Crypto World
Progmat Taps Avalanche for $2B Token Migration as Japan Pushes Toward Global On-Chain Finance
TLDR:
- Progmat is migrating 439.6 billion yen in tokenized assets from Corda5 to Avalanche, targeting full completion by June 2026.
- All Security Token projects on Progmat’s platform will become EVM-compatible, enabling integration with Ethereum-based DeFi ecosystems.
- Project Keystone uses LCP technology to enable DvP settlement between Security Tokens and stablecoins across different blockchains.
- Avalanche’s sub-second finality and customizable validator controls meet Japan’s strict financial regulatory and settlement infrastructure requirements.
Progmat, a Japan-based fintech company backed by major megabank groups, is migrating over $2 billion in tokenized assets to the Avalanche blockchain.
The company announced the move on February 26, 2026, as part of a broader infrastructure renewal. The migration covers all Security Token projects currently on its platform, totaling assets worth more than 439.6 billion yen. This shift marks one of the largest tokenized asset migrations in Asia’s financial history.
Tokenized Asset Migration Moves From Corda5 to Avalanche
Progmat’s Security Token platform, “Progmat ST,” has operated on Corda5 since its SaaS migration in October 2024.
Now, the company is replacing Corda5 with Avalanche as the underlying distributed ledger. All existing ST projects will transition to an EVM-compatible, gradually permissionless environment on the new chain.
The migration began in fall 2025 and is expected to reach full completion by June 2026. New ST projects have already started including Avalanche transition disclosures in their securities reports.
Trust banks, securities companies, and relevant authorities have been briefed and are cooperating with the process.
Progmat structured the migration to minimize disruption for financial operators and investors already using the platform.
The SaaS layers for ST issuers and administrators remain largely unchanged. Only the chain layer is being replaced, keeping the operational impact on existing participants as low as possible.
Avalanche Selected for Financial-Grade Performance and Flexibility
Avalanche’s technical architecture made it a strong fit for Japan’s regulated financial market. Its L1 framework allows operators to control who can transact, who can develop on the chain, and who can run validator nodes. These controls can be tightened or relaxed over time without stopping the chain.
The platform’s consensus algorithm delivers finality in under one second. This speed is critical for financial settlement, where delays create counterparty risk.
Avalanche also supports native cross-chain communication through its InterChain Messaging protocol, enabling fast and low-cost transfers between L1 chains.
EVM compatibility adds another layer of value. Developers can use existing Ethereum tools and libraries when building on Progmat’s Avalanche infrastructure.
This opens the door to integration with a wide range of DeFi services and smart contract ecosystems, expanding the market reach for tokenized assets held on the platform.
Cross-Chain Infrastructure Enables Global Settlement Capabilities
Beyond the migration, Progmat is commercializing cross-chain settlement services under a project named “Project Keystone.”
At its core is LCP, a light client proxy running on Trusted Execution Environments, developed in collaboration with Datachain.
This technology enables DvP settlement between Security Tokens and stablecoins, and PvP settlement between stablecoins from different jurisdictions.
The need for cross-chain services stems from a fragmented global market. Japan, the United States, Europe, and South Korea are each developing their own currency-denominated stablecoins on separate ledgers.
Without interoperability, cross-border transactions between these platforms remain blocked. Progmat’s infrastructure aims to bridge these gaps for institutional participants.
The IBC/LCP protocol was chosen as a core component because it operates without locking operators into a single vendor.
As an open standard, it allows multiple solution providers to participate, which protects the sovereignty concerns of regulated financial institutions.
Combined with Avalanche’s native communication tools, the framework positions Progmat’s platform as a bridge between Japan’s domestic ST market and global on-chain finance infrastructure.
The US Commodity Futures Trading Commission has named the first members of its new Innovation Task Force as the agency steps up its work on crypto regulation.
Summary
- CFTC named five task force members as it expands work on crypto market oversight.
- Mike Selig also launched an innovation tracker covering crypto, AI, and prediction markets.
- Agency roles still depend on whether Congress passes the CLARITY Act into law.
The move comes as lawmakers continue to debate the CLARITY Act, which would define the roles of the CFTC and the Securities and Exchange Commission in digital asset oversight.
CFTC Chairman Mike Selig first launched the task force on March 24 and appointed Michael Passalacqua to lead it.
On Friday, the agency confirmed the first five members and outlined broader efforts tied to its push for clearer rules for new technologies.
The CFTC said Passalacqua will lead the group alongside five initial members. They include Hank Balaban, Sam Canavos, Mark Fajfar, Eugene Gonzalez IV, and Dina Moussa. The agency described the team as part of its effort to support work on crypto, prediction markets, and other emerging sectors.
Selig said the team brings strong legal and policy experience to the agency. He stated,
“The Innovation Task Force brings together a leading team that exhibits deep expertise and an enthusiastic commitment to deliver clear rules of the road for American innovators.”
On the same day, Selig also announced the launch of the CFTC’s innovation tracker. The agency said the tracker will show the work completed under his leadership to support regulatory clarity, market integrity, and responsible technology development.
According to the CFTC, the tracker covers three main areas. These include crypto and blockchain, artificial intelligence and autonomous systems, and contracts and prediction markets. The new page is meant to show the scope of the agency’s work in each area.
Crypto oversight debate remains active
The latest announcement comes as the debate over crypto oversight continues in Washington. The CFTC could take on a larger role if lawmakers approve a framework that places more digital assets under its watch.
That process remains incomplete because the CLARITY Act has not yet become law. SEC Chair Paul Atkins said on X that both agencies are “ready to implement the CLARITY Act” and added, “It’s time for Congress to future-proof against rogue regulators and advance comprehensive market structure legislation to President Trump’s desk.”
Coinbase Chief Executive Brian Armstrong has renewed support for the Digital Asset Market Clarity Act, backing a recent call from US Treasury Secretary Scott Bessent for Congress to move the bill forward.
Summary
- Brian Armstrong backed the CLARITY Act after Coinbase opposed the bill’s earlier version in January.
- Senate Banking Committee action remains pending as lawmakers continue talks on crypto market structure rules.
- Treasury Secretary Scott Bessent urged Congress to pass the bill as negotiations moved forward.
The public statement marks a shift from Coinbase’s position in January, when Armstrong said the company could not support the measure in its earlier form before a key Senate committee vote.
Armstrong said in a post on X that Coinbase now supports the latest version of the bill after months of talks between lawmakers and industry groups. He also backed Bessent’s recent Wall Street Journal opinion piece, which called on Congress to act on crypto market structure legislation.
Armstrong wrote, ”It’s time to pass the Clarity Act.” His new statement came about three months after he said the exchange could not support the bill ”as written,” a position that contributed to a delay in Senate Banking Committee action.
The CLARITY Act still faces several steps before reaching a full Senate vote. The Senate Agriculture Committee approved its part of the bill in January, but the Senate Banking Committee must still address provisions tied to securities and commodities oversight.
As of Friday, no markup had been scheduled in the Banking Committee. The bill has remained stalled for months as lawmakers debated issues tied to ethics, tokenized equities, stablecoin yield, and other digital asset matters.
In addition, Coinbase Chief Legal Officer Paul Grewal said last week that lawmakers were ”very close to a deal” on the bill. That comment added to signs that negotiations had continued behind the scenes even as the measure remained off the committee calendar.
The latest support from Armstrong suggests Coinbase believes the bill has improved since January. His earlier comments had pointed to concerns over the wording of the draft, while the current version now appears to have the exchange’s backing.
Crypto policy ties stay in focus
The bill’s progress has drawn attention to the crypto industry’s role in Washington. Coinbase and Ripple executives have both taken part in talks with administration officials on crypto policy, while Armstrong reportedly met President Donald Trump before Trump publicly called for action on market structure legislation.
Coinbase’s renewed support for the bill also comes shortly after the Office of the Comptroller of the Currency approved the company’s application for a national bank trust charter. The approval followed similar decisions for Paxos, Ripple Labs, BitGo, Circle, and Fidelity Digital Assets in December.
Prediction market users turned to Kalshi and Polymarket as NASA’s Artemis II mission returned to Earth, placing trades not only on future Moon landing timelines but also on words that might appear in the agency’s post-splashdown briefing.
Summary
- Kalshi users traded contracts on NASA briefing words after Artemis II completed its Moon flyby.
- Prediction markets expanded beyond mission outcomes to bets on language used during NASA’s news conference.
- Artemis II returned safely after launch on April 1, renewing attention on NASA’s lunar plans.
The activity added a new space-related category to the broader event-contract market that has recently drawn more attention from lawmakers and regulators.
Artemis II launched from NASA’s Kennedy Space Center in Florida on April 1, 2026, and completed a crewed lunar flyby before splashing down in the Pacific Ocean off San Diego at 8:07 p.m. EDT on April 10. NASA described the mission as the first crewed Artemis flight and the first human mission around the Moon in more than 50 years.
As the mission neared its end, traders used prediction platforms to take positions on Artemis-related outcomes. Polymarket hosted Moon landing markets and Artemis-linked event pages, while Kalshi continued to offer event contracts tied to real-world outcomes on its regulated exchange.
Some of the trading centered on what NASA officials might say after splashdown rather than only on mission milestones. Traders tracked possible references tied to government officials, radiation, and damage during the post-mission news cycle, showing how event contracts can extend beyond launch and landing results into conference language and public statements.
Other contracts focused on longer-term Moon exploration timelines. Polymarket pages showed active interest in human Moon landing markets, while broader Moon landing prediction pages listed live trading across related science and space questions.
Debate over event contracts continues
Prediction markets have faced scrutiny as users place trades on sensitive geopolitical and public-interest events. That debate has widened as platforms expand into more areas, including science, government activity, and major public announcements.
The Artemis II trading activity arrived as prediction markets remained under close watch in Washington. The attention reflects ongoing questions about how far event-contract offerings should extend and what kinds of real-world events should be available for trading.
Furthermore, interest in space-linked markets has also overlapped with crypto and infrastructure stories. In March, Starcloud said it planned orbital data centers that could support Bitcoin mining from space using solar power and ASIC miners, adding another speculative commercial angle to the space sector.
CoreWeave has signed a multi-year agreement with Anthropic to support workloads for the Claude family of AI models.
Summary
- CoreWeave signed a multi-year Anthropic agreement to support Claude AI workloads across its data centers.
- The company said it now serves nine major developers of large language models.
- AI demand is drawing miners away as lower margins pressure traditional Bitcoin mining operations worldwide.
The deal adds another major customer to CoreWeave’s cloud business as the company expands its role in artificial intelligence infrastructure.
CoreWeave said Anthropic will use its cloud data centers to run AI workloads tied to Claude models. The company added that the agreement will roll out in phases and may grow over time as demand increases.
The announcement gave investors a fresh look at CoreWeave’s position in the AI sector. The company said the new agreement means it now serves nine of the 10 major developers of large language models.
CoreWeave shares rose more than 10% on Friday after the company announced the deal. The stock traded at around $102 at press time, showing a strong reaction from investors to the latest customer win.
The agreement came shortly after CoreWeave completed an $8.5 billion capital raise led by Meta Platforms. The financing was tied to deployed computing capacity and expected cash flows rather than graphics processing unit hardware, marking a different structure from older crypto mining funding models.
Moreover, CoreWeave shifted away from crypto mining and rebranded as an AI infrastructure company in 2019. The change came after mining economics weakened following the 2018 crypto market downturn.
That transition has become more relevant as more mining firms look at AI workloads for new revenue. Rising energy costs, lower block rewards, and weaker crypto prices have continued to pressure Bitcoin miners.
AI demand draws attention from miners
CoinShares said up to 20% of Bitcoin miners are now unprofitable in the current market. The report shows how tighter margins have made traditional mining harder to sustain for many operators.
Some firms are now looking to AI computing as a stronger use of power and hardware. Market analyst Ran Neuner noted,
”Both industries compete for the same thing: electricity, and right now, AI is willing to pay much more for it.”
His comment reflects a wider shift as miners weigh whether AI can offer steadier returns than crypto mining.
A federal judge in Arizona has temporarily barred state officials from enforcing gambling laws against Kalshi, siding with the CFTC.
A federal judge in Arizona has temporarily barred state officials from enforcing gambling laws against Kalshi, siding with US regulators in a growing dispute over how event-based trading products should be classified.
In an order issued on Friday, Judge Michael Liburdi of the US District Court for the District of Arizona granted a request from the Commodity Futures Trading Commission (CFTC) and the federal government to halt any state-level action targeting contracts listed on CFTC-regulated markets .
The ruling centers on whether Kalshi’s “event contracts” fall under federal derivatives law or state gambling statutes. Last month, Arizona authorities sought to pursue enforcement against Kalshi under local gambling rules, but the CFTC asked a court order on Wednesday to stop the action.
The court said that the CFTC is likely to succeed in arguing that such contracts qualify as “swaps” under the Commodity Exchange Act, placing them within federal jurisdiction. The law grants the agency exclusive authority over swaps traded on designated contract markets.
Related: Prediction market users await Artemis II mission splashdown
Court halts Arizona enforcement against Kalshi
As part of the decision, Arizona officials are temporarily prohibited from initiating or continuing civil or criminal enforcement tied to Kalshi’s event contracts on regulated exchanges .
The restraining order will remain in effect until April 24, while the court considers whether to issue a longer-term preliminary injunction.
The case adds to a broader debate over prediction markets in the United States, particularly as regulators and states clash over whether such products resemble financial instruments or online betting. Last month, Utah lawmakers also passed a bill targeting Kalshi and Polymarket that classifies proposition-style bets on in-game events as gambling, aiming to block such offerings in the state.
Related: US appeals court upholds preventing New Jersey enforcement against Kalshi
Nevada judge extends ban on Kalshi
Last week, a Nevada judge extended a ban preventing Kalshi from offering event-based contracts in the state, siding with regulators who argue the products amount to unlicensed gambling.
The court found that the platform’s offerings closely resemble traditional sports betting. The judge said there is no meaningful distinction between placing a wager through a sportsbook and buying a contract tied to an event outcome, concluding that such activity falls under Nevada’s gaming laws.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
World, a cryptocurrency project founded by OpenAI CEO Sam Altman, announced a significant reduction to the Worldcoin (WLD) daily token unlock rate starting July 24.
The change affects community, team, and investor allocations at different rates. It comes as WLD faces continued market headwinds, having hit a new all-time low earlier this month.
Worldcoin (WLD) Token Unlock Rate To Drop By 43% in July 2026
According to the announcement, the daily unlock rate will fall by 43% on July 24. The largest reduction affects the World Community allocation.
That rate will be cut in half, dropping from 3.2 million WLD per day to 1.6 million. Tools for Humanity (TFH) Investor and Team token unlocks will also decline by 32%, falling from 1.9 million WLD per day to 1.3 million.
In total, daily emissions will fall from roughly 5.1 million WLD to 2.9 million. As of April 10, 4.9 billion WLD tokens are unlocked, representing 49% of the 10 billion total supply. Of this, 3.3 billion are actively circulating.
“In July 2024, a majority of the Team and Investor tokens were made subject to additional extended lock-ups, while remaining on a daily unlock schedule. Importantly, there are no unlock cliffs. A live unlock schedule of all WLD tokens is available on Dune. As a result of these lock-up schedules, on July 24, 2026, the unlock rate for all token allocations will automatically decrease,” the team noted.
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Sell Pressure Meets Structural Headwinds
The announcement arrives weeks after the World Foundation completed a $65 million over-the-counter token sale at roughly $0.27 per WLD.
WLD has lost over 45% of its value since the start of 2026 and trades roughly 97% below its March 2024 peak near $11. At press time, WLD traded at around $0.28, up 4.7% with the broader market.
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Whether the reduced unlocks will meaningfully ease selling pressure remains to be seen. While the lower emission rate could offer some short-term relief, any meaningful recovery will likely depend on a broader return in risk appetite and improved market conditions.
Until then, WLD’s ongoing downtrend and weak sentiment may continue to weigh on price action, limiting the near-term impact of the reduced token unlocks.
The post Worldcoin Slashes Token Unlocks by Nearly Half, Will It Impact Price? appeared first on BeInCrypto.
Bitwise Asset Management has taken another step toward launching its proposed spot Hyperliquid exchange-traded fund, filing a second amendment with the U.S. Securities and Exchange Commission that specifies the fund’s ticker BHYP and a management fee of 0.67%.
In a post on X, Bloomberg senior ETF analyst Eric Balchunas noted that such filings typically signal that the product is nearing the start of trading, and he highlighted that HYPE has surged over the past year, suggesting Bitwise is “trying to strike” while demand remains strong.
The filing arrives as asset managers press to launch the first spot ETF tied to a crypto perpetual futures protocol and blockchain, a race that also includes Grayscale and 21Shares pursuing similar Hyperliquid products. Bitwise was the first to submit a Hyperliquid ETF filing with the SEC in September, followed by 21Shares a month later and then Grayscale in late March. For context, see prior coverage of those filings here: Bitwise, 21Shares, Grayscale.
If approved, Bitwise’s ETF would trade on the NYSE Arca and provide investors with exposure to the spot price of Hyperliquid. In the December amendment, Bitwise also signaled that the fund would seek to generate additional returns from HYPE staking—a feature not explicitly indicated by Grayscale or 21Shares in their respective filings.
Key takeaways
- Bitwise updates its Hyperliquid ETF to include the BHYP ticker and a 0.67% management fee, signaling a potential near-term launch.
- The Hyperliquid ETF race features Grayscale and 21Shares alongside Bitwise, with Bitwise leading off in September, then 21Shares, then Grayscale.
- If approved, the fund would list on NYSE Arca and track the spot price of Hyperliquid; Bitwise’s staking plan for HYPE marks a notable differentiator.
- Hyperliquid’s native token has shown strong momentum, up about 65% in 2026 to around $41.96 and roughly 182% over the past year, according to CoinGecko.
- CoinGlass data placed Hyperliquid among the top 10 crypto derivatives venues by early April, with Q1 volume at $492.7 billion, trailing Coinbase by about $90 billion in that period.
Regulatory filings and industry momentum
The SEC filings underpin a larger wave of interest in traditional-market vehicles tied to crypto assets. Bitwise’s newest amendment clarifies that BHYP would trade on the NYSE Arca, a critical step toward a potential listing date, should regulators sign off. The December amendment’s staking provision adds a yield-centric angle to the vehicle, positioning the fund as not just a spot exposure tool but also a potential source of staking-driven returns.
Industry coverage traces a clear sequence: Bitwise kicked off the Hyperliquid ETF filings, followed by 21Shares and then Grayscale, each seeking to map the same “spot” exposure to a crypto-derivative ecosystem. This cadence illustrates how sponsors are racing to set precedent in a space where the SEC’s acceptance could unlock broader retail access to crypto-derivative concepts via traditional exchanges.
HYPE’s market trajectory matters beyond token price. A rising price path can attract more investor attention to an ETF that promises direct exposure to the spot market, while staking features introduce a structural difference from peers. The SEC’s eventual decision on these filings remains the central pivot—readers should watch for any updates on the regulators’ stance, timing, and any evolving disclosures from the sponsors.
Market momentum and what it could mean for investors
Hyperliquid’s token, HYPE, has been one of the more notable performers in the crypto space this year. CoinGecko data shows the token gaining roughly 65% since the start of 2026, trading near $41.96 at the time of writing, with a 12-month gain around 182%. While price strength alone does not guarantee ETF success, it contributes to a more compelling case for a spot product that could offer daily settlement and transparent price discovery on a major U.S. exchange.
On the broader derivatives front, CoinGlass reported in early April that Hyperliquid had breached the top-10 derivatives platforms by trading volume, joining heavyweights such as Binance, OKX and Bybit. In the first quarter, the platform processed $492.7 billion in trading volume, trailing Coinbase by roughly $90 billion for the period. These metrics help explain why sponsors are eager to offer a regulated, easy-on-ramp vehicle that could capture a share of ongoing derivatives activity in a compliant wrapper.
The convergence of rising token momentum, active trader interest in derivatives, and the prospect of a U.S.-listed spot ETF creates a nuanced backdrop for Bitwise, Grayscale and 21Shares. The industry is watching not only the SEC’s decision window but also how each sponsor positions the product—whether through staking yield, fee structure, or the depth of liquidity provision at launch.
Bitwise’s historical filings provide additional context: the initial Hyperliquid filing in September started the clock on the race to be first with a spot ETF in this niche. For those tracking the progression, see the prior Cointelegraph coverage linked here: Bitwise filing, 21Shares filing, Grayscale filing.
As the regulatory clock advances, the next milestones—SEC comments, potential approvals, and the final listing date on NYSE Arca—will be critical to gauge how quickly a spot Hyperliquid ETF could debut and what its early liquidity profile might look like.
Readers should watch for updates on the SEC’s review timeline and any refinements in the funds’ disclosures, especially around staking mechanics and yield expectations, which could influence initial demand and arbitrage dynamics once trading begins.
Bitwise’s push, joined by Grayscale and 21Shares, signals a broader push toward regulated crypto-access points that mix spot exposure with product-level incentives. Whether this wave translates into a meaningful market shift or remains a closely watched development will depend on regulatory clarity and the real-world performance of the underlying Hyperliquid ecosystem.
For now, the market is digesting the latest filing details, while investors weigh the potential of a first-mover advantage in an increasingly crowded field of crypto ETFs. The next few regulatory disclosures and any impending launch news will be the key signals to watch in the coming weeks and months.
What’s next: The SEC’s formal review timeline, any additional disclosures from Bitwise and peers, and the evolving liquidity picture on launch will determine how soon investors can actually access a spot exposure to Hyperliquid via an exchange-traded product.
TLDR
- Covenant AI announced its departure from Bittensor on April 8, citing centralized control by co-founder Jacob Steeves
- TAO plummeted approximately 25–30% from weekly peaks, sliding from $337 down to the $249–$253 range
- More than $650 million in market capitalization evaporated, accompanied by $9.1 million in liquidated long positions
- Daily trading activity exploded to $1.72 billion on April 10, compared to roughly $500 million seen in early April
- Chart patterns suggest TAO could face an additional 25–45% correction toward the $144–$230 support zone
The Bittensor network’s native cryptocurrency TAO experienced a dramatic selloff this week following explosive allegations from a prominent subnet operator targeting the project’s leadership structure.
On April 8, Covenant AI declared its complete withdrawal from the Bittensor platform. Two days later, the company’s founder Sam Dare published an extensive explanation detailing the rationale behind this decision.
Dare’s statement accused Jacob Steeves, one of Bittensor’s co-founders, of maintaining unilateral authority over the protocol’s operations. This assertion stands in stark opposition to Bittensor’s fundamental value proposition as a decentralized, permissionless AI infrastructure where competing subnets operate autonomously.
According to Dare’s claims, Steeves independently halted emission distributions to a subnet, overruled subnet administrators within their designated governance channels, and eliminated projects without adhering to documented procedures.
Perhaps most damaging was Dare’s assertion that Steeves weaponized substantial, public token liquidations as “retaliatory” mechanisms to enforce compliance during disagreements. “These weren’t governance actions executed through open consensus mechanisms,” Dare stated. “They represented unilateral decisions by a single individual who never truly decentralized control.”
Dare further suggested that other members of the project’s leadership triumvirate function primarily as “liability buffers” while Steeves operates without accountability.
Market Reaction
TAO experienced a precipitous 25% collapse within six hours following the disclosure, tumbling from $337 to $253. This rapid decline eliminated more than $650 million in market capitalization, reducing the total to $2.57 billion.
Daily trading volume surged to $1.72 billion on April 10, significantly exceeding the approximately $500 million daily average recorded during the month’s opening days. The downturn coincided with a roughly 250% expansion in trading activity, indicating widespread market engagement in the selloff.
Within derivatives markets, long position liquidations totaled $9.1 million, with bullish traders absorbing $9.71 million in total forced closures. Numerous leveraged long positions faced margin calls, intensifying downward momentum through cascading liquidations.
TAO has experienced a modest rebound since bottoming but remains 12.8% lower across the previous seven-day period. Despite recent weakness, the token maintains a 37% gain over the trailing 30 days.
Technical Picture
TAO is presently trading within the 0.382–0.5 Fibonacci retracement zone. Historical precedent shows that in November 2025, a breach below this identical range resulted in losses exceeding 30%. A comparable formation in June 2025 witnessed TAO finding support around the 0.618 Fibonacci level before mounting a recovery.
Price Targets
Should TAO follow the June 2025 trajectory, downside risk extends to the 0.618 Fibonacci support zone approximately $230. If the November 2025 pattern materializes instead, the 1.0 Fibonacci objective resides near $144, representing roughly 45% downside from present price levels.
April 10’s trading volume reached $1.72 billion, marking the month’s peak activity level thus far.
The US Bureau of Labor Statistics reported that headline Consumer Price Index inflation rose 0.9% in March from the previous month.
Summary
- US March CPI rose 3.3% yearly as energy prices surged and gasoline costs jumped sharply.
- Bitcoin climbed above $72,000 after the inflation report despite rising pressure on Federal Reserve policy.
- Traders see a 98.4% chance the Fed will keep rates unchanged in April.
On a yearly basis, CPI increased 3.3%, keeping inflation above the Federal Reserve’s 2% target.
The report showed that energy costs drove much of the monthly increase. The energy index rose nearly 11% during the month, while gasoline prices climbed 21.2%, making fuel the main source of price pressure in the latest reading.
March marked the first full month in which the US-Iran war shaped inflation data. Higher fuel costs pushed the headline number above the pace seen in February, when CPI rose 0.3% on the month and 2.4% from a year earlier.
At the same time, core CPI came in slightly lower than forecast. Core inflation, which excludes food and energy, rose 2.6% on a yearly basis, compared with market expectations of 2.7%. That reading showed that underlying price growth remained more stable even as energy prices surged.
Moreover, the inflation report kept attention on the Federal Reserve’s next policy move. Price stability remains part of the central bank’s dual mandate, alongside maximum employment, and inflation above target has continued to shape rate expectations.
According to CME Group’s FedWatch tool, traders see almost no chance of a rate cut at the April Federal Open Market Committee meeting. Market pricing showed a 98.4% probability that the Fed will leave rates unchanged, while officials have also not ruled out further tightening if inflation stays elevated.
Bitcoin rises after CPI release
Bitcoin moved higher after the CPI data was released, even as the inflation reading pointed to ongoing pressure on consumer prices. The asset briefly touched the $73,000 level and continued to trade above $72,000 later in the session.
At the time of writing, Bitcoin traded at $72,780, up 1 % over 24 hours and 9% over seven days.
Key Takeaways
- The Kingdom of Bhutan has slashed its Bitcoin reserves from approximately 13,000 BTC to just 3,774 BTC since October 2024
- State-controlled wallets have transferred more than $233 million in Bitcoin during 2026
- No significant mining inflows exceeding $100,000 have been detected in Bhutan’s wallets for over 12 months
- Druk Holding and Investments, managing Bhutan’s sovereign assets, has declined to provide public statements
- The Himalayan nation stands alone among sovereign Bitcoin holders in actively liquidating its position
The government of Bhutan has offloaded approximately 70% of its Bitcoin portfolio since reaching peak holdings of nearly 13,000 BTC in October 2024. Current reserves sit at roughly 3,774 BTC, representing a market value of about $272.5 million.
According to blockchain intelligence firm Arkham Intelligence, Bhutan’s Royal Government transferred an additional 250 BTC—valued at approximately $18 million—to a freshly established wallet address this week. This transaction followed a Thursday movement of roughly 319.7 BTC worth $22.68 million.
Cumulatively, the kingdom has relocated more than $233 million worth of Bitcoin from its identified treasury addresses throughout 2026. Approximately $162.6 million flowed into unidentified wallets, while remaining funds moved through addresses historically associated with liquidations via Galaxy Digital and OKX exchange platforms.
Bhutan’s cryptocurrency accumulation stemmed from a hydroelectric-powered mining initiative operated under Druk Holding and Investments, the nation’s sovereign investment vehicle. The program leveraged abundant renewable energy resources to mine Bitcoin while bypassing conventional banking systems.
Evidence Points to Mining Shutdown
Blockchain monitoring reveals no Bitcoin deposits exceeding $100,000 have entered Bhutan’s tracked addresses for more than twelve months. This pattern strongly indicates the mining program has either dramatically scaled back or ceased operations completely.
Druk Holding and Investments has remained silent despite numerous inquiries from journalists, ignoring email correspondence and phone attempts throughout the past week.
The profitability landscape for Bitcoin mining has fundamentally transformed. During Bhutan’s peak mining period, Bitcoin prices exceeded $90,000 while network difficulty remained comparatively moderate. Today, Bitcoin hovers around $72,000 amid record-high mining difficulty levels.
The halving event further reduced block rewards to just 3.125 BTC per block. Combined, these market conditions have squeezed profit margins for smaller-scale mining enterprises.
Another consideration involves electricity export opportunities—selling surplus hydropower to India may now yield superior returns compared to powering cryptocurrency mining infrastructure.
Institutional Buyers Continue Accumulating
Bhutan’s divestment strategy contrasts sharply with behavior among other major stakeholders. Strategy recently acquired 4,871 BTC for $330 million last weekend, expanding its total position to 766,970 BTC.
U.S.-based spot Bitcoin exchange-traded funds accumulated approximately 50,000 BTC throughout March alone. Meanwhile, the Ethereum Foundation staked $93 million in Ether within a 24-hour period rather than liquidating assets.
Bhutan represents the sole sovereign entity currently engaged in visible Bitcoin position reduction.
Bitcoin was trading above $72,000 at press time, registering gains exceeding 1.3% over the preceding 24-hour period. The cryptocurrency remains roughly 43% beneath its peak valuation of approximately $126,000 achieved in October 2025.
Bhutan’s residual 3,774 BTC holding now amounts to less than Strategy’s typical weekly purchase volume.
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