Crypto World
Bitcoin’s volatility spikes to its highest since FTX’s collapse as prices crater to nearly $60,000
Bitcoin’s Wall Street-like fear gauge has spiked to its highest level since the collapse of the FTX exchange in 2022, signaling intense market panic as prices plummeted to nearly $60,000.
Volmex’s bitcoin volatility index (BVIV), which represents the annualized expected price turbulence over four weeks, jumped to nearly 100% from 56% on Thursday.
The index serves as a crypto equivalent to Cboe’s VIX, the so-called fear/panic gauge, which indicates the 30-day implied volatility of the S&P 500 and rises during market panics as traders bid up options prices to hedge against declines in the index.
The BVIV does the same more often than not, rising during market panics as observed on Thursday.
“A wave of panic swept through crypto markets this week, correlated to a sharp risk-off move across various asset classes. Bitcoin’s 30-day implied volatility, as measured by the BVIV Index, surged from just over 40 to 95 in a matter of days, levels not seen since the infamous collapse of FTX at the end of 2022,” Cole Kennelly, founder and CEO of Volmex Labs, told CoinDesk in a Telegram chat.
Implied volatility is influenced by demand for options, or derivative contracts that help traders make asymmetrical gains from uptrends in the underlying asset and hedge downside risks. Call options are used to bet on the upside, while put options are typically bought as insurance against price drops.
On Thursday, traders scrambled to buy Deribit-listed options, especially puts, as bitcoin’s price tanked from $70,000 to nearly $60,000. The top five most traded options of the past 24 hours are all puts at strikes ranging from $70,000 to $20,000, according to data source Deribit Metrics. The $20,000 put represents a bet that prices will fall below that level.
“Volatility markets reacted sharply to last night’s price drop. Front-end volatility surged as dealers adjusted for gamma [near-term risks]. Short-dated vols led the surge, showing higher demand for protection, while longer-dated vols lagged, keeping the volatility curve steeply inverted,” Jimmy Yang, co-founder of institutional liquidity provider Orbit Markets, told CoinDesk.
Yang’s clients rushed to buy downside protection, fearing the price crash could devastate digital asset treasuries that bought bitcoin at higher levels. These firms could now liquidate at a loss, leading to a deeper slide in bitcoin’s price.
“With significant uncertainty still ahead — particularly around the DATs and the risk of further unwind cascades, we’ve seen a lot of client demand for downside protection,” he added.
Bitcoin’s price has bounced to over $64,000 at the time of writing, an over 5% recovery from overnight lows, according to CoinDesk data. Yang expects volatility to stabilize.
“Sentiment is deep in extreme fear, but bitcoin’s price seems to have found a base near $60K. If price action stabilizes, volatility looks stretched and could quickly pull back,” he said.
A coalition of tech companies and law enforcement, including Coinbase, has dismantled the core infrastructure of Tycoon 2FA, a major phishing-as-a-service platform that offered tools to bypass multi-factor authentication.
Europol announced Wednesday that Microsoft helped block 330 domains linked to the platform, while law enforcement seized additional key infrastructure.
Financial tracing was also a key aspect. Coinbase said it assisted by tracing blockchain-related transactions funding Tycoon 2FA, which helped identify the phishing platform’s alleged administrator and buyers.
“Taking Tycoon’s core infrastructure offline cuts off a major pipeline for credential theft and initial access, and forces criminals to rebuild, retool, and take on more risk,” Coinbase added.
Phishing scams were flagged as the second-largest threat in 2025 by blockchain security firm Certik, costing crypto investors $722 million across 248 incidents. A PeckShield spokesperson told Cointelegraph on Monday that phishing remains a “persistent threat” in 2026.
Tycoon tools used to bypass multi-factor authentication
Tycoon’s toolkit included spoofed landing pages designed to steal user credentials on legitimate websites. It also captured session cookies and tokens, allowing attackers to bypass MFA protections, according to Coinbase.
Generally, when a user logs in using MFA, the system generates a session token. The token acts as proof of authentication and is stored in the user’s browser. If a hacker steals the token, they can use it to fool the system and bypass MFA.
“That combination, high-fidelity lures plus session-token theft, turns phishing into a reliable on-ramp for bigger crimes like account takeovers, business email compromise, invoice fraud, and follow-on social engineering,” Coinbase added.
One of the largest scam platforms in the world
Tycoon has been active since at least 2023, according to Steven Masada, assistant general counsel at Microsoft’s Digital Crimes Unit. By mid-2025, Tycoon accounted for 62% of phishing attempts Microsoft blocked, including over 30 million emails in a single month.
Related: Traveling? ‘Evil Twin’ WiFi networks can steal crypto passwords
“That placed Tycoon 2FA among the largest phishing operations globally,” he added. “By lowering the technical barrier to entry, it allowed criminals with limited expertise to run sophisticated impersonation campaigns.”
Masada said industries from healthcare to education fell victim to Tycoon 2FA, resulting in rerouted invoices, stolen sensitive data, locked networks and disruptions to patient care.
“Taking this infrastructure offline cuts off a major pipeline for account takeovers and helps protect people and organizations from follow‑on attacks such as data theft, ransomware, business email compromise, and financial fraud.”
Magazine: Would Bitcoin really be at $200K if not for Jane Street? Trade Secrets
An international law enforcement operation involving the US Federal Bureau of Investigation, Europol and other agencies has taken down one of the internet’s most notorious cybercrime forums, LeakBase.
The forum was a place for hackers to buy and sell stolen data and cybercrime tools, amassing more than 142,000 members and over 215,000 messages.
“The FBI, Europol, and law enforcement agencies from around the world executed a takedown of LeakBase, one of the largest online cybercriminal platforms, seizing users’ accounts, posts, credit details, private messages, and IP logs for evidentiary purposes,” the FBI cyber division assistant director Brett Leatherman said in a statement on Wednesday.
LeakBase takedown involved 14 countries
The takedown operation, which ran on March 3 and 4, involved law enforcement agents and officers in 14 countries taking synchronized actions against LeakBase and its users.
Following the operation, authorities replaced the site with seizure banners, issued prevention notices to members, and collected additional evidence.
Law enforcement also executed search warrants and arrests in the United States, Australia, Belgium, Poland, Portugal, Romania, Spain, and the United Kingdom.
“The takedown of this cyber forum disrupts a major international platform that cybercriminals use to obtain and profit from the theft of sensitive personal, banking, and account credentials,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
While there was no specific reference to crypto-related accounts, its predecessor cybercrime marketplace Raidforums, which was shut down in 2022, previously hosted leaked data containing approximately “272,000 detailed personal information” of users of crypto wallet firm Ledger.
Crypto industry sees rise in leaked data
Over the past year alone, the crypto industry has seen a rise in leaked exchange credentials, insider data exposure and social engineering attempts.
Related: Crypto treasury inflows slow to the lowest since October 2024
In May 2025, cybercriminals reportedly bribed overseas customer service contractors to gain access to crypto exchange Coinbase’s internal systems. This allowed them to steal personal data that could be used in social engineering scams or even physical extortion attempts.
Around the same time, almost 60,000 Bitcoin addresses tied to LockBit’s ransomware infrastructure were leaked after hackers breached the group’s dark web affiliate panel.
More recently, on Feb. 23, a trader who goes by the name TraderSZ said a former Revolut employee threatened to expose his identity and private information unless he paid a ransom and also contacted members of his family.
Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins
Crypto World
Morgan Stanley Lays Off 2,500 Employees Across All Divisions as AI Drives Major Workforce Shifts in Finance
TLDR:
- Morgan Stanley cut 2,500 jobs, roughly 3% of its workforce, despite record $70.6B revenue in 2025.
- AI adoption linked to an 11% job elimination rate and 11.5% productivity gain across 1,000 surveyed firms.
- Block’s Jack Dorsey cut 4,000 jobs, nearly half its staff, citing AI tools making human roles unnecessary.
- Anthropic’s CEO warned AI could eliminate 50% of entry-level white-collar jobs in law, finance, and consulting.
Morgan Stanley layoffs have reached approximately 2,500 employees across all divisions as of March 2026. The cuts span investment banking, trading, wealth management, and investment management.
Financial advisors, however, are not included in the reductions. This follows the bank’s best financial year ever, with annual revenue hitting a record $70.6 billion in 2025.
The move reflects a growing industry shift toward artificial intelligence adoption at major financial institutions.
Record Profits Do Not Protect Jobs
Morgan Stanley posted a banner year in 2025, beating Wall Street estimates for fourth-quarter profit. Investment banking revenue jumped 47%, while debt underwriting fees nearly doubled during the same period.
Banking executives had expressed an optimistic tone heading into 2026, citing healthy pipelines for mergers and acquisitions. Yet the bank still moved forward with cutting roughly 3% of its global workforce of 82,992 employees.
The cuts are based on strategy and individual performance, according to a source familiar with the matter. The bank also plans to add headcount in select areas following the reductions.
Volatile markets continue to boost trading desks as clients reposition portfolios against risk. Meanwhile, the broader workforce faces mounting pressure from rising AI adoption across financial services.
Social commentary has drawn attention to the pattern emerging across industries. As one widely shared post noted, “Record profits, record layoffs while AI gets the credit and workers get the door.”
The Anthropic CEO stated on national television that AI could wipe out 50% of entry-level white-collar jobs. Those roles include positions in law, finance, and consulting — precisely where Morgan Stanley made cuts.
Morgan Stanley’s own research team surveyed nearly 1,000 companies already using AI tools. The findings showed an 11% job elimination rate alongside a 4% net headcount decline.
Productivity, however, rose by 11.5% across those surveyed companies. The bank had also previously predicted 200,000 European banking jobs would disappear within five years.
AI Drives Layoffs Across the Broader Financial Sector
Morgan Stanley is not alone in linking workforce reductions to AI adoption strategies. Jack Dorsey-led payments firm Block cut over 4,000 employees in late February 2026.
That figure represented nearly half of Block’s entire workforce at the time. Dorsey publicly stated that AI tools had made human workers unnecessary for many functions.
He further stated that most companies would reach the same conclusion within a year. The Block layoffs came as part of an overhaul designed to embed AI across its operations.
These developments followed a broader wave of workforce reductions across U.S. companies since early 2026. Businesses have been streamlining operations as AI tool adoption continues to accelerate.
Observers note that Washington has yet to produce a formal policy response to AI-driven job displacement. Corporate boards are increasingly choosing technology over headcount to sustain profit margins.
Workers across entry-level white-collar roles continue to face an uncertain employment outlook entering the remainder of 2026.
Cyclops has raised $8m to build compliant stablecoin infrastructure for payment firms.
Summary
- Cyclops closed an $8m funding round led by Castle Island Ventures, with participation from F-Prime and Shift4.
- The startup will provide B2B infrastructure so payment processors and fintechs can issue and manage stablecoin products.
- BTC traded around $71.7k and ETH near $2.1k, with majors up 7%–9% as stablecoin volumes on chains like SOL hit record highs.
Stablecoin infrastructure company Cyclops has secured $8m in fresh funding to expand its platform for enterprises that want to issue, manage, and integrate stablecoin products into their existing payments and banking stacks. The round was led by Castle Island Ventures, with participation from F-Prime and payment processor Shift4, underscoring how traditional fintech investors are positioning around regulated, dollar-linked assets rather than pure-speculation tokens. Cyclops aims to act as a middleware layer between banks, processors, and public blockchains, offering APIs for minting and redeeming stablecoins, managing reserves, and handling compliance workflows such as KYC and transaction monitoring. The company is targeting payment companies and fintechs that want to support on-chain settlement and tokenized balances without building their own infrastructure from scratch.
The raise comes as stablecoins continue to gain share in both trading and real-world payment activity. On networks such as Solana, monthly stablecoin trading volumes have hit new highs, supported by low fees and a shift from speculative meme trading toward SOL and stablecoin pairs, while Ethereum remains the dominant venue for larger stablecoin and tokenized-asset flows. For investors like Castle Island and Shift4, backing Cyclops is a bet that the next phase of growth will come from enterprise-grade adoption, where merchants and platforms move parts of their settlement and treasury stack onto public chains. In that model, infrastructure providers handle integration with blockchains and custody partners, while brands focus on user experience and regulatory engagement in their home markets.
Enterprise demand for stablecoin rails
Cyclops is entering a competitive but expanding field where payment firms, exchanges such as Coinbase, and networks like Visa are racing to support stablecoin settlement across multiple regions and currencies. For corporates and fintechs, key requirements include reliable issuance and redemption, clear segregation of reserves, and straightforward integration with existing ledgers and compliance systems. In practice, that means infrastructure providers must connect bank accounts, custodians, and public chains while maintaining audit trails that satisfy regulators and institutional risk teams. By focusing on B2B tooling, Cyclops is positioning itself as a behind-the-scenes provider rather than a consumer-facing brand, similar to how card processors and acquiring banks operate under the logos of retail-facing platforms.
The timing of the round reflects a broader shift in market structure. After a period of deleveraging and ETF-driven repositioning in Bitcoin (BTC) and Ethereum (ETH), liquidity has rotated back into spot markets and stablecoins, with on-chain data showing increased usage for cross-border payments and micro-transactions. At the same time, policymakers in jurisdictions implementing frameworks like MiCA are clarifying capital, reserve, and disclosure rules for fiat-backed tokens, creating a clearer environment for banks and payment institutions to participate. For Cyclops and its backers, success will depend on convincing risk-averse enterprises that tokenized dollars can reduce friction and cost without adding unacceptable complexity or regulatory exposure, turning stablecoin rails from a niche experiment into a core part of global payments infrastructure.
Ethereum price has begun showing early signs of recovery as local market structure turns bullish. Consecutive higher highs and higher lows above key volume levels now place the $2,200 resistance zone in focus.
Summary
- Higher highs and higher lows signal bullish structure shift
- $1,862 high timeframe support held at value area low
- $2,200 major resistance becomes next upside target
Ethereum’s (ETH) recent price action suggests a shift in short-term momentum after a successful defense of major support. While the broader market remains range-bound, the internal structure has begun to show bullish characteristics.
This shift is raising the probability of a continued move higher toward the next significant resistance level.
Ethereum price key technical points
- Bullish Structure: Higher highs and higher lows forming above the Point of Control.
- Key Support Held: $1,862 acted as strong high timeframe demand.
- Upside Target: $2,200 high timeframe resistance above the value area high.
Ethereum’s current price action reflects an important local structural change. After previously trading in a corrective phase, the asset has begun forming consecutive higher highs and higher lows, a classic signal that momentum may be shifting in favor of buyers. This structural transition occurred as price reclaimed and held above the Point of Control (POC), which represents the area with the highest traded volume within the current trading range.
Holding above the POC typically signals that the market is establishing acceptance at higher prices. When buyers manage to sustain price above such an equilibrium level, it often opens the probability of a continuation move toward the upper boundary of the range.
A key factor supporting this shift was Ethereum’s reaction at the $1,862 high timeframe support level. This region aligns closely with the Value Area Low, a technical level where markets frequently find demand. The strong defense of this zone provided the catalyst for the initial bullish rotation that is now unfolding.
From a market structure perspective, this reaction marked the beginning of the internal trend shift. Buyers stepped in aggressively at support, absorbing selling pressure and pushing price back above key volume levels. The resulting momentum has allowed Ethereum to build a short-term bullish structure within the broader range environment.
Despite this positive development, it is important to note that Ethereum remains confined within a larger trading range on higher timeframes. Range-bound markets often produce multiple internal rotations between support and resistance before a decisive breakout occurs. As a result, short-term bullish expansions can still occur even while the broader structure remains neutral.
The next major technical level to watch is the $2,200 resistance zone, which sits above the current Value Area High. This area represents a significant supply region where sellers previously stepped in. If Ethereum continues to maintain its current bullish structure, price could attempt to test this level in the near term.
However, resistance zones such as $2,200 often attract selling pressure, particularly within range environments. Should price reach this area, the market may encounter renewed supply that could trigger a rotational move back toward support levels.
Volume dynamics will play a key role in determining the outcome. A strong expansion in bullish volume as price approaches resistance would increase the probability of a breakout attempt. Conversely, weakening participation could lead to rejection and continuation of the broader range-bound structure.
Overall, Ethereum’s internal market structure currently favors upside continuation, but the presence of strong overhead resistance means traders should remain cautious.
What to expect in the coming price action
If Ethereum maintains higher lows above the Point of Control, the probability of a rally toward the $2,200 resistance zone increases. However, failure to break and hold above this level could trigger another rotation within the broader range, sending price back toward high timeframe support near $1,862.
Over $530 million in Bitcoin (BTC) short positions were liquidated today as the White House nominated pro-Bitcoin Kevin Warsh as Federal Reserve Chairman, triggering a broad crypto market rally.
Bitcoin is up by 9% in 12 hours, adding $123 billion to its market cap. Ethereum (ETH) climbed 11% over the same period, adding $26 billion.
Bitcoin Short Sellers Caught Offguard As White House Officially Nominates Pro-BTC Fed Chair
Bitcoin reclaimed the $73,000 psychological level and was trading for $73,413 as of this writing.
The move forced a cascade of short liquidations across derivatives markets, with Coinglass data showing nearly $30 million in short positions blown out over the past hour. This brings total liquidations to $530 million over the last 24 hours.
The move caught short sellers exposed. Traders betting against BTC and ETH were squeezed out as prices rose sharply, amplifying upward momentum through forced buybacks.
Warsh Nomination Serves as Macro Catalyst
The policy trigger behind the rally came from Washington. The White House officially nominated Kevin Warsh, a former Federal Reserve Governor widely regarded as sympathetic to digital assets, to serve as Fed Chairman for a four-year term.
“Kevin Warsh, of Florida, to be Chairman of the Board of Governors of the Federal Reserve System for a term of four years. Kevin Warsh, of Florida, to be a Member of the Board of Governors of the Federal Reserve System for a term of fourteen years from February 1, 2026,” read the announcement.
Meanwhile, the divergence between Bitcoin and traditional safe havens widened. Bitcoin is up by almost double digits, while Gold fell 3%. This stark contrast suggests capital rotation from traditional stores of value into digital assets.
The Warsh nomination and Saylor’s public stance, indicating potential for buying more BTC than sellers can offload, point to a market increasingly driven by macro policy expectations and institutional positioning.
[PRESSS RELEASE – New York, United States, March 3rd, 2026]
Threshold Network, the decentralized blockchain protocol behind tBTC, has introduced an update to its decentralized application featuring an all-in-one Unified Bitcoin App that enables users to route Bitcoin across major chains through a single interface.
This new unified routing interface brings minting, redeeming, bridging, tracking, and native BTC swaps into a single application: The Threshold App. Users can now move Bitcoin across ecosystems through a coordinated system, rather than stitching together multiple tools or navigating between different Decentralized protocols.
This release simplifies how Bitcoin enters and moves across DeFi, offering a more user-friendly on-chain experience with tBTC. Whether a transaction requires a swap, a bridge, or multiple steps, execution is seamlessly coordinated through a single interface
Coordinated Execution Instead of Fragmented Workflows
Historically, moving BTC into tBTC and across chains required multiple disconnected workflows: minting in one app, bridging via another protocol, swapping on separate exchanges, and manually checking the best price for each transaction. This fragmented process introduced friction, higher execution risk, added costs, and unnecessary complexity for users attempting to access DeFi with Bitcoin.
The Threshold All-in-one Bitcoin Liquidity App streamlines this experience by consolidating minting, bridging, swapping, and cost tracking into a single coordinated interface. Instead of manually comparing bridges and liquidity venues, users receive optimized routing options based on cost, speed, and reliability, such as the fastest or lowest-cost path: all within the Threshold Network App.
By abstracting multi-step transactions into a single seamless flow, the router significantly lowers the barrier for Bitcoin holders to use BTC across major ecosystems, including Ethereum, Arbitrum, Base, Sui, Starknet, and other integrated chains. The result is a simpler, more efficient way to move Bitcoin into DeFi.
Native BTC Execution with Deep Liquidity
Native BTC swaps are integrated directly into the routing engine, leveraging deep Ethereum liquidity to deliver competitive pricing and more efficient execution compared to fragmented, chain-specific pools.
“Capital should move efficiently across chains without requiring users to manage infrastructure decisions,” said MacLane Wilkison, Co-Founder of Threshold Network. “The new Threshold Bitcoin app coordinates liquidity sourcing and settlement behind the interface, enabling more efficient Bitcoin deployment across ecosystems.”
The update also strengthens the utility of Threshold’s token (T). The App tracks staked $T from the connected wallet and automatically applies minting and redemption fee waivers for eligible users. Gasless minting remains available as an opt-in feature, further reducing transaction costs.
Additionally, the router enables streamlined conversions from assets such as WBTC and cbBTC directly into tBTC on the destination chain, providing more direct and efficient access to Bitcoin liquidity across DeFi ecosystems.
Integrated Infrastructure Across Major Networks. Currently, the router connects Bitcoin, Ethereum, Arbitrum, Base, Sui, and Starknet within one coordinated framework. It integrates native tBTC mint and redeem flows, established bridging infrastructure, and DEX aggregation to ensure reliable settlement across chains.
All transactions are tracked in real time and are fully resumable. If a user disconnects or closes a session, progress is preserved. Fee logic is staking-aware, with eligible T stakers seeing applicable redemption fees waived directly within the interface.
New Features:
- Unified Routing Interface: Enables minting, redeeming, swapping, and bridging from a single entry point. Users select source and destination assets, and the system automatically constructs the optimal execution path.
- Multi-Chain Connectivity: Supports Bitcoin, Ethereum, Arbitrum, Base, Sui, and StarkNet within a single coordinated framework. Users can move BTC or tBTC across ecosystems without managing separate bridge interfaces.
- Smart Route Discovery and Ranking: Automatically evaluates possible transaction paths and ranks them by cost, speed, reliability, and simplicity. Users are presented with clearly labeled best options.
- Native BTC Swaps: Provides direct access to BTC liquidity with competitive execution, while enabling seamless conversion of assets such as cbBTC or wBTC into tBTC on a user’s chosen destination network.
- Integrated Liquidity and Bridging Stack: Connects tBTC mint and redeem flows with established bridging infrastructure and DEX aggregation to coordinate multi-step transactions seamlessly.
- Resumable Transactions: Persists in-flight operations, allowing users to refresh, disconnect, or return later without losing progress. Reduces failed cross-chain flows and operational friction
- $T Staking-Aware Fee Display: Recognizes T staking status and surfaces fee waivers directly in the interface, reinforcing participation incentives.
- Unified tBTC Explorer and Transaction Tracking: The new explorer section of the app consolidates historical mint, redeem, bridge, and swap activity into a single view, improving transparency and user oversight.
Impact for Users and Stakeholders
This release expands the utility of tBTC across six ecosystems while increasing throughput across minting, bridging, and swap flows. By embedding routing intelligence directly into the protocol interface, Threshold captures more activity within its infrastructure and further strengthens staking incentives tied to network usage.
With this launch, Threshold advances its role from Bitcoin asset issuance to core infrastructure for Bitcoin mobility, coordinating capital movement seamlessly across chains and unlocking more efficient access to decentralized finance.
Users can explore the new Bitcoin App today at https://app.threshold.network
About Threshold Network
Threshold Network is the decentralized protocol behind tBTC, a non-custodial, 1:1 Bitcoin-backed asset secured by a 51-of-100 threshold signer model. tBTC enables native BTC to move across chains like Ethereum, Base, Sui, Arbitrum, and Starknet without requiring custodians or compromising security. With over 6 years of proven security and about $5.1B in bridge volume, Threshold offers the most battle-tested, trust-minimized Bitcoin infrastructure on-chain.
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For many, the passage of the GENIUS Act closed the doors on the creation of a Central Bank Digital Currency (CBDC). Stablecoins, though digital, were marketed as a private form of currency, in contrast to a government-issued digital dollar.
Aaron Day, a fellow at the Brownstone Institute and a staunch critic of the crypto industry, argued that the GENIUS Act facilitates increased government surveillance despite this ban.
Surveillance Concerns Under the GENIUS Act
The GENIUS Act explicitly prevents the Federal Reserve from issuing a CBDC directly to individuals or through a third party. Its goal was to block the creation of a government-issued digital dollar at all costs.
Its July 2025 passage tied in nicely with President Trump’s early campaign promises to oppose the creation of a CBDC, describing it as a form of tyranny.
According to Day, stablecoins and CBDCs are essentially the same thing. The only difference is that the former is privately issued, whereas the latter is issued by a central bank. Yet, as long as the government is involved, the degree of surveillance remains the same.
“The issuance by the Federal Reserve is not actually the part of this that people are concerned about. The Federal Reserve is a private organization that is a collection of banks. Whether you end up having a stablecoin issued by Jamie Dimon at JP Morgan Chase or by the Federal Reserve doesn’t matter,” Day told BeInCrypto.
What privacy-preserving people are really concerned about, he argued, is a government entity being able to program, track, and censor money.
This line of thinking has prompted him to define the GENIUS Act as a “backdoor CBDC.” Day highlighted the urgency of the issue, especially given the exponential growth in stablecoins.
“Last year, there was $33 trillion worth of stablecoin transactions. Globally, this is larger than the amount processed through Visa,” he said, adding, “What they’ve done essentially is they’ve taken stablecoins… and they put [them] under the surveillance and control of Congress.”
According to him, this level of surveillance already existed before the passage of the GENIUS Act. The recently signed bill only represents a new degree to an already established order.
Day noted that most of the dollar is already digital.
When asked for examples, he pointed to the Bank Secrecy Act (BSA). This legislation, passed in 1970, requires financial institutions to assist government agencies in detecting and preventing money laundering, terrorism financing, and other illicit activities.
According to Day, the BSA allows government agencies to engage in overreach in certain contexts.
“We have something called suspicious activity reports. Anytime you do a financial transaction through your bank greater than $10,000, a report is automatically generated and sent to the Treasury Department. This shows you that we already have tracking within the system,” he said.
While these tools are often used for public protection, government agencies can implement them without specific authorization.
Day pointed to a specific example. In March 2025, the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Treasury Department, issued a geographic targeting order to combat money laundering activities in the southwest border of the United States.
As part of that order, FinCEN mandated that money services businesses in 30 ZIP codes report transactions over $200.
“Understand what this means. The Treasury Department, without Congress, without a bill, without a law, can simply send a memo and banks will start adjusting the dollar transaction amount with which they start automatically reporting to Treasury,” he said.
In light of these examples, he argued that surveillance frameworks already exist. The GENIUS Act merely allows Congress to supervise stablecoins, potentially expanding control over digital currencies in ways that mirror those of a CBDC.
One day after recording its worst single-session loss in history, South Korea’s KOSPI surged more than 11% on Thursday, staging one of the most dramatic reversals the index has ever seen.
No major economy is more acutely wired to Middle East instability than Seoul — and this week proved it.
The Bounce of KOSPI and KOSDAQ
South Korea’s two main stock indices — the large-cap KOSPI and tech-heavy KOSDAQ — are among Asia’s most actively traded markets and a key barometer of Korean retail investor sentiment.
By mid-morning, the KOSPI had climbed to 5,682 — up from Wednesday’s close of 5,093 — after touching an intraday high of 5,715. The KOSDAQ recovered above the 1,000 level, gaining over 11%. A buy-side sidecar was triggered in early trade — a striking contrast to Wednesday’s sell-side sidecar and full circuit breaker halt. The won strengthened sharply, pulling back from an overnight high of 1,505 to trade near 1,461.
The catalyst: oil prices stabilized, with Brent crude holding at $81.40 and WTI at $74.66, and reports of back-channel contacts between Washington and Tehran lifted sentiment across Asian markets. Wall Street had closed higher on Wednesday, with the Nasdaq up 1.29%, led by Tesla (+3.44%), Amazon (+3.95%), and Nvidia (+1.66%).
Samsung Electronics and SK Hynix — which had shed 21% and 22.75% respectively from their late-February peaks — rebounded 13–15% in early trade. Foreign investors, who had used both stocks as first-resort liquidity during the panic, returned as net buyers of over 710 billion won by mid-morning. Retail investors added another 600 billion won alongside them.
Why Korea Fell Harder Than Anyone Else
The scale of the crash and recovery reflects a structural reality. Over the two sessions on March 3–4, the KOSPI and KOSDAQ fell 18.43% and 17.97%, respectively — the worst and second-worst performances globally. Japan fell 6.57%, Taiwan 6.46%, and China’s Shenzhen Composite just 3.76%. US indices barely registered, declining less than 0.35% combined.
Korea imports over 70% of its energy from the Middle East and operates an export-dependent economy with high sensitivity to commodity shocks. When US-Israel strikes on Iran triggered Strait of Hormuz closure fears, global risk was concentrated in Seoul with exceptional force. Wednesday’s KOSPI decline of 12.06% surpassed even the 12.02% drop recorded the day after 9/11 — a threshold that had stood for 25 years.
What Comes Next
Analysts are cautiously optimistic but warn that the path forward depends on geopolitical developments. One analyst argued that a prolonged Hormuz blockade is self-defeating for Iran. It would cut Tehran’s foreign exchange revenues while inviting further military response. Another pointed to a potential mediator as the key turning point. At current index levels, he said, “the case for buying is strong.”
Mirae Asset set a near-term KOSPI recovery target of 5,800. Kiwoom Securities suggested the two-day selloff had effectively front-loaded the war risk premium in full.
What It Means for Crypto
For crypto markets, as BeInCrypto reported Wednesday, Korea’s retail investor base showed some resilience during the crash — with newly listed tokens on Upbit and Bithumb posting double-digit gains even as equities collapsed. But Thursday’s equity rebound may quickly reverse that dynamic.
With foreign and retail investors pouring over 1.3 trillion won back into equities in a single morning session, the stock market’s gravitational pull reasserts itself. Korea’s crypto volumes had already dropped by more than 80% during the KOSPI’s 85% bull run since President Lee’s election, and a sharp V-shaped equity recovery threatens to drain whatever crypto inflows emerged during the two-day panic.
The won pulled back from 1,505 to near 1,461. That partial recovery reduces the currency-hedge appeal that briefly boosted digital assets. The effect is already visible in the data: Bitcoin rose 6.4% in dollar terms over the past 24 hours, but gained only around 5% on Upbit in won terms — the won’s sharp rebound absorbed more than a percentage point of that gain.
If geopolitical risk continues to ease, the KOSPI could push toward Mirae Asset’s 5,800 target. Korean retail capital — historically the most swing-sensitive in global crypto markets — would likely follow equities. Not digital assets.
Bitcoin has hit its most extreme weekly oversold level on record as selling slows.
Summary
- Research firm K33 says bitcoin is in its deepest weekly oversold zone ever.
- The move follows months of selling from long-term holders and institutions, though that pressure is now easing.
- Bitcoin (BTC) reclaimed $71,000 with roughly 7% daily gains as derivatives metrics show cautious but stabilizing positioning.
Bitcoin (BTC) has entered the most extreme weekly oversold zone in its history, according to a new report from research firm K33, even as early signs suggest that sustained sell pressure from long-term holders and institutions is finally starting to ease.
The firm notes that over the past several months, systematic selling from older wallets and ETF-related flows pushed prices lower and kept sentiment muted, despite ongoing interest in spot products. Now, with bitcoin back above $70,000 and net outflows slowing, K33 argues that the market is moving into a phase where forced or programmatic selling is less dominant, allowing spot demand to have a clearer impact on price. At the same time, derivatives indicators point to a market that is still cautious rather than euphoric, with traders paying for downside protection even as spot rebounds.
K33’s oversold signal is rooted in longer-term momentum and breadth metrics, rather than short-term intraday swings, highlighting how extended the prior drawdown had become relative to previous cycles. The report emphasizes that similar readings in past years often preceded medium-term recovery phases, though the timing and strength of those rebounds varied depending on macro conditions and liquidity. In this cycle, the backdrop includes U.S. spot bitcoin ETFs that continue to attract steady, if uneven, inflows, as well as growing interest from corporates and fintech platforms like Coinbase that are integrating digital assets more deeply into their product stacks. For now, the firm characterizes bitcoin’s current state as one of “exhausted sellers” rather than a fully confirmed trend reversal.
Derivatives still signal caution
Despite the oversold reading and price recovery, K33 stresses that derivatives markets are not yet signaling a return to aggressive risk-on behavior. Funding rates on major perpetual futures have normalized from previous extremes and sit near neutral, suggesting that leveraged longs are no longer crowding in at any price, but are also not completely absent. Open interest has climbed from local lows in a more measured fashion, indicating that new positions are being added without the kind of unchecked leverage build-up that often precedes sharp liquidations. Options markets, meanwhile, show persistent demand for puts and elevated implied volatility around key macro and policy dates, reflecting ongoing concern about downside scenarios.
For traders and asset managers, the combination of record weekly oversold conditions and still-cautious derivatives positioning creates an environment where upside follow-through is possible, but not guaranteed. Short-covering rallies can be powerful in this type of setup if spot demand continues and ETF flows stay positive, yet any renewed wave of macro stress or regulatory headlines could quickly reignite selling. Institutional desks focused on structured products and basis trades may see opportunities to re-enter yield strategies as spreads normalize, while long-only investors weigh whether current levels offer an attractive entry point in light of K33’s historical analogs. The key test in the coming weeks will be whether bitcoin can hold above reclaimed support zones while leverage remains contained, confirming that the market has transitioned from forced selling into a more sustainable, accumulation-driven phase.
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