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Crypto crash to end soon? Recovery possible, indicators show

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crypto fear and greed index

The crypto crash accelerated this week, with Bitcoin price plunging to $60,500, its lowest level since October 2024, and the market capitalization of all coins moving to $2.2 trillion.

Summary

  • The crypto crash accelerated this week as most coins tumbled.
  • The Fear and Greed Index has fallen to extreme levels. 
  • Technical analysis suggests that it has become highly oversold.

Why the crypto crash is happening

The ongoing crypto market retreat is influenced by a mix of global economic concerns and investor sentiment. Rising tensions between the U.S. and Iran have added uncertainty, with both sides issuing warnings that any escalation could impact the region and potentially affect oil prices. However, there are no confirmed reports of U.S. military action, and any link between geopolitical fears and crypto price movements is speculative.

Bitcoin and altcoins also dropped as investors rotated out of risk assets and into value ones. A good example of this is the stock market, where the tech-heavy Nasdaq 100 Index has slumped, while value ETFs like the Vanguard Value ETF and the Schwab US Dividend ETF have soared to record highs. 

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Additionally, the rising crypto ETF outflows and soaring liquidations put more pressure on these assets. Spot Bitcoin (BTC) ETFs shed over $689 million in assets this year and are in their fourth consecutive month in the red. Similarly, Ethereum ETFs have shed over $149 million in assets.

Crypto liquidations have also soared in the past few days. That jumped by over 122% in the last 24 hours to over $2 billion.

On the positive side

There are some key signs that suggest a crypto recovery is coming soon. First, the Crypto Fear and Index has slipped to 5. That’s the lowest level in years. 

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In most cases, crypto bull runs normally start when the index moves to the extreme fear zone. Similarly, crypto prices typically drop when they move into the extreme greed zone.

A good example of this is what happened in December, when it moved into the extreme greed zone at 10. Bitcoin and other altcoins rebounded in January, with BTC nearing $100,000. Before that, the index moved to the extreme fear zone in April last year and then rebounded to a record high after Trump changed his tune on tariffs.

crypto fear and greed index
Crypto Fear and Greed Index chart | Source: CMC

Technical analysis also suggests that Bitcoin may rebound soon. For example, Bitcoin’s Relative Strength Index has moved to the oversold level of 27 for the first time since November 2022. Bitcoin has always rebounded whenever it moved to these oversold levels. 

At the same time, Bitcoin has fallen to the rising wedge target. As the chart below shows, the widest point of this pattern was ~42%. It has then fallen by over 42% from the breakout point.

Bitcoin price
BTC price chart | Source: crypto.news

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Crypto World

Ripple Researchers Propose Privacy-Preserving Transfers for XRPL Multi-Purpose Tokens

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The Ripple research team has published a paper on adding transaction privacy to the XRP Ledger (XRPL). 

The paper introduces Confidential Transfers for Multi-Purpose Tokens (Confidential MPTs). The goal is to enable institutional and regulated use cases, with issuer controls such as freezing and clawbacks.

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The paper is authored by Murat Cenk, Aanchal Malhotra, and Joseph Ayo Akinyele. The Confidential MPTs would be a cryptographic extension of the XLS-33 token standard, which went live on the XRPL mainnet in October 2025

The protocol replaces plaintext per-account balances with EC-ElGamal ciphertexts. Furthermore, it uses non-interactive zero-knowledge proofs to enforce transfer correctness and balance sufficiency without requiring decryption by validators. 

Meanwhile, sender and receiver identities remain visible, preserving XRPL’s account-based model

“To accommodate regulatory and institutional requirements, Confidential MPTs provide cryptographic auditability through an on-chain selective-disclosure model based on multi-ciphertext balance representations and equality proofs, while remaining compatible with simpler issuer-mediated audit models,” the abstract reads.

The timing aligns with shifting regulatory attitudes toward on-chain privacy. In a recent report submitted to Congress in early March, the US Treasury Department acknowledged that lawful users of digital assets may rely on mixers when transacting on public blockchains.

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The privacy paper arrives as Ripple simultaneously strengthens the network’s security foundation. The firm recently outlined an AI-driven security strategy for XRPL.

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The post Ripple Researchers Propose Privacy-Preserving Transfers for XRPL Multi-Purpose Tokens appeared first on BeInCrypto.

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DeFi Tokens Face Pressure as CLARITY Act Targets Stablecoin Yields

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

Key Takeaways

  • Proposed legislation would prohibit stablecoins from generating yields, limiting them to payment functions exclusively
  • The change would redirect yield opportunities toward traditional banking and money market instruments
  • Popular DeFi platforms including Uniswap, Aave, and Compound may encounter stricter regulations on value distribution
  • Trading volumes, liquidity depth, and token demand across DeFi could decline significantly
  • Regulated stablecoin issuers like Circle stand to gain from tighter integration with payment systems

The most recent iteration of the CLARITY Act has sparked significant discussion around its stablecoin provisions. Industry experts warn that decentralized finance tokens may bear the brunt of the legislation’s consequences.

Under the proposed framework, stablecoins would be prohibited from providing yields or any similar incentive structures, including balance-based rewards. This restriction would fundamentally transform stablecoins into payment instruments rather than blockchain-based savings vehicles.

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Markus Thielen, who established 10x Research, indicated that the legislation would effectively channel yield opportunities back into conventional financial systems. Traditional banks, money market vehicles, and compliant financial products would capture these benefits, while cryptocurrency-native services would lose competitive advantage in offering returns.

Initial speculation suggested that DeFi platforms might actually attract more users if centralized crypto services were prevented from distributing yields. The theory presumed capital would migrate toward onchain alternatives.

However, Thielen challenged this assumption. He explained that the CLARITY regulatory structure would probably apply to user-facing platforms and token economics, especially when fee structures or governance mechanisms begin resembling equity instruments.

Potential Impact on DeFi Platforms

This regulatory approach places numerous DeFi initiatives under scrutiny. Decentralized trading venues and lending services may encounter fresh restrictions governing their operations and value distribution mechanisms.

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Platforms such as Uniswap, Sushi, and dYdX face potential consequences, alongside lending services like Aave and Compound. Enhanced regulatory oversight might trigger diminished trading activity, thinner liquidity pools, and decreased token valuations, the 10x Research analysis suggests.

The fundamental question centers on whether these platforms can maintain fee distribution or incentive programs for token holders without triggering new stablecoin-focused regulations.

Thielen observed that distinguishing between governance tokens and regulated financial instruments grows increasingly complex within this regulatory framework.

Circle Positioned for Potential Gains

The legislation wouldn’t create obstacles for every cryptocurrency entity. Circle, which issues the USDC stablecoin, might emerge as a beneficiary under the proposed rules.

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Thielen characterized the regulation as fundamentally favorable for infrastructure providers like Circle. Should stablecoins become embedded within payment networks, issuers maintaining robust regulatory compliance would secure advantageous positions.

The CLARITY Act continues advancing through the legislative pipeline. Congress has not yet enacted a final version.

While stablecoin provisions dominate policy discussions in Washington, industry analysts emphasize that the ripple effects across DeFi ecosystems deserve equal attention.

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White House App Sparks Privacy Fears Over Tracking and Data Collection

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Business, Technology, Privacy, Adoption, White House, Applications

A new app from the US government has sparked concerns among users and researchers over potential location-tracking features, security vulnerabilities and data collection.

The White House launched the app on Friday as a way for users to get a “direct line to the White House,” including receiving breaking news alerts on major government announcements, watching livestreams and keeping up to date on “policy breakthroughs.”

However, users on X have raised concerns about the permissions required to use the app, including access to the device’s location, shared storage and network activity, though these claims have not been independently verified.

While many apps often request location permissions and can log user data, an app launched by the federal government requesting this information can invite additional concerns. 

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However, both listings on the Google Play Store and Apple’s App Store currently do not display these warnings.

A White House app privacy policy said it automatically stores information about the originating Internet Protocol (IP) address and other basic information, while it can retain names and email addresses of subscribers, though these are not required to use the app.

Business, Technology, Privacy, Adoption, White House, Applications
Source: Tyler Oakley

Cointelegraph has contacted the White House for comment.

Security engineer says GPS tracking is part of the app

On the app’s Google Play Store page, it states that personal data, including phone numbers and email addresses, may be collected through download and use. Apple’s App Store, meanwhile, directs users to the White House’s privacy policy.

A software developer using the X handle Thereallo, along with Adam, a security engineer and infrastructure architect, say they have identified code suggesting the app could access a device’s GPS for tracking.

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While the feature is common across a number of apps, Adam said it is unusual for location-tracking services to be in software that does not appear to need them.

“There is no map, no local news, no geofencing, no events near you, no weather. Nothing in the app that requires location,” he added.

Concerns of GPS tracking every 4.5 minutes

Thereallo made a similar claim that the app includes code that could enable tracking a device every 4.5 minutes in the foreground and 9.5 minutes in the background, though this has not been independently verified.

Business, Technology, Privacy, Adoption, White House, Applications
Source: Thereallo

They found that it still requires permission but warned that it is only “one call away from activating,” and that the tracking “infrastructure is there, ready to go.”

Related: Trump advisory council draws Coinbase co-founder, tech leaders

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At the same time, Thereallo said the app is collecting other data such as notification interactions, in-app message clicks and phone number.

Security could be broken, researcher says

Adam said the app’s security may also be weak enough for a technically skilled person to intercept its data or alter its functionality

“Anyone on the same Wi-Fi network, say, at a coffee shop, an airport, or a congressional hearing room, can intercept API traffic with a proxy. Anyone with a jailbroken device can hook and modify the app’s behavior at runtime,” he said.

“No servers were probed. No network traffic was intercepted. No DRM was bypassed. No tools were used that require jailbreaking. Everything described here is observable by anyone who downloads the app from the App Store and has a terminal.”

Magazine: Morgan Stanley Bitcoin ETF undercuts BlackRock, SBF pardon unlikely: Hodler’s Digest, Mar. 22 – 28

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