Crypto World
Stablecoins Flow Back to Binance Amid Easing Macro Tensions
TLDR:
- Binance recorded daily stablecoin net inflows between $100M and $450M throughout April 2025, per on-chain data.
- Stablecoin reserves on Binance recovered roughly $6B after a steep drawdown of nearly $10B earlier in April.
- U.S. Core PPI for March came in at 0.1%, well below February’s 0.3%, easing broader inflation concerns for markets.
- Easing Strait of Hormuz tensions shifted investor sentiment, prompting gradual stablecoin redeployment onto exchanges.
Stablecoins are flowing back to exchanges as geopolitical tensions ease around the Strait of Hormuz. The start of the week shifted toward de-escalation, a move the market had already begun pricing in.
Supporting this, U.S. Core PPI data for March came in at 0.1%, well below the 0.3% of February. Against this backdrop, investors are redeploying stablecoins to exchanges, with Binance emerging as the primary destination.
Binance Sees Consistent Stablecoin Inflows Throughout April
On-chain analyst Darkfost reported that stablecoin (ERC-20) netflows on Binance have been dominated by inflows throughout April. Daily net inflows ranged between $100 million and $450 million across the month.
This steady movement of capital reflects a clear shift toward exchange positioning. Investors appear to be moving funds from off-exchange wallets back into active trading environments.
Darkfost noted that Binance is recording a net monthly average of approximately $4 billion in stablecoin inflows. This figure stands out against the uncertainty that weighed on markets in early April.
The data points to renewed interest in deploying capital within the crypto market. Traders are preparing to take positions rather than staying on the sidelines.
Meanwhile, stablecoin reserves on Binance have started recovering after a sharp drawdown earlier this month. After falling by nearly $10 billion, reserves have recovered approximately $6 billion.
This marks a meaningful return of liquidity to the exchange. It also shows that capital withdrawn during the downturn is finding its way back.
The rebound in reserves acts as a broadly constructive signal for the market. It shows that capital is not leaving the crypto ecosystem but rather being repositioned within it. This trend, while still early, points to growing confidence as macro conditions improve.
Easing Macro Environment Shapes Cautious Investor Positioning
The macroeconomic picture played a direct role in shifting investor behavior this week. Easing tensions in the Strait of Hormuz reduced risk aversion across global markets.
The crypto market had already begun pricing in the de-escalation before it fully materialized. This early repricing set the tone for renewed exchange activity.
Adding to the improved mood, U.S. Core PPI data for March printed at 0.1%. This was well below the 0.3% recorded in February.
It showed the U.S. economy absorbed energy-driven inflation without it spreading broadly into production costs. For risk assets, including crypto, this was a positive reading.
Despite the improving tone, the situation remains fragile, as Darkfost cautioned in the analysis. Geopolitical conditions in the Strait of Hormuz can shift quickly and without warning.
A reversal in tensions could slow or reverse the positive trend in stablecoin flows. Investors are advised to stay alert and manage risk accordingly.
Overall, the Binance data tells a story of gradual repositioning. Stablecoins are returning to exchanges as investors prepare for market activity.
The recovery in reserves, combined with consistent daily inflows, points to a cautious but growing readiness to act.
Bitcoin traded around $74,700 in Asian morning hours Friday, down 0.4% over 24 hours but still up 3.5% on the week, as a 10-day rally in global equities paused ahead of next week’s U.S.-Iran ceasefire expiry.
Ether gave back 1.4% to $2,327 but still leads the majors on the weekly tape at 6%, extending the outperformance that emerged earlier this week. XRP held $1.43 with a 6.4% weekly gain, solana ticked up 2.7% to $87.67, BNB added 0.7% to $629.89, and dogecoin was up 5.6% on the week at $0.0976.
The MSCI All Country World Index closed at a record high Thursday before slipping 0.1% in Asia. The S&P 500 also hit an all-time high. Brent crude fell 1.2% to $98.20 after President Donald Trump said prospects for a permanent Iran ceasefire were “looking very good.”
Trump claimed, without evidence, that Tehran had agreed to give up its nuclear ambitions, turn over nuclear material, and reopen the Strait of Hormuz as part of the deal. Iran has not confirmed those concessions.
A 10-day ceasefire between Israel and Lebanon was announced separately on Thursday, with Israeli Prime Minister Benjamin Netanyahu confirming the truce in a video message. Markets are trading the headlines as if the deal is closer than it is, which is part of why equities have unwound most of the war premium while crude remains near $98 and the Strait of Hormuz is still effectively shut.
However, the setup underneath the flat bitcoin price action is what some traders are paying attention to.
Bitcoin perpetual funding rates have turned deeply negative in recent sessions, reaching levels last seen in 2023. Funding is the periodic payment perpetual futures traders exchange with each other to keep contract prices aligned with spot. When it goes negative, shorts are paying longs, which only happens when the market is heavily positioned against price.
“Funding rates this negative tell you the market is heavily short,” Daniel Reis-Faria, CEO of ZeroStack, said in a note shared with CoinDesk. “If Bitcoin continues to move higher despite that, a lot of those positions could get liquidated, and the move can accelerate quickly.”
Reis-Faria expects bitcoin could reach $125,000 in the next 30 to 60 days if the short base gets squeezed out.
“It’s a reminder that no matter how much shorting is in the market, the amount of buy pressure, especially from large companies, can squeeze those positions out,” he said.
The contrarian read from on-chain analyst CryptoVizArt is that bitcoin’s “True Market Mean,” a metric that estimates the average cost basis of active investors by filtering out lost and dormant coins, suggests the average active holder is currently underwater.
Since 2016, meaningful stretches below the True Market Mean have aligned with bitcoin’s worst periods, including the 2018-19 bear (-57% max drawdown, 282 days) and the 2022-23 unwind after the Luna and FTX collapses (-56%, 339 days).
The two reads do not have to be in conflict. A short squeeze from negative funding and a structural drawdown from underwater holders can both be true, with the former triggering the kind of outsized rally that ultimately gets sold into by the latter.
Which scenario dominates likely depends on whether the U.S.-Iran ceasefire extension holds past next week.
Sanctioned crypto exchange Grinex said it has suspended trading after losing more than 1 billion Russian rubles ($13.7 million) to an attack bearing signs of involvement by foreign intelligence agencies.
The exchange, which is registered in Kyrgyzstan but has been linked to Russia’s crypto ecosystem and alleged sanctions evasion, said on Thursday that the funds were taken from 54 addresses and that the digital footprint and nature of the attack indicate an “unprecedented level of resources and technology available only to entities of hostile states.”
“Due to the attack, the Grinex exchange has been forced to suspend operations. All available information has been transferred to law enforcement agencies. A criminal complaint has been filed at the location of the infrastructure,” it added.
Grinex had been widely seen as the successor to the similarly sanctioned Garantex exchange. Both have been accused by US authorities of assisting Russia and other entities in evading sanctions and laundering funds for Russia-linked hackers.
Elliptic founder Tom Robinson has accused it of being the primary platform for trading A7A5, a ruble-backed stablecoin linked to sanctions evasion.
A Grinex spokesperson told Cointelegraph last year that it strongly condemns any form of illegal activity, including sanctions evasion and money laundering.
Another exchange might have been hit by the same attacker
Grinex may not have been the only exchange targeted. Blockchain intelligence company TRM Labs said on Thursday that two wallets from TokenSpot, a Kyrgyzstan-based exchange with on-chain links to Grinex, sent around $5,000 to the same consolidation address used by the Grinex attacker.
TokenSpot’s Telegram channel announced technical work and a brief platform outage on April 15, followed the next day by an announcement that it had resumed full operations.
At the same time, TRM Labs said it has identified 16 additional addresses linked to the incident in addition to those Grinex publicly disclosed. The consolidation address where all the funds have been sent contains 45.9 million TRON (TRX), worth nearly $15 million.
Hacker might have stolen $15 million in USDT
Blockchain analytics firm Elliptic said it tracked about $15 million in USDt (USDT) leaving Grinex accounts. The funds were then sent to accounts on the Tron or Ethereum blockchains.
Related: Ukraine arrests FBI-wanted cybercrime suspect, seizes $11M in assets
“This USDT was then converted to another asset, either TRX or ETH. By doing so, the thief avoided the risk of the stolen USDT being frozen by Tether,” the company said.
This is not the first time an exchange accused of helping entities evade US sanctions has been targeted. Iran-based exchange Nobitex had $81 million drained in June 2025, with a pro-Israel hacker group claiming responsibility.
Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Crypto payment gateways gain traction as blockchain reshapes everyday transactions.
Summary
- Crypto POS gateways gain traction as stablecoins reshape payments, with Polygon aiming to close usability gaps.
- Stablecoins boost cross-border payments and speed, but challenges remain as Polygon works on seamless adoption.
- Crypto payments evolve beyond investment use, with Polygon set to enhance stablecoin usability in e-commerce.
The ability to perform online payments is often taken for granted, as fiat-based methods have essentially become a part of daily life. However, cryptocurrency point-of-sale gateways are once again beginning to transform the entire ecosystem. Offering a host of user-friendly features in tandem with elements unique to the blockchain, many analysts hail crypto-friendly platforms as the wave of the future.
However, even stablecoins can suffer from a handful of drawbacks. This is why additional changes must be made to further streamline the process if we hope to provide consumers, and e-commerce platforms alike, with the solutions they have been searching for. Let’s see how Polygon will soon be able to bridge this gap so that we can better appreciate what the not-so-distant future has in store.
The stablecoin revolution
It is impossible to deny the positive impacts that stablecoins have had upon the online payment community. While it can be argued that anonymity is one of their most important selling points, other blockchain-native benefits exist. For instance, cross-border payments have become a reality (a crucial selling point for e-commerce hubs hoping to cater to an international marketplace). Consumers can likewise leverage the anonymous nature of stablecoins. When combined with faster processing times and tokens that can sometimes act as hedges against inflation, it becomes clear to see why cryptocurrencies represent far more than one-off investment opportunities.
Good, but far from perfect
The only issue is that cryptocurrencies can still suffer from a handful of possible drawbacks. One major pitfall involves a somewhat fragmented presence across the global marketplace. In other words, the availability of stablecoins can often vary from region to region. Other possible pain points include:
- Occasionally slow settlement times
- High transaction fees
- Difficulty upgrading point-of-sale infrastructure (a particular concern for online merchants)
- Challenges when performing token swaps
- On- and off-ramping friction
Not only might these elements detract from the public appeal of stablecoin transactions, but they can present additional hurdles that e-commerce providers will need to overcome. The good news is that things are soon about to change thanks to a novel initiative by Polygon.
The Polygon Open Money Stack
Perhaps the best way to describe the Open Money Stack is to refer to a quote from Polygon founder and CEO Sandeep Nailwal:
“Open, seamless, and interoperable.”
Open Money Stack promises to address many of the same issues highlighted in the previous section of this article. So, what does this system have in store? Why should it be able to provide relief to consumers, and businesses alike?
Vertical integration
Open Money Stack can be seamlessly integrated into existing POS architecture; taking much of the guesswork out of implementation. Furthermore, this system is modular by design. Vendors can select which features are required while still being able to connect with other networks.
Reducing the need for multiple service providers
This is yet another pitfall that some stablecoins have yet to overcome. The problem with multiple service providers is that relying on numerous nodes can lead to sluggish processing times; a real issue for vendors hoping to provide lightning-fast payment solutions. Increased fees could also be present; resulting in most costly end-user transactions, or forcing the seller to absorb the associated costs. The one-size-fits-all design of Open Money Stack addresses these drawbacks.
Keeping conversion woes at bay
Fiat/crypto exchanges are a regular occurrence throughout the e-commerce community, and the processes are sometimes convoluted. On- and off-ramping can be sluggish, costly, and dependent on existing infrastructure. Polygon’s Open Money Stack aims to provide an efficient solution thanks to its cross-chain interoperability. This will help to reduce friction, to simplify how consumers interact with the systems, and ultimately, to lower cart abandonment rates.
A coming paradigm shift
The Polygon Open Money Stack seeks to provide even more targeted solutions to consumers and e-commerce vendors. Even though core aspects of the stack are already live (like its enterprise grade wallet suite and the Polygon Chain), the rest is expected to go live later in 2026; already, this system has begun to make headlines across the cryptocurrency community. Analysts feel that Open Money Stack could very well usher in an entirely new era of digital payments; great news for buyers and sellers alike.
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
Bitcoin hovers near $75k with on-chain data flagging $76,800 as key resistance, while Morgan Stanley’s cut‑price MSBT ETF pulls in $100m amid easing macro headwinds.
Summary
- Bitcoin is trading near $75,000, with on-chain data flagging $76,800 as key resistance where short-term holders may take profits.
- A new Morgan Stanley spot bitcoin fund has already attracted more than $100 million in inflows with a market‑low 0.14% fee, intensifying ETF fee competition.
- Geopolitical tensions, a weaker dollar and lower U.S. yields are supporting BTC, even as Iran risk and energy prices keep inflation fears alive.
Bitcoin (BTC) is hovering around $75,000 as on-chain cost metrics cluster near $76,800, a level CoinDesk says could act as a major resistance where short-term holders begin to sell into strength. The analysis suggests that when BTC pushes into short-term holders’ realized price band, supply often spikes as investors “break even,” raising the odds of profit‑taking and a near‑term pause or pullback.
CoinDesk reports that market sentiment has been buoyed by news of an extended ceasefire between the U.S. and Iran, with the dollar sliding to a near six‑week low and U.S. Treasury yields drifting lower, a combination that typically supports risk assets and non‑yielding hedges such as bitcoin and gold. Gold has been rising alongside BTC, signaling what the outlet describes as a market trying to balance risk appetite with lingering demand for safe‑haven assets.finance.
On-chain data tracked by firms such as CryptoQuant shows that as bitcoin approaches the $76,800 realized price for short-term holders, supply to exchanges tends to increase, echoing a pattern seen in earlier rallies where that band acted as a ceiling. A recent note highlighted hourly BTC inflows to exchanges jumping to roughly 11,000 BTC as price tested the mid‑$76,000s, the strongest pace since December, which historically has signaled mounting sell pressure at resistance zones.
At the same time, institutional demand remains firm. Morgan Stanley’s new MSBT spot bitcoin fund, listed on NYSE Arca with a 0.14% annual fee, has already drawn more than $100 million in inflows and is now the cheapest spot BTC ETF in the U.S. market, undercutting BlackRock’s IBIT at 0.25%. Unchained and other industry trackers reported MSBT logged about $34 million in first‑day net inflows and strong early volume, a sign that large advisors are actively rotating client flows into the bank’s in‑house product.
CoinDesk notes that the new inflows come as U.S. spot bitcoin ETFs collectively hold more than 1.2 million BTC, or over 6% of total supply, giving traditional finance vehicles an outsized role in marginal bitcoin demand. Meanwhile, the U.S. blockade of Iranian ports and Tehran’s threats to disrupt shipping in the Persian Gulf continue to cloud the global growth outlook, with knock‑on effects on energy prices and inflation expectations that could, in turn, influence central bank policy and risk sentiment toward crypto.
In recent crypto.news coverage, analysts stressed that $68,000 remains a key downside “line of defense” for bitcoin, with the current range between that level and roughly $75,000 framed as the most consequential band of 2026 as macro, geopolitical and ETF flows collide. Other crypto.news articles have highlighted how short‑term holder behavior and realized price bands have repeatedly marked local tops and consolidation zones during this cycle, a dynamic now converging again around $76,800.
Summary
- JPMorgan says CLARITY Act talks have narrowed to 2–3 core disputes as senators race to finalize a stablecoin deal before midterms.
- The bill would ban passive yield on stablecoin balances while allowing activity-based rewards, reshaping revenue models for issuers like USD Coin.
- Coinbase and major banks have clashed over the yield language, with a White House compromise now framing “idle yield” as off‑limits but transactional incentives as acceptable.
Negotiations over the U.S. CLARITY Act, a sweeping digital asset market structure bill, have entered their final stage, with JPMorgan analysts saying the number of disputed issues has fallen from more than a dozen to just two or three core questions centered on stablecoin rewards and regulatory oversight.
Final-stage talks on CLARITY Act stablecoin rules
The talks, which are unfolding in Washington ahead of the 2026 midterm cycle, aim to bolt a durable federal framework for stablecoins and broader crypto markets onto last year’s GENIUS Act, the first U.S. law to license dollar‑pegged payment stablecoins.
In a recent research note, JPMorgan argued that passage of the CLARITY Act could become a key positive catalyst for digital asset markets in the second half of 2026 by finally settling the jurisdictional split between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The political fight has focused on how far Congress will go in banning yield on stablecoin balances, a feature that has become a major revenue engine for exchanges and wallet providers.
According to FinTech Weekly, the latest Senate draft “bans passive yield on stablecoin balances” but permits “activity-based rewards tied to loyalty programmes, promotions, subscriptions, transactions, payments, and platform use,” with the SEC, CFTC and Treasury given twelve months to define the precise boundaries and anti‑evasion rules.
Coinbase chief legal officer Paul Grewal told Fox Business that negotiators are “very close to a deal” on the yield language and said he expects the bill to move toward a Senate Banking Committee markup and eventually a floor vote after the recess.
Banks, led publicly by JPMorgan, have pressed lawmakers to ensure that stablecoin products offering yield face bank‑level oversight to avoid what they describe as regulatory arbitrage against traditional deposits.
On JPMorgan’s first‑quarter earnings call this week, chief financial officer Jeremy Barnum warned that yield‑bearing stablecoins risk becoming “a tool for regulatory arbitrage unless they are held to the same strict oversight and consumer protection standards as traditional bank deposits,” remarks that landed squarely in the middle of the CLARITY negotiations.
The White House has tried to broker a compromise by drawing a line between “idle yield” for simply holding a token and transaction‑linked rewards, with one recent proposal described by BVNK analyst Stewart Will as an attempt “to prevent massive deposit flight from traditional banks to high‑yield digital assets” while still allowing stablecoins to function as a low‑haircut settlement layer.
For issuers such as USD Coin, which currently trades around $0.9998 with an estimated market capitalization of roughly $78.6 billion, the final shape of the law will determine how far platforms can go in layering incentives on top of basic dollar‑pegged balances without triggering securities or banking rules.
The CLARITY bill also interacts with the GENIUS Act, enacted in 2025 to require key payment stablecoins to be backed one‑for‑one by cash or short‑term Treasuries and to obtain a federal or state licence as a Permitted Payment Stablecoin Issuer.
Policy analysts at Brookings say that GENIUS‑regulated payment stablecoins sit in a distinct category outside of both securities and traditional bank deposits, leaving CLARITY to decide how those instruments plug into capital markets, DeFi protocols and tokenized bank money such as JPMorgan’s own deposit token projects.
As senators race to lock in text before election politics harden, JPMorgan has framed approval of the CLARITY Act by mid‑2026 as a “key positive catalyst” that could unlock institutional participation in crypto once stablecoin rules, yield limits and agency mandates are finally pinned down.
European companies exploring Bitcoin treasury strategies are unlikely to replicate the playbook pioneered by Michael Saylor’s Strategy, according to industry executives, who pointed to structural differences between US and European capital markets.
Speaking at Paris Blockchain Week 2026, Thomas Vogel, a partner in the Paris and Frankfurt offices of Latham & Watkins, said the constraints on issuing financial instruments in Europe differ significantly from those in the US, making a direct replication of the model difficult.
“If you issue convertibles in the US, the constraints are not the same as when you issue them out of a French balance sheet or a balance sheet in Europe,” Vogel said, pointing to differences in market depth, regulation and investor behavior.
Alexandre Laizet, who leads Bitcoin (BTC) strategy at France-based treasury firm Capital B, said European firms are instead looking to local market infrastructure, including French public markets and Luxembourg-based structures, to raise capital tied to Bitcoin exposure.
The remarks suggest Europe’s Bitcoin treasury model is likely to evolve as a local adaptation rather than a direct copy of Strategy’s US playbook.
Europe’s listed holders remain small
A growing number of European public companies now hold Bitcoin on their balance sheets, but the market remains fragmented across small and mid-cap names.
According to data from BitcoinTreasuries.net, Germany-based Bitcoin Group SE held 3,605 BTC worth about $268 million at the time of writing, though it has not disclosed its average cost or profit and loss.
Related: EU adviser says ‘MiCA 2’ is likely as crypto market matures: PBW 2026
Capital B held 2,925 BTC at an average cost of $99,932 per Bitcoin, reflecting a roughly 25.6% unrealized loss. In contrast, Sequans Communications, also based in France, held 2,139 BTC, with cost and performance data not disclosed.
Other European names show similar pressure from recent price moves. Netherlands-based Treasury held 1,111 BTC at an average cost of $111,857, representing about a 33.5% unrealized loss, while Sweden’s H100 Group held 1,051 BTC at an average cost of $114,615, with an unrealized loss of around 35.1%
The gap in scale remains significant compared with the US. On Monday, Strategy acquired 13,927 Bitcoin for about $1 billion in a single week, bringing its total holdings to 780,897 BTC.
Magazine: Bitcoin will not hit $1M by 2030, says veteran trader Peter Brandt
XRP spot ETFs recorded $17.11 million in net inflows on April 15, their largest single-day intake in nearly 11 weeks, as four consecutive days of positive flows pushed combined assets under management above $1.25 billion.
Summary
- XRP spot ETFs drew $17.11 million on April 15, the strongest single-day inflow since February 3, 2026, bringing a four-day total to $38.86 million.
- Combined US-listed XRP ETF assets under management crossed $1.25 billion as the token rallied 6% to $1.42 on Thursday, reclaiming fourth place by market cap.
- Analysts say the CLARITY Act roundtable and Ripple’s new tokenized bond pilot with Kyobo Life are adding regulatory and utility tailwinds behind the inflow surge.
XRP (XRP) spot ETFs logged their largest single-day inflow in nearly 11 weeks on April 15, with $17.11 million flowing into US-listed products, per SoSoValue data. The figure marks the strongest daily intake since February 3, 2026, and extends an inflow streak to four consecutive sessions for the first time since March.
Over those four days, US-listed XRP ETFs drew a combined $38.86 million, pushing total net assets to over $1.25 billion. XRP itself rose 6% to $1.42 on Thursday, outperforming every other token in the top 10 by market cap.
The timing aligns with a broader improvement in crypto market sentiment driven by US-Iran ceasefire diplomacy and easing macro risk. XRP specifically has been benefiting from additional catalysts beyond the macro backdrop.
The SEC’s CLARITY Act roundtable, which kicked off in Washington today, is being closely watched by the XRP community as it could clarify the regulatory treatment of digital assets used in payments, an area where XRP has direct exposure. The prospect of legislative progress has brought institutional buyers back to the ETF market.
Ripple’s announcement on April 14 of a tokenized government bond pilot with South Korea’s Kyobo Life Insurance also reinforced XRP’s real-world settlement utility, adding a fundamental narrative alongside the technical inflow momentum. XRP ETFs posted a record $119.6 million across global products the week ending April 11, driven largely by European buyers, before Wednesday’s US-led single-day surge reset the domestic record.
What Analysts Are Watching
XRP remains roughly 23% below its January 2026 high despite Thursday’s rally. Analysts say the $1.60 level, which aligned with XRP’s March 17 high, is the first meaningful resistance test. A sustained hold above $1.40 is needed to avoid a false breakout reading on the chart.
The four-day inflow streak is constructive because XRP’s exchange supply has dropped to multi-year lows, meaning ETF accumulation is absorbing tokens from an already thin exchange order book. When ETF demand meets low exchange supply, price elasticity tends to increase on the upside.
XRP price has rallied 6% to $1.42 with its market cap moving back above $87 billion, with further upside contingent on clarity from today’s SEC roundtable and continued ceasefire progress reducing the macro headwinds that have kept risk assets pressured since February.
Blockstream CEO Adam Back said Thursday that a future post-quantum migration of Bitcoin could help clarify how many coins linked to Satoshi Nakamoto remain accessible, because any owner wanting to protect vulnerable holdings would need to move them to a new address format.
Speaking at Paris Blockchain Week, Back said such a migration would likely give users ample time to move funds and argued that coins left unmoved after that process could reasonably be treated as lost.
“This migration to post-quantum address format may tell us how many of those coins [Satoshi] still has,” said Back, adding that the pseudonymous creator has an estimated 500,000 to 1 million Bitcoin (BTC).
Satoshi’s Bitcoin stash has ignited heated debate among Bitcoin holders concerned by the quantum computing threat. On Wednesday, Jameson Lopp and five co-authors published a Bitcoin Improvement Proposal aimed at restricting the future movement of coins held in quantum-vulnerable address formats, including older coins whose public keys have already been exposed.
Blockchain data platform Arkham estimates that Nakamoto-linked wallets hold 1.09 million Bitcoin, currently valued at $81.6 billion.
Related: Bernstein says Bitcoin market already priced in quantum risk
Back sees long runway on quantum
Back said Bitcoin developers and holders still have substantial time to prepare, arguing that a quantum breakthrough capable of threatening Bitcoin signatures is at least 20 years away.
He argued that today’s quantum computers are “less powerful than a $5 calculator” and that some of their issues become more pressing as these systems scale, such as their energy consumption.
Back said that runway should give developers and users ample time to develop a post-quantum path and migrate to a new quantum-resistant standard underpinned by hash-based signatures.
In December 2025, Back’s Blockstream Research released a paper proposing a hash-based signature scheme that offers a “promising path for securing Bitcoin in a post-quantum world,” as a quantum-safe replacement for the ECDSA and Schnorr signatures. Under the proposal, security would rely solely on hash function assumptions, similar to the ones currently used in Bitcoin’s network design.
The Elliptic Curve Digital Signature Algorithm (ECDSA) uses elliptic-curve cryptography to verify the authenticity and integrity of a message. Schnorr signatures are another signature scheme praised for enhancing privacy and reducing data size, due to their ability to combine multiple signatures into one.
Magazine: Bitcoin vs. the quantum computer threat — Timeline and solutions (2025–2035)
Circle Internet Group faces a class-action in a Massachusetts federal court over claims it failed to intervene as attackers siphoned funds during the Drift Protocol exploit. The lawsuit, filed by Drift investor Joshua McCollum on behalf of more than 100 claimants, contends Circle’s Cross-Chain Transfer Protocol (CCTP) allowed approximately $230 million worth of USDC to be moved from Solana to Ethereum over several hours on April 1 without timely action.
The plaintiffs allege that Circle’s inaction caused or substantially contributed to the losses and seek damages to be determined at trial. The case underscores ongoing questions about whether crypto firms that maintain control over user funds can or should intervene in real time to curb theft or misuse, and how that potential responsibility should be calibrated against regulatory constraints and legal authority.
Key takeaways
- The lawsuit alleges Circle had the technical capacity to freeze compromised funds, pointing to a prior action where Circle froze 16 USDC wallets in connection with a sealed civil case.
- The Drift attack leveraged Circle’s cross-chain facilities to move roughly $230 million in USDC from Solana to Ethereum over several hours, with the suit asserting Circle did not act to halt the transfers.
- Analysts at Elliptic have linked the exploit to DPRK-state–backed actors, noting the movement of funds through the network during U.S. business hours and subsequent attempts to obfuscate the trail via privacy tools.
- Circumstances surrounding the incident have reignited debate about the liability of DeFi and infrastructure providers when user funds are stolen, including arguments that freezing assets without a court order may create perverse incentives or political considerations for future action.
- Circle did not immediately respond to requests for comment, while industry observers and investors weigh the legal and policy implications for future risk management and user protection.
What the suit alleges and why it matters
The court filing, lodged in a Massachusetts district court, asserts that Circle “permitted this criminal use of its technology and services” and that timely intervention could have substantially reduced, if not prevented, the losses. The action frames Circle as potentially aiding and abetting conversion and as negligent in supervising the use of its own cross-chain tooling. The allegations hinge on the argument that Circle had, or should have had, the ability to freeze funds or intervene in the flows that enabled the theft, even if regulators and legal authorities did not immediately grant a freezing order.
As part of the filing, McCollum’s legal team notes that Circle froze 16 USDC wallets in connection with a separate sealed civil matter about a week before the Drift incident—an occurrence they say demonstrates Circle’s capacity to intervene in real time when needed. The docket referenced in the court filing is publicly accessible, and the plaintiffs point to that prior action as evidence of proportional capacity to halt similar transfers.
The broader question the case raises is whether firms that sit at the center of crypto rails bear a responsibility to act when wrongdoing is detected or suspected. In many cases, executives acknowledge practical constraints, including the lack of explicit legal authorization during fast-moving exploits. The Massachusetts suit seeks to compel accountability and damages, but it also spotlights a broader, unresolved tension between rule-of-law principles and the operational realities of decentralized finance ecosystems.
The Drift exploit, the mechanics, and the alleged response gap
The Drift Protocol incident involved a sequence of transfers that moved a large tranche of USDC across networks via Circle’s CCTP. The complaint alleges that attackers succeeded in moving about $230 million worth of USDC from Solana to Ethereum without timely intervention from Circle, enabling proceeds to be wired into a different chain against the users’ interests.
According to the plaintiffs, Circle’s tools were capable of halting or reversing suspicious activity, and the failure to intervene allowed the attackers to drain liquidity from one ecosystem into another. The suit frames Circle’s inaction as a failure to protect user funds, arguing that the consequences extended beyond the individuals directly affected to the broader ecosystem—potentially dampening confidence in cross-chain tooling and in platforms that retain de facto control over user tokens during such crises.
Commentary from the plaintiffs’ counsel emphasizes that the losses might have been less severe had Circle exercised timely control, raising questions about the threshold of permissible intervention for centralized crypto services in edge cases of theft or misappropriation. Circle’s response to the suit has not yet materialized in public commentary, and the company did not immediately respond to Cointelegraph’s request for comment.
Tracing the funds: laundering routes and attribution
Elliptic researchers have flagged the Drift exploitation as being consistent with DPRK-linked activity. In a post-creach analysis, the firm noted that more than a hundred transactions related to the assault occurred during U.S. working hours, a detail seen as relevant to attribution efforts and to understanding the operational tempo of the attackers. Elliptic’s assessment also describes how the proceeds were converted into Ether (ETH) and routed through privacy-oriented channels, including the Tornado Cash protocol, in an attempt to obfuscate the trail.
While attribution in crypto forensics remains complex and often contested, the Elliptic findings contribute to a broader narrative about the transnational and cross-chain nature of such exploits. The Drift incident has become part of a larger discourse on how sanctions-enforcement and tracing capabilities intersect with the practical realities of on-chain finance, and how firms that provide bridging and custody solutions fit into that equation.
“Whether Circle got it right comes down to how much you weigh rule-of-law principles vs concrete harm. Reasonable people disagree.”
Industry observers note that the Drift case sits at a crossroad: it tests the boundaries of what action is considered appropriate when funds are believed to have been stolen, and what legal authorities would be required to justify a freeze or rollback in a permissionless network context. The case also intersects with ongoing debates about the liability for DeFi developers and infrastructure providers when episodes of misuse occur on the rails they maintain.
Liability, intervention, and the investment view
In the wake of the lawsuit, the debate over liability intensified among investors and researchers. Lorenzo Valente, the director of research for digital assets at ARK Invest, argued that Circle’s decision to abstain from freezing funds in the absence of a legal order represents a defensible stance in strict adherence to rule-of-law principles. He contended that freezing assets without a court directive could invite arbitrary discretion and undermine established legal standards, framing the case as part of a bigger constitutional risk debate for crypto rails that operate across borders and jurisdictions.
Valente’s position reflects a broader sentiment in some investor and academic circles: that the legal architecture surrounding crypto infrastructure is still catching up to the pace and sophistication of on-chain activity. The case also underscores a key strategic tradeoff for users and builders: the tension between technical capability to intervene and the legitimate need for careful, legally grounded action that does not set dangerous precedents for arbitrary asset freezes.
As the legal process unfolds, observers will watch for how the court interprets the responsibilities of crypto infrastructure providers and whether any settlement or court ruling could redefine the standard for future incidents. The Drift lawsuit is not the only lens on this issue, but it is among the most high-profile, given the scale of funds involved and Circle’s central role in bridging assets across chains.
What readers should watch next
The case is still early in its trajectory, and the court has yet to determine the appropriate remedies or establish a clear framework for liability in similar contexts. Key questions to watch include whether a court will require or authorize asset freezes in future incidents, how damages will be calculated, and what this could mean for cross-chain infrastructure providers and custody services.
Regulators and lawmakers, too, will likely scrutinize the evolving balance between proactive risk management and the prescriptive limits of authority over private-led, permissionless networks. For investors and users, the underlying takeaway is that accountability mechanisms for crypto rails are still taking shape—and how those mechanisms emerge could influence risk models, product design, and regulatory engagement in coming quarters.
As Circle and the Drift investors navigate these questions, market participants will be watching for any legal milestones, potential settlements, or policy clarifications that could tilt how similar incidents are managed in the future. The evolution of this case could help define whether asset freezes become a common tool in crisis management or remain extraordinary measures bound by formal due process.
Bitcoin (BTC) struggles to reclaim price highs above $76,000, but analysts say that the uptrend may continue if key conditions are met.
Bitcoin’s 8% climb over the last three days saw it reclaim key levels, including the 50-day exponential moving average (EMA) at $71,000.
“$76K is the level that decides everything,” analyst Crypto Patel said in a Wednesday post on X, adding:
“We need a proper HTF candle close above this zone to trust the move.”
Related: Bitcoin falls to lower support as analysts say markets are ignoring key Iran issue
The analyst further explained that a high-time frame close above $76,000 would open the path toward the $84,000-$96,000 zone, where investors acquired more than 2 million BTC over the last six months, according to Glassnode’s cost basis distribution heatmap.
Echoing this view, trading resource Material Indicators said that “there are multiple levels of technical resistance stacked” between the spot price and a “bonafide $BTC bull market breakout.”
These include the yearly open at $87,500 and the 50-week moving average at $97,000, which must be reclaimed to confirm that the “$BTC bull market has returned,” Material Indicators said in a follow-up post.
The trading resource further pointed out that the relative strength index must close and hold above the 41 level in the weekly time frame.
Previous occurrences in 2023, 2020 and 2019 have led to 660%, 1,600% and 316% BTC price rallies, respectively.
“Obviously, we are not there yet,” Materials indicators said in a video posted on X, adding:
“Those are the macro things that need to happen to say a validated bull market is on.”
For analyst Rekt Capital, the BTC/USD pair needs to achieve a weekly close above $72,800 to “confirm a breakout.”
As Cointelegraph reported, the bulls must decisively break above the $76,000-$80,000 range to confirm a trend change.
Optimism needs to return to the BTC market
The bull score index, a measure of Bitcoin’s overall market health that combines fundamental and technical metrics, indicates a significant improvement in market conditions following BTC’s latest move to $76,000.
The metric increased to 40 on April 15, the highest since late October 2025. This reading remains within neutral territory, reflecting a gradual recovery after a period of relatively weak momentum.
While the bull score index improvement to 40 “reflects relative stability in the market,” it must rise to an area of “strong optimism (above 60), which typically indicates strong bullish conditions,” CryptoQuant analyst Arab Chain said in a Quicktake post, adding:
“If the indicator continues to improve gradually, it may signal a potential return of upward momentum, especially if higher levels are reclaimed in the coming period.”
Meanwhile, demand for spot Bitcoin ETFs remains intermittent, with these investment products recording alternating inflows and outflows after every few days.
Although the $451 million in net inflows recorded on Tuesday pointed to a return in demand from US investors, persistent positive flows are required to propel BTC price higher.
As Cointelegraph reported, onchain activity is showing “bull market behavior,” with Bitcoin’s daily transaction count reaching 17-month highs, further reinforcing BTC’s upside potential.
This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
Bulls target $125,000 as U.S.-Iran peace talks trigger risk-on mood
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The price#motivation #lifelessons #quotes #money #moneymindset
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