Cointelegraph

The Bank for International Settlements (BIS) warned that the rapid expansion of stablecoins risks fragmenting the global monetary system and weakening sovereign monetary control, urging central banks and the financial industry to accelerate the development of tokenized forms of central bank and commercial bank money as a safer alternative.
In its Annual Economic Report published Sunday, the Basel-based institution delivered a sharp assessment of the approximately $316 billion stablecoin market, arguing that tokens pegged to fiat currencies lack the institutional features required to serve as safe, reliable money at scale.
BIS pointed to structural vulnerabilities in reserve asset management and warned that a significant migration from commercial bank deposits into private digital tokens could reduce bank funding and constrain credit to the real economy.
The report also provides a signal to policymakers that the current regulatory approach to stablecoins may prove insufficient if private digital currencies continue expanding. Rather than positioning stablecoins as a durable foundation for the future monetary system, BIS said that tokenized commercial bank deposits, combined with tokenized central bank money operating on regulated infrastructures, offer a more robust path toward modernizing payments while preserving monetary stability.
Demand for foreign stablecoins connects FX markets with crypto ecosystem. Source: BIS Annual Economic Report 2026.
The report focuses particular attention on "stablecoin dollarization," that is, the growing use of dollar-denominated stablecoins in economies with weaker domestic currencies. According to BIS, this trend could weaken monetary sovereignty, erode the effectiveness of domestic monetary policy, reduce bank intermediation and increase exposure to volatile cross-border capital flows, particularly in emerging market economies.
Related: BIS Project Agorá shows tokenized payments can settle in seconds
BIS raises fresh concerns about public blockchains' limits
The report also delivers one of BIS's strongest critiques yet of public permissionless blockchains such as Bitcoin and Ethereum as a foundation for the monetary system. It argues that decentralized networks relying on distributed validation and lacking a central governance structure struggle to meet the requirements for scalability, legal accountability and settlement finality expected of systemically important financial infrastructure.
BIS raises concerns on rising fragmentation across layer 1 and layer 2 networks.
Source: BIS Annual Economic Report 2026.
At the center of BIS's critique is the economics of decentralized consensus. The report argues that public permissionless blockchains compensate validators through transaction fees that rise as network activity increases, making congestion, longer confirmation times and higher costs structural features of the system rather than temporary technical shortcomings. According to BIS, these characteristics undermine the efficiency and network effects that are essential for a unified monetary system.
The Basel-based institution further argues that permissionless blockchains lack the clear governance and accountability frameworks required for institutional finance. Without an identifiable entity responsible for maintaining the integrity of the system, resolving disputes or ensuring compliance with financial integrity standards, BIS contends that such networks face significant obstacles to supporting large-scale regulated financial activity.
Rather than rejecting tokenization itself, BIS advocates a "unified ledger" architecture that combines tokenized central bank money, tokenized commercial bank deposits and tokenized financial assets on programmable platforms operating within regulated legal and institutional frameworks.
By preserving the benefits of tokenization, including programmable transactions and faster settlement, while maintaining the institutional foundations of the existing monetary system, BIS said that financial markets can improve efficiency without sacrificing monetary stability, financial integrity or public trust.
Related: Why stablecoins and SWIFT may have to coexist

Bitcoin (BTC) is heading for its worst monthly loss since mid-2022, with BTC down roughly 18.5% in June as price struggles to hold the psychological $60,000 support level.
BTC/USD monthly chart. Source: TradingView
Will Bitcoin’s downside momentum extend in July, or is BTC preparing for a recovery?
Key takeaways:
Bitcoin’s liquidity map shows a major short-liquidation “magnet zone” near $67,600.
BTC has historically gained 7.6% on average in July, while midterm-year seasonality points to an even stronger 10.3% average return.
Bitcoin may hit $75,000 in July
July may become a "bullish month for Bitcoin," according to analyst Fleh, who predicted BTC price to rally toward $75,000 next month.
The bullish thesis is based on Bitcoin’s Binance BTC/USDT liquidation heatmap, which shows a large concentration of short liquidation levels sitting above the current price.
On the monthly chart, the strongest visible liquidity cluster sits near $67,645, where the chart shows around $247.39 million in liquidation leverage and roughly $2.26 billion in cumulative short liquidation leverage.
Binance BTC/USDT liquidation heatmap (1 month). Source: CoinGlass
For beginners, such clusters are often called “magnet zones.” When many leveraged positions are concentrated around the same price area, the market can move toward that zone because liquidations create forced buying or selling pressure.
In this case, significant liquidity sits above Bitcoin’s current price near $60,000.
If BTC rebounds and pushes toward $67,600, short sellers may be forced to close their positions. Since closing shorts requires buying Bitcoin back, that can add fresh upside pressure and fuel a short squeeze.
"I think $BTC bottoms here at 60k for now, targeting 75k to the upside before any chance of lower," Fleh said in a Saturday post.
BTC rises 7.6% on average in July
Bitcoin’s historical monthly returns also support Fleh’s bullish July outlook.
BTC has returned a 7.6% gain on average in July, making it one of its stronger months after a typically weaker June, which shows an average return of -1.40%, according to CoinGlass data highlighted by analyst CGT_Trader.
Bitcoin monthly returns tracking the July performance in since 2013. Source: CoinGlass/CGT_Trader
The trend has appeared even during bear market years.
For instance, Bitcoin rose 20.96% in July 2018 and 16.8% in July 2022. More recently, BTC gained 2.95% in July 2024 and 8.13% in July 2025, strengthening the case for another green month ahead.
A separate midterm-year seasonality chart also shows that- Bitcoin has averaged a 10.3% gain during the month, its strongest monthly return in such years.
Bitcoin performance by month during US mid-term election years. Source: More Crypto Online
That compares with an average 17% loss in June, pointing to the possibility of a post-sell-off mean-reversion bounce.
Based on Bitcoin’s current price near $60,000, its historical July average return of 7.6% projects a move toward roughly $64,500, while the stronger midterm-year average of 10.3% points to about $66,100.
A repeat of Bitcoin’s bear-market July rebounds from 2022 and 2018 would put BTC between $70,000 and $72,500, while a 2020-style July rally would bring Fleh’s $75,000 target within reach.
BTC's dip below the 200-week SMA may extend slide
Bitcoin’s ongoing drop below its 200-week simple moving average (200-day SMA, the blue line) near $62,445 raises the risk of further downside in July.
BTC/USD weekly chart. Source: TradingView
A similar loss of long-term moving-average support preceded deeper weakness during the 2022 bear market, when BTC continued lower before forming a bottom.
Bitcoin's bear flag breakdown raises the odds of a price decline toward $55,000 in July unless BTC quickly reclaims the 200-day SMA.
BTC/USD daily chart. Source: TradingView

The European Banking Authority on Friday unveiled a sweeping framework to penalize cryptocurrency issuers that violate the European Union’s digital-asset laws, signaling a tougher enforcement stance as the trade bloc finalizes its historic regulatory architecture.
The consultation paper published June 26 establishes a standardized playbook for hitting non-compliant issuers of what the EBA considers “significant” tokens with potentially multimillion-euro penalties. Under the proposal, the Paris-based watchdog will deploy a strict two-step process to determine fines, assessing the baseline severity of an infraction before factoring in aggravating or mitigating behavior.
The move represents the sharpening of teeth for the EU’s landmark Markets in Crypto-Assets (MiCA) regulation. Introduced to bring order to a historically freewheeling sector, MiCA is the world's first comprehensive regulatory regime for digital assets, forcing token issuers and crypto service providers to operate with bank-like compliance, consumer protections and capital reserves if they want access to the single European market.
The stakes for non-compliance are explicitly designed to be punitive. According to the EBA's consultation paper, final penalties could reach statutory ceilings of 12.5% of annual turnover for issuers of significant asset-referenced tokens and 10% for significant e-money tokens, or two times the profits generated by the violation, caps meant to deter even the largest global digital-asset operators.
Cover screenshot of European Banking Authority's 14-page consultation paper.
Source: EBA
The roll-out of the penalty framework comes at a critical juncture for Europe's digital asset industry, landing just days ahead of a crucial July 1 deadline. By the start of next month, cryptocurrency firms must have secured formal licenses from national regulators to legally offer their services or market stablecoins within the 27-nation bloc, ending a transitional grace period that allowed many operators to function under looser local rules.
Related: Binance faces EU service limits next week as MiCA rules take effect
Firms that fail to secure their regulatory passports by July 1 face the prospect of being forced to halt operations entirely or risk triggering the exact infractions, such as unauthorized public disclosures or organizational failures, that the EBA’s new framework is built to penalize.
Binance pushes “pause” on EU operations after license fail
The world’s biggest exchange operator, Binance, last week notified European Union users that access to key services will be restricted after the exchange failed to secure MiCA authorization from a member state before the July 1 deadline after it withdrew its MiCA license application in Greece.
Those restrictions include halting the onboarding of new EU users and limiting certain services for EU-based accounts effective July 1, according to exchange notices shared by users on social media.
Notice sent by Binance to customers in Poland. Source: IT_Tech_PL
The notices said users will still be able to withdraw their assets after that date, stating that “all digital assets are still available for withdrawal,” in line with applicable regulatory requirements.
Binance recorded $1.96 billion in daily net outflows on Wednesday, following its withdrawal announcement, according to DefiLlama data viewed by Cointelegraph on Sunday. The exchange then saw another $2.52 billion and $1.46 billion in net outflows over the following two days.
EU move shows sharp contrast with US enforcement approach
The timing underscores the European Union's broader strategy to position itself as the dominant global standard-setter for digital finance, contrasting sharply with the regulation-by-enforcement approach seen in the United States. By laying out clear financial penalties right as the licensing mandate takes effect, authorities in Brussels are telling the market that the era of leniency is officially over.
The industry now has a three-month consultation window ending September 28 to lobby for changes to the EBA's penalty methodology. However, with the July 1 licensing cliff edge just days away, executives will have to navigate an unforgiving compliance environment long before the final fining guidelines are formalized under law.

Binance recorded over $400 million in net outflows during the week beginning June 22, as the cryptocurrency exchange announced the withdrawal of its Markets in Crypto-Assets Regulation (MiCA) license application in Greece.
According to DefiLlama data viewed by Cointelegraph on Sunday, Binance's seven-day net outflows amount to 0.3% of its $133.3 billion in tracked assets. Excluding BNB, Binance's native token, the outflows equal 0.35% of the exchange's $113.8 billion in crypto assets.
Binance led tracked exchanges in weekly net outflows. Source: DefiLlama
Net outflows accelerated on Wednesday, when Binance announced its withdrawal from Greece's securities regulator, recording $1.96 billion in net outflows, followed by two more days of $2.52 billion and $1.46 billion.
The scale of outflows is not unusual for Binance, which regularly records billions of dollars in daily inflows and outflows. The data also does not identify the geographic origin of the fund movements.
The outflows came during the final week before the European Union's MiCA transition deadline. Starting July 1, Binance will restrict onboarding and some services for affected EU users.
Daily net flows in the billions of dollars are not unusual for Binance. Source: DefiLlama
MiCA winners are less clear than expected
Several rival exchanges have sought to attract Binance users ahead of the bloc’s deadline.
OKX, one of the most vocal exchanges courting Binance users, recorded $285.5 million in net inflows over the same period, according to DefiLlama’s rankings based on exchanges’ proof of reserves. The exchange received MiCA authorization in Malta in January 2025.
However, OKX was third in weekly net inflows, behind Bitget’s $710 million and Bitfinex’s $400 million. Neither exchange appears on the European Securities and Markets Authority’s (ESMA) interim MiCA register, which was last updated on Friday.
Binance says Europe still matters
CryptoQuant analyst Maartunn recently told Cointelegraph that euro trading accounts for just 1% of Binance’s spot volume, which may limit potential MiCA-related setbacks for the exchange.
However, Binance’s public messaging is that the company intends to continue pursuing a MiCA license, despite being on pace to miss the July 1 buzzer.
“As for Binance and Europe, we take this market seriously. It's a small part of our business, but an important one, and we're committed to the EU and our customers there,” Yi He, a co-founder of the exchange, said on Friday.
Meanwhile, Binance has started telling some EU users to move funds to self-custodial wallets or other exchanges.
A Binance representative told Cointelegraph that the restrictions vary depending on users’ jurisdictions and that no action is required for users not served through a local registered entity.
ESMA said in a June 23 statement that crypto service providers unlicensed by July 1 must take “immediate steps” to wind down EU activities, and limit services to actions to sell, transfer, relocate assets or close positions.
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Zach Pandl, head of research at Grayscale, said he hopes Strategy will sell at least $3 billion in Bitcoin to cover most of the company’s cash obligations for the next two years.
In a Saturday X post, Pandl argued that the move may restore market confidence in the company's capital structure.
Contrary to his hopes, Pandl said he expects a 50-basis-point increase to the dividend rate on Strategy’s preferred stock, STRC, adding roughly $100 million in annual obligations over two years. Pandl added that this scenario “probably does not help market confidence.”
Strategy faces an annual preferred dividend obligation of approximately $1.2 billion, driven primarily by STRC.
STRC is Strategy's flagship "digital credit" preferred stock designed to trade near its $100 par value, but has been sliding for weeks. On Friday, it fell to as low as $71.25, a 28.75% discount to par. Strategy’s common stock MSTR fared little better and closed Friday at $82.31, down 26.86% throughout the trading week.
Pandl said he expects Strategy to raise STRC's dividend rate but hopes the company sells Bitcoin instead. Source: Zach Pandl
Strategy's cash reserve under pressure
Strategy is the world’s largest publicly-listed corporate Bitcoin holder, placing its 847,363 BTC stash and financing decisions under the industry’s microscope.
According to Strategy’s latest 8-K filing with the US Securities and Exchange Commission, it acquired 520 Bitcoin for $34.9 million between June 15 and June 21.
Blockchain analytics company CryptoQuant argued in a Tuesday report that Strategy should pause Bitcoin purchases and focus on replenishing its cash reserve, which is down 38% in 2026.
The 8-K filing also revealed that Strategy increased its US dollar reserve by $300 million to $1.4 billion. This leaves the company with roughly 14 months of dividend coverage, down sharply from what was once a seven-year cushion.
Strategy said on Monday that it plans to continue replenishing its cash reserves to support the credit quality of its “digital credit” securities.
Alternatives to a Bitcoin sale
CryptoQuant added that the company has no obligation to sell Bitcoin to support STRC’s price, because it can deploy other methods to defend its stock, such as raising the current 11.5% dividend yield.
Bitcoin advocate Samson Mow argued in a Monday X post that STRC has a built-in "self-repairing mechanism.” Once the stock falls below its $100 reference price, Strategy halts new ATM issuance, cutting off the supply of fresh shares.
At the same time, a lower price mechanically boosts the yield for new buyers relative to what they paid, which Mow said should draw in fresh demand and pull the price back toward par over time.
Source: Samson Mow
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A sequencer bug was responsible for two outages of the Coinbase layer-2 network Base last week, according to a post-mortem.
The Base engineering team said in a Saturday post-mortem that they identified a bug in sequencer block-building logic that allowed “stale journal state” to persist after a transaction validation failure.
“An invalid transaction was received by the block builder and failed during execution, as expected, but erroneously did not clear the journal state that contained the accounts and storage slots that had been accessed,” said the team.
The Base layer-2 network runs a single sequencer, which means one bug can stop everything. It is a centralized blockchain component that decides the order of transactions and has been responsible for outages on other layer-2 chains, including Arbitrum, OP Mainnet and zkSync Era.
On Thursday and Friday, Base mainnet experienced two block production outages, the first incident lasted 116 minutes and the second lasted 20 minutes.
There was a complete halt of new layer-2 blocks, and the sequencer and validator nodes could not progress past the invalid block until sequencing was restored.
The team fixed the outages by applying a patch to the sequencers to ensure the journal state was properly updated during execution.
However, mitigation took longer than expected “due to infrastructure conditions unrelated to the original bug,” they said.
There was also a “race condition” after the system reset, which prevented the sequencers from catching up, causing the second outage.
Going forward, the Base engineering team plans to improve protocol “fuzz testing,” which involves bombarding the system with large volumes of random, malformed, or unexpected inputs to find bugs, and building “graceful recovery” so that validator nodes don’t need manual restarts during future incidents.
Not the first outage for Base
It is not the first sequencer-related outage for Base, which stopped producing blocks for 17 minutes in September 2024 and for around half an hour in August 2025.
Base is the second-largest layer-2 network by total value secured, which is just under $11 billion, according to L2beat.
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Analysis of Bitcoin unspent transaction outputs (UTXOs) shows that investors are capitulating, a pattern that has historically coincided with bear market bottoms.
The ratio of the number of UTXOs spent in profit versus at a loss has fallen to its lowest level this bear market cycle, said CryptoQuant analyst known as Darkfost on Saturday.
This is the first time this signal has triggered since the start of the correction, “demonstrating that the number of UTXOs spent at a loss is reaching significant levels, reflecting the start of a broader capitulation,” he said.
The metric shows that markets are entering a bottoming phase, which could be a strategic time to accumulate. The last time it fell this low was in the depths of the previous bear market in mid-2023, when BTC prices fell to around $26,000.
“These periods have always been profitable for long-term investors,” continued Darkfost. “They correspond to the moment when the majority gives up and loses interest.”
He cautioned that it is a process that takes time, and we are on a long timeframe.
Bitcoin UTXO profit loss ratio at bear market low. Source: CryptoQuant
“The bottom signal I’ve been waiting for just fired,” said analyst DurdenBTC on Saturday, also commenting on the UTXO ratio. “It’s caught every cycle low since 2016, and it will still feel terrible for weeks,” he added. “If buying here were comfortable, the signal wouldn’t exist.”
In a separate post, Darkfost confirmed the findings, stating that long-term holders are starting to “enter a capitulation phase,” observing that the Spent Output Profit Ratio (SOPR) is increasingly moving into negative territory for this cohort.
However, he also said that this correction has been largely fueled by the rapid increase in BTC inflows to exchanges coming from short-term holders.
Meanwhile, onchain analytics firm Swissblock said on Saturday that Bitcoin has likely moved beyond the initial breakdown, but “we’re still in the base formation phase.”
“Price is stabilizing, yet momentum remains deeply negative, and Bitcoin impulse has only just returned to neutral.”
Selling pressure may increase
Uncertainty and selling pressure may increase following resumed strikes by the US military on Iranian targets over the weekend.
US fighter jets conducted strikes on 10 Iranian military targets at multiple locations in and near the Strait of Hormuz late on Saturday in response to an Iranian drone attack on a commercial ship, reported Central Command.
BTC prices dipped to $59,800 in early trading on Sunday morning, but had recovered the $60,100 level at the time of writing.
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Fidelity Digital Assets has pushed back against concerns that Bitcoin’s long-term security will deteriorate as mining rewards decline, arguing in a new research report that the network’s economic incentives remain sufficient to secure the blockchain over time.
The report, authored by Fidelity research analyst Daniel Gray, reiterated the view that Bitcoin’s security depends on more than block rewards. Transaction fees, market incentives and other economic forces continue to encourage miners to secure the network and make sustained attacks prohibitively expensive, it said.
The findings challenge a longstanding criticism that each quadrennial halving weakens Bitcoin’s security by reducing the issuance of new coins. Critics argue that declining block rewards could eventually erode miners’ incentives unless transaction fees grow enough to offset the shortfall.
The issue has become one of the most closely watched long-term questions surrounding Bitcoin (BTC), whose fixed supply schedule gradually reduces new issuance until block subsidies eventually disappear. Whether transaction fees and other incentives can sustain network security remains a central debate among developers and market participants.
Since April 20, 2024, Bitcoin miners have received a subsidy of 3.125 BTC for each block they mine, down from 6.25 BTC during the previous halving cycle. However, Gray argued that lower issuance has not translated into weaker incentives for miners because Bitcoin’s rising price has more than offset the decline in block rewards.
He pointed to the growth in average daily miner revenue, which increased from roughly $26,300 during Bitcoin’s first halving cycle to more than $40.2 million today. “Despite declining issuance, miner incentives — and by extension, network security — historically strengthened alongside Bitcoin's price,” Gray wrote.
Bitcoin’s average daily miner revenue has increased substantially across halving cycles. Source: Fidelity Digital Assets
Related: Nvidia’s $20 billion debt boom reinforces Bitcoin miners' AI pivot
Public Bitcoin miners face mounting financial pressure
While Fidelity argues that Bitcoin’s long-term incentive structure remains intact, many publicly traded mining companies continue to face near-term financial pressure. Some industry analysts have described the current environment as one of the most challenging on record, citing lower mining rewards, rising costs and growing competition.
In response, several miners have diversified into artificial intelligence and high-performance computing, leveraging existing power infrastructure and data center assets to meet growing demand for AI workloads rather than relying solely on Bitcoin mining.
A recent report by VanEck estimated that publicly traded miners could require up to $50 billion in additional capital to fully transition to AI infrastructure, underscoring the scale and cost of the shift.
Public miners face a large funding gap in realizing their AI ambitions. Source: Miner Weekly
“A Bitcoin mine can run with relatively simple buildings, modular infrastructure and ASIC fleets that tolerate fast curtailment,” Blocksbridge Consulting wrote in a recent Miner Weekly publication. “AI and HPC facilities require higher standards for uptime, cooling, electrical redundancy, networking and customer support.”
Related: Crypto Biz: Is AI the exit strategy for miners?

Bitcoin (BTC) is showing fresh signs of short-term holder capitulation after roughly 50,000 BTC moved to exchanges at a loss over the past day. At the same time, the market capitalization of short-term holders fell to $237.7 billion, its lowest level since October 2024.
The rise in loss-driven selling comes as tighter monetary conditions and weakening institutional demand continue to weigh on Bitcoin, as analysts underlined a “deeply unfavorable” environment for BTC.
Short-term Bitcoin holders show renewed stress
CryptoQuant analyst Amr Taha said Bitcoin's short-term holder (STH) market capitalization fell to $237.7 billion on June 26, its lowest level since Oct. 2, 2024, when it stood near $239.7 billion.
BTC STH realized market cap. Source: CryptoQuant
The metric tracks the market value of coins held by investors who bought Bitcoin within the past 155 days. The latest reading shows the cohort's market value is below its realized value, indicating many recent buyers are holding more unrealized losses.
A similar decline appeared during the October 2024 correction, which later aligned with an important Bitcoin bottom. The latest reading serves as a measure of stress rather than confirmation of a market low.
Exchange activity adds another layer to the picture. Around 50,000 BTC from short-term holders moved to exchanges at a loss during the past 24 hours, marking the largest loss-to-exchange flow since June 4. Binance alone received roughly 9,500 BTC under similar conditions, its highest reading since June 3.
This indicates that near-term sell-side pressure has increased as newer investors react to lower prices.
BTC short-term holder profit/loss to exchanges in 24-hours. Source: CryptoQuant
However, long-term holders' activity provided a positive development. Bitcoin inflows into accumulation addresses climbed to a record 181,000 BTC on Thursday, almost doubling the previous high of 94,700 BTC recorded in February 2022. These wallets typically receive coins with little spending history, suggesting the surge signals that long-term investors are absorbing supply while short-term holders exit positions.
BTC inflows to accumulation addresses. Source: CryptoQuant
Related: Bitcoin may fall lower but BTC power-law frames crash to $58K as ‘normal’
Macro headwinds weigh on BTC buyers
Market analyst Darkfost said institutional demand has continued to weaken, with the Coinbase Premium Index staying below zero for 40 consecutive days since May 15.
Bitcoin Coinbase premium index. Source: CryptQuant
The indicator compares Bitcoin prices on Coinbase Advanced and Binance. A persistent discount on Coinbase points to heavier selling from professional investors than from retail traders.
US macro data also added to the cautious tone. Headline PCE inflation came in at 4.1% against expectations of 4.0%, while Core PCE printed 3.4% versus the 3.3% forecast. GDP also exceeded estimates at 2.1%, keeping expectations for easier monetary policy subdued. Commenting on the current outlook, the analyst said,
“This dynamic is a perfect reflection of the current macro backdrop, which remains deeply unfavorable for risk assets such as BTC.”
Asset management firm Bitwise said that last week's Federal Reserve meeting accelerated the hawkish shift after policymakers removed their easing bias and raised the median 2026 Fed funds projection to 3.8% from 3.4% in March.
The firm added that tighter financial conditions coincided with continued outflows from crypto exchange-traded products such as the spot ETFs.
The attention has also shifted toward Strategy, which has accumulated 174,300 BTC in 2026. Bitwise estimates that roughly 96,000 BTC, or 55% of those purchases, were financed through STRC preferred equity issuances, with another 77,500 BTC funded through MSTR common stock offerings.
Now, CryptoQuant noted that STRC traded at a record 17.5% discount to its $100 par value after falling to $82.5 last week, before slipping to around $73 in premarket trading on Friday. Strategy's cash reserve has dropped 38% since the start of 2026, following the repurchase of a $1.5 billion convertible note.
Strategy: Cash reserve and dividend coverage data. Source: CryptoQuant
Annual dividend obligations linked to STRC have also increased to $1.2 billion from $300 million, while dividend coverage has reduced to 14 months, down from as long as seven years.
The figures point to tighter funding conditions for one of Bitcoin's largest institutional buyers, adding another layer of pressure amid rising loss-driven exchange inflows.
Related: Bitcoin ETFs post June's biggest daily outflows as BTC falls below $60K

Yuma, a Digital Currency Group-backed investment company, has launched a fund that gives institutional investors diversified exposure to the Bittensor ecosystem, as asset managers expand investment products tied to decentralized AI.
According to a Thursday announcement, the Yuma Total Market Fund provides exposure to Bittensor’s native TAO token and a basket of AI-focused subnets through a single investment vehicle. The strategy is intended to simplify access to the broader Bittensor ecosystem without requiring investors to select individual subnet tokens.
The fund launched with seed capital from an undisclosed anchor investor.
Bittensor is a decentralized network that supports the development of AI infrastructure and applications through specialized subnets spanning areas such as compute, marketplaces and identity. According to Yuma, the network's 128 subnets represent more than $900 million in combined value. However, data from network tracker Taostats shows a combined subnet value closer to $300 million.
TAO, the native token of the Bittensor ecosystem, has a market capitalization of nearly $2.4 billion. Source: CoinMarketCap
Institutional interest in the Bittensor ecosystem has grown alongside the network’s expanding subnet economy. In April, Grayscale increased TAO’s weighting in its Grayscale Decentralized AI Fund to 43% during the fund’s quarterly rebalance. TAO’s allocation has since fallen to about 20%, with Near Protocol's NEAR now comprising the fund’s largest holding at roughly 44%.
Asset managers are also seeking to broaden investor access to TAO. Bitwise filed for a TAO Strategy ETF with the US Securities and Exchange Commission (SEC) in April, while Grayscale submitted an amended registration statement to convert its existing Bittensor Trust into a spot TAO exchange-traded fund that would list on NYSE Arca if approved.
Grayscale Bittensor Trust (TAO) application with the SEC. Source: SEC
Related: Amazon warning triggered US crackdown on Anthropic AI models: Reports
Anthropic restrictions renew focus on decentralized AI
The case for decentralized AI, which distributes AI infrastructure and computing across blockchain-based networks rather than relying on a single provider, gained renewed attention after the US Commerce Department suspended public access to Anthropic’s Fable 5 and Mythos 5 models over national security and export control concerns.
At the time, Grayscale head of research Zach Pandl said the restrictions underscored the risks of relying on centralized AI providers. The government order limiting access to Anthropic’s Fable 5 and Mythos 5 “highlights the risks of centralized control of AI,” Pandl said. “We expect demand for decentralized AI, like Bittensor and its TAO token, to rise as investors seek alternatives.”
The restrictions appear to be easing. The Commerce Department restored access to Mythos 5 on Friday, and Axios reported Saturday that the Trump administration is expected to allow Anthropic to resume public access to Fable 5 as soon as next week.
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A broad selloff in technology stocks has weighed even more heavily on crypto-focused companies, highlighting a growing divergence between digital asset equities and the broader US stock market.
Shares of Coinbase (COIN) and Circle (CRCL) have fallen 69% and 72%, respectively, from their all-time highs. Those declines exceed the drawdowns seen in several major technology companies, including Oracle (ORCL), Salesforce (CRM), Netflix (NFLX) and Palantir (PLTR), which are down between 48% and 57% from their peaks, according to data from The Kobeissi Letter
By comparison, the large-cap S&P 500 Index has retreated just 3.5% from its recent high.
Source: The Kobeissi Letter
The pullback in technology stocks reflects mounting concerns that advances in artificial intelligence could disrupt existing business models across parts of the sector. Semiconductor stocks have generally held up better despite bouts of volatility, while crypto-related equities have remained under pressure amid broader weakness in digital asset markets and uneven progress on comprehensive crypto market structure legislation in the United States.
Negative sentiment toward the sector has intensified after Bitcoin fell below $60,000 this week, extending its decline to more than 54% from its October peak. Ether has also come under heavy selling pressure, recently falling to around $1,500, roughly 69% below last year's high.
Bear market conditions have also weighed on corporate earnings, with Coinbase reporting first-quarter results that missed Wall Street expectations. Revenue fell 21% from the previous quarter, while the company posted a loss of $1.49 per share, versus analysts' expectations for a profit of $0.27 per share.
Analysts downgrade crypto market’s 2026 outlook despite strong institutional adoption
The crypto market’s prolonged downturn has prompted analysts at 21Shares to lower their expectations for 2026, arguing that digital asset prices have significantly underperformed the industry's underlying fundamentals.
In its midyear outlook, 21shares said institutional adoption continues to strengthen, particularly in stablecoins, tokenization and prediction markets. However, the asset manager argued that Bitcoin’s four-year market cycle remains the dominant force driving crypto prices.
According to the report, growing institutional ownership has helped moderate Bitcoin’s drawdowns but has not fundamentally altered its cyclical behavior.
Bitcoin’s price action this year suggests the four-year cycle remains intact. Source: 21shares
“Bitcoin’s cycle is evolving, but it has not broken yet,” 21Shares said, walking back its earlier forecast that the four-year cycle had become obsolete.

Cardano wallet SecondFi has identified a recovery path for users affected by Tuesday's exploit and expects to begin returning assets in about two weeks, following testing and security reviews.
According to a Saturday statement by Phillip Pon, CEO of SecondFi developer Emurgo, the company completed forensic investigations and established a recovery pathway for affected users. Pon said the coming week would be spent building the solution, followed by another week of testing before assets begin to be returned.
Pon urged users to refrain from migrating assets or taking actions outside official guidance, saying the recovery process was designed around existing wallet states and that independent action could complicate the secure return of funds.
SecondFi developer Emurgo shared an update on the wallet's recovery efforts. Source: Emurgo
SecondFi disclosed a security breach on Tuesday that affected approximately 16 million ADA, worth about $2.4 million at the time, across 374 addresses. SecondFi previously said it traced the incident to an address-level issue in its Cardano web wallet generation software that exposed users' private keys.
The company also said it secured roughly 129 million ADA through emergency measures and transferred the funds to an independent third-party custodian, where they will remain until the verification and recovery process is complete.
SecondFi has not yet published a comprehensive post-mortem detailing the vulnerability or how the exploit was carried out.
SecondFi warns of recovery-related scams
In a separate update on Saturday, SecondFi warned that malicious actors are circulating fraudulent messages impersonating the wallet while its recovery effort remains underway.
The company said no recovery actions requiring user participation have begun and that it will never ask users for private keys, seed phrases, wallet credentials or direct wallet access.
SecondFi said any messages instructing users to submit wallet information, migrate assets or take immediate action outside its verified communication channels should be treated as fraudulent.
It added that users requiring assistance should submit a ticket through its official support portal while the recovery process continues.
Magazine: AI is banking the unbanked in Africa… faster than crypto

The European Parliament's economic affairs committee has urged the European Commission to assess whether crypto lending and borrowing, staking, non-fungible tokens (NFTs) and decentralized finance (DeFi) should be regulated.
The recommendations were part of a report tabled Friday for plenary vote. It also called for promoting tokenization across financial services, encouraging euro-denominated stablecoins and assessing whether additional crypto activities should be regulated under the European Union’s Markets in Crypto-Assets Regulation (MiCA).
Drafted by Belgian Member of the European Parliament Johan Van Overtveldt, the report is an own-initiative resolution by the Committee on Economic and Monetary Affairs (ECON) that outlines recommendations for the Commission on digital asset regulation.
It will next go before the European Parliament for a vote, expected July 7. If adopted, the resolution would become Parliament's official position on digital assets policy but would not amend MiCA or create new legal obligations.
The legislative timeline shows the committee's approval of the report and its referral for a plenary vote. Source: European Parliament
EU warms up to regulated stablecoins
The recommendations also reflect an evolving view of stablecoins among policymakers. Days after former Bank for International Settlements general manager and longtime crypto critic Agustín Carstens softened his stance on stablecoins, the report welcomed euro-denominated stablecoins under MiCA and encouraged their development to support the bloc's payment sector.
In 2023, Van Overtveldt called for tighter restrictions on cryptocurrencies following the banking turmoil surrounding Silicon Valley Bank, Signature Bank and Silvergate Bank. The crisis was also closely tied to stablecoins, as USDC issuer Circle held roughly $3.3 billion of its reserves at Silicon Valley Bank when it collapsed, briefly causing USDC to lose its dollar peg.
Van Overtveldt likened cryptocurrencies to drugs during the 2023 banking crisis. Source:Johan Van Overtveldt
The report argued that euro-denominated stablecoins could complement tokenized commercial bank deposits and wholesale central bank digital currencies while enabling faster and cheaper cross-border payments. It also said broader adoption could strengthen the competitiveness of EU financial markets and the international role of the euro.
The stance also aligns with ECON’s broader vision for Europe’s digital money ecosystem. On Tuesday, the committee backed legislation for a digital euro, with lawmakers arguing that public and private forms of digital money should coexist rather than compete.
Lawmakers look beyond MiCA's current scope
Van Overtveldt first presented a draft of the report in February before months of negotiations and amendments by ECON members. The earlier version largely focused on MiCA's existing framework, including stablecoin classifications and legal certainty for multi-issued stablecoins.
The committee-approved report urged consistent application of MiCA across the EU to preserve a level playing field for crypto firms. It also warned member states against introducing national requirements beyond MiCA that could fragment the bloc's digital asset industry.
The Commission is already reviewing MiCA. In May, the Commission launched a public consultation seeking feedback on whether the framework should be expanded to cover areas including DeFi, staking, lending, NFTs and tokenized financial assets, while also reopening debate over the regulation's ban on interest-bearing stablecoins.
Meanwhile, MiCA's transitional period ends July 1, after which crypto asset service providers generally must hold authorization under the regulation to continue operating across the EU.
Magazine: AI is banking the unbanked in Africa… faster than crypto

Tokenization platform Securitize says it expects to raise $400 million in its upcoming public debut through a merger with a company backed by Cantor Fitzgerald.
Securitize said on Friday that its final redemption results showed less than 30% of shareholders in Cantor Equity Partners II (CEPT), the special purpose acquisition company that will take Securitize public, had elected to redeem.
The company said it expects to receive approximately $400 million in gross proceeds from the merger, including related private investment in public equity, or PIPE, financings and excluding transaction-related expenses.
Securitize is set to be the latest buzzy crypto-related public debut as Wall Street seeks exposure to tokenization, an area that is seeing heightened investor interest and attention from US regulators.
Shares in Cantor’s acquisition vehicle rose on Friday, closing the trading day up 7% to $10.86 and continuing to rise after-hours to $11.
CEPT shares climbed on Friday as Securitize announced fewer shareholder redemptions than expected. Source: Google Finance
The merger between Securitize and CEPT is expected to close on Wednesday, July 1, subject to shareholder approval on Monday and other closing conditions, and the company will then trade under the ticker SECZ on the New York Stock Exchange on Thursday, July 2.
"Reaching the public markets is a significant milestone for Securitize and a reflection of the growing momentum behind tokenization," said Securitize co-founder and CEO Carlos Domingo.
Source: Carlos Domingo
“When we started more than eight years ago, the idea that major institutions would embrace tokenized securities was still largely theoretical,” Domingo added. “Today, tokenization is moving into the mainstream.”
Securitize is backed by major institutions, such as BlackRock and Morgan Stanley, and crypto firms, including Coinbase and Circle, and has carved out a lead in the tokenization sector, where assets are represented on blockchains.
The company partnered with the New York Stock Exchange in March to create tokenized assets for the exchange’s upcoming tokenized securities platform,
Standard Chartered said earlier this month that it expects the amount of tokenized assets active in decentralized finance to grow 37-fold to $2.7 trillion by the end of 2030.
In mid-May, the US Securities and Exchange Commission was reportedly ready to allow trading of tokenized stocks, but delayed the plan later that month after stock exchange officials raised concerns over how it would be implemented.
Magazine: Bitcoin slides to $58K, XRP hits $1 but onchain data promising: Market Moves

Key takeaways:
SOL’s rebound to $72 shows bullish futures and airdrop hopes, but falling TVL and low DEX volumes point to fragile onchain demand.
Tokenized stocks spark hype on Solana, yet Pump.fun dependence and Hyperliquid competition threaten sustained SOL momentum.
Solana native token SOL jumped to $72 on Friday, distancing itself from the $64 lows the prior day. Part of traders’ optimism stemmed from the stellar growth of tokenized stock trading, fueled by the AI sector. However, increasing competition in decentralized application networks could limit SOL’s short-term upside.
Solana tokenized stocks 24-hour volumes, USD. Source: Jupiter Aggregator
Tokenized stocks on Solana traded over $113 million in 24 hours, according to Jupiter Aggregator data. However, the relatively thin liquidity in the automated market-making pools raised concerns, especially as multiple issuers compete for similar products. Still, some of those tokens launched only recently, which might explain the low number of holders in most cases.
Blockchains ranked by DeFi Total Value Locked (TVL), USD. Source: DefiLlama
The Total Value Locked (TVL) on the Solana network dropped 11% over the past month, while the Ethereum layer-2 Base reduced the gap. Negative highlights on Solana TVL include a 19% decline in Kamino, a 20% trim by Binance Staked SOL, and a 17% decline in Raydium. The tokenization platform xStocks, on the other hand, posted 31% growth in TVL.
Solana weekly DEX volumes & DApps revenue, USD. Source: DefiLlama
Decentralized exchange (DEX) volumes on Solana fell to $10 billion per week from $30 billion in early February, coinciding with a downtrend in decentralized application (DApp) revenues. Thus, regardless of the successful launch of tokenized tech stocks and equity indexes, demand for SOL on blockchain processing remains subdued.
Solana’s dependence on Pump.fun and increased competition in tokenized launches
More concerningly, 30% of DApp revenue on Solana came from the token launch platform Pump.fun, which depends heavily on memecoin activity. A CoinGecko report revealed that 80% of the 18.7 million tokens launched in less than 48 hours, while 55% of the addresses involved lost up to $1,000 according to Dune data.
SOL perpetual futures annualized funding rate. Source: Laevitas
Demand for bullish leverage on SOL futures increased on Friday, pushing the funding rate to its highest level in June. The current 10% level is far from displaying excessive confidence, as the 6% to 12% range is typically deemed neutral. Still, the 14% gains since the $64 low on Thursday managed to reverse the bearishness marked by negative funding rates.
Part of SOL investors’ optimism stems from anticipation of airdrops on the network, although the timing of those tokens' launch remains uncertain. Highlights include OnRe reinsurance with $200 million in TVL, Bulk perpetual DEX with an aggregate open interest of $325 million, and Loopscale lending platform at $79 million in TVL.
It might be premature to claim that SOL is bound to reclaim the $80 mark, last seen on June 1, given increased competition in tokenized stock trading from Hyperliquid and centralized exchanges on competing blockchains. OKX, for instance, formed a strategic partnership with the NYSE parent company using Ethereum-based systems.

A bipartisan pair of US senators has called on the Commodity Futures Trading Commission to investigate the prediction market platform Polymarket after it reportedly paid social media influencers to make videos of fake bets.
Republican Senator John Curtis and Democratic Senator Adam Schiff sent a letter to CFTC Chair Mike Selig on Thursday, saying they were concerned Polymarket “used deceptive marketing tactics to promote gambling-style products to US audiences.”
“If accurate, these allegations are deeply troubling and demand immediate scrutiny from the Commodity Futures Trading Commission,” they wrote.
The letter comes after The Wall Street Journal reported on June 20 that Polymarket paid influencers to film fake trades on websites resembling its platform and that many creators didn’t disclose that Polymarket paid them.
The Journal said it reviewed over 1,100 videos and found that 70% featured fake bets amounting to nearly $2 million.
In response to the report, a Polymarket spokesperson told Cointelegraph earlier this week that it was “conducting a comprehensive audit of active promotional content to ensure it complies with our standards, as well as applicable regulatory and legal disclosure requirements.”
The letter also came ahead of reports in the Journal and CNBC on Friday that the CFTC was investigating Polymarket.
CNBC reported, citing a person familiar with the inquiry, that the CFTC has an ongoing and extensive investigation into Polymarket, but the timeline for when the investigation began was not shared.
Polymarket declined to comment on the letter or on the reported CFTC investigation.
Prediction markets have recently exploded in popularity and have seen billions of dollars in volume each month, with Senators Curtis and Schiff expressing their concerns about the CFTC’s ability to regulate the platforms.
Source: John Curtis
“The CFTC has repeatedly asserted regulatory authority over prediction markets and event contracts,” the senators wrote. “Yet with content creators routinely portraying prediction markets as ‘free money,’ there is little basis for treating them differently from gambling.”
“These contracts are not in the public interest and should not be treated as derivative products with hedging value,” they added. “We remain concerned that the Commission is neither enforcing the law appropriately, nor is equipped to serve as a federal gambling regulator.”
The CFTC has claimed it has authority over prediction markets as the platforms are registered with the agency and operate under federal commodities law.
The regulator has sued nine US states that have filed legal action against prediction markets to accuse the platforms of offering unlicensed sports betting via event contracts.
Senators Curtis and Schiff asked Selig to give written responses to a list of questions by July 10, which asked if the CFTC was investigating Polymarket, if the reported advertising was legal and if it has the resources to police prediction markets, among others.
Magazine: Should users be allowed to bet on war and death in prediction markets?

Eight-year-old Ether (ETH) wallets have started moving coins for the first time since 2017, adding fresh supply to the market as Ether trades just above $1,500. Onchain data shows 37,806 ETH from long-dormant addresses became active, while separate whale transactions point to continued accumulation by other large investors.
The mixed positioning comes as total long-term ETH whale profitability has fallen below zero for the first time since 2019, leaving every major whale cohort sitting on unrealized losses.
ETH whale traders are split between accumulation and distribution
According to Lookonchain, four Ethereum wallets that received 37,602 ETH nearly eight years ago at an average price of around $830 became active after years of dormancy. The wallets held through the 2021 and 2025 bull markets, when their unrealized gains exceeded $150 million, sold 33,623 ETH for about $52.5 million at around $1,560 on Thursday. The realized profit now stands near $27.4 million.
OG ETH wallets holding period. Source: Lookonchain/X
Fresh ETH selling has appeared alongside continued buying from other large holders. Blockchain tracker Lookonchain reported that one whale swapped 464 BTC worth $27.6 million for 17,750 ETH, signaling capital rotation into Ether.
Meanwhile, investor Chun Wang also acquired another 9,937 ETH and 147 wrapped Bitcoin. Over the past month, Wang has withdrawn almost 87,000 ETH from Binance at an average purchase price of $1,749.
Institutional ETH trading also remained active. BlackRock transferred 41,996 ETH and 4,577 BTC to Coinbase Prime, a move commonly associated with custody or operational management rather than a confirmed market sale.
Crypto analyst Darkfost noted that Ether whales holding between 1,000 ETH and more than 100,000 ETH are all sitting on negative unrealized profit ratios. This marks the first time since 2019 that every major whale cohort has been underwater.
ETH whales' unrealized profit ratio. Source: X
The analyst said that periods when whale conviction was tested by ETH prices, it often aligned with long-term bottom zones. The current scenario indicates that large holders are facing greater overall pressure in 2026, even as selective ETH accumulation persists.
Related: Tether stablecoin flips Ether by market cap as ETH routs to $1.5K
$1,500 level for ETH draws trader focus
Ether dropped to $1,510 during Thursday's sell-off, though it avoided setting a new yearly low even as Bitcoin fell to fresh 2026 lows.
Crypto trader Ardi described $1,500 as Ether's key long-term support, arguing that daily closes below that level challenge the bullish assumptions built up since the 2022 bear market.
Ether/USD, one-week chart. Source: Ardi/X
Crypto investor Jelle shared a similar view, saying a sustained break would send Ether back into a trading range last seen in early 2023. Weekly price action shows ETH has defended the $1,500 region during several major corrections since mid-2022, making it one of the altcoin's longest-standing support zones.
However, not all market participants expect a near-term recovery. Popular trader Cyclops identified the $1,070–$1,370 range as a potential accumulation zone, citing it as a key demand area established in early 2023. A move into that range would also see ETH break below its multi-year ascending trendline, a technical development that could further delay a sustained recovery and reinforce the broader bearish market structure.
ETH/USD, one-week chart. Source: Cointelegraph/TradingView
Related: XRP risks drop below $1, but onchain data highlights silver lining

The chair of the Spanish National Securities Market Commission reportedly said that there would be no extensions or waivers for crypto companies that did not receive approval to operate in European Union member states under the Markets in Crypto-Assets (MiCA) framework by July 1.
According to a Friday Reuters report, Chair Carlos San Basilio said that “there will be no exceptions ​or extensions” to the July 1 MiCA deadline, referring to Binance and other cryptocurrency exchanges affected by the framework. Binance’s operations in the EU are expected to scale back after it withdrew its application with Greece’s Hellenic Capital Market Commission and had not received approval from any other authority as of Friday.
“What we are concerned about, however, is how this period — the end of the transitional period — will unfold, and how the adaptation to the new environment will take place; that is why ​we are in ​contact with the ⁠organisations that have not been granted a licence,” said Basilio, according to Reuters.
Should Binance fail to secure approval from a financial regulator in the next few days, the exchange will be required to halt the onboarding of new EU-based users and limit certain services for EU-based accounts starting on July 1. Other crypto exchanges have secured last-minute approvals under MiCA, but Binance, with millions of users in the EU, could have a far greater impact on the region's crypto market.
“This is Binance’s philosophy of doing business,” said OKX founder and CEO Mingxing Xu in response to former Binance CEO Changpeng “CZ” Zhao’s comments on the exchange’s EU deadline. “They ignore laws and regulations, while misleading the public with bullshits. According to public media reports and court filings, the platform’s so-called ‘best liquidity’ included trading activity associated with risks involving money laundering, sanctions violations, and market manipulation.”
Cointelegraph reached out to Binance but did not receive an immediate response.
Binance users looking to other exchanges?
With the crypto exchange expected to wind down some operations for EU-based users, some are reporting leaving Binance entirely without a definitive timeline on its return.
Some Reddit users said that they were considering Kraken for their funds. Payward, doing business as Kraken, has a Crypto Asset Service Provider license through the Central Bank of Ireland.
Magazine: AI is banking the unbanked in Africa… faster than crypto

An Ethereum whale who shorted Ether (ETH) during the October 2025 crypto crash has returned after eight months of silence.
Key takeaways:
Ethereum whale opens a $19.72 million 20x ETH short near the $1,500 support zone.
ETH’s bear flag setup hints at a decline toward $1,375, which may earn the whale roughly $2.39 million in profits.
Ethereum whale opens 20x short after eight-month hiatus
On Friday, wallet '0xf83f...6728' opened a 20x-leveraged ETH short worth $19.72 million as Ether reached the $1,500 support zone after dropping 18.25% over the last two weeks.
The position was opened at an average price of around $1,565, according to data resource Hyperbot. As of this press time, the whale had earned nearly $106,500 in unrealized profits as the ETH price dropped around the $1,550 area.
Ethereum whale's $19.72M position status as of Friday. Source: Hyperbot
The downside sentiment in the Ethereum market has tracked a broader tech-led risk selloff, with traders cutting exposure to speculative assets as Nasdaq and chip stocks came under pressure.
Ethereum-specific sentiment has weakened further amid renewed scrutiny of the Ethereum Foundation, following reports of budget cuts, staff reductions and a wave of senior departures that have raised questions about the organization’s leadership stability.
Ether is eyeing a decline toward the $1,375 level if it continues the breakdown out of its prevailing bear flag pattern.
ETH/USD daily price chart tracking the bear flag breakdown setup. Source: TradingView
If ETH falls to $1,375, the whale’s unrealized profit would rise to roughly $2.39 million before fees and funding, based on the position’s approximate $1,565 entry price.
Same whale shorted ETH near October 2025 crash top
The wallet’s latest move stands out because of its trading history.
Transaction logs show that wallet '0xf83f...6728' last became active on Oct. 27, 2025, when it opened an ETH short near $4,172 as volatility from the October crypto crash was easing.
The trader later closed the position near $4,133, booking $41,693 in net profit after $5,263 in exchange fees.
Ethereum whale's filled ETH orders from October 2025. Source: Hyperbot
The whale's current strategy appears similar: short ETH into weakness, use high leverage, and lean into downside momentum. The scale has changed sharply, however, since the current position carries nearly $20 million in notional exposure, making it far larger than the whale’s October 2025 trade.
ETH double bottom could threaten the whale’s short
The whale’s bearish bet is not without risk.
As of Friday, Ether’s daily chart showed a potential double bottom near the $1,500–$1,512 support area, where buyers stepped in twice in June. The setup remains unconfirmed, but a strong rebound from this zone could shift short-term momentum back toward the bulls.
ETH/USD daily price chart tracking a potential double-bottom breakout setup. Source: TradingView
The key level to watch is the neckline near $1,850. A decisive daily close above that level would confirm the double bottom pattern and open the door to a measured rebound toward roughly $2,190, based on the distance between the neckline and the $1,512 bottom.
That would put ETH close to the whale’s liquidation zone near $2,150, meaning a confirmed bullish reversal could pressure or even wipe out the short position if the trader does not add collateral or reduce exposure.

This week, crypto analytics company CryptoQuant challenged the prevailing narrative around Michael Saylor’s Strategy, urging the company to pause Bitcoin purchases and rebuild its cash reserves. The warning came after its dividend coverage fell to just 14 months from roughly seven years.
Strategy isn’t facing an immediate cash crunch, but CryptoQuant’s warning puts the spotlight on the financing structure behind its Bitcoin strategy. With cash reserves shrinking and dividend obligations increasing, Strategy’s ability to keep funding new purchases is drawing closer scrutiny.
The rest of this week’s Crypto Biz shows how the industry is evolving. CBOE is eyeing perpetual Bitcoin and Ether futures, Chainlink is working with European and Korean banks on stablecoin-based FX settlement and Zcash miner Fortitude is heading to Nasdaq through an unlikely merger with a healthcare company.
CryptoQuant urges Strategy to pause Bitcoin buying as dividend coverage drops to 14 months
Earlier this week, CryptoQuant argued that Strategy’s aggressive Bitcoin accumulation has become increasingly difficult to sustain, urging the company to rebuild its cash reserves after dividend coverage fell to just 14 months from roughly seven years.
CEO Ki Young Ju said the Strategy’s cash position has deteriorated as annual dividend obligations surged to $1.2 billion following large issuances of STRC preferred shares carrying an 11.5% yield. While Strategy’s cash reserve recovered to about $1.4 billion after recent MSTR share sales, it remains down 38% year-to-date after the company repurchased $1.5 billion of its 2029 senior notes.
The warning comes as Strategy’s funding model faces additional pressure. STRC preferred shares recently fell as much as 17.5% below their $100 par value, limiting the company’s ability to raise fresh capital through additional preferred stock sales.
Strategy’s cash reserve and dividend coverage. Source: CryptoQuant
CBOE considers converting Bitcoin and Ether futures into perpetual contracts
The Chicago Board Options Exchange (CBOE) is weighing a plan to convert its continuous Bitcoin and Ether futures into perpetual futures, according to a Wall Street Journal report.
The potential move follows recent regulatory changes after the US Commodity Futures Trading Commission approved crypto perpetual futures for Kalshi and outlined a framework for other registered exchanges to offer similar products.
CBOE launched its continuous Bitcoin and Ether futures last December, with contracts extending as far as 10 years. Unlike traditional futures, perpetual contracts have no expiration date, allowing traders to maintain leveraged positions indefinitely. They were first popularized by crypto derivatives platform BitMEX and have since gained traction across both centralized and decentralized markets.
Perp volumes have surged across DeFi exchanges. Source: DeFiLlama
Zcash miner Fortitude to go public through Nasdaq merger with HeartSciences
Zcash miner Fortitude Mining Holdings is set to go public through an all-stock merger with medical technology company HeartSciences, bringing together two businesses from entirely different industries.
The merger will allow Fortitude to secure a Nasdaq listing without pursuing a traditional initial public offering, while HeartSciences’ existing shareholders will retain a minority stake in the combined company. Following the transaction, the combined company will operate under the Fortitude name and is expected to trade on Nasdaq under the ticker TUDE, subject to regulatory approval.
The announcement sent HeartSciences shares up as much as 91% on Tuesday. Before the merger, the healthcare company remained unprofitable, reporting an $8.77 million net loss in fiscal 2025 despite advancing its product roadmap.
HeartSciences stock. Source: Yahoo Finance
Chainlink joins European and Korean banking groups to explore stablecoin FX settlement
Chainlink has joined a cross-border banking initiative with European and South Korean financial institutions to study whether regulated euro and won stablecoins can enable real-time foreign exchange settlement.
Dubbed Project Pangea, the working group brings together South Korean digital asset infrastructure company FairSquareLab, the Unified Korea Alliance (UniKA), Qivalis and Chainlink to evaluate atomic swaps using blockchain-based settlement infrastructure.
Rather than launching a live payment network, Project Pangea will explore how tokenized currencies could improve wholesale financial markets, where the global foreign exchange market handles an estimated $9.6 trillion in daily trading volume. The initiative reflects growing interest among banks in using stablecoins and tokenized deposits to modernize cross-border settlement, reduce friction and improve efficiency.
In a bullish scenario, the stablecoin market could reach $4 trillion by 2030. Source: Citigroup
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