Market Fear Deepens – Crypto Falls With Stocks

Market Fear Deepens

Crypto markets plunged sharply as a macro shock wiped $2.7 trillion from the S&P 500 index. Bitcoin and other major cryptocurrencies followed stocks down, reminding us once again that correlation never completely dies. It wasn't full panic, but market sentiment was very subdued.

Gold vs. Bitcoin – A Money Supply Perspective

Bitcoin and gold are often seen as competitors, but in reality they behave like cousins – exposed to the same economic forces but reacting differently. Bitcoin's limited and predictable supply makes it superior from a long-term scarcity perspective. However, in tight economic times and high interest rate environments, gold better preserves its value.

Macro Update – Critical Liquidity Gap Forming

Crypto suffered significant losses following U.S. selling pressure. Technical support breaking activated momentum selling programs, and rumors suggest a major market maker is being forced to unwind positions. The overall picture isn't about one player – multiple macro factors are affecting simultaneously.

AI Stocks Continue Swinging

Although Nvidia beat expectations, the price rise didn't hold. Markets still doubt AI infrastructure profitability. Long-term, technology remains the driver – Nasdaq stays overweight.

Bitcoin's Drop Opens More Selling

Bitcoin's drop below $98k and $88k levels opened more selling. ETF flows are negative, large holders are selling profits, and demand is weak. Japan's situation is concerning – rate increases and stagflation raise fears of "carry-trade" unwinding, but most Japanese investments stay in place.

Biggest Concern: U.S. Liquidity

The Reverse Repo Facility is nearly empty, but banks' excess reserves aren't enough to maintain normal market function. The Fed will soon need to return to maintaining balance – "Not QE QE."

AI Sparks Relief Rally – Crypto Misses Out

AI stocks provided a temporary reprieve as Nvidia beat earnings expectations and lifted tech sector sentiment. Crypto, however, didn't benefit from the same momentum. Investors shifted to sectors with the clearest earnings stories – this time it was AI. Crypto technology indices, meanwhile, suffered one of their hardest weeks in months.

Are We in an AI Bubble? – Warning Signs Emerge

Despite the gains, "bubble" is a word on more and more lips. Rising valuation levels and narrative-based capital allocation point to possible excess. Enthusiasm is justified, but signs of overheating are appearing. For crypto investors, the situation feels familiar, just with better branding.

Coinbase Premium Crashes – U.S. Demand Fades

Coinbase's premium index fell to year-to-date lows, indicating weakening demand in U.S. spot markets. When American buyers retreat, liquidity thins and volatility increases – exactly what happened this week. As liquidity dries up, larger sell orders push markets down.

Cathie Wood Buys the Dip Again – ARK Trusts Crypto

Few investors dare to buy in a downturn. Cathie Wood used the market drop to increase Coinbase, Bitmine, and Circle holdings. ARK has consistently maintained its crypto theme and added weight when others panic. Crypto investing is a high-conviction game, not for the faint of heart.

Stablecoins Are Changing Everything

2025 has been the year of stablecoins. New data shows stablecoins increasingly dominate international payments, cash management, and cross-border transfers – much faster than regulators anticipated. Behind the scenes, payment systems are being rebuilt on stablecoins.

Michael Saylor Returns to Spotlight – MSCI Raises Risk Concerns

MSCI's highlighted risks in Bitcoin-heavy portfolios brought Michael Saylor back into the public eye. His view remains unchanged: volatility is noise, scarcity is signal. Whether you agree or not, his-led Strategy's Bitcoin treasury remains under institutional scrutiny.

Weekly Native News

Coinbase announced it will acquire the Vector app, which focuses on memecoin social trading on Solana. The goal is to improve Solana trading and bring all Solana assets directly to Coinbase users.

Kraken plans to go public and has just raised an $800 million funding round, valuing the company at $20 billion. The S-1 document has been filed with the SEC.

Tether invested in Parfi, which develops digital asset infrastructure in Latin America. The goal is to accelerate USDT's institutional adoption and expand stablecoin applications to trade finance and real asset tokenization.

Institutional Events

Citibank and Swift have successfully tested a fiat and digital currency interoperable payment system that connects traditional systems to blockchains through smart contracts.

El Salvador added 1,090 Bitcoins to its reserves, its largest single purchase to date. The country's total holdings rose to 7,474 Bitcoins, worth approximately $676 million.