Crypto World
BTC Rejected at $74K Amid Rising Middle East Tensions, BlackRock’s ETHB Debuts: Weekly Recap
BTC experienced some intense volatility on Friday after the release of the US PCE data. However, its rally was quickly halted.
It was another eventful week, with the headlines strongly focused on the quickly developing (and, in most cases, worsening) situation in the Middle East as both sides continue to hit each other, or allies.
In the meantime, the ever-volatile cryptocurrency industry responds to almost all new developments. Bitcoin, for example, started the week on the wrong foot, slipping from $68,000 on Sunday to a multi-day low of $65,600 when almost all financial markets opened for trading after the strikes and statements during the weekend.
However, the bulls were quick to intervene and didn’t allow further decline. Instead, BTC began its gradual recovery, which saw it near $70,000 by Wednesday. After the initial rejection, the bulls stepped up and pushed the asset to almost $72,000. It faced more resistance at this level and returned to $69,000 when the US CPI numbers came out later that day.
Although expectations and reality met, BTC remained relatively calm at first, but jumped by nearly two grand later on after Trump said there’s “practically nothing left to target” in Iran. Following another volatile session around $70,000, the cryptocurrency went on the offensive on Friday after the release of the US PCE data for January. which showed a 0.3% MoM increase, and a 2.8% YoY rise.
Bitcoin tapped $74,000 for the second time in the past 10 days, but it was stopped once again and driven south by over two grand. Nevertheless, it’s still 6% up weekly, similar to BNB, XRP, and SOL. Ethereum has added almost 10% in the past seven days, while HYPE has exploded by 23%.
Market Data
Market Cap: $2.52T | 24H Vol: $138B | BTC Dominance: 56.9%
BTC: $71,700 (+6.1%) | ETH: $2,130 (+9.3%) | XRP: $1.4 (+5%)
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This Week’s Crypto Headlines You Can’t Miss
BlackRock Staked Ethereum ETF Sees $15.5M First-Day Volume. Perhaps the most significant piece of industry news this week came from the world’s largest asset manager. BlackRock debuted a new sort of Ethereum ETF that allows investors to take advantage of the network’s staking function. The launch day saw $15.5 million in daily volume.
Ripple Targets $50B Valuation With $750M Buyback Amid Major Partnerships. A recent report indicated that Ripple has launched a share buyback program that puts it at a whopping valuation of $50 billion. Its plan is to repurchase up to $750 million in shares from employees and investors.
POTUS to Headline Gala for Top TRUMP Holders as Price Soars 50% After ATL. Following a consistent and painful decline for the meme coin TRUMP, the US President stepped up to headline a gala for the top asset holders in several weeks. The token reacted immediately with a massive 50% surge.
Here’s When Arthur Hayes Will Buy Bitcoin Again. The co-founder of BitMEX remains a bitcoin bull, but he believes the asset is likely to retrace again amid the ongoing conflict between the US and Israel on one side, and Iran on the other. As such, he said he might look for a new bottom below $60,000 before he starts accumulating again.
Binance Under DOJ Investigation for Possible Iran Sanctions Violations: WSJ. The Wall Street Journal reported that the US Department of Justice has begun an investigation into whether Binance was used in any form to help Iranian-linked wallets bypass American sanctions. Meanwhile, the exchange has sued the publication for defamation over an article from February 24.
Elon Musk Confirms Early Public Access Launch of X Money Next Month. Musk continues with his attempts to transform the social media platform, and indicated that users will receive public access to X Money in April.
Charts
This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid – click here for the complete price analysis.
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BlackRock’s digital assets head, Robert Mitchnick, said the $14 trillion asset manager won’t get too creative with the types of crypto exchange-traded funds it offers, even as it launched a staking-focused Ether ETF on Thursday.
Speaking on CNBC’s Crypto World segment on Friday, Mitchnick acknowledged that some of the crypto ETF structures that other asset managers are experimenting with may appeal to certain investors, but said BlackRock will continue to take a more measured approach:
“Will we see some more exotic structures coming into the space? I think no question,” Mitchnick said. “Some of those will be interesting. Some of them will resonate with investors.”
However, “We will take a discerning approach in thinking about where else we would expand in this.”
Mitchnick said that while overwhelming investor interest is in Bitcoin (BTC) and Ether (ETH), BlackRock is also seeing “pockets of interest in some of the other assets as well.”
“We continue to evaluate those as conditions evolve and as maturity, liquidity scale and use cases develop, but we take a very discerning approach in terms of what we would put in an iShares ETF.”
BlackRock launched the iShares Staked Ethereum Trust (ETHB) on Thursday, which saw over $15.5 million in trading volume and $43.5 million in inflows on debut, according to Farside Investors data.
ETHB enables investors to capture yield through Ethereum staking rewards on top of potential price appreciation in Ether’s price.
ETHB is BlackRock’s second Ether product, following the iShares Ethereum Trust ETF (ETHA), which has accumulated almost $12 billion worth of inflows since launching in July 2024.
BlackRock has a Bitcoin income-generating ETF in the works
BlackRock is also looking to offer a Bitcoin Premium Income ETF, which would sell covered call options on Bitcoin futures, collecting premiums to generate yield.
The regular distributions to investors would, however, trade away potential upside from investing in BlackRock’s iShares Bitcoin Trust ETH (IBIT), which mirrors Bitcoin’s spot price.
Related: Bitcoin ETFs add $251M as Goldman Sachs tops XRP ETF holders
Speaking of IBIT, Mitchnick noted that investors of BlackRock’s flagship Bitcoin product have been “disproportionately long-term buy and hold” investors —even when there’s been strong selling pressure elsewhere in the Bitcoin ecosystem.
“They’ve tended to opportunistically buy the dips,” Mitchnick said of the investors in IBIT, which has taken in over $63 billion worth of inflows since launching in January 2024.
Magazine: Bitcoin’s ‘narrative vacuum,’ Ethereum now inevitable: Trade Secrets
TLDR:
- ISO formally published blockchain interoperability standard 82098 after nearly a decade of international collaboration.
- Quant CEO Gilbert Verdian chaired Working Group 7, the ISO committee that developed the interoperability framework.
- The standard uses a multi-gateway architecture, enabling any DLT to connect with another without protocol changes.
- Quant’s Overledger platform was built on the same architectural principles that shaped the published ISO standard.
Blockchain interoperability has reached a major milestone with the formal publication of an ISO standard. Gilbert Verdian, CEO of Quant, announced the development on social media after a decade of dedicated work.
The standard traces its roots to a 2016 proposal that aimed to resolve fragmentation, limiting blockchain adoption.
It caps years of international collaboration through ISO Technical Committee 307. Verdian helped establish the committee from the ground up, beginning in 2015.
From a Blog Post to a Published ISO Standard
The path to this standard began in April 2016 with a bold public proposal. Verdian’s team published what they described as the world’s first blockchain standard proposal. That post outlined a vision for a common framework transcending any single protocol or vendor.
That same year, Verdian partnered with Standards Australia to advance the initiative internationally. Together, they pressed ISO to create a dedicated technical committee for blockchain technology.
Their argument was clear: blockchain warranted its own global standards programme, not absorption into an existing one.
In September 2016, ISO’s New Work Item Proposal received global approval. TC 307 — Blockchain and Electronic Distributed Ledger Technologies — was formally established.
Its inaugural meeting took place in Sydney in April 2017, and the detailed technical work started from that point.
The Multi-Gateway Architecture Behind the Standard
Central to the standard’s design is the principle of multi-gateway architecture. This approach holds that interoperability should not depend on a single bridge or point-to-point connection. Instead, a layered gateway model abstracts differences between underlying distributed ledger technologies.
The architecture enables any DLT to communicate with any other DLT through a common interface. It also connects to existing networks without requiring changes to how individual ledgers function.
This protocol-agnostic, “any-to-any” design became the technical and philosophical core of the standard.
Verdian drew on over 20 years of cybersecurity experience when developing this framework. As he wrote on X, the standard and Quant’s technology “were born from the same insight.”
The two tracks — standards development and commercial building — ran side by side and mutually reinforced each other throughout.
Quant’s Role in Translating Standards Into Technology
As TC 307’s work progressed, Verdian’s company went through its own evolution. Remitt, originally a blockchain-focused financial services firm, was rebranded as Quant. The company then built Overledger, widely recognized as the world’s first blockchain operating system.
Overledger applies the same multi-gateway architecture that shaped Working Group 7’s contributions. It gives institutions a single integration point to access any DLT, any network, and any legacy system.
Both the commercial platform and the ISO standard address the same original problem of blockchain fragmentation.
Working Group 7, the interoperability committee chaired by Verdian, brought together experts from across the world.
For close to a decade, those contributors refined the standard through consensus and rigorous technical debate. The result is ISO standard 82098, now publicly available through the ISO website.
In his announcement, Verdian credited ISO, Standards Australia, and every expert who contributed to Working Group 7.
He also acknowledged that more standards remain to be developed and more technology to be built. For now, the publication marks the end of one chapter and the opening of the next.
Lawmakers said they will oversee the investigation to ensure authorities hold Binance accountable if sanctions violations are confirmed.
Democratic Senators Chris Van Hollen, Elizabeth Warren, and Ruben Gallego confirmed that the United States Department of Justice is investigating whether crypto exchange Binance violated US sanctions laws by facilitating billions of dollars in transactions linked to Iran and entities associated with terrorism.
The lawmakers, all members of the United States Senate Committee on Banking, Housing, and Urban Affairs, said the probe comes after their earlier request urging US authorities to examine the exchange’s compliance with sanctions regulations.
DOJ’s Binance Investigation
In a joint statement, the senators said the reported activity raises concerns that Binance may have helped enable financial flows connected to Iranian actors and their proxies despite existing restrictions under US law. They also accused the company of previously prioritizing profits over legal compliance and said the latest reports indicate the exchange could again be operating in ways that undermine sanctions enforcement.
The lawmakers added that they plan to conduct oversight to ensure the Justice Department carries out a thorough investigation and holds the company accountable if violations are confirmed.
Earlier this week, The Wall Street Journal reported that the Department of Justice had started investigating whether Iran had used Binance to evade American sanctions. Binance pushed back against the allegations, while arguing that the media reports referenced in the Senate contain “false, unsupported, and defamatory claims.” Subsequent reports indicated that the exchange has filed a defamation lawsuit against the WSJ over the initial article that the publication released in late February.
Calls for Bipartisan Collaboration
While Binance has not yet released a statement regarding the development, it had previously noted that the federal courts in both the Southern District of New York and the Northern District of Alabama dismissed anti-terrorism claims brought against founder Changpeng “CZ” Zhao by hundreds of plaintiffs. The exchange said that it remains fully committed to working collaboratively to enforce sanctions laws without compromise, and went on to add,
“Looking forward to collaborating with both Democrats and Republicans on this.”
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TLDR:
- ASTER price has remained in a tight consolidation range between $0.67 and $0.74 for over a month despite broader crypto market weakness.
- A major resistance zone between $0.75 and $0.80 continues to cap upward momentum, with sellers defending the level on multiple attempts.
- The October 2025 liquidation event wiped out roughly $12.43 million in leveraged positions, largely resetting long exposure in the derivatives market.
- Binance dominates ASTER futures trading, leading both daily volume and trade count while major exchanges hold significant open interest.
ASTER price continues trading in a narrow range after earlier volatility shook leveraged traders. The asset moves sideways while many cryptocurrencies decline, keeping attention on a resistance area near $0.80.
Market Stability Emerges After Earlier Decline
The ASTER price entered a consolidation after a sharp decline earlier in the market cycle. That drop triggered forced liquidations and removed a large portion of leveraged long exposure.
Since then, the asset has traded between roughly $0.67 and $0.74. The narrow range has remained intact for more than a month.
Market observers pointed to this behavior in recent commentary online. A widely circulated post stated that the asset outperformed the broader market by simply moving sideways.
The comment came from a tweet published by Nebraskangooner. The post noted that prolonged sideways trading can signal relative strength during weak market conditions.
Resistance Zone Continues To Limit Upward Moves
The consolidation range sits directly below a clear technical resistance zone. That area forms between approximately $0.75 and $0.80 on the trading chart.
The region previously provided support before the earlier breakdown. Market structure shifted when that support level turned into overhead resistance.
Price has approached that band several times during the consolidation period. Each attempt was met with resistance as sellers defended the level.
Despite the resistance, the asset has not moved sharply lower. Buyers continue to hold positions near the upper part of the range.
Liquidation Event Reset Leveraged Positions
Derivatives market data show a large liquidation event in October 2025. At that time of writing, ASTER price traded near $1.1575 before selling pressure increased.
Total liquidations reached approximately $12.43 million during that period. Long positions accounted for about $10.15 million of those liquidations.
The forced closures triggered a rapid decline in market price. The cascade occurred as leveraged traders failed to meet margin requirements.
Exchange data shows strong participation from major derivatives platforms. Binance and Bybit accounted for a large share of the liquidated positions.
Derivatives Activity Remains Concentrated On Major Exchanges
As of writing, derivatives metrics show large open interest across multiple trading platforms. The Aster exchange records the largest open interest near $120.98 million.
Binance follows with open interest close to $84.61 million. Hyperliquid holds the third position with roughly $60.23 million.
Trading activity remains concentrated on a few exchanges. Binance leads daily trading volume with roughly $69.97 million.
Futures trade count also favors the same platform. Binance processes more than 867,000 ASTER futures trades, exceeding activity on other exchanges.
TLDR:
- HyperCore removed 22,477 HYPE from circulation on March 13 alone, exceeding staking rewards issued that day
- At the current pace, roughly 8.09 million HYPE tokens will exit circulation over the next 12 months
- Solana inflates by ~25.19M SOL yearly; Hyperliquid’s model is moving in the exact opposite direction
- Buyback volume scales with HIP-3 trading activity, linking protocol growth directly to token supply reduction
Hyperliquid’s HYPE token is now shrinking in supply, not growing. On March 13, 2026, HyperCore repurchased 49,323 HYPE tokens at roughly $37.12 each.
That same day, only 26,846 HYPE went out as staking and validator rewards. The net result: 22,477 tokens permanently removed from circulation in a single day.
HyperCore Buybacks Push HYPE Into Deflationary Territory
The numbers are straightforward. Buybacks exceeded distributions by over 22,000 tokens on March 13. At that pace, monthly removal reaches 674,310 HYPE. Annualized, that projects to roughly 8.09 million tokens leaving circulation each year.
That stands in sharp contrast to Solana. Solana’s staking and validator system inflates supply by approximately 25.19 million SOL annually. Hyperliquid is moving in the opposite direction entirely.
The buyback mechanism is also price-sensitive by design. When HYPE trades higher, each dollar buys fewer tokens. When prices fall, buybacks become more aggressive. This creates a natural counterweight to supply pressure during market downturns.
HyperCore funds buybacks using protocol revenue. That revenue flows primarily from trading activity across the network. More trades mean more fees, and more fees mean larger buybacks.
Protocol Revenue and HIP-3 Adoption Drive the Buyback Flywheel
The structure here matters. HIP-3 adoption feeds directly into trading volume. Higher volume generates more protocol revenue. That revenue funds the repurchase program. Larger repurchases deepen the deflationary effect.
According to data shared by Hyperliquid Hub on X, the March 13 buyback alone removed tens of thousands of tokens in one session. That is not a one-time event. It reflects an ongoing mechanical process tied to network usage.
Validators and stakers received 26,846 HYPE that day across 24 validators. That distribution is the only outflow in the equation. Everything repurchased beyond that figure is gone from the circulating supply permanently.
The buyback-to-reward ratio now favors deflation. That ratio can shift with price and volume. But the current trajectory shows a supply curve bending downward.
No other major layer-1 network is running this kind of structure at scale right now. The data from March 13 makes that clear.
TLDR:
- TON cancels Dubai event scheduled for May 1–2, citing safety concerns tied to the ongoing Middle East conflict.
- TOKEN2049 postponed its Dubai conference to April 2027 due to regional uncertainty and travel disruptions.
- TON Gateway ticket holders will receive full refunds within 14 days following the cancellation.
- TOKEN2049 attendees can keep tickets for 2027 or transfer them to the Singapore conference this year
TON cancels Dubai event scheduled for May after escalating Middle East tensions raised safety concerns in the United Arab Emirates. Organizers confirmed the cancellation as regional attacks triggered travel disruptions and uncertainty for international crypto conference participants.
TON Cancels Dubai Event Over Security Concerns
TON cancels Dubai event planned for May 1 and May 2, 2026. Organizers cited security risks linked to the escalating Middle East conflict.
The Open Network shared the decision in a post on X. The organization stated that safety conditions in the region required canceling the conference.
“Unfortunately, due to the Middle East conflict and safety conditions in the UAE area, we have made the decision to cancel Gateway Dubai,” the statement said.
Gateway Dubai was designed to gather developers and builders working within the TON ecosystem. The event aimed to encourage collaboration across projects and teams.
Dubai remains a major destination for blockchain conferences and technology investors. However, recent military developments changed the regional security outlook.
Following strikes by the United States and Israel against Iran, retaliatory missile and drone attacks targeted the United Arab Emirates.
Reports indicated the UAE received a large share of the strikes during the exchange. Analysts linked the attacks to the country’s close cooperation with Western partners.
Travel disruptions soon followed across several Middle Eastern cities. Airlines adjusted schedules while many travelers reconsidered regional visits.
TON organizers acknowledged that many participants had already planned their travel. They said the cancellation decision came after reviewing the evolving situation.
Despite the cancellation, the TON team said it may organize another Gateway event later this year using a different format.
Participants who purchased tickets for the conference will receive refunds within fourteen days.
TOKEN2049 Postpones Dubai Conference Until 2027
Regional tensions also affected another major crypto gathering in Dubai. TOKEN2049 announced that its Dubai conference will not take place this year.
The organizers confirmed the update through a post shared on X. The event had been scheduled for April 29 and April 30.
“In collaboration with our partners and stakeholders, and in light of ongoing uncertainty in the region, TOKEN2049 Dubai will be postponed,” the announcement stated.
The conference will now take place on April 21 and April 22, 2027. Organizers said the change allows time for regional stability to improve.
TOKEN2049 usually attracts global blockchain founders, investors, and technology executives. The Dubai event was expected to host several well-known speakers.
Scheduled participants included Polymarket founder Shayne Coplan. Tether chief executive Paolo Ardoino and Circle co-founder Jeremy Allaire were also listed.
Attendees who purchased tickets will have multiple options following the postponement. They may keep their tickets for the 2027 conference.
Participants may also transfer their tickets to the TOKEN2049 Singapore event scheduled later this year.
Ticket prices for the Dubai conference ranged from $699 for early access. Standard passes reached $1,499, while premium packages cost $5,999.
Organizers encouraged attendees with travel bookings to contact airlines and hotels to modify reservations.
Crypto World
Bitcoin can survive 72% of the world’s submarine cables being cut, but a targeted attack on five hosting providers could cripple it
Bitcoin’s network has been running nonstop since 2009. The question nobody had rigorously answered until now is what it would actually take to break it.
Researchers at the Cambridge Centre for Alternative Finance last week published the first longitudinal study of Bitcoin blockchain’s resilience to physical infrastructure disruption, analyzing 11 years of peer-to-peer network data against 68 verified submarine cable fault events.
The headline finding is that between 72% and 92% of the world’s inter-country submarine cables would need to fail simultaneously before Bitcoin experiences significant node disconnection.
In a world where the Strait of Hormuz is currently disrupted and infrastructure vulnerability is front of mind, the study provides the first empirical benchmark for how hard Bitcoin actually is to knock offline.
The numbers tell a story of a network that degrades gracefully rather than collapsing catastrophically. The researchers ran 1,000 Monte Carlo simulations per scenario across the full dataset and found that random cable failures barely register.
Over 87% of the 68 real-world cable fault events they studied caused less than 5% node impact. The largest single event, when seabed disturbances off Côte d’Ivoire damaged 7-8 cables simultaneously in March 2024, knocked out 43% of regional nodes but affected only 5-7 bitcoin nodes globally, roughly 0.03% of the network.
The correlation between cable failures and bitcoin’s price was essentially zero, at -0.02. Infrastructure disruptions are invisible against daily price volatility.
But the paper’s most important finding is the asymmetry between random and targeted attacks.
While random cable failures require 72-92% removal to cause damage, a targeted attack on the cables with the highest betweenness centrality, the ones that serve as chokepoints between continents, drops that threshold to 20%.
And targeting the top five hosting providers by node count, Hetzner, OVH, Comcast, Amazon, and Google Cloud, requires removing just 5% of routing capacity to achieve the same impact.
That’s a fundamentally different threat model. Random failures are acts of nature. Targeted attacks are acts of state, coordinated regulatory shutdowns of hosting providers or deliberate severing of critical cable routes. The study essentially maps two very different adversaries: one Bitcoin can easily survive, and one that remains a credible risk.
How threats to bitcoin change over time
The paper tracks how resilience evolved over time, and the trajectory isn’t a straight line. Bitcoin was most resilient in its early years from 2014-2017, when the network was geographically diverse and the critical failure threshold sat around 0.90-0.92.
Resilience declined sharply during 2018-2021 as the network grew rapidly but concentrated geographically, hitting its lowest point of 0.72 in 2021 during peak mining concentration in East Asia. The China mining ban in 2021 forced redistribution, and resilience partially recovered to 0.88 in 2022 before settling at 0.78 in 2025.
The TOR finding is the one that challenges conventional thinking. As of 2025, 64% of Bitcoin nodes use TOR, making their physical location unobservable.
The assumption has been that this inability to observe might hide fragility, that if TOR nodes turned out to be geographically concentrated, the network could be more vulnerable than it appears.
The Cambridge researchers built a four-layer model to test this and found the opposite. TOR relay infrastructure is heavily concentrated in Germany, France, and the Netherlands, countries with extensive submarine cable and land border connectivity.
An attacker trying to disrupt TOR relay capacity by cutting cables faces a compound problem because those countries are among the hardest to disconnect. The four-layer model consistently showed higher resilience than the clearnet-only baseline, with TOR adding between 0.02 and 0.10 to the critical failure threshold.
The paper frames this as “adaptive self-organization.” TOR adoption surged after censorship events like Iran’s internet shutdown in 2019, the Myanmar coup in 2021, and the China mining ban.
The Bitcoin community shifted toward censorship-resistant infrastructure without any central coordination, and that shift happened to also make the network physically harder to disrupt.
With the Strait of Hormuz effectively closed and a regional war disrupting infrastructure across the Middle East, the question of what happens to Bitcoin if submarine cables get damaged isn’t theoretical.
The study suggests the answer is probably nothing, unless someone is deliberately targeting the specific cables and hosting providers that matter most.
Key takeaways:
-
Bitcoin sits above $71,000 as weak US economic data and the US and Israel-Iran war drive investors toward scarce assets.
-
Tech stocks’ correlation to BTC and rising oil prices suggest that the 5-month correction from $126,000 might not be over.
Bitcoin (BTC) jumped above $73,000 on Friday, successfully locking in the 70,000 support for the week. These gains occurred as the US reported weak economic activity data, triggering concerns of an impending recession while the war in Iran continues to drag on.
While socio-economic events and institutional inflows might have led to Bitcoin’s bullish momentum, traders are still questioning if the bear market has actually ended.
Economic turmoil, growing investor appetite for BTC back Bitcoin’s breakout
The US economy grew by a mere 0.7% between October and December 2025, which was a significant downgrade from previous estimates, according to a US Commerce Department report released on Friday. While the final report is due April 9, the risks of a recession throughout 2026 have increased, driving investors away from US Treasuries.
Yields on the US 10-year Treasury surged to 4.26%, meaning investors are demanding a higher return to hold those assets. The mere risk of additional liquidity causes traders to seek shelter in scarce assets. This partially explains why the S&P 500 traded just 5% below its all-time high despite the worsening economic conditions.
On Monday, the S&P 500 futures plummeted to their lowest levels in over three months after oil prices briefly surged to $119.50. The US decision to temporarily authorize the purchase of Russian oil stranded at sea helped to cool off some of the risks. This move, announced by US Treasury Secretary Scott Bessent on Friday, eased the markets’ short-term concerns.
Institutional demand for Bitcoin has also been signaled as a potential driver for the recent bullish momentum. Spot exchange-traded funds (ETFs) faced four consecutive days of net inflows totaling $583 million, while analysts estimate that Strategy (MSTR) accumulated over $900 million through the yield-bearing STRC instrument.
Related: Bitcoin’s ‘extremely precise’ macro signal puts $100K target back in play
Bitcoin’s momentum turned bullish, but the bear market carries on
At first glance, the economic backdrop points toward liquidity injections and rising institutional interest in Bitcoin. However, that doesn’t necessarily mean the five-month correction following the $126,000 peak in October 2025 has ended.
Bitcoin’s 50-day correlation with the Nasdaq 100 sits at 84%. As concerns grow over sticky inflation and stagnant economic growth, the odds of a stock market pullback increase. Traders are unlikely to use Bitcoin as a hedge, especially given its recent underperformance compared to gold.
Adding to this, oil prices remain $30 higher than levels seen before the war in Iran began. These high fuel costs hit consumer spending and create inflationary pressure, which reduces the capital retail traders have available for crypto investments.
Inflows to the spot BTC ETFs have surged as $2.14 billion entered the ETFs from Feb. 24 to March 4, driving a 14% rally. However, prices slipped 10% over the next four days as those flows reversed. This suggests spot ETF activity is just reacting to Bitcoin’s price rather than acting as a leading indicator.
Whether Bitcoin stays above $70,000 over the weekend may not shift investor sentiment. While a five-week consolidation and several tests of the $64,000 support show bulls’ confidence, the recent price action hasn’t delivered a clear signal for a breakout.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Billionaire investor Stanley Druckenmiller said blockchain and stablecoins may only be a decade away from powering the global payments system — though he isn’t sold on the idea of crypto functioning as a store of value.
In an interview with Morgan Stanley recorded on Jan. 30 and released on Friday, the former hedge fund manager said blockchain-based tokens — particularly stablecoins — boost productivity in the payments space:
“Blockchain and the use of stablecoins, if you want to throw crypto into that, tokens, incredibly useful in terms of productivity,” Druckenmiller said.
“I assume our whole payment systems will be stablecoins in 10 or 15 years,” he said, adding that stablecoins are more efficient, faster and cheaper than existing solutions.
Druckenmiller founded Duquesne Capital Management in 1981 and closed the fund in late 2010. During that time, he achieved an average annual return of 30% and never experienced a down year.
Druckenmiller said back in May 2021 that a blockchain-based system could replace the payment rails that power the US dollar due to a lack of trust in the traditional banking system.
“Well, the problem has been clearly identified. It’s Jerome Powell and the rest of the world, central bankers. There’s a lack of trust,” he told CNBC’s Squawk Box at the time.
Several traditional payments firms, such as Western Union, MoneyGram and Zelle, announced plans to launch stablecoin settlement systems last year following the passage of the stablecoin-focused GENIUS Act in July, which provided a clear regulatory framework for payment firms to offer digital asset services.
Drunkenmiller not sold on crypto as a store of value
Despite Druckenmiller’s conviction on blockchain and stablecoins, he isn’t convinced that cryptocurrencies like Bitcoin (BTC) can function as a store of value.
“It’s a solution looking for a problem. I’m very sad that it ever happened,” Druckenmiller told Morgan Stanley.
Related: Crypto Biz: Circle stock defies Wall Street and digital asset selloff
“It wasn’t needed,” but crypto has become a brand that some people love, so it will function as a store of value to them, he said.
Back in October 2023, Druckenmiller said he compared Bitcoin to gold, stating that he prefers the latter because it is a “5,000-year-old brand.”
Druckenmiller went on to say that he doesn’t own any Bitcoin, but that he should.
Magazine: Bitcoin’s ‘narrative vacuum,’ Ethereum now inevitable: Trade Secrets
A U.S. federal appeals court has closed the book on Custodia Bank’s bid for direct access to the Federal Reserve’s master-account program, delivering a setback after years of legal maneuvering. In a 7-3 ruling, the U.S. Court of Appeals for the Tenth Circuit declined to rehear the case, leaving intact the Fed’s long-standing discretion over who receives master accounts and access to the central bank’s payment rails. The decision arrives as crypto firms continue to seek direct lines to Fed services, while other players in the sector push for broader access and clearer regulatory pathways.
Key takeaways
- The Tenth Circuit rejected Custodia Bank’s final challenge in a 7-3 vote, effectively ending the bank’s bid for a Fed master account.
- Custodia originally applied in October 2020; after initial Fed rejection, it argued that the Monetary Control Act entitles state-chartered banks to Fed services, including a master account.
- Multiple courts have upheld the Fed’s discretion in granting master accounts, reinforcing the central bank’s gatekeeping role in access to payment rails.
- Kraken became the first crypto platform to receive a master account from the Federal Reserve Bank of Kansas City on March 4, tying it to Fedwire payments, albeit with a narrower set of services than a traditional bank.
- Disagreeing with the majority, Judge Tymkovich warned that a master account is “indispensable” for a bank’s operations and suggested denial could be viewed as a prohibitive outcome for a crypto-focused institution.
- The case underscores ongoing regulatory debate about “skinny” or limited master accounts for crypto firms, signaling a cautious but evolving approach to central-bank access.
Market context: The ruling lands amid broader regulatory discussions about how crypto-native firms should access traditional financial rails and liquidity. As more players seek direct Fed access to improve settlement efficiency and risk management, regulators have signaled openness to narrower, crypto-specific arrangements, while maintaining the Fed’s discretionary authority over master accounts.
Why it matters
The decision reinforces a foundational policy stance: the Federal Reserve controls who earns entry to its payment system through master accounts. For Custodia, the outcome closes a five-year pursuit that began with ambitions to settle digital-asset transactions with direct Fed support, reducing the likelihood of a direct route around traditional correspondent banking relationships. The ruling clarifies that the Fed’s authority to grant or withhold master accounts is not easily trumped by statutory arguments and that courts are unlikely to compel the Fed to provide access in the absence of a clearly defined statutory mandate.
Yet the same period has also seen notable progress elsewhere. Kraken, a prominent crypto exchange, secured a master account from the Fed’s regional arm in Kansas City, marking a pivotal milestone for the sector’s integration with the U.S. central bank’s system. This development demonstrates that the Fed is willing to grant access, albeit selectively, to entities that can demonstrate robustness, compliance, and operational readiness to connect to Fedwire payments. The distinction between “full” access and the more limited services available to nontraditional banks highlights the evolving nature of central-bank engagement with digital-asset firms.
While Custodia’s setback narrows the path for state-chartered banks seeking direct Fed access, the broader ecosystem remains engaged in a pragmatic dialogue about what accommodations crypto firms should receive. Proponents of increased access argue that direct ties to the Fed could reduce settlement risk and improve liquidity management in a sector characterized by rapid custody and settlement needs. Opponents caution against broadening eligibility without stringent risk controls and robust compliance frameworks. The tension mirrors larger regulatory dynamics as policymakers weigh consumer protection, financial stability, and innovation in parallel tracks.
The court’s opinion also underscores a practical reality: the Fed’s discretion has persisted through multiple adjudications. Although some judges have criticized the Fed’s stance, the majority’s analysis emphasizes that, absent a legislative change, master accounts remain a matter of administrative choice rather than automatic entitlement. In this sense, Custodia’s experience serves as a cautionary tale for other applicants that seek to accelerate entry into federal settlement rails without meeting the precise criteria the Fed applies in evaluating risk, governance, and operational readiness.
In the same thread, commentary around “skinny” master accounts—limited types of accounts designed to offer essential access without granting the full suite of services reserved for traditional banks—continues to gain attention. Advocates contend that even a pared-down pathway could substantially reduce the frictions crypto firms encounter when scaling and integrating with regulated financial infrastructure. Critics, however, argue that the integrity of the payment system requires careful calibration of who can participate and under what conditions. The recent disclosures, including Kraken’s march toward Fed-linked settlement capabilities, illustrate a cautious but tangible shift toward more inclusive mechanisms that balance safety with innovation.
What to watch next
- Regulators and the Fed may continue refining criteria for “skinny” master accounts and similar arrangements for crypto firms.
- Other applicants could reassess their strategies in light of the Custodia decision, potentially pursuing alternative means of direct Fed access or partnerships with traditional banks.
- Ongoing regulatory discussions and potential policy guidance could shape how future master-account decisions are communicated and implemented.
- Industry observers will monitor Kraken’s ongoing integration efforts and any further expansions of its Fed-connected capabilities.
Sources & verification
- U.S. Court of Appeals for the Tenth Circuit — Opinion documenting the denial of Custodia’s appeal: https://www.ca10.uscourts.gov/sites/ca10/files/opinions/010111400884.pdf
- Custodia Bank rehearing en banc master account coverage: https://cointelegraph.com/news/custodia-bank-rehearing-en-banc-master-account
- Custodia crypto bank appeal federal reserve master account coverage: https://cointelegraph.com/news/custodia-crypto-bank-appeal-federal-reserve-master-account
- Kraken receives master account and links to Fedwire coverage: https://cointelegraph.com/news/kraken-crypto-exchange-fed-master-account
- Additional context on Fed services not related to central bank digital currencies: https://cointelegraph.com/news/federal-reserve-service-not-related-to-cbdcs
Why it matters
The court’s ruling crystallizes the principle that access to the Fed’s payment rails is not an automatic entitlement for crypto-focused banks. It foregrounds the Fed’s discretion as a central feature of how digital-asset firms can participate in the U.S. financial infrastructure, at least in the near term. For stakeholders seeking to integrate digital assets into mainstream settlement processes, the decision clarifies the legal landscape and raises the bar for establishing the robust governance, risk controls, and compliance frameworks that the Fed expects of applicants.
At the same time, the Kraken milestone demonstrates that meaningful progress is possible even within a system that remains cautious about crypto-adjacent actors. By securing a master account from a regional Fed bank, Kraken has opened a pathway to improved liquidity and settlement efficiency, though with a narrower set of services than those enjoyed by conventional banks. The contrast between Custodia’s unresolved bid and Kraken’s operational foothold suggests that the road to broader access will likely be incremental, tempered by risk, regulatory clarity, and demonstrated resilience in transaction processing and governance.
Sources & verification
To verify the key elements of this story, readers can consult the official court filing and the referenced industry coverage:
- The Tenth Circuit opinion PDF confirming the denial of Custodia’s appeal: https://www.ca10.uscourts.gov/sites/ca10/files/opinions/010111400884.pdf
- Cointelegraph coverage on Custodia’s rehearing and related master-account discussions: https://cointelegraph.com/news/custodia-bank-rehearing-en-banc-master-account
- Cointelegraph coverage on Custodia’s crypto-bank appeal and Fed master account issues: https://cointelegraph.com/news/custodia-crypto-bank-appeal-federal-reserve-master-account
- Cointelegraph coverage on Kraken obtaining a master account: https://cointelegraph.com/news/kraken-crypto-exchange-fed-master-account
What the story means for the crypto ecosystem
As policy discussions evolve, the industry is watching how regulators balance the benefits of direct Fed access—lower settlement risk, faster liquidity management, and greater resilience—with the imperative to maintain safety, transparency, and financial stability. The Custodia ruling reinforces the notion that central-bank access is not guaranteed and that applicants must meet rigorous criteria and demonstrate systemic readiness. Simultaneously, Kraken’s milestone signals real-world progress and a potential blueprint for future entrants who can align with enhanced risk controls and compliance standards while leveraging more direct settlement capabilities. The next chapter will likely hinge on policy direction, the development of “skinny” account frameworks, and continued collaboration between policymakers, banks, and crypto firms to expand access without compromising systemic integrity.
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