Cardano has fallen 1.39% to $0.1628 as rising short positions have outweighed whale demand two days before the Van Rossem hard fork.

According to data from crypto.news, from July 16 showed ADA traded between an intraday low of $0.1611 and a high of $0.1664, extending its retreat from an early-July peak near $0.195. The decline came even as large holders accumulated ADA and Cardano prepared to activate its most important network update in years.

CoinGlass data placed ADA’s weighted funding rate at -0.0067%, indicating that traders holding short positions were paying those betting on a price increase. The long-to-short ratio stood at 0.58, while open interest rose 4% to $421 million as traders added new leveraged positions.

Those readings show that derivatives traders remained positioned for further losses before the upgrade, according to CoinGlass. However, the concentration of short bets also raises the risk of liquidations if ADA moves sharply higher.

Whale demand collides with bearish futures bets

Notably, wallets holding between 100,000 and 100 million ADA had increased their balances to the highest level since 2023. The accumulation is possible positioning by large investors before Van Rossem goes live.

Cardano’s governance approved the hard fork on July 13, according to Intersect, with activation scheduled for July 18. Intersect has also urged infrastructure providers to update their software before the network crosses the hard fork boundary.

Van Rossem is expected to lower execution costs, which would make transactions and applications cheaper to run on Cardano, according to Intersect. The update will also prepare the network for Leios, a later scaling upgrade intended to increase transaction capacity before the end of 2026.

The upgrade follows Vasil, which improved Cardano’s network performance and smart-contract efficiency when it activated on Sept. 22, 2022, according to Cardano’s official hard-fork record.

Despite the whale purchases, TradingView’s daily chart showed ADA holding below the Murrey Math resistance at $0.1709. Chaikin Money Flow remained slightly positive at 0.04, suggesting that buying pressure had not disappeared even as the token lost ground.

ADA faces liquidity pressure near $0.160

On the 4-hour chart, ADA had crossed above a descending trendline drawn from its July peak, but the move had not produced a sustained rally. TradingView’s Relative Strength Index stood at 46.92, below its moving average of 50.95, placing momentum on the bearish side of neutral without showing oversold conditions.

The same chart placed the nearest major Murrey Math support at $0.1465. A daily close above $0.1709 would instead clear the bottom of the indicated trading range and leave the $0.1953 pivot as the next visible resistance.

CoinGlass’s three-day liquidation heatmap showed the nearest dense liquidity pool between $0.160 and $0.161, directly below ADA’s market price. A larger concentration appeared around $0.170, closely matching the resistance shown on the daily chart.

Based on the heatmap, a drop below $0.160 could trigger leveraged long liquidations and expose the $0.1465 support. A move through $0.170, however, could force short sellers to close positions and strengthen the recovery attempt as Van Rossem goes live.

Morgan Stanley’s E*TRADE has begun offering spot cryptocurrency trading to eligible self-directed clients, adding Bitcoin, Ether, and Solana to a platform that previously focused on traditional assets. The firm says the rollout is powered by a partnership with crypto infrastructure provider Zero Hash, with additional tooling—particularly for moving assets in and out of the platform—expected later this year.

According to a Morgan Stanley financial supplement, the self-directed channel serves 8.6 million households and held about $1.56 trillion in client assets as of March 31. The company’s update positions E*TRADE’s customer interface to mirror how many investors already view stocks and ETFs—now alongside major cryptocurrencies—while the back-end custody and transfer mechanics roll out in stages.

Key takeaways

• E*TRADE spot crypto trading is now live for eligible clients, covering Bitcoin, Ether, and Solana.
• Trading fees are set at 50 basis points, while custody and transaction services are handled via separate Zero Hash accounts.
• Digital asset custody through this structure is not covered by FDIC or SIPC protections, and Morgan Stanley expects later to transition services to Morgan Stanley Digital Trust.
• Transfers of cryptocurrency on and off the platform are expected later this year, following the initial trading launch.
• The move follows a May pilot and fits Morgan Stanley’s broader digital asset push, including stablecoin reserve services and spot ETF launches.

How E*TRADE’s spot crypto offering works

In Thursday’s announcement, Morgan Stanley said E*TRADE clients can buy, sell, and hold spot cryptocurrencies through the firm’s self-directed platform. While the user experience is designed to keep crypto holdings visible alongside stocks and other investments, the company’s implementation relies on Zero Hash for key parts of the service.

Specifically, Morgan Stanley outlined that trades carry a 50-basis-point fee. Custody and transaction-related services are routed through separate Zero Hash accounts that, importantly, are not covered by FDIC or SIPC protections. That distinction matters to customers evaluating risk and protections versus what they may expect from traditional brokerage or bank-like coverage.

The firm also indicated it plans to transition digital asset services to Morgan Stanley Digital Trust—its national trust bank that is currently in organization. The staged approach suggests the trading experience can launch while some compliance and operational infrastructure continues to develop or be consolidated under Morgan Stanley’s trust structure.

From pilot to broader access

Thursday’s launch follows a pilot that began in May, when Morgan Stanley tested the service with a limited group of users before expanding access to eligible E*TRADE clients. Earlier coverage from Cointelegraph noted that the company was preparing its spot crypto offering with a constrained initial user base, which can be a practical way to validate trading flows, onboarding, and operational controls before scaling.

Another notable element of Thursday’s update is what’s not yet fully available: Morgan Stanley said transfer functionality for moving digital assets on and off the platform is expected later this year. For many investors, the ability to withdraw to external wallets—or to deposit from one—is as important as the ability to trade. Until transfers are enabled, the offering may function more like a trading-and-holding experience within the platform ecosystem.

Broader digital asset strategy: ETFs and stablecoin services

This E*TRADE expansion arrives as Morgan Stanley has been deepening its digital asset involvement across multiple channels. The firm has already moved into areas that reach beyond direct retail spot trading, including stablecoin reserve services and spot exchange-traded products.

In April, Morgan Stanley introduced a stablecoin reserve offering that allows issuers to hold assets backing their tokens in one of the firm’s money market funds while earning interest, according to earlier reporting by Cointelegraph in connection with the launch. Later that same month, Morgan Stanley also launched a spot Bitcoin ETF on NYSE Arca with a 0.14% management fee, which Cointelegraph reported at the time as the lowest-cost Bitcoin ETF on the US market. That ETF debuted as the first spot Bitcoin ETF launched by a major US commercial bank.

Cointelegraph also reported that during the ETF’s first six trading days it attracted more than $100 million in net inflows. At the time of writing, the fund reportedly had about $385 million in cumulative net inflows, based on SoSoValue data for the product.

Meanwhile, regulatory and product design details continue to evolve. In June, Morgan Stanley amended proposed spot Ether and Solana ETF filings to set management fees at 0.14%, after previously applying fees in January when first seeking to list the funds. The commonality of that fee level underscores a competitive intent in a crowded ETF landscape, where management expense ratios can influence investor flows.

What investors should watch next

With E*TRADE’s spot crypto trading now available, the next milestones for customers are likely operational rather than marketing-driven: the timing of deposit/withdrawal transfer capabilities later this year and the planned transition of services to Morgan Stanley Digital Trust. For traders, the fee structure is already defined, but the most practical question remains how quickly customers will gain full flexibility to move assets beyond the brokerage environment.

Former Fidelity fund manager George Noble has warned that an AI bubble crash could cause 17 times more damage than the dot-com collapse, which erased about $5 trillion from the Nasdaq.

According to Polymarket, the probability of an AI bubble bursting in 2026 has climbed above 17% after recently falling from 30% to 14%. Contracts using different resolution criteria placed the likelihood between 16% and 24% as traders weighed falling technology shares, revenue concerns, and weakness across global markets.

Noble tied his forecast to the large sums flowing into AI infrastructure, arguing that the financial fallout could extend far beyond technology companies if expected returns fail to arrive.

“The fallout from this could really be much more significant,” Noble said while discussing the rise in AI capital spending.

AI bubble odds have rebounded above 17%

Fresh pressure on semiconductor and technology shares has added to those concerns. The Wall Street Journal reported that U.S. stock futures fell on Thursday as AI-related anxiety spread from Asian markets, where SK Hynix and Samsung Electronics dropped almost 9%.

Both South Korean chipmakers plan to spend billions of dollars on semiconductor plants and AI capacity. Their declines came as investors questioned whether the revenue generated by AI services would justify the industry’s expanding infrastructure bill, according to the report.

IBM has added to the unease after its shares suffered their steepest daily fall since 1968, dropping almost 25% earlier this week. Market data cited in the report showed IBM closing another 2.7% lower at $211.20 on Wednesday, taking its decline over several sessions past 26%.

In its warning, IBM said spending on AI infrastructure was pulling corporate budgets away from software, contributing to weaker-than-expected revenue growth. The selloff erased tens of billions of dollars from IBM’s market value and weighed on other software and information technology stocks, according to the report.

A draft U.S. Treasury Department report has also examined how an AI downturn could move through the economy. Drawing on research from the University of Texas at Austin cited by NOTUS, the report found that AI companies have become more closely linked to the U.S. economy than internet companies were during the dot-com period.

Under the report’s downside scenario, disappointing productivity or profits could hurt private credit, chipmakers, cloud providers, electric utilities, and companies financing data centers. The Treasury did not predict an imminent crash, but it listed electricity shortages, financing limits, supply chain disruptions, and geopolitical tensions among the risks facing the sector.

Cash demands could expose inflated AI valuations

Ray Dalio has separately argued that liquidity, rather than weak technology, could break the AI boom. During a television interview reported by Bloomberg, the Bridgewater Associates founder explained that investors often mistake rising asset values for money they can readily spend.

Dalio used private companies to illustrate the risk: a business can receive a billion-dollar valuation after raising far less in actual capital, but shareholders cannot use that paper wealth without selling. In his assessment, stress would emerge if many investors attempted to turn those valuations into cash at the same time.

Bernstein and Cummings have pointed to another pressure building beneath the boom. In a recent Substack post, the economists wrote that the AI bubble was “still inflating,” while technology investment had reached nearly 5% of U.S. GDP, above levels recorded during the dot-com era.

Their analysis also found that large technology companies were committing enough capital to AI projects to reduce their cash reserves. Combined with Noble’s warning and Dalio’s liquidity concerns, those figures leave investors focused on whether AI earnings can catch up with the money already committed to the sector.

Binance co-founder Changpeng Zhao has challenged Wall Street’s projected $700 billion AI spending wave by arguing that Bitcoin offers protection against inflation that artificial intelligence cannot provide.

On X, Zhao presented the difference between the two investment themes in a single line: “AI is great, but it does not protect you against inflation. Bitcoin does.”

CZ’s comment comes as investors weigh Bitcoin’s fixed supply against the rapid flow of capital into AI infrastructure. JPMorgan CEO Jamie Dimon expects AI investment to reach $725 billion this year, while BlackRock executives see rising government debt and currency concerns strengthening Bitcoin’s long-term case.

Bitcoin’s case rests on fiscal pressure

According to BlackRock digital assets chief Robert Mitchnick, investors have recently paid less attention to Bitcoin as spot Bitcoin exchange-traded funds recorded heavy outflows. Mitchnick believes that trend could reverse if concerns about U.S. borrowing and currency debasement intensify.

“And the more fear there is over the borrowing level and the risk of money printing, that is ultimately the most important, I think fundamental driver ahead.”

Bitcoin recently traded near $65,000 after recovering from an earlier decline. However, the cryptocurrency remained well below its October 2025 record of more than $126,000, which was reached during a period of strong inflows into BlackRock’s spot Bitcoin ETF.

CZ’s inflation argument follows the same monetary case outlined by Mitchnick. While AI companies depend on future revenue from heavy capital spending, Bitcoin supporters view the asset’s limited supply as protection against the loss of purchasing power caused by monetary expansion.

Former Fidelity fund manager George Noble has raised a separate concern about the amount of money entering AI infrastructure. As reported by crypto.news, Noble warned that an AI crash could cause 17 times more damage than the dot-com collapse, which erased about $5 trillion from the Nasdaq.

“The fallout from this could really be much more significant,” Noble said while discussing the rise in AI capital spending.

AI spending keeps Wall Street divided

Despite those warnings, Dimon remains optimistic about AI because of the large investments moving through the industry and the strength of the U.S. economy. The JPMorgan chief described the spending cycle as difficult to stop while comparing it to a wave gathering force.

“We’re in a bull market. It’s like a little tsunami. When that kind of thing happens, it’s very hard to stop.”

Dimon has repeatedly criticized Bitcoin in previous years, although he has recently expressed concern about government borrowing and geopolitical risks over the next several years.

Polymarket traders have also assigned a meaningful chance to an AI downturn. According to the prediction market, one contract placed the probability of an AI bubble bursting in 2026 above 17% after the odds previously dropped from 30% to 14%. Other contracts using different settlement rules showed probabilities ranging from 16% to 24%.

Former White House economists Jared Bernstein and Ryan Cummings have added to the caution around AI valuations. Writing on their respective Substacks, they described the bubble as “still inflating” and argued that corporate AI spending is reducing cash reserves while technology investment consumes a larger share of U.S. gross domestic product than during the dot-com era.

Within BlackRock, Rick Rieder has indicated that the asset manager plans to reduce exposure to companies directly spending on AI while increasing holdings in businesses positioned to profit from AI demand. Bitcoin miner TeraWulf fits that second category after signing a 20-year agreement to host AI data-center infrastructure for Anthropic.

The U.S. Senate has adopted a resolution opposing executive clemency for former FTX CEO Sam Bankman-Fried, underscoring bipartisan political pressure after his fraud conviction connected to the collapse of the crypto exchange.

In a unanimous-consent vote, senators approved a simple, nonbinding measure—S. Res. 772—stating that Bankman-Fried should not receive executive clemency, according to a Wednesday post by the Senate Press Gallery on X.

Key takeaways

• The Senate passed S. Res. 772 by unanimous consent to oppose any federal clemency for Sam Bankman-Fried.
• The resolution is nonbinding and cannot stop a presidential pardon or other executive action.
• The measure follows Bankman-Fried’s request for clemency from President Donald Trump.
• Bipartisan support expanded as additional senators joined as cosponsors, including Bernie Moreno.
• Prediction markets currently price a pardon at less than 1%, despite attracting meaningful trading activity.

Senate resolution signals bipartisan opposition

S. Res. 772 was introduced on June 17 by Senator Ruben Gallego, with Senator Cynthia Lummis listed as a cosponsor. The resolution explicitly opposes any form of federal clemency for Bankman-Fried, including a presidential pardon or a commutation of sentence.

As a simple Senate resolution, it does not require approval from the House or the president and does not carry the force of law. The Senate’s own “Types of Legislation” guide explains that this kind of measure is distinct from legislation and therefore cannot compel or block executive action.

At the time of publication, Congress.gov had not yet reflected the latest floor action for the resolution. However, the Senate Press Gallery’s post indicates that the Senate has now agreed to the measure.

Support for the resolution is also bipartisan. Senator Bernie Moreno of Ohio joined as a cosponsor on Tuesday, adding additional Republican backing to a proposal initially led by a mix of senators from different parties.

Why the Senate’s move matters—and what it can’t do

While S. Res. 772 cannot prevent the president from granting clemency, it functions as a public signal of political resistance inside the legislative branch. The Senate resolution affirms lawmakers’ commitment to “the rule of law” and the integrity of the U.S. financial system in the wake of Bankman-Fried’s conviction.

Bankman-Fried was convicted on fraud and conspiracy charges tied to the 2022 collapse of FTX. He was sentenced to 25 years in federal prison in March 2024.

In June 2026, speculation about a possible pardon intensified after Bankman-Fried sought clemency from President Donald Trump, according to earlier reporting from Cointelegraph on his application. The Department of Justice’s pardon and clemency case-status records also list the clemency request as pending, using the case number shown in the DOJ interface.

For investors and participants in crypto markets, political outcomes like clemency don’t directly change blockchain technology or protocol rules. But they can influence broader regulatory and enforcement expectations—especially in high-profile cases that have become benchmarks for how U.S. authorities treat major exchange failures.

Market pricing suggests a pardon is unlikely

Even as the Senate moved to oppose clemency, prediction markets have largely discounted the probability that Bankman-Fried will receive a pardon. On Polymarket, traders have assigned less than a 1% chance that President Trump will pardon Bankman-Fried by July 31, according to the market listing referenced in the original reporting.

Despite the low odds, the market has pulled in more than $734,000 in trading volume, indicating that while most traders appear skeptical, there is still substantial interest in the possibility of an executive decision.

That split—very low probability on price, but meaningful volume in activity—often points to traders using the market to express scenarios they consider possible but not likely. What remains uncertain is whether clemency processes will advance to a decision and, if so, whether any final action will align with the Senate’s stated position.

What to watch next

Readers should watch the Department of Justice’s clemency case status for any updates and monitor further legislative developments, since S. Res. 772 cannot block a presidential pardon but may affect political pressure around any eventual executive decision.

Robinhood’s newsroom called its new blockchain, Robinhood Chain, “AI-native and purpose-built for real-world assets.” By the end of week one, those assets — mostly memecoins — totaled roughly $13 million. But those memecoins keep dying.

By midday Thursday, a memecoin called MIZUKARA had gone to zero on Robinhood Chain, on roughly $67 million of trading volume.

It was one of dozens of MIZUKARA pools deployed in under a day. Each fresh incarnation stepped over the corpse of the last.

None of this was in the pitch. Robinhood launched the chain at a London event on July 1, pitching it for tokenized stocks for customers in more than 120 countries.

The next morning, CEO Vlad Tenev told CNBC, “If an asset is not tied to an underlying utility, it’s not a productive asset. What’s the benefit of making a million different memecoins?”

The market then spent a few days actually using it. On July 7, Tenev posted his revision: “While we’re building robinhood chain to be the best chain for RWA … it works great for memes too.”

Memecoin promoters showed up, and he couldn’t stop them.

Two days later he declared, “Robinhood Summer is here,” boosting a colleague’s tally of 17 million transactions and more than $1 billion in DEX volume.

Robinhood Summer lasted two days

The boom in Robinhood Chain memecoins ran through NOXA, a launchpad responsible for some 60,000 tokens, more than three-quarters of everything deployed on the chain.

NOXA collected more than $12 million in fees in two weeks.

Yet that same Saturday morning, NOXA complained that bots were “spamming and copying new tokens every hour” and switched off its own token deployer.

Two days later, its website went dark; NOXA blamed a Cloudflare issue. It also burned 40% of its own token supply.

By July 14 it had resurfaced as a bare-bones page, announcing, “People loved the cat, it has been liberated,” and handed 100% of ongoing trading fees to token creators.

Some traders called the exit a soft rug, crypto slang for a team that walks away without formally stealing anything. A Binance Square message board user posted a post-mortem, finding no direct evidence of the revenue-split dispute rumored to be behind it.

NOXA’s own explanation reads, “DeFi summer is still happening.” It probably isn’t.