Cryptocurrencies

Crypto market falls sharply amid institutional selling and Ethereum crisis

The cryptocurrency market faced a significant correction on Thursday. A broad selloff dragged Bitcoin down 2.3% to around $117,241.

Ethereum fell over 6% to test key support near $3,515, while XRP plunged 17%, breaking below the crucial $3.00 level. Dogecoin suffered the most significant loss among major altcoins, crashing 18.5% amid heavy institutional liquidation.

Analysts attribute the decline to coordinated selling by institutional investors, worsened by a surge in Ethereum validator exits and ongoing macroeconomic uncertainty.

Bitcoin showed relative strength compared to other tokens, demonstrating its role as a haven amid market stress. Despite the pullback, bitcoin’s dominance increased as investors rotated away from riskier altcoins.

Ethereum’s challenges are acute, with over $2.3 billion worth of ETH awaiting unstaking amid the longest validator exit queue in 18 months. While some validators are exiting, many are entering the staking system, suggesting complex market dynamics rather than outright abandonment.

The sharp declines reflect a mix of large-scale liquidations, institutional portfolio rebalancing, and geopolitical pressures driving risk-off sentiment. Speculative assets like Dogecoin were hit hardest, highlighting the vulnerability of meme coins during downturns.

Despite short-term volatility, major financial firms remain bullish on Bitcoin, Ethereum, and XRP, citing technological adoption and regulatory progress as drivers for 2025 growth.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Stocks gain but Bitcoin remains flat after Japan trade deal

US President Donald Trump revealed a new trade agreement with Japan, described as ‘perhaps the largest deal ever made,’ involving $550 billion of Japanese investment in the United States.

The deal aims to boost trade in automobiles and agricultural goods, and is expected to create hundreds of thousands of jobs.

Following the announcement, major US stock indices saw modest gains, with the S&P 500, Nasdaq, and Dow rising by 0.26%, 0.09%, and 0.42% respectively. In contrast, Bitcoin fell by 0.55%.

Despite the positive stock market response, the wider cryptocurrency market declined, with the Coinmarketcap Altcoin Season Index dropping from 56 to 46. Expectations for an ‘altcoin season’—when most top tokens outperform Bitcoin over three months—may have been premature.

Bitcoin itself showed little movement, remaining below $120,000 and losing just under 1% over the past week.

Market metrics reveal that Bitcoin’s 24-hour trading volume dropped 11.5% to $67.28 billion, while its market cap declined by 0.78% to $2.35 trillion. Bitcoin dominance increased slightly to 61.57%.

Futures open interest decreased marginally, and total liquidations over 24 hours amounted to $51.23 million, with long positions accounting for the majority of liquidations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Elon Musk’s firm consolidates $153 million in BTC

SpaceX has moved $153 million worth of Bitcoin for the first time since 2022, consolidating 1,308 BTC from 16 addresses into a single SegWit wallet, on-chain data reveals. The reason behind the move remains undisclosed.

The company, founded by Elon Musk, currently holds 8,285 BTC—worth nearly $989 million—according to bitcointreasuries.net. Its last Bitcoin transfer involved over 3,500 tokens sent to Coinbase. A SpaceX spokesperson declined to comment on the latest activity.

The transfer coincides with increased scrutiny of the firm’s government contracts, following a clash between Musk and Donald Trump. Despite speculation, SpaceX may not be selling its Bitcoin, as it is reportedly preparing a $1 billion share sale that could value the company at $400 billion.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Half of Americans still unsure how crypto works

A new NCA survey shows 70% of Americans without crypto want more information before considering digital assets. Half of respondents said they don’t understand crypto, while others voiced concerns about scams and unknown project founders.

Despite this uncertainty, 34% of those polled said they were open to learning more. The NCA’s report summarised the mood as ‘curiosity high, confidence low,’ noting that a large number of people are interested in crypto but unsure how to take the first step.

The NCA, a nonprofit launched in March and led by Ripple Labs’ chief legal officer Stuart Alderoty, has been tasked with helping Americans better understand crypto. Backed by $50 million from Ripple, the organisation aims to build trust and boost crypto literacy through education.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Bitcoin rally attracts scammers and fake platforms

Bitcoin’s latest rally past the $120,000 mark has triggered a fresh wave of excitement among investors, but the upward trend also brings a darker side—an increase in crypto-related scams. Rising public interest and ETF demand have led scammers to target new users on unregulated platforms.

Fraudsters are using various methods to deceive investors, including fake trading apps, phishing websites, giveaway scams, and pump-and-dump schemes. Many of these platforms appear legitimate, only to disappear when users attempt to withdraw funds.

Others mimic real exchanges or impersonate support agents to steal credentials and assets.

To avoid falling victim, investors should watch for red flags such as guaranteed returns, no visible team or contact details, lack of regulatory licences, and overly slick websites. Sticking to trusted platforms, using MFA, avoiding unknown links, and checking activity helps reduce risk.

Crypto trading remains full of potential, but education and caution are essential. Staying informed about common scams and adopting safe habits is the best way to protect investments in an evolving digital landscape.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Telegram rolls out TON Wallet for US users

Telegram’s crypto journey has taken a significant leap as its built-in TON Wallet is now available to users in the United States. For the first time, a major messaging app in the US market integrates a self-custodial crypto wallet directly into its interface.

The move comes after a lengthy delay due to regulatory uncertainty. Telegram previously viewed the US as a difficult environment, but recent changes in the regulatory landscape have improved the situation.

According to The Open Platform CEO Andrew Rogozov, the SEC’s recent decisions to narrow enforcement and drop certain cases contributed to a more predictable climate.

Now built into Telegram, TON Wallet lets users manage assets, send stablecoins, and swap tokens—no extensions, seed phrases, or extra apps needed. Onboarding uses a split-key system, linking recovery to the user’s account and email—all within the app.

The wallet is integrated with MoonPay, enabling zero-fee purchases, debit card on-ramps, and seamless crypto transactions while outsourcing compliance-related processes. Rogozov said the goal is to offer a crypto experience that feels as natural as sending a message.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Western Union eyes faster remittances with stablecoins

Western Union has begun exploring stablecoin use for remittances, viewing the technology as an opportunity amid rising competition and regulatory clarity. CEO Devin McGranahan revealed that the firm is testing new cross-border settlement processes in regions such as South America and Africa.

Stablecoins could enhance speed, lower costs, and offer value-storing options for customers in weaker-currency markets.

The move follows the recent passage of the GENIUS Act in the US, which provides a formal legal framework for issuing and trading stablecoins. The law is already prompting banks, retailers, and financial service providers to experiment with stablecoin applications.

Western Union is reportedly considering crypto wallet services and partnerships to act as a crypto on- and off-ramp.

According to OwlTing CEO Darren Wang, interest in stablecoins has surged, with monthly business inquiries rising significantly since May. He believes regulatory frameworks like the GENIUS Act and Europe’s MiCA will help stablecoins reach widespread adoption by 2026.

He emphasised that stablecoins can cut remittance costs below the UN’s 3% target, while providing instant, round-the-clock settlements.

Global interest for stablecoins continues to grow, with firms like Walmart, Amazon, JD.com, and Alipay reportedly exploring stablecoin integration.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Bitcoin’s security under quantum threat

A leading cybersecurity expert has raised concerns that Bitcoin’s underlying cryptography could be broken within five years. David Carvalho, CEO of Naoris Protocol, warned that quantum computers could soon break the cryptography securing Bitcoin transactions.

He believes the threat could materialise sooner than most anticipate, urging immediate action.

Carvalho pointed to Shor’s algorithm as the core concern. Once sufficiently advanced quantum machines are deployed, they could crack Bitcoin’s defences in seconds.

Roughly 30% of all Bitcoin—around 6 to 7 million BTC—is currently held in wallets with exposed public keys, making them especially vulnerable.

He also referenced major breakthroughs in the field, including Microsoft’s Majorana chip and IBM’s planned release of a fault-tolerant quantum computer by 2029.

With over 100 quantum systems already active and thousands more expected by 2030, Carvalho advised investors to migrate funds to quantum-secure wallets and update their security protocols.

However, Adam Back, CEO of Blockstream and an early Bitcoin contributor, believes the technology is still decades away from posing a real threat. He did acknowledge that future advancements may force even early adopters to move their coins to quantum-resistant addresses.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Over $3 billion of Ethereum lost forever

Over 913,000 ETH, worth around $3.43 billion, has been lost permanently due to user errors and contract flaws, according to Coinbase director Conor Grogan. The losses represent over 0.76% of Ethereum’s circulating supply and show the risks of human error in decentralised systems.

Among the largest losses cited are 306,000 ETH lost by the Web3 Foundation through a Parity multisig wallet vulnerability and 60,000 ETH locked in a smart contract by the now-defunct QuadrigaCX exchange.

An additional 11,500 ETH was destroyed by NFT project Akutars during a failed minting process.

Grogan also noted that more than 25,000 ETH has been sent to burn addresses directly by users.

He stressed that the $3.4 billion figure is a conservative estimate, excluding ETH lost due to forgotten private keys or dormant wallets. He noted Ethereum’s EIP-1559 burn has destroyed 5.3 million ETH, worth over $23 billion, removing more than 5% of all ETH from circulation.

These figures reveal a growing issue within the Ethereum ecosystem, where both technical flaws and irreversible design features have led to a significant amount of permanently inaccessible capital.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Trump Media holds $2 billion in Bitcoin assets

Trump Media and Technology Group, backed by $2.5 billion in funding, has acquired around $2 billion worth of Bitcoin as part of an investment plan announced earlier this year. The company behind Truth Social used stock sales and bonds to buy Bitcoin and plans to keep acquiring crypto assets as markets allow.

The announcement followed the US House of Representatives passing three cryptocurrency-related bills during what Republicans and Trump called ‘crypto week.’

Among these, the GENIUS stablecoin bill was signed into law, while two others related to crypto market structure and central bank digital currencies await Senate approval. Bitcoin’s price briefly surged to over $120,000 amid the legislative developments.

Trump’s family-backed crypto firm World Liberty Financial saw its stablecoin governance token more than double last week. Additionally, the president’s memecoin, Official Trump, rose about 10% during the same period, with Trump controlling 80% of its supply through affiliated companies.

In March, Trump signed an executive order proposing a Strategic Bitcoin Reserve and Digital Asset Stockpile for the US. While initially expected to hold seized crypto assets, advisers suggested alternative ideas like revaluing government gold certificates are under consideration.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!