Bitcoin has fallen nearly 25% over the past month, yet Coinbase CEO Brian Armstrong has argued that key parts of the crypto industry continue to grow despite the downturn.

According to a June 6 X post, Armstrong said many investors continue to treat Bitcoin’s performance as a proxy for the broader crypto market. He noted that perception no longer matches how the industry operates today, noting that crypto activity now extends into multiple areas of finance beyond the largest cryptocurrency.

“People still think (or feel) because Bitcoin is down crypto is down…Crypto touches every area of finance, and is much broader than Bitcoin now. It will take some time for this to sink in.”

At the time of writing, data from crypto.news showed Bitcoin (BTC) trading near $60,100 after losing roughly 17% over the previous week. The asset’s market capitalization stood around $1.22 trillion, while 24-hour trading volume climbed over 30%, indicating heightened trading activity during the selloff.

Armstrong told followers that crypto now touches many segments of financial markets and suggested that the industry has developed far beyond a single asset class. While reaffirming his support for Bitcoin, he described the cryptocurrency as one important part of a much larger ecosystem rather than the sole indicator of sector health.

“And yes – Bitcoin is going to do great and is as important as ever – one of many cycles we’ve all been through.”

Growth remains visible outside Bitcoin

Pointing to areas that continue attracting activity, Armstrong highlighted crypto derivatives, perpetual futures markets, stablecoins, and prediction platforms. According to his remarks, expansion across those segments shows that digital asset markets are becoming less dependent on Bitcoin’s price movements than in earlier years.

Recent comments from Armstrong also place crypto development within a broader economic and geopolitical context.

In a separate post reported by crypto.news, the Coinbase chief argued that competition with China could push the United States to strengthen its position in digital finance.

Describing international competition as a force that encourages innovation, Armstrong said U.S. policymakers should view crypto legislation as part of the country’s economic rivalry with Beijing. He argued that years of market leadership had contributed to complacency and suggested that renewed competition could improve American performance.

Stablecoin policy remains a key battleground

Alongside his comments on market growth, Armstrong has continued to warn that restrictive digital asset regulations could push innovation outside the United States. Over the past year, he has repeatedly argued that poorly designed rules may encourage companies and capital to move offshore.

Particular attention has been placed on stablecoin legislation currently under discussion in Washington.

According to Armstrong’s previous statements, restrictions on interest-bearing stablecoins would not eliminate investor demand for yield-producing products. Instead, he has argued that such policies could benefit foreign stablecoin issuers and central bank digital currency initiatives operating beyond U.S. regulatory oversight.

Debate over those proposals has also intensified friction between crypto companies and traditional financial institutions.

As reported by crypto.news, JPMorgan CEO Jamie Dimon recently criticized Armstrong in unusually direct terms during the ongoing dispute over crypto regulation and market structure legislation.

Responding to criticism from the banking sector, Armstrong has accused large financial institutions of seeking regulatory advantages rather than competing through better products. His position has remained consistent as lawmakers consider frameworks that could define how digital assets, stablecoins, and related financial services operate within the United States.

While Bitcoin’s recent decline has drawn most investor attention, Armstrong’s latest comments suggest he believes the industry’s long-term trajectory will be shaped just as much by adoption of stablecoins, derivatives, and other crypto-based financial services as by the price of BTC itself.

Illinois lawmakers advanced a $56 billion state budget that embeds a Digital Asset Privilege Tax Act amendment, setting up a 0.2% tax on crypto transactions conducted by a “digital asset broker” within the state. The provision, tucked into Senate Bill 3019 as part of the FY 2027 revenue package, would require digital asset brokers operating in Illinois to register and comply with new reporting obligations. The measure passed along party lines and now awaits Governor JB Pritzker’s signature to take effect.

The proposal comes with a serious enforcement mechanism: brokers failing to register or adhere to the new rules could face charges that qualify as a Class 3 felony, with potential prison terms of two to five years and fines up to $25,000. State officials project the tax would generate about $60 million for the next fiscal year, providing a new revenue stream for the budget package.

As of Friday morning, Pritzker had signaled his intention to sign the bill but had not yet affixed his signature. A public statement from the governor’s office indicated plans to support the measure, but the law has not become binding while awaiting the formal signing process.

Industry advocates quickly pushed back, arguing the tax and its broad registration requirements would be economically harmful and badly timed. The Digital Chamber and the Illinois Blockchain Association issued statements highlighting concerns about stakeholder engagement and noting that no other state has imposed a similar levy. They warned that the proposal could create uncertainty for businesses and investors operating in Illinois without giving adequate notice or guidance.

The policy arrives amid a broader set of regulatory actions in Illinois, including a separate move by the governor related to prediction markets. Earlier this year, Pritzker signed an executive order barring state employees from betting on event contracts on platforms such as Kalshi and Polymarket, citing conflicts of interest and access to nonpublic information as grounds for concern.

Key takeaways

• The FY 2027 budget package includes a Digital Asset Privilege Tax Act amendment that imposes a 0.2% tax on crypto transactions conducted by a “digital asset broker” in Illinois.
• Registration and reporting requirements would apply to entities operating as digital asset brokers in the state; violations could be treated as a Class 3 felony with prison terms of 2–5 years and fines up to $25,000.
• The measure is projected to raise about $60 million for Illinois’ next fiscal year, according to state estimates.
• Industry groups argue the tax is economically destructive, lacks stakeholder engagement, and would set a negative precedent since no other state has enacted a similar levy.
• The proposal follows governor-level actions on prediction-market platforms, signaling a broader trend toward tighter crypto regulation in the state.

A sweeping budget move pins a new crypto tax to the FY 2027 package

The Digital Asset Privilege Tax Act amendment is embedded in Senate Bill 3019, a lengthy revenue and tax package designed to fund Illinois’ 2027 budget. The provision specifies a 0.2% tax on transactions executed by a “digital asset broker making or effectuating the sale of the digital asset business activity.” The language suggests a broad reach, with registration and compliance requirements set to apply to entities operating in the state’s crypto market. The bill, a 1,624-page document, was approved by the General Assembly on Monday and now hinges on the governor’s signature to become law.

Crucially, the measure would not be a mere licensing fee. It would attach serious penalties to noncompliance, including making it a Class 3 felony for brokers who fail to register or follow the rules from January 1 of the fiscal year. The potential repercussions—two to five years in prison and fines up to $25,000—underscore the administration’s intent to treat digital asset activity with substantial regulatory gravity.

In the fiscal context presented by lawmakers, the tax is pitched as a revenue tool to support Illinois’ 2027 budget. The administration projects the levy could bring in roughly $60 million, a figure that would contribute to balancing the state’s finances in a year when the crypto sector remains a political touchpoint for both sides of the aisle.

The bill’s appearance in a broad budget package has sparked debate about process and timing. Advocates for the measure argue that the state needs a clearer framework for digital asset activity and that the tax aligns Illinois with other forms of capital markets regulation. Critics, however, contend that the approach is heavy-handed, lacks stakeholder input, and could chill crypto innovation within the state’s borders.

For readers tracking regulatory clarity, the bill’s text and formal references are accessible through the Illinois General Assembly’s SB3019 documents and associated summaries. The proposed framework would weave into a broader tax and revenue strategy that Illinois officials hope will create a more predictable regulatory environment for crypto operators within the state.

Industry response and policy design

The reactions from industry groups emphasize concerns over process and impact. The Digital Chamber and the Illinois Blockchain Association argued that the Digital Asset Privilege Tax Act would introduce an economically destructive regime without sufficient stakeholder engagement. They warned that the lack of precedent—no other state has adopted a similar tax—could expose Illinois to unintended consequences, including decreased innovation, compliance burdens for startups, and potential shifts in activity to more crypto-friendly states.

Beyond the tax’s existence, observers note that the policy would compel crypto firms to register and adhere to reporting conventions, potentially creating a regulatory moat around Illinois-based activity. While supporters describe the move as a necessary step toward oversight and consumer protection, opponents warn that the implementation details will determine whether the measure stifles legitimate activity or enhances market integrity.

The debate touches on broader questions about state-level crypto regulation in the United States: how to balance consumer safeguards with fostering a thriving digital asset ecosystem, and how to design taxes that are enforceable yet not punitive toward legitimate business models. As with many such proposals, the devil is in the details—especially regarding how “digital asset brokers” would be defined, how registration would work in practice, and what constitutes “business activity” under the statute.

Prediction markets and the regulatory backdrop

The Illinois tax proposal arrives alongside a programming shift from the governor on another crypto-related front. In April, Pritzker signed an executive order restricting state employees from participating in prediction-market platforms such as Kalshi and Polymarket, citing concerns about potential conflicts of interest and the risk of making bets based on nonpublic information. The administrative move reflects ongoing state-level caution around platforms that enable probabilistic markets tied to real-world events.

Taken together, these actions illustrate a multi-pronged approach to crypto governance in Illinois: a budgeting mechanism that could formalize a new tax framework for digital assets, and executive actions aimed at preventing perceived conflicts of interest within state employment. The combination signals policymakers are pursuing a stricter regulatory stance while seeking to ensure fiscal resources for the state’s budgetary needs.

What investors and operators should watch next

For market participants, the most immediate question is whether Governor Pritzker will sign the bill into law. If signed, Illinois would establish a formal, state-level tax regime and registration framework for digital asset brokers, complete with felony-level penalties for noncompliance. The enacting details—how “digital asset broker” is defined in practice, what registration entails, and how enforcement would unfold—will shape the policy’s economic impact on exchanges, brokerages, and other asset-service providers operating in Illinois.

From a strategic perspective, the proposal spotlights a broader pattern: states experimenting with crypto taxation and oversight as a means to raise revenue and establish governance standards. Investors and builders should monitor how enforcement would be phased in, whether the measure faces legal challenges, and how this risk interacts with broader regulatory trends nationwide. If enacted, Illinois could become a reference point for similar state-level approaches, influencing both market access and compliance costs for domestic crypto activity.

As the bill moves through the final sign-off stage, observers should also keep an eye on any legislative clarifications or amendments that might alter the scope of the tax or its penalties. While the stated aim is to fund the state budget, the policy’s real-world effect will hinge on how clearly regulators define terms, how burdens are allocated, and how flexible the regime remains in the face of evolving technologies and market structures.

In sum, Illinois is testing a new blueprint for crypto oversight within a state budget framework. The coming weeks will reveal whether the plan gains formal enactment, how it is calibrated for business practicality, and what impact it may have on the broader regulatory conversation across the United States.

Bitcoin reclaimed the $61,000 level in Asian morning hours Saturday after briefly dipping below $60,000 overnight, steadying after a strong U.S. jobs report on Friday triggered a sharp selloff across stocks, bonds and crypto.

The token fell as low as $59,227 before buyers stepped back in, and was trading around $61,000, down about 1.3% on the day.

The bounce came off a level traders had been watching closely. Bitcoin had been sliding toward $60,000 all week as a record run of ETF outflows and Strategy’s first bitcoin sale since 2022 removed buyers that had supported the price. The break below the round number overnight did not turn into a deeper breakdown, with the token recovering more than $1,500 off the low.

The selloff that drove the dip started outside crypto. Friday’s nonfarm payrolls report came in solid, and rather than cheering the strength, markets repriced the Federal Reserve outlook hard. Swaps now fully price a rate increase by the end of 2026, a reversal from the cuts expected under newly confirmed chair Kevin Warsh. Two-year Treasury yields jumped 12 basis points to 4.16%, the dollar rose, and risk assets fell.

The damage was worst in the AI trade. The Nasdaq 100 sank about 5%, its steepest drop since April 2025, and a gauge of chipmakers tumbled 10%. The S&P 500 fell 2.6% and failed to complete a tenth straight weekly gain.

Other tokens remain deep in the red on the week. Ether is down 21.6% over seven days to around $1,575, solana down 23.7% to $63, and XRP, dogecoin and BNB all between 13% and 20% lower. Hyperliquid’s HYPE, which outperformed through most of the recent bleed, is down 9.9% over the same stretch.

The leverage washout was heavy. Around $1.60 billion in positions were liquidated over 24 hours across roughly 308,000 traders, according to CoinGlass, with longs accounting for $1.21 billion. Bitcoin saw $534 million in liquidations and ether $423 million, while Zcash, in the middle of its own 44% collapse tied to a disclosed bug in its Orchard privacy pool, logged another $115 million.

With $60,000 pierced overnight but quickly reclaimed, the question is whether bitcoin can build on the bounce or whether the level gives way on a retest. A clean break below it would put the token back into territory it last traded during the February drawdown.

Greece has prepared plans for a 15% cryptocurrency capital gains tax as officials move to bring digital assets into the country’s tax system.

According to a report, Greece’s Finance Ministry is drafting legislation that would impose a 15% tax on profits from cryptocurrency investments, filling a gap in a tax framework that currently lacks dedicated rules for digital assets.

Two government officials familiar with the matter disclosed that the proposal is expected to reach parliament in the coming months. One senior official said the legislation would formally incorporate cryptocurrencies into Greece’s tax code, creating a clearer set of rules for investors and tax authorities.

Under the proposal, the first €500 ($580) in crypto gains would be exempt from taxation. A second official said that the measure would apply to capital gains from cryptocurrency investments but would not cover individuals mining digital assets.

Mining activities conducted through registered companies, however, would remain subject to taxation.

The move places Greece among a growing number of jurisdictions seeking to capture revenue from digital asset activity. Crypto taxation across Europe varies significantly, ranging from about 8% in Cyprus to as much as 30% in France, with most countries taxing capital gains rather than individual transactions.

Governments are expanding crypto tax oversight

Alongside Greece’s proposal, authorities in several countries have recently intensified efforts to improve crypto tax compliance.

Earlier this week, crypto.news reported that the Israel Tax Authority received far fewer disclosures than expected under a voluntary crypto tax reporting program launched in August 2025. As per the report, the authority had hoped to recover up to $1 billion in tax revenue from undeclared cryptocurrency profits but has so far received disclosures covering only about $50 million in crypto assets.

58 taxpayers had used the program, which allows eligible crypto holders to avoid criminal prosecution if they correct past filings and pay outstanding taxes. Taxpayers must complete disclosures and settle liabilities before Aug. 31, 2026, while eligibility is limited to investors whose crypto holdings did not exceed roughly $522,000 as of December 2024.

Back in Greece, officials said that estimating the size of the domestic crypto market remains difficult because many investors use trading platforms located outside the country. As a result, authorities have not yet produced revenue forecasts tied to the proposed tax.

Transaction taxes are also gaining attention

Elsewhere, lawmakers in Illinois have advanced a different approach to taxing digital assets.

According to a fiscal year 2027 budget bill approved by the Illinois General Assembly, the state plans to introduce a 0.2% tax on cryptocurrency transactions facilitated by digital asset brokers. State budget documents estimate the measure could generate approximately $60 million in revenue annually.

Crypto.news previously reported that the proposal, known as the Digital Asset Privilege Tax Act, would require digital asset brokers to register with the state before conducting covered transactions.

The legislation also includes criminal penalties for non-compliance, with unregistered operations potentially facing Class 3 felony charges after Jan. 1.

Industry opposition has already emerged. In a joint letter, the Digital Chamber and the Illinois Blockchain Association argued that the proposal could damage the state’s digital asset sector and noted that no other U.S. state currently imposes a comparable crypto transaction tax.

Against that backdrop, Greece’s proposal adds another example of governments seeking formal mechanisms to tax cryptocurrency activity, even as officials continue to grapple with the challenges of tracking profits generated across global trading platforms.

This article was updated with comments from Bitget CEO Gracy Chen.

Bitget has expanded the use of 15 tokenized stocks and ETFs by enabling them as margin collateral for USDT-M futures trading through its Unified Trading Account and Multi-Asset Mode.

According to a press release shared with crypto.news, the update took effect on June 4 and allows traders to use selected tokenized equities and exchange-traded funds to meet margin requirements while maintaining futures positions. Newly eligible assets include rAAPL, rAMZN, rMETA, rMU, rTSLA, rGOOGL, rNVDA, rINTC, rMSFT, rASML, rAVGO, rTSM, rQQQ, rSPY, and rSNDK.

Under Bitget’s Unified Trading Account structure, users can manage spot holdings, derivatives positions, and margin obligations within a single account. The exchange said Multi-Asset Mode for USDT-M futures now allows these tokenized instruments to contribute toward collateral requirements, reducing the need to convert assets into a single settlement currency before entering futures trades.

Speaking about the rollout, Bitget CEO Gracy Chen said users increasingly want more ways to put tokenized assets to work across different trading activities as adoption of tokenized financial products grows.

“As tokenized assets continue to gain traction across global markets, users are looking for more ways to utilize their holdings across different trading activities. Adding tokenized stocks and ETFs as margin assets increases flexibility within the Unified Trading Account and supports a more seamless experience across crypto and traditional market products.”

Tokenized products gain a larger role inside Bitget’s ecosystem

The latest addition builds on Bitget’s recent push into tokenized financial products. In May, the exchange introduced Reality, a regulated tokenization platform that issues blockchain-based rTokens backed 1:1 by publicly traded U.S. stocks and ETFs held through regulated broker-dealers.

According to Bitget’s May announcement, Reality was designed to provide on-chain access to traditional financial assets while addressing issues that have historically limited tokenized markets, including liquidity constraints and the handling of dividends and corporate actions. The company said rTokens are supported by infrastructure connected to major U.S. exchanges and backed by reserve attestations conducted through accounting firm The Network Firm.

Several of the assets added as margin collateral this week originate from the Reality product suite. Rather than limiting those tokens to spot market exposure, Bitget is now allowing traders to deploy them within its derivatives framework.

During the same month, Bitget also launched SPCXUSDT, a SpaceX-linked pre-IPO perpetual contract that lets traders speculate on market expectations surrounding a potential public listing without owning SpaceX shares. The exchange also introduced IPO-linked products and expanded access to tokenized equities through multiple offerings tied to public and private markets.

Competition grows in tokenized asset markets

Beyond its exchange platform, Bitget Wallet integrated xStocks infrastructure in May, bringing access to more than 130 tokenized stocks and ETFs through a self-custodial wallet. Bitget Wallet said the move increased its tokenized real-world asset offering to more than 300 products, including equities, commodities, precious metals, and index-linked assets.

According to Bitget, its tokenized equity products have processed more than $30 billion in trading volume since 2025. The company has also stated that users can access more than 100 tokenized stocks, ETFs, commodities, foreign exchange products, and precious metals through its trading ecosystem.

Bitcoin price traded near $61,925 on June 5 as selling pressure kept BTC close to the $60,000 support zone, with ETF flows, whale deposits, and weak sentiment driving the next market test.

Bitcoin price nears $60,000 support

Bitcoin price data from crypto.news showed BTC at $61,925, down 3.44% over 24 hours and 15.82% over seven days. The asset traded between $61,394 and $64,353 during the day, while 24-hour volume stood at $56.21 billion.

The latest move placed Bitcoin just above the $60,000 level. That round number has become the main support zone after BTC lost the $65,000 area and failed to hold earlier ranges near $70,000.

Bitcoin has now dropped sharply from last week’s levels above $74,000. The pullback also took BTC far below its October 2025 all-time high of $126,080, with crypto.news data showing a drawdown of more than 50%.

A break below $60,000 would move Bitcoin back into the zone seen during the February drawdown. If sellers keep control below that level, traders may turn to the $55,000 area as the next major support.

ETF outflows and Strategy sale weigh on sentiment

Bitcoin’s latest fall comes as ETF demand weakens. U.S. spot Bitcoin ETFs recently posted heavy outflows.

Fresh ETF data also showed a small $3.05 million daily net inflow on June 4, per SoSoValue. However, that single inflow came after 13 consecutive days of net outflows and did not erase the broader pressure. Total net assets still stood near $80.40 billion, while cumulative net inflows remained strong at $54.27 billion.

Strategy also drew market attention after disclosing its first Bitcoin sale since 2022. The company sold 32 BTC at an average price of $77,135 between May 26 and May 31, raising about $2.5 million for preferred stock distributions.

The sale was small compared with Strategy’s overall holdings. Still, traders watched it closely because Strategy had long acted as a steady corporate buyer during previous market stress.

Michael Saylor framed the weakness as part of a wider capital rotation. He said spot Bitcoin ETFs had seen about $4 billion in outflows since May 14 while capital markets funded AI infrastructure at scale. He called it “a capital rotation, not a Bitcoin impairment.”

Whales move BTC back to Binance

CryptoQuant analyst Darkfost said whale BTC deposits on Binance have accelerated during the June selloff. The analyst defined whales as entities moving more than 100 BTC, equal to over $6 million at current prices.

According to the update, Binance saw whale inflow peaks of about 8,200 BTC on June 2 and more than 6,400 BTC on June 4. The monthly average has also risen from about 1,200 BTC since mid-April to more than 2,800 BTC.

That change shows large holders are moving more coins onto exchanges. Such transfers can signal plans to sell, hedge, or manage risk during a fast market decline.

Darkfost said this behavior looked more like emotional risk management than a planned long-term move. The last time Binance whale inflows reached similar levels was during Bitcoin’s fall below $60,000 in early February.

This adds short-term selling pressure while price trades near a key level. If whale inflows stay elevated, BTC may struggle to reclaim lost support without stronger spot demand.

Sentiment flips as traders watch $55,000

Santiment data showed Bitcoin sentiment turned sharply lower after price fell from the late-May high. The firm said BTC moved from near $78,000 to about $63,800, with most of the decline happening in three days.

Social sentiment was strongly positive near the highs, then turned bearish as price broke down. Santiment said the crowd was most bullish near the top and most bearish near the lower range.

The firm also noted that sentiment is not a timing tool. Still, it said peak fear can sometimes appear near a “potential local bottom.” That wording remains cautious because price has not confirmed a reversal.

Crypto Patel also pointed to lower long-term accumulation zones. He wrote that 2026 to 2027 could become a “potential accumulation period,” with $50,000 to $40,000 acting as a possible spot buying zone if reached.

For now, Bitcoin price analysis remains tied to three levels. Bulls need to defend $60,000 and reclaim $65,000 to ease near-term pressure. Bears need a clean break below $60,000 to open the path toward $55,000 and possibly lower supports.

The next sessions may show whether the current fall is a panic-driven flush or the start of a deeper reset. ETF flows, whale exchange deposits, and Bitcoin’s reaction near $60,000 will likely guide the next move.

Bitcoin and Ethereum trading activity has fallen to multi-quarter lows on Hyperliquid, while volume in equity-linked and pre-IPO perpetual contracts has climbed sharply.

According to a June 5 report from Block Scholes shared with crypto.news, risk sentiment around the two largest cryptocurrencies has continued to weaken, even as speculative demand remains active in other parts of the market. 

The research firm pointed to its in-house Bitcoin and Ethereum Risk Appetite Indexes, which have moved lower over the past week alongside declines in both assets.

Recent weakness in crypto majors has coincided with several market developments. Block Scholes noted that Strategy sold $2.5 million worth of Bitcoin from its holdings, a move that came after years of public commitment from Executive Chairman Michael Saylor to continue accumulating the asset. 

The report also highlighted the longest streak of outflows from U.S. spot Bitcoin ETFs since their launch.

Rather than viewing Bitcoin’s drop toward the low $60,000 region as a sign of fading interest across the entire digital asset market, Block Scholes argued that trading activity has become concentrated in a different set of instruments.

Traders turn to stock and commodity-linked perpetuals

Data from Hyperliquid shows that daily Bitcoin perpetual futures volume has remained near $2 billion, while Ethereum volumes have stayed around $600 million to $700 million, levels Block Scholes described as multi-quarter lows.

At the same time, activity tied to equity and commodity markets has expanded rapidly on the platform. According to Block Scholes, the three most actively traded non-crypto perpetual contracts on Hyperliquid are XYZ100, which tracks the Nasdaq-100, SP500, an S&P 500-linked product, and CL, a contract tied to WTI crude oil.

Combined daily volume across those three markets has reached approximately $1.3 billion, generating $27.1 billion in notional trading volume over the past month. Block Scholes said that total equals about 112% of Ethereum perpetual volume and roughly 38% of Bitcoin perpetual volume on the exchange during the same period.

The report said the development does not necessarily represent a dollar-for-dollar migration of capital from Bitcoin and Ethereum. Instead, the report argued that trader attention and speculative activity that previously supported crypto majors are increasingly being directed toward alternative markets available through the same trading venue.

Pre-IPO contracts draw growing interest

Beyond stock index and commodity products, Block Scholes identified pre-IPO perpetual contracts as another area attracting crypto-native traders.

According to the report, the ratio of pre-IPO perpetual volume relative to Ethereum perpetual volume increased from roughly 0.1% to a peak near 3.0% in recent weeks. Daily trading volume in the segment has climbed from less than $5 million to more than $50 million, with contracts linked to SpaceX accounting for much of the increase.

Block Scholes said the rise has been abrupt and concentrated, with activity accelerating into late May and early June while Bitcoin and Ethereum volumes remained subdued.

The firm’s risk appetite data also showed a divergence among digital assets. While sentiment tied to Bitcoin and Ethereum has weakened, Block Scholes reported that Hyperliquid’s HYPE token is one of the few major crypto assets where its risk appetite indicator continues to move higher.

HYPE risk appetite index. Source: block Scholes.

As previously reported by crypto.news, Binance Research recently published a report noting that capital has been flowing toward a concentrated group of U.S. equity sectors, including artificial intelligence infrastructure, semiconductor companies, defense contractors, energy firms, and commodities. 

According to the report, strong performance in those sectors has historically reduced liquidity available to Bitcoin and other alternative assets.

Using the CBOE Dispersion Index as a measure of market concentration, Binance Research noted that the indicator recently reached 42, its third-highest reading on record. The firm argued that periods of concentrated equity leadership have often coincided with weakness in Bitcoin as investors direct funds toward a smaller group of high-performing themes.