LayerZero is going deeper into finance. It wants to be part of the infrastructure for Wall Street institutions. The company has a protocol that lets different blockchains work together. Now it is promoting an idea that focuses on blockchain infrastructure for institutions.

LayerZero Expands Beyond Cross-Chain Transfers

Some people are worried about the security of systems that work with blockchains. LayerZero is known for its technology that enables messages to be sent across multiple blockchains. It has spent years building tools that help assets and data move between different blockchains. LayerZero connects more than 160 blockchain networks. It is one of the platforms that helps different blockchains work together in the crypto industry.

Recently, LayerZero has been focusing on getting institutions to use its technology. The company started a project called Zero this year. Zero is a blockchain infrastructure project that helps with financial trades, settlements, and tokenization. Big financial companies like Citadel Securities, DTCC, and ICE are supporting this project.

This is part of a trend. Many crypto companies are trying to work with Wall Street because it is getting more interested in tokenized assets and systems that use blockchain for settlements. LayerZero is pushing to be a part of this trend. It wants to help traditional finance institutions use blockchain technology.

Rivals Highlight Security Risks

LayerZero is still facing a lot of questions about the security of its chain technology, even though many institutions are supporting it.

Cross-chain bridges and messaging protocols are often targeted by hackers who look for weaknesses in the system to steal money. Over the past few years, hackers have stolen billions of dollars.

Recently, there was a problem with a bridge that uses LayerZero’s technology. The problem resulted in losses of $300 million. This incident intensified debate about the safety of cross-chain technology. Some competing companies were very critical, and a few projects are now looking for alternative approaches to cross-chain transactions.

Institutional Race Heats Up

These companies say that big investors need to be sure the technology is secure before they put in significant capital. Some projects have already moved to interoperability networks because of security concerns.

LayerZero says that its system is flexible and allows developers to choose how they want to secure their transactions. The company believes that cross-chain technology is essential for the future of blockchain, especially when real-world assets are moved across different networks.

More traditional financial institutions are exploring blockchain technology, meaning competition among companies that provide interoperability services will intensify. To succeed, these companies need to be secure, scalable, and able to comply with regulation.

Conclusion

LayerZero is trying to get into the finance sector on Wall Street. This is an attempt to combine traditional finance and blockchain technology. However, the company faces a challenge: it needs to prove that its technology is secure enough for institutional investors. The outcome will be important for the future of blockchain and tokenized finance.

LayerZero needs to show that its cross-chain technology is safe. If it can do this, it will be a step forward for the company and the industry.

Stablecoin depegs are a recurring feature of crypto bear markets. And the latest candidate is apxUSD, the preferred equity-backed stablecoin of the Apyx protocol.

As market leader bitcoin BTC$64,040.41 fell sharply in the past 24 hours, reaching lows under $63,000 at one point, apxUSD briefly slipped to as low as 93 cents, deviating from its 1:1 dollar peg, according to CoinMarketCap.

The stablecoin is primarily backed by preferred equity issued by digital asset treasury firms, specifically Strategy’s STRC shares, which carry a $100 par value.

The protocol purchases those shares, collects the dividend they pay and distributes the yield to onchain holders. The reserve basket also includes short-term U.S. Treasuries and cash equivalents to ensure liquidity and reduce concentration risk.

Apyx runs a two-token system. apxUSD is the base stablecoin designed to trade at $1 and does not pay yield; holders who deposit apxUSD receive apyUSD, a yield-bearing savings token that accrues returns through dividends flowing in from the underlying preferred shares.

That said, because preferred equity makes up the majority of those reserves, the stablecoin is influenced by the volatility in the underlying shares. So, when STRC trades below its $100 par value, the market value of apxUSD’s reserves declines, leading to volatility in the stablecoin in secondary markets.

This, according to Apyx, isn’t an extraordinary development.

“This is not a bug, it is the expected behavior of a stablecoin backed by preferred equity rather than cash deposits. Holders who understand STRC’s risk profile and its history of mean-reversion should view these episodes as the asset class working through its normal cycle, not as evidence of a broken peg,” the protocol noted in a detailed X post.

It explained that its peg stability model has multiple layers to absorb stress. The preferred shares have structural features that allow issuers to raise dividend rates, which draw demand for the shares, lifting their value toward par over time.

According to Apyx, Strategy has historically used this lever. Note that STRC has traded below its par value four times since August last year, and each episode ended with prices bouncing back to $100.

Beyond that, Apyx said that it maintains collateral value in excess of the stablecoin’s circulating supply. This buffer helps absorb mark-to-market drawdowns in the backing assets before they meaningfully impact the peg.

“Users can compare the collateral position against apxUSD supply in real time through the app dashboard,” it said.

The explainer comes as market participants panicked over the brief de-peg, with some saying persistent volatility could shake investor confidence.

There were also concerns about cascading liquidations across Morpho lending markets, but Apyx said those were largely misplaced. It said that its main apyUSD/apxUSD Morpho market is driven by dividend accrual, not STRC’s spot price, which means that volatility in STRC doesn’t impact that oracle and trigger liquidations.

Ethereum treasury company Bitmine Immersion Technologies is launching a $300 million perpetual preferred stock offering, borrowing a page from Strategy’s financing playbook. 

Bitmine told the SEC on Wednesday that it intends to offer 3 million of its 9.5% Series A perpetual preferred stock at $100 per share, which will trade under the symbol BMNP within 30 days of issuance. 

Preferred shares are a hybrid of stocks and bonds. Investors are not directly betting on the company’s growth but lending it money in exchange for regular payments. For every $100 share, Bitmine will pay dividends on a weekly basis, amounting to $9.50 per year. 

The firm plans to use income from its staked Ether (ETH) to pay the dividends, similar to offerings from Michael Saylor’s Bitcoin treasury company, Strategy. 

Strategy launched its Stretch (STRC) perpetual preferred stock in July 2025. Unlike Bitmine’s BMNP, which has a fixed rate, STRC uses a variable rate that Strategy adjusts monthly with the goal of keeping the trading price stable near $100.

STRC has scaled to $8.5 billion in just nine months and is now the largest preferred stock by market cap in the world, according to a May SEC filing. 

“Digital Credit, highlighted by STRC, has been a big success. STRC has shown strong demand, high liquidity, and low volatility,” said Phong Le, Strategy president and CEO.

In March, Le said that roughly 80% of STRC holders were retail investors. 

Related: 80% of Strategy’s ‘Stretch’ buyers are mom-and-pop investors

Bitmine’s annualized staking revenue by week. Source: SEC

Bitmine said the net proceeds of its proposed offering would be used for general corporate purposes, including buying more Ether, expanding staking and validator infrastructure through Made in America Validator Network (MAVAN) and repurchasing common stock. 

Bitmine announced on Monday that it currently owns 4.49% of the total ETH supply and is 90% of the way to its “Alchemy of 5%” plan in just 11 months.

The firm has 4.7 million staked Ether, worth around $8.3 billion at current prices. However, unrealized losses on that ETH are nearly $9 billion.

The perpetual stock offering comes at a tough time for Ether investors, with the asset falling more than 12% over the past seven days to a 14-month low of $1,734 in early trading Thursday. 

“In our view, ETH prices are not reflecting the strengthening of Ethereum fundamentals, but then again, this is not surprising given we are in the early stages of crypto spring,” said Bitmine chairman Tom Lee on Monday. 

Bitmine stock fell nearly 6% Wednesday to $16.90, its lowest level since it pivoted to Ethereum in June 2025, according to Google Finance. 

Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?

Bitcoin fell below $63,000 on Thursday as the selloff in the crypto market deepened. 

The move pushed BTC to its weakest level since February and extended a sharp decline from its May range.

The drop came as renewed U.S.-Iran tensions weighed on wider risk markets. The Kobeissi Letter said Bitcoin had lost about $400 billion in market value since May 11, while more than $1.6 billion in leveraged crypto positions were liquidated in 24 hours.

Bitcoin price breaks below key May range

Bitcoin had already lost the $72,000 and $68,000 areas before the latest break. The fall below $64,000 and then $63,000 showed that sellers remained in control of the short-term trend.

The price is now trading near the $60,000 to $64,000 psychological zone. This area matters because it sits close to previous demand and could decide whether BTC stabilizes or extends losses toward deeper support.

According to crypto.news market data, Bitcoin traded near $63,753 at press time, down almost 5%, with a 24-hour low around $61,557. The broader drop followed a week of heavy selling that erased about 16% from Bitcoin.

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The latest candles showed strong downside pressure. Buyers have not yet built a clear recovery base, and Bitcoin would need to reclaim higher levels before the short-term structure improves.

Liquidations deepen market stress

Derivatives markets added more pressure to the spot decline. More than $1.6 billion in leveraged crypto positions were liquidated over 24 hours, according to Coinglass data.

Liquidations happen when exchanges force traders out of leveraged positions because their collateral no longer covers the trade. In a falling market, this can push prices lower because forced selling adds to normal spot selling.

The leverage wipeout followed a broader shift in sentiment. Risk assets came under pressure as the U.S. and Iran exchanged fresh strikes and ceasefire talks stalled.

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Analysts watch $60K, $55K and $50K

Analyst Captain Faibik said Bitcoin was sitting above a major eight-year trendline. “If Bulls defend this level and build a base, we could be witnessing the early stages of another mega bull run,” he wrote.

$BTC is sitting right above its major 8-yr trendline..!!

If Bulls defend this level and build a base, we could be witnessing the early stages of another mega bull run..

Bitcoin could briefly sweep liquidity around 54-55k, shake out weak hands & then Reverse into a massive… pic.twitter.com/x3Xr0tt2Is

— Captain Faibik 🐺 (@CryptoFaibik) June 4, 2026

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He also warned that BTC could briefly sweep liquidity around $54,000 to $55,000 before any stronger recovery. That view places the next few weeks as a key period for Bitcoin’s long-term direction.

Ali Charts said the breakdown below $72,000 placed Bitcoin in a vulnerable position. Based on MVRV pricing bands, he said the next major support area sits between $54,000 and $50,000.

CryptoQuant founder Ki Young Ju also pointed to unusual sell pressure. He said Bitcoin investors’ average cost basis sits around $53,000 and argued that the current distribution phase feels like a large change of hands.

This distribution phase feels like a massive change of hands.

Bitcoin investors’ average cost basis is around $53K.

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Historically, bear markets ended only after the price fell below the realized price. I thought that level would be hard to revisit, given institutional inflows… pic.twitter.com/m678rL6ztl

— Ki Young Ju (@ki_young_ju) June 4, 2026

Technical indicators remain weak

Bitcoin’s RSI stood at 18.69, placing BTC deep in oversold territory. That shows selling momentum has become extreme, but it does not confirm a reversal by itself.

A stronger recovery signal would require RSI to move back above 30. A later reclaim of the 50 area would show buyers are gaining more control of momentum.

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The RSI moving average sat at 35.57, far above the current RSI reading. That gap confirms the speed of the selloff and shows that buyers have not yet closed the momentum difference.

MACD also remained bearish. The MACD line sat near -2,917.77, below the signal line near -1,584.86, while the histogram was negative at about -1,332.92.

Binance volume data confirms selling pressure

Arab Chain said Binance CVD Confirmation Score reached about 0.80, its highest level in four months. The reading came as Bitcoin traded around the mid-$60,000 area during the decline.

CVD, or cumulative volume delta, tracks the balance between buying and selling activity. A high reading during a price drop suggests that selling pressure is backed by actual trading volume.

That matters because it reduces the chance that the latest move came only from thin liquidity. Instead, the data points to active seller participation during the breakdown.

For now, Bitcoin remains oversold but technically bearish. A move back above $64,000 and then $68,700 could ease pressure, while a clean break below $60,000 may turn focus toward $55,000 and $50,000.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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TLDR

• Bitcoin has dropped over 16% in the past month while the S&P 500 gained approximately 5% over the same period.
• Schwab’s Ferraioli says crypto investors chase momentum, which has now shifted toward AI stocks and upcoming IPOs.
• A $1.26 billion block sale of BlackRock’s IBIT ETF signals large investors are exiting BTC near breakeven levels.
• Seasonal weakness and IPO competition from SpaceX and others are adding further pressure on bitcoin’s price outlook.

Bitcoin is facing renewed selling pressure, losing over 16% of its value in the past month even as U.S. equities hit all-time highs. The S&P 500 gained roughly 5% over the same stretch.

According to Charles Schwab Director of Digital Currencies Research Jim Ferraioli, the selloff has less to do with Michael Saylor’s bitcoin sales and more to do with a broader shift in speculative appetite. Capital is moving fast, and crypto is no longer the primary destination.

Crypto Traders Follow Momentum, Not Fundamentals

Bitcoin has been in a bear market since October, Ferraioli noted. That context matters when examining the current price weakness.

Despite strong institutional tailwinds — including new ETF approvals, billions in inflows, and regulatory progress in Washington — the asset has struggled to sustain meaningful price recovery.

The reason, in Ferraioli’s view, is structural. Crypto investors are momentum chasers, not fundamental analysts. “Crypto investors historically just go wherever the momentum is,” Ferraioli said.

“And momentum is out of crypto at the moment.” When another asset class becomes more compelling, capital follows just as quickly.

Artificial intelligence has emerged as the dominant speculative narrative this cycle. AI infrastructure stocks, data centers, and computing firms have generated strong returns.

Anticipated IPOs from firms like OpenAI and Anthropic have become major focal points for growth-oriented investors.

Elon Musk’s SpaceX is also preparing a listing potentially valued at $1.8 trillion, and a broader wave of high-profile IPOs could raise more than $200 billion in total.

Beyond traditional markets, crypto traders are also getting drawn into the IPO frenzy directly. Ferraioli pointed to activity on decentralized exchange Hyperliquid, where traders can access synthetic contracts tied to private pre-IPO shares.

“I think people that are excited about momentum are getting excited about IPOs,” he said. Bitcoin is now competing against every major momentum trade in the market simultaneously.

ETF Flows and Seasonal Trends Add Pressure

The pressure is not limited to macro competition. On May 26, a $1.26 billion block sale of BlackRock’s IBIT bitcoin ETF was executed off-exchange.

Research firm NYDIG described the transaction as a large investor seeking a rapid exit from bitcoin exposure, rather than the unwinding of a hedging position.

That kind of selling reflects a pattern Ferraioli described plainly: investors who are near breakeven are choosing to exit rather than hold.

“I think you get to those levels and you get people that are saying, ‘Hey, I made my money back, maybe I’ll revisit it later,’” Ferraioli said.

Ferraioli also downplayed the narrative around Strategy’s 32 BTC sale. “I don’t think [the sale] is what’s really driving it,” he said, calling it a convenient story attached to a trend already underway.

Seasonal dynamics are compounding the issue. Summer has historically been one of bitcoin’s weakest periods. “People know that for bitcoin seasonally, summer is the weakest time,” Ferraioli noted.

Regulatory progress, such as the anticipated Clarity Act, may support longer-term adoption. In the near term, however, no single catalyst appears ready to reverse the trend. “There’s a lack of a reason to be buying here when there’s other things you can choose,” Ferraioli said.

The bitcoin ETF bleed has spread across crypto.

U.S. spot bitcoin funds shed another $396.60 million on Wednesday, extending a record outflow streak to 13 straight sessions and a $4.37 billion drain since mid-May, while ether, solana and XRP products joined the redemption wave.

Hyperliquid’s spot HYPE ETF was the only major crypto fund still pulling in net new money.

BlackRock’s IBIT, the largest bitcoin ETF by net assets, absorbed the bulk of Wednesday’s outflow with $342.34 million in redemptions, according to SoSoValue data. Fidelity’s FBTC lost another $54.26 million.

The two funds dropped 2.76% and 2.65% respectively as bitcoin traded around $65,462, down from above $71,000 at the start of the week.

Total net assets across all U.S. spot bitcoin ETFs have fallen from $104.29 billion on May 15, the last session before the outflow streak began, to $82.83 billion on Wednesday.

That is a $21.46 billion drop in roughly three weeks, with redemptions and bitcoin’s price slide combining to do the damage. Bitcoin ETF AUM now represents 6.36% of bitcoin’s circulating market cap, down from above 7% at the May peak.

Elsewhere, Ether ETFs lost a combined $52.94 million on the day. BlackRock’s ETHA accounted for nearly all of it at $51.58 million, and the fund dropped 5.56% as ether traded below $1,900.

Solana funds lost $12.74 million on Wednesday, led by Bitwise’s BSOL with $11.56 million in outflows. XRP funds shed $5.34 million, with Bitwise’s flagship XRP ETF taking the hit.

Both categories have now joined bitcoin and ether in net daily outflow for multiple consecutive sessions, ending a period in which altcoin ETFs had been drawing modest but consistent retail interest while bitcoin funds bled.

Hyperliquid’s spot ETF complex was the lone outlier. 21Shares’ THYP took in another $2.99 million, pushing cumulative HYPE ETF net inflows to $139.51 million since the May 12 launch and total net assets to $192.01 million. The token gained 3.45% on the day to $73.39 as the rest of crypto sold off.

Grayscale launched its own Hyperliquid product, HYPG, on Wednesday, pitching it as the lowest-fee U.S. spot HYPE vehicle and undercutting Bitwise’s BHYP and 21Shares’ THYP on expense ratio. The launch arrives at a moment when every other major crypto ETF category is in net redemption.

Citi told clients on Tuesday that spot bitcoin ETF flows explain roughly 45% of weekly BTC price moves, calling them the best gauge of investor adoption. The bank expects sentiment to stay subdued as long as ETF flows turn negative and the U.S. crypto market structure bill stalls.

TLDR:

• Ethereum retail accumulation addresses have surged to near-record levels in late 2025 and early 2026.
• ETH SOPR has remained close to 1 for an extended period, reflecting limited fresh capital inflows.
• NUPL remains above 2018 and 2022 bear market lows, leaving room for further ETH price downside.
• Binance user deposit addresses stay below bull market peaks, slowing but not halting ETH’s decline.

Ethereum’s on-chain metrics are pointing to a growing divide between retail and large-scale investors. Accumulating retail addresses have surged to near-record levels in late 2025 and early 2026.

Meanwhile, the Spent Output Profit Ratio (SOPR) has remained close to 1 for an extended period. The Net Unrealized Profit/Loss (NUPL) indicator also leaves room for further downside.

Together, these readings paint a cautious picture of where ETH currently stands.

Retail Buyers Step In as On-Chain Signals Flash Caution

Retail accumulation in the Ethereum network has reached exceptional levels in recent months. Historically, the strongest retail buying tends to occur during the later stages of a market cycle.

Larger players, by contrast, tend to use these periods to distribute their holdings into demand. Rising retail accumulation, therefore, does not automatically translate into a bullish outlook.

SOPR has been hovering near the 1 level for a prolonged stretch of trading sessions. This reading shows that investors are largely breaking even on spent outputs.

Fresh capital entering the market remains limited under these conditions. Markets that stay near this SOPR range for long periods tend to become fragile over time.

Analyst PelinayPA weighed in on the current setup, stating: “Retail investors are buying aggressively, yet SOPR isn’t confirming a strong bullish trend. When growing demand fails to push prices higher, it often suggests significant selling pressure on the other side of the market.”

The observation points directly to whale distribution absorbing retail demand without driving prices upward. That dynamic has become one of the more closely watched developments in Ethereum’s on-chain landscape.

On the exchange side, Binance user deposit addresses remain below prior bull market peaks. This pattern suggests that many holders are still keeping ETH off exchanges rather than preparing to sell.

That behavior may be contributing to the relatively gradual pace of the current decline. However, it does not remove the underlying risks present in the current data.

NUPL Leaves Room for Further ETH Downside

NUPL currently reflects a market where unrealized profits have declined but remain above bear market extremes. The readings seen during the 2018 and 2022 bear markets were far more depressed than current levels.

This gap means there is still space for sentiment to weaken further before ETH reaches historically oversold territory. Investors should note this distinction when evaluating the present conditions.

PelinayPA further noted: “A break of SOPR below 1 combined with a weaker NUPL could increase the risk of a deeper ETH correction.” This scenario does not confirm an imminent crash, but it does raise the probability of extended downside.

Analysts tracking Ethereum have flagged this combination as a key threshold to monitor. The two indicators carry more weight when read together than in isolation.

When increasing demand fails to move prices higher, it often points to heavy selling pressure on the opposite side of the market. Whales appear to be absorbing retail demand as they distribute their holdings.

Until SOPR confirms renewed strength and NUPL compresses further, the near-term outlook for ETH remains uncertain. The current on-chain setup warrants measured caution from market participants.

The U.S. Commodity Futures Trading Commission has abolished a long-standing policy that barred settlements when a defendant publicly denied the agency’s allegations. The move, disclosed this week, ends nearly three decades of a rule critics say stifled free speech while supporters argued it helped preserve orderly settlements.

The CFTC said the no-deny policy, adopted in 1998, may have created an incorrect impression that the Commission was shielding itself from criticism. The agency framed the change as aligning with broader government practice, where regulators have loosened settlement language to reflect evolving enforcement approaches.

Key takeaways

• The CFTC has rescinded its no-deny settlement policy, effective for new cases going forward, after almost 30 years of application.
• The change provides the agency with greater flexibility when resolving enforcement actions, potentially allowing settlements that do not require defendants to concede the Commission’s allegations publicly.
• Existing no-deny provisions will not be enforced going forward, though future settlements may still require defendants to admit certain facts or liabilities.
• The move mirrors a similar shift by the Securities and Exchange Commission earlier this year, which also abandoned a gag-like constraint on settlements.
• Observers tied the development to a broader political and regulatory backdrop, including ongoing debates over how crypto-enforcement actions should be settled and framed in public discourse.

The policy reversal and what it changes in practice

For nearly thirty years, the CFTC refused to settle enforcement actions unless the defendant promised not to publicly deny the Commission’s allegations. The agency argued that this condition helped maintain the integrity of its casework and ensured clear accountability in settlements. In its recent notice, the CFTC argued that retaining the policy could mislead the public into thinking the agency was avoiding scrutiny, prompting a rethink of how settlements should be structured in a modern regulatory environment.

With the policy rescinded, the CFTC asserts it now has more room to craft settlements that fit the realities of contemporary enforcement, where public statements and ongoing litigation can diverge from negotiated outcomes. The agency stressed that the change does not erase the possibility that settlements may still require certain factual admissions or liabilities, depending on the specifics of a case. In other words, the door to a more nuanced settlement framework is open, but not a blanket license for issuers or trading platforms to avoid accountability where appropriate.

Regulatory context and reactions from the ecosystem

The timing of the move sits within a broader regulatory cadence that has seen agencies recalibrate how crypto enforcement is communicated and resolved. Earlier this year, the SEC likewise moved to discard a gag-like provision that had limited the parties’ public denials in certain enforcement deals, signaling a potentially coordinated, cross-agency shift toward greater settlement flexibility. As with the CFTC’s action, the SEC’s decision was framed as aligning regulator practices with broader government norms.

Crypto companies and industry participants have long criticized such no-deny provisions as curbing free speech and constraining post-settlement discourse, even as some proponents argued the constraints helped deter frivolous settlements or mischaracterizations of enforcement actions. The current policy shift suggests regulators may be leaning toward more transparent disclosures in settlements, while still preserving the ability to secure accountability where appropriate.

The development comes amid a dynamic political backdrop. In the wake of various enforcement actions taken during the Biden administration, some observers have noted shifts under different political leadership, including attempts to reassess prior settlement strategies. It remains to be seen how broadly regulators will apply the new posture across cases and whether the changes will translate into faster resolutions or more litigation when parties push back against admissions or certain factual statements.

Gemini dispute and what it signals for enforcement priorities

The week also brought attention to a separate line of action tied to the Gemini settlement. The CFTC announced it would seek to vacate its $5 million settlement with the crypto exchange, a move that CFTC Chair Mike Selig described as politically targeted. The development underscores how settlements—and the conditions that accompany them—remain a live flashpoint in crypto regulation, with agencies testing the boundaries of what is acceptable public messaging around enforcement outcomes.

In discussing the reversal, observers warmed to the idea that enforcement posture is evolving. Tim Massad, who previously led the CFTC during the Obama administration, characterized the Gemini reversal as extraordinarily unusual. His remarks, reported in coverage this week, highlight the unusual degree to which agencies are revisiting settled matters in response to new policy directions and political scrutiny. The Gemini case illustrates that even settled actions can be reexamined when the legal and regulatory environment shifts, potentially recalibrating market participants’ expectations about the durability of settlements.

What investors and builders should watch next

For market participants building in the crypto space, the rescission of the no-deny policy may influence how projects and platforms approach settlements and communications after enforcement actions. If regulators are more open to settlements that do not require explicit public denials, legal strategies may tilt toward achieving efficient, transparent settlements while addressing factual liabilities in a structured, precise way. Yet the possibility remains that some settlements will demand admissions of certain facts or liabilities, signaling that not all disputes will be resolved without some form of acknowledgment.

Beyond individual cases, the shift suggests a broader trend toward flexible settlement language across major U.S. financial regulators. The move could affect how exchanges, wallets, and DeFi platforms negotiate settlements if they face enforcement actions in the future. It may also influence the tempo of regulatory action, with the potential for faster resolutions when parties are willing to accept admissions, or, conversely, longer litigation if admissions are contested vigorously.

As observers digest the implications, attention will turn to whether other agencies follow suit and whether this renewed flexibility translates into clearer, more predictable settlement practices for the crypto sector. The balance regulators must strike is delicate: enabling accountability and enforcement while allowing for discourse and recognition of evolving market realities. The next few months will reveal how these policy shifts play out in actual settlements, and how market participants adjust their expectations around public statements, admissions, and the contours of negotiated outcomes.

Readers should monitor forthcoming agency announcements and court filings for how the no-deny framework is applied across new enforcement actions, and whether the Gemini case or similar settlements set precedents for what must or may be admitted in settlements moving forward. The coming months are likely to reveal how these policy refinements shape the interaction between crypto markets, regulators, and the legal system.

Bitcoin (BTC) has dropped 8% to a nine-week low of $65,360 from Tuesday’s high of $71,300 amid increasing geopolitical risks surrounding the US-Iran war.

Key takeaways:

• Bitcoin slipped to $65,000 on Wednesday in a market-wide correction, liquidating $774 million in longs.
• Traders say Bitcoin needs to hold $60,000 as support to avoid a deeper correction in BTC price.

Bitcoin wipes out longs in tumble to $65,000

Data from TradingView showed new BTC price lows of $65,362 on Bitstamp, the lowest since March 29 as sellers stayed in control.

BTC/USD daily chart. Source: Cointelegraph/TradingView

This extended the deviation from the local high of $82,800 to 21% and was accompanied by massive liquidations across the derivatives market.

Related: Bitcoin’s $224K ‘fair value’ may emerge if sovereign debt fears deepen: Bitwise

More than $1.58 billion in long positions were liquidated, with Bitcoin accounting for $774.2 million of that total. Ether (ETH) followed with $440 million in long liquidations.

Across the board, a total of $1.83 billion was wiped out of the market in short and long positions, marking the largest liquidation since Feb. 6, when BTC price tanked to its multi-year low below $60,000.

Total crypto liquidations across all exchanges. Source: CoinGlass

“This marks one of the larger single-day events in recent months,” analysts at CryptoBanter said in an X post on Wednesday.

Pseudonymous analyst Byzantine General shared Velo data, which tracks liquidations from four major crypto exchanges: Binance, Bybit, OKX and Deribit, saying:

“Highest $BTC long liquidations event since the infamous October 10 black swan event.”

Bitcoin aggregate liquidations. Source: X/Byzantine General 

Fellow analyst DonaX₿τ pointed out that the $1.5 billion in long liquidations recorded today were lower than the $1.6 billion posted during the Covid crash in 2020, adding:

“This industry is growing.”

Meanwhile, Bitcoin supply on Binance, the world’s largest crypto exchange by trading volume, has reached a three-month high of 659,000 BTC. 

This signifies a “potential for heightened selling pressure in the market, especially if it coincides with declining prices or increased volatility,” CryptoQuant analyst Arab Chain said in a QuickTake note on Wednesday, adding:

“Rising supply on exchanges can amplify price volatility and selling pressure, especially if inflows continue in the coming period.”

Bitcoin supply on Binance. Source: Cryptoquant

As Cointelegraph reported, Bitcoin is now in a fresh distribution phase fueled by increased inflows to exchanges amid extreme fear.

$60,000 is now Bitcoin’s last line of defence

BTC swept lows around $65,000, leaving traders questioning where Bitcoin is likely to find support.

Bitcoin is in an “interesting zone” below $66,000 with bulls looking at the “area at $61K with the 200-Week MA for support,” MN Capital founder Michael van de Poppe said in a Wednesday post on X, adding:

“Those are important to be looking at crucial zones of interest for support and I’m sure that I’ll be going to accumulate more positions within this region.”

BTC/USD weekly chart. Source: Michael van de Poppe

Analyst Colin Talks Crypto said the $65,000-$66,000 is “a reasonable support level for a short-term bounce,” with the possibility of the BTC/USD pair later retesting the $60,000 support zone.

“Re-testing $60k is still highly likely. And breaking below it later this year is definitely not ruled out.”

BTC/USD six-hour chart. Source: X/𝙲𝚘𝚕𝚒𝚗 𝚃𝚊𝚕𝚔𝚜 𝙲𝚛𝚢𝚙𝚝

As Cointelegraph reported, bulls are expected to defend the $60,000 level aggressively, as a break below it may plunge Bitcoin into a new downtrend.