traditional Foreign Buyers Pull Back
China reduced its Treasury holdings by $86 billion over the past year. Its current position has fallen to the lowest level recorded since 2008.
Japan, the largest foreign holder at $1.2 trillion, is also signaling a slow drawdown. The traditional foreign buyer base for U.S. government debt is gradually narrowing.
Stablecoins are absorbing a share of that demand in real time. Every dollar minted as USDT or USDC creates automatic buying pressure for U.S. government securities.
The dollar also gets distributed globally through crypto payment rails. This mechanism extends dollar dominance without relying on traditional diplomatic or military tools.
Apollo estimates the stablecoin sector could reach $2 trillion by 2028. At that scale, stablecoin issuers would hold more Treasuries than Japan currently does.
TFTC stated that “the U.S. government now has a structural incentive to grow the stablecoin market.” That incentive is now embedded directly into federal legislation.
The growth of stablecoins serves both crypto markets and the broader U.S. fiscal structure. Each new token minted adds to Treasury demand in a measurable and automatic way.
This dynamic was not present in any meaningful form just five years ago. Stablecoins now function as one of the most reliable buyers of American sovereign debt.
Crypto World
Hong Kong Retiree Loses HK$6.6 million to Cryptocurrency Scam in Three Back-to-Back Frauds
TLDR:
- A 66-year-old Hong Kong retiree lost HK$6.6 million to three separate cryptocurrency scams in six months.
- Each scammer posed as a virtual currency expert on WhatsApp and vanished after receiving the transferred funds.
- Hong Kong police warn that anyone offering to recover scam losses is likely running a follow-up fraud.
- Police advise the public never to transfer cryptocurrency or money to unverified strangers’ accounts online.
A cryptocurrency scam has wiped out the life savings of a 66-year-old Hong Kong retiree in just six months. The victim fell for three separate fraud schemes between September 2025 and January 2026.
Each scammer posed as a virtual currency investment expert on WhatsApp. Hong Kong police disclosed the case via their “Net Keeper” cybercrime awareness platform. The total financial loss reached HK$6.6 million across the three incidents.
Retiree Falls for the Same Cryptocurrency Scam Three Times
The ordeal began when the victim received an unsolicited WhatsApp message in September 2025. A stranger, claiming expertise in virtual currency investment, initiated contact without prior introduction.
Trusting the individual, the retiree transferred HK$1.4 million in cryptocurrency to a designated account. Once the funds cleared, the so-called expert went silent and disappeared entirely.
Still hoping to recover the money, the victim searched online for another investment expert. A second contact then offered to help retrieve what was lost from the first incident.
The retiree transferred HK$600,000 as a deposit, believing the recovery was possible. That contact also disappeared immediately after receiving the payment.
In January 2026, a third scammer reached out through WhatsApp with a more convincing offer. This individual promised to recover losses from both previous incidents in one transaction.
The condition involved purchasing HK$4.6 million in cryptocurrency and depositing it into a specified account. After the transfer was completed, the third scammer vanished just as quickly as the others.
Each incident followed a near-identical structure, making the pattern recognizable in hindsight. The victim reported the fraud to police after each separate deception.
However, the desperation to recover funds made the retiree vulnerable to each new approach. Combined losses across all three incidents totaled HK$6.6 million, a lifetime of savings.
Hong Kong Police Warn Public Against Recovery Scams
Following the case, Hong Kong’s Cybercrime Bureau issued clear public warnings through the “Net Keeper” platform. Officers stated that no legitimate party can guarantee to recover money lost in a scam.
Anyone who approaches a fraud victim offering such services should be treated with immediate suspicion. This type of follow-up targeting is a recognized serial scam tactic.
Police also warned against trusting claims of “guaranteed returns” or access to “inside information.” These are common phrases used by scammers to establish false credibility with potential victims.
Transferring cryptocurrency or money to an unverified stranger’s account carries serious financial risk. Authorities advised the public never to do so, regardless of the reason given.
The case also shows how recovery fraud specifically targets people who have already been deceived. Scammers often identify prior victims and approach them with tailored recovery pitches.
The emotional distress of financial loss can cloud judgment and make people more susceptible. Acting on such offers without verification compounds the original damage further.
Anyone who suspects fraud is urged to contact police without delay. Reporting early can help authorities track criminal networks before more victims are targeted.
The public is reminded to verify the credentials of anyone offering financial or investment advice online. Caution, not urgency, should guide every cryptocurrency-related transaction.
Crypto World
XRP Battles Descending Channel Resistance While Ripple Quietly Absorbs the Global Financial System
TLDR:
- XRP has dropped 5.8% in three days and remains trapped inside an eight-month descending channel near $1.45.
- A confirmed breakout above channel resistance could push XRP to a price target range between $2.50 and $4.00.
- Ripple has spent over $2.25 billion on acquisitions, building a full-stack financial platform around the XRP Ledger.
- XRP holds digital commodity status with both the SEC and CFTC, with an OCC banking charter application now under review.
XRP remains at a critical technical juncture as the broader crypto market experiences a consolidation phase. The asset is down 5.8% over the last three days, currently trading near $1.45.
Chart analysts point to a descending channel resistance as the key barrier to recovery. Meanwhile, Ripple continues expanding its regulatory and institutional presence globally. Technical and fundamental forces are both shaping the asset’s near-term direction.
Technical Resistance Keeps XRP Below Key Breakout Levels
XRP is trading inside a long-standing descending channel that formed after the asset peaked at $3.6 in July. The upper trendline has acted as firm resistance for eight months.
The asset tested this trendline on October 2, 2025, and again on January 6, 2026. Both attempts failed to produce a sustained close above the resistance level.
Chart analyst Ray notes that a confirmed breakout could push XRP to between $2.50 and $4.00. That range reflects a potential gain of 77% to 180% from current levels.
However, the descending channel trendline remains the major barrier standing between current prices and those targets.
The recent pullback has come alongside a broader lull across the crypto market. XRP’s price action continues to follow the channel structure closely.
The Japan-to-Philippines corridor, cited as a key use case for XRP, carries billions in annual remittance volume. Traders are watching for a decisive close above the resistance line before confirming any directional shift.
Until that breakout occurs, the asset remains technically constrained within the channel. The pattern from the past eight months shows that resistance at the upper trendline has been consistent.
Each rejection has reinforced the channel’s relevance as an active price structure. A volume-driven close above the trendline would be the clearest signal of a trend reversal.
Ripple Builds Institutional and Regulatory Infrastructure Around XRP
Beyond chart patterns, Ripple has been assembling a vertically integrated financial stack. The company acquired Hidden Road for $1.25 billion and GTreasury for $1 billion. Other purchases include Rail, Palisade, Solvexia, Metaco, Standard Custody, Fortress Trust, and BC Payments.
These acquisitions bring payments, custody, treasury, and prime brokerage under one roof. Ripple now holds over 75 regulatory licenses globally. The company has filed for a VASP license in Brazil and holds a full EU EMI license. An OCC banking charter application is also under review.
X Finance Bull, a crypto commentator on X, drew attention to XRP’s advantages over traditional payment rails. The post noted XRP Ledger’s 3-5 second settlement and sub-cent transaction fees.
It compared these directly against SWIFT’s multi-day processing and a 6.5% average cost on a $200 remittance.
The asset has been classified as a digital commodity by both the SEC and the CFTC. The CLARITY Act is expected to bring further regulatory clarity to the digital asset space.
Ripple has also expanded operations across Dublin, London, Singapore, and Sydney. These moves position XRP collectively as a functional settlement layer within the modernizing global financial system.
The Freaky Truth About XRP…(Over?)
UFC London 2026 start time, schedule, fight card, how to watch and odds tonight
ETH Whales Return to Profit as Market Structure Points to Early-Stage Uptrend
-
Tech6 days agoYour Legally Registered ‘Motorcycle’ Might Not Count Under Proposed US Law
-
Fashion1 day agoWeekend Open Thread: Adidas – Corporette.com
-
Politics1 day agoJenni Murray, Long-Serving Woman’s Hour Presenter, Dies Aged 75
-
Tech4 days agoAre Split Spacebars the Next Big Gaming Keyboard Trend?
-
News Videos3 days agoRBA board divided on rate cut, unusually buoyant share market | Finance Report | ABC NEWS
-
Business6 days agoSearch for Savannah Guthrie’s Mother Enters Seventh Week with No Arrests
-
Crypto World21 hours agoNIO (NIO) Stock Plunges 6.5% as Shelf Registration Sparks Dilution Worries
-
Business5 days agoAustralian shares drop as Iran war enters third week
-
Crypto World5 days agoCrypto Lender BlockFills Enters Chapter 11 with Up to $500M in Liabilities
-
Politics3 days agoThe House | The new register to protect children from their abusers shows Parliament at its best
-
Fashion5 days ago25 Celebrities with Curly Hair That Are Naturally Beautiful
-
Tech2 days agoinKONBINI Lets You Spend Summer Days Behind the Register
-
Crypto World3 days agoCanada’s FINTRAC revokes registrations of 23 crypto MSBs in AML crackdown
-
Politics4 days agoReal-time pollution monitoring calls after boy nearly dies
-
NewsBeat3 days agoResidents in North Lanarkshire reminded to register to vote in Scottish Parliament Election
-
Business5 days agoMeta planning major layoffs as AI spending and automation reshape workforce
-
News Videos3 days agoPARLIAMENT OF MALAWI – PAC MEETING WITH REGISTRAR OF FINANCIAL ON AMARYLLIS HOTEL – INQUIRY LIVE
-
Politics6 days ago9 Stylish Leather Jackets Perfect For Spring 2026
-
Crypto World6 days ago
U.S. Oil Companies Post Record Profits as Oil Prices Break $100
-
Entertainment5 days ago
Oscars reunite Rob Reiner supergroup of 17 stars for emotional tribute: Here's who appeared on stage
You must be logged in to post a comment Login