TLDR:

• • Starknet v0.14.2 introduces SNIP-36, enabling native in-protocol STARK proof verification on mainnet.
  • STRK20 allows any ERC-20 token on Starknet to operate with encrypted balances and shielded transfers.
  • strkBTC lets bitcoin holders access DeFi on Starknet without exposing their full wallet transaction history.
  • SNIP-37 rebalances network economics by raising storage costs while lowering base L2 gas prices for users.

Starknet v0.14.2 is now live on mainnet, introducing native privacy infrastructure to the network. The upgrade adds in-protocol proof verification, enabling confidential transactions at the protocol level.

It also paves the way for STRK20 and strkBTC, two privacy-focused asset frameworks. Together, these changes position Starknet as a privacy-preserving rollup rather than a standard high-performance chain.

In-Protocol Proof Verification Changes How Starknet Handles Privacy

At the core of v0.14.2 is SNIP-36, which brings native proof verification to the protocol. Previously, verifying a STARK proof on Starknet required a smart contract, which was not practical.

STARK proofs are large, often containing tens of thousands of field elements. That size made them incompatible with the network’s maximum transaction limits.

Developers had no clean path forward under the old system. Splitting proofs across multiple transactions was slow, complex, and expensive.

The official release notes described the previous approach as “prohibitively slow, complex, and expensive.” With v0.14.2, transactions now reference off-chain execution proofs directly through new proof and proof_facts fields in the Invoke V3 transaction structure.

Starknet’s consensus layer handles verification natively under this new model. Users can now prove fund ownership or transfer rights without exposing their balance.

The protocol states that “privacy becomes as seamless as a standard transfer” with this native support in place. Transaction history also remains shielded from public view on the network.

This change removes the biggest barrier to practical privacy on Starknet. Without native support, any privacy solution would have been too slow and costly to deploy at scale.

STRK20 and strkBTC Are the First to Use the New Framework

STRK20 is a new framework that allows any ERC-20 token on Starknet to operate privately. Thanks to v0.14.2’s ability to verify S-two proofs, tokens can now support encrypted balances.

Per the release announcement, users can now “swap, stake, and send any ERC-20 token while keeping your financial footprint shielded.” This applies from day one of the framework’s availability.

strkBTC builds on this same infrastructure for bitcoin holders specifically. The upgrade allows BTC to be used in DeFi applications without exposing a user’s full bitcoin wallet history.

According to Starknet, the result gives bitcoin holders “hard money that is both private and productive.” This opens BTC participation across the broader BTCFi ecosystem on Starknet.

Both frameworks operate with a compliance layer in place. A third-party audit firm will hold a viewing key. Subject to valid legal or regulatory requests, that firm may share individual transaction data with relevant authorities.

Beyond privacy, v0.14.2 also addresses network economics through SNIP-37. The update raises storage costs while reducing base L2 gas prices.

SNIP-13 upgrades StarkGate token contracts to version 3.0.0, aligning ERC-20 events with industry standards and preparing for the decentralized validation phase outlined in SNIP-33.

Bitcoin BTC$76,381.51 has a well-earned reputation as a volatile asset that has historically doubled or halved in a matter of months. That may be changing.

Bitcoin’s 30-day realized volatility, currently 42%, has remained below 50% this month, according to TradingView data. Compare that with South Korea’s benchmark Kospi stock index, whose market capitalization is about twice the largest cryptocurrency’s, which hit 74% last week and is still around 51%. Another more volatile equity market is Pakistan, whose KSE 100 index is also around 51%.

Bitcoin’s volatility — a measure of how wildly prices have swung — has steadily declined in recent years, particularly since the introduction of spot ETFs in the U.S. in January 2024. These investment vehicles have increased institutional participation, bringing in more risk-managed capital flows that have helped dampen price swings.

The relative stability underscores its appeal as a geopolitical hedge, holding its value when macro forces like wars wreak havoc on traditional assets. BTC has historically outperformed gold, the S&P 500 and other traditional assets during wars, as River, a bitcoin-only financial institution, pointed out early this month.

Still, most major regional markets and their global counterparts exhibited less volatility than BTC in the period. Which raises the question: Why makes South Korea, the world’s 14th-largest economy, different?

Korean issues

The higher volatility in Korean stocks reflects, to a great extent, the gyrations in the cost of fossil fuel, which doesn’t really apply to bitcoin.

The Kospi fell from 6,340 points in late February to 5,000 by the end of March, before rebounding to record highs above 6,380 points.

The initial selloff occurred in the run-up to the war between Iran and the U.S.-Israeli coalition, which started Feb. 28, eventually leading to a closure of the Strait of Hormuz, a major oil supply route. This disruption and the resulting spike in oil prices hurt South Korea because the country imports nearly all its fossil fuels, including oil and natural gas from the Middle East.

Later, the index found its footing as the conflict eased and the two sides negotiated a temporary ceasefire, which is set to expire on Wednesday. Pakistan’s stock market saw similar swings, with its economy equally, if not more, exposed to energy market disruptions.

Throughout this time, bitcoin held relatively steady, trading mostly between $65,000 and $75,000, supported by renewed inflows into the U.S.-listed spot exchange-traded funds (ETFs).

Strategy (MSTR), now holds more bitcoin BTC$76,311.91 than BlackRock’s iShares Bitcoin Trust (IBIT) for the first time since Q2 2024.

The world’s largest publicly traded BTC holder recently announced its third-largest bitcoin purchase on record, acquiring 34,164 BTC and bringing its total holdings to 815,061 BTC.

IBIT currently holds 802,824 BTC, leaving Strategy ahead by more than 12,000 BTC. While the gap is not anything meaningful in relative terms, it is symbolically important given IBIT’s rapid growth since launch. IBIT became the fastest ETF in history to reach $70 billion in assets, while IBIT ranks among BlackRock’s top revenue drivers.

Strategy held 189,150 BTC at the start of Q1 2024. IBIT surpassed it by early Q2 with roughly 273,000 BTC, compared with Strategy’s 214,400 BTC, a lead which it consistently maintained until now.

However, the two vehicles are fundamentally different. Strategy is an operating company that uses financial engineering, including at-the-market (ATM) equity issuance, convertible debt, and perpetual preferred securities, to accumulate bitcoin in a leveraged manner. IBIT, by contrast, is a spot ETF designed to passively track bitcoin’s price, offering investors straightforward exposure without leverage or corporate risk.

IBIT has gained around 55% since listing in January 2024, while Strategy has risen roughly 250%, driven by its leveraged structure.

Notably, Strategy accelerated accumulation during the recent market downturn, as bitcoin fell over 50% from its October all-time high, while adding nearly 80,000 BTC in 2026.

The perpetual preferred equity STRC has been a key differentiator for Strategy, providing a scalable source of capital that has funded a significant portion of its recent bitcoin accumulation.

Meanwhile, IBIT’s holdings remained relatively stable, with only a modest decline in assets under management.

Bitcoin (BTC) rose 2.66% to around $75,800 on Monday after Strategy disclosed a $2.54 billion purchase, the company’s third biggest ever, and equivalent to about 2.5 months of new BTC supply.

However, several indicators suggest the rally may fizzle out.

Key takeaways:

• Poor macro conditions can spark BTC price pullback if Strategy’s buying slows.

• Bitcoin’s technical setup hints at a potential dip toward $67,000–$69,000.

Strategy may halt BTC purchases this week

Strategy funded most of its latest 34,164 BTC purchase through its preferred stock, Stretch (STRC), which generated over $2.17 billion through at-the-market share sales between April 13 and April 19.

That accounted for roughly 86% of the total amount spent, while sales of its Class A common stock, MSTR, added another $366 million.

STRC lets Strategy raise cash for Bitcoin when it trades at or above $100. Stronger prices mean easier fundraising and more BTC buying. In 2026, STRC enabled the purchases of 77,000 BTC, ten times more than all the ETFs combined, per River data.

But STRC has been trading below its $100 par value since April 15, which may limit Strategy’s ability to keep raising cash to purchase more Bitcoin this week.

In past episodes, pauses in Strategy’s Bitcoin purchases have coincided with BTC price slumps.

For instance, on average, BTC’s price has dipped by roughly 30% when STRC traded below its $100 par value.

A 30% dip will take Bitcoin’s price to $53,000 when measured from current levels.

The halt appears alongside weakening risk sentiment, with US stock indexes falling amid doubts over the US–Iran peace deal.

US President Donald Trump said it was “highly unlikely” he would extend the two-week truce if no agreement is reached before it expires on Wednesday.

Any signs of an extended Middle East conflict may weigh on BTC’s prices.

BTC flag pullback hints at $67,000–$69,000

Bitcoin’s current chart structure shows classic flag consolidation, with price now drifting toward the pattern’s lower boundary. This setup raises the risk of a pullback toward the $67,000–$69,000 region in April, if support gives way.

At the same time, downside may remain limited as the 20-day (green) and 50-day (red) EMAs continue to act as dynamic support levels. Holding above these averages would signal underlying demand, increasing the chances of a rebound.

Related: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1M

If that happens, BTC could attempt a breakout above the flag’s upper trend line, effectively invalidating the bearish setup.

Such a move would open the door for a recovery toward the 200-day EMA (blue), currently near $82,750.

As Cointelegraph reported, breaking the resistance near $78,000 is now a top priority for the bulls.