The post Why Is Crypto Going Down Today? appeared first on Coinpedia Fintech News After a strong rally, the crypto market is finally cooling down. In the last 24 hours, the market cap has slipped by 2.43%, now standing at $3.35 trillion. At the same time, trading activity picked up, with volumes jumping to $184.7 billion as traders rushed to react to the latest market moves. Possible Reasons Behind The Dip Today Macroeconomic Factors: On the macro side, the market sentiment was hit after a second US court blocked President Trump’s proposed tariffs. In addition, Treasury Secretary Bessent confirmed that trade talks with China have stalled — adding uncertainty to global markets, including crypto. Fear & Greed Index Signals ‘Greed’ at 61: The crypto Fear & Greed Index remains at 61 (Greed). Historically, markets tend to cool down after extended periods of greed-driven rallies, and today’s decline fits that pattern. Bitcoin’s Short-Term Weakness: Bitcoin, the market leader, has dipped to a nine-day low of $105,730. Analysts said that Bitcoin is currently flashing short-term warning signals as it liquidates long positions. The market is cooling off after weeks of upward momentum, and technical indicators like the Super Trend remain green but are starting to slow in bullish momentum. Ethereum Rejected at Resistance: Ethereum faced rejection from a major resistance zone once again, pulling its price down by over 3.6% in the past 24 hours to trade around $2,609. A slowing MACD on the 3-day timeframe also hints at weakening bullish momentum, raising concerns of a possible bearish crossover in the coming weeks. Altcoins Slip Into The Red Zone Solana (SOL) dropped by 4.79%, while Cardano (ADA) slipped 5.73%. Dogecoin (DOGE) also took a hit, falling 6.76%. BNB was down by 2.47%, and XRP declined by 3.37%. Even newer coins like Sui (SUI) weren’t spared, with a 4.06% dip. Stablecoins like USDT and USDC stayed mostly flat, as expected.
On May 30, COINOTAG News reported that a notable cryptocurrency whale, identified as @ai_9684xtpa, executed a significant liquidation of his Ethereum (ETH) holdings, totaling a loss of approximately $105,000. This
The SEC’s Division of Corporation Finance has clarified that defined protocol staking on proof-of-stake networks does not constitute a securities offering under federal law. SEC Staff Clarifies Protocol Staking Not a Security for Covered Crypto Assets on PoS Network The U.S. Securities and Exchange Commission’s Division of Corporation Finance issued a detailed public statement on
Ethereum (ETH) is experiencing a notable resurgence, with significant investments and institutional confidence reshaping its market trajectory. The recent influx of ETFs and improved on-chain metrics underscore ETH’s appeal among
Ethereum price started a fresh decline from the $2,780 resistance zone. ETH is now trading below $2,650 and might continue to move down. Ethereum started a downside correction below the $2,700 level. The price is trading below $2,650 and the 100-hourly Simple Moving Average. There was a break below a key bullish trend line forming with support at $2,625 on the hourly chart of ETH/USD (data feed via Kraken). The pair could extend losses if it trades below the $2,550 support zone in the near term. Ethereum Price Dips Again Ethereum price started a fresh increase from the $2,550 support zone, beating Bitcoin . ETH price was able to recover above the $2,650 and $2,750 resistance levels before the bears appeared. A high was formed at $2,787 and the price is now correcting gains . There was a move below the $2,700 support level. The price dipped below the 50% Fib retracement level of the upward move from the $2,463 swing low to the $2,787 high. Ethereum price is now trading below $2,650 and the 100-hourly Simple Moving Average. Besides, there was a break below a key bullish trend line forming with support at $2,625 on the hourly chart of ETH/USD. On the upside, the price could face resistance near the $2,625 level. The next key resistance is near the $2,650 level. The first major resistance is near the $2,720 level. A clear move above the $2,720 resistance might send the price toward the $2,780 resistance. An upside break above the $2,780 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,880 resistance zone or even $2,950 in the near term. More Losses In ETH? If Ethereum fails to clear the $2,650 resistance, it could start a fresh decline. Initial support on the downside is near the $2,600 level. The first major support sits near the $2,550 zone. It is close to the 76.4% Fib retracement level of the upward move from the $2,463 swing low to the $2,787 high. A clear move below the $2,550 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,440 support level in the near term. The next key support sits at $2,400. Technical Indicators Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 zone. Major Support Level – $2,550 Major Resistance Level – $2,650
BitcoinWorld Bitcoin Receives Massive Strategic Boost as Tether Reinvests Billions Get ready for some significant news from the stablecoin giant! Tether, the issuer of the world’s largest stablecoin, USDT, is making waves with its investment strategy. The company’s CEO, Paolo Ardoino, recently shared compelling details about how Tether is utilizing its substantial profits, and it involves a major focus on the leading cryptocurrency: Bitcoin . Tether’s Profitable Strategy: Reinvesting in Bitcoin Speaking at the highly anticipated Bitcoin 2025 conference, Tether CEO Paolo Ardoino dropped a notable statistic: Tether has generated approximately $20 billion in profits over the past three years. This figure alone underscores the immense scale and success of Tether’s operations within the cryptocurrency ecosystem. What’s even more interesting is where these profits are going. According to reports from Odaily covering Ardoino’s comments, a surprisingly small portion—less than 5%—has been allocated to shareholder dividends. This indicates a strong preference for reinvestment back into the business and strategic assets rather than immediate payouts. The vast majority of these profits, the remaining 95%, are being channeled into two primary areas: Expanding Tether’s global distribution network Significant reinvestment in Bitcoin This clear emphasis on acquiring more Bitcoin with company profits signals a bullish stance from one of the most influential entities in the crypto market. It highlights Tether’s confidence not only in its own business model but also in the long-term value proposition of Bitcoin. Why is Tether Investing Heavily in Bitcoin ? Tether’s decision to allocate a large percentage of its profits towards Bitcoin isn’t entirely new, but the sheer scale revealed by Paolo Ardoino is noteworthy. Tether first publicly disclosed its Bitcoin holdings as part of its reserves in May 2023. At the time, they stated they would regularly allocate up to 15% of their net operating profits towards purchasing Bitcoin. This latest announcement suggests that the actual percentage of *total* profits (which would include operating profits, interest income from reserves, etc.) being directed into Bitcoin and growth initiatives is substantially higher than the previously stated 15% of *operating* profits. The $20 billion figure represents the total financial gain over three years. Several factors likely drive this strategy: Diversification: While Tether’s primary reserves back USDT and are largely held in safe, liquid assets like U.S. Treasury bills, allocating a portion of profits to Bitcoin adds a growth-oriented asset to their balance sheet. Potential Appreciation: Bitcoin has historically been a high-performing asset. Investing profits into BTC allows Tether to potentially grow its non-reserve holdings significantly if Bitcoin’s value increases. Alignment with the Crypto Ecosystem: As a cornerstone of the crypto market, holding Bitcoin aligns Tether with the broader digital asset landscape and demonstrates confidence in the technology it serves. Strategic Positioning: Large Bitcoin holdings can enhance Tether’s financial strength and strategic flexibility, separate from the assets specifically backing USDT redemptions. This approach allows Tether to benefit from Bitcoin’s potential upside while maintaining the stability and liquidity required to back the circulating supply of its stablecoin, USDT . Understanding Tether’s Profitability How does Tether generate such massive profits? The primary source of income for Tether comes from the interest earned on the reserves it holds to back the value of USDT . As the circulating supply of USDT has exploded, reaching tens of billions, the reserves have grown proportionally. A significant portion of these reserves is held in interest-bearing instruments, particularly short-term U.S. Treasury bills. With rising interest rates globally over the past few years, the income generated from these reserves has become substantial. This interest income forms a large part of the profits that Paolo Ardoino referenced. Additional revenue streams can include fees from minting/redeeming USDT, although interest income is typically the dominant factor. Here’s a simplified look at the profit allocation based on Ardoino’s statement: Profit Allocation (Past 3 Years) Approximate Amount (Based on $20B Total Profit) Percentage of Total Profit Shareholder Dividends Less than $1 billion Less than 5% Reinvestment (Global Distribution & Bitcoin ) More than $19 billion More than 95% This table clearly illustrates the strong bias towards reinvestment over immediate shareholder returns, a strategy that aligns with long-term growth objectives, including significant Crypto Investment . What Does This Mean for the Market and USDT Holders? Tether’s massive reinvestment strategy has several implications for the broader crypto market and for users of USDT : Potential Bitcoin Price Impact: Consistent, large-scale buying by an entity like Tether adds significant buying pressure to the Bitcoin market. While it’s difficult to isolate Tether’s exact impact, their accumulation is undoubtedly a bullish factor. Signal of Confidence: Tether’s willingness to hold substantial amounts of Bitcoin on its balance sheet sends a strong signal of confidence in Bitcoin’s future value and its role as a store of value. Tether’s Financial Strength: By reinvesting profits into potentially appreciating assets like Bitcoin, Tether can further strengthen its overall financial position, separate from the specific assets backing USDT . This could be seen as a positive for the long-term stability of the company, though it doesn’t directly impact the 1:1 peg of USDT, which is backed by specific reserve assets. Increased Scrutiny: Large holdings of volatile assets like Bitcoin, even if held separately from core reserves, may attract increased scrutiny from regulators, who are already focused on stablecoin reserves and operations. For holders of USDT , it’s crucial to remember that the assets backing the stablecoin’s peg are kept separate from Tether’s corporate profits and investments. The value of USDT remains tied to the stability and liquidity of its stated reserves, which are primarily in cash, cash equivalents, short-term deposits, and U.S. Treasury bills. The Bitcoin acquired with profits is part of Tether’s corporate treasury, not the direct backing for every USDT token. Challenges and Considerations While Tether’s aggressive Crypto Investment strategy, particularly into Bitcoin, highlights strong profitability and a bullish outlook, it’s not without potential challenges or points of consideration: Market Volatility: Holding large amounts of Bitcoin exposes Tether’s corporate treasury to the inherent volatility of the crypto market. While this doesn’t directly impact the USDT peg (as BTC is not a primary reserve asset for the peg), significant downturns could affect Tether’s overall financial statements and profitability in future periods. Transparency: While Tether has improved its reporting over the years, the exact timing and scale of their Bitcoin purchases from profits are not always immediately clear, which can lead to speculation. More detailed breakdowns of profit utilization could enhance transparency. Regulatory Environment: The regulatory landscape for stablecoins and crypto companies is constantly evolving. Tether’s significant market position and investment strategies are likely to remain under the microscope of regulators worldwide. Despite these points, the announcement from Paolo Ardoino underscores Tether’s position as a major financial force within the crypto space, capable of generating substantial profits and making significant strategic investments like buying billions in Bitcoin . Actionable Insights from Tether’s Crypto Investment What can investors take away from this news? Watch the Whales: Large entities like Tether making significant, consistent purchases of an asset like Bitcoin is often seen as a bullish indicator. Paying attention to the actions of major holders can provide insights into market sentiment and potential demand. Profitability in Crypto Infrastructure: Tether’s $20 billion profit figure over three years demonstrates the immense financial success achievable by companies providing essential infrastructure within the crypto market, like stablecoins. Diversification as a Strategy: Tether’s approach of diversifying a portion of its *profits* (separate from reserve assets) into growth assets like Bitcoin is a strategy employed by many corporations. While the specific assets differ, the principle of using excess capital for potential long-term growth is common. The Enduring Appeal of Bitcoin: Tether, an entity deeply embedded in the plumbing of crypto finance, continues to see Bitcoin as a valuable asset for its own balance sheet, reinforcing its perceived status as digital gold or a long-term store of value. This move solidifies Tether’s position not just as a stablecoin issuer but also as a significant corporate holder and accumulator of Bitcoin , actively using its financial success to strengthen its position and bet on the future of the leading cryptocurrency. Conclusion: Tether’s Big Bet on Bitcoin’s Future The revelation from Paolo Ardoino at Bitcoin 2025 that the bulk of Tether’s impressive $20 billion profits over the last three years is being plowed back into global expansion and, critically, into Bitcoin , is a major development. It signifies a deliberate and large-scale strategy by the world’s largest stablecoin issuer to deepen its holdings in the premier cryptocurrency. With only a small fraction going to dividends, the overwhelming focus is on growth and strategic asset accumulation. This substantial Crypto Investment by a key market player like Tether serves as a powerful signal, potentially influencing market sentiment and adding considerable buying pressure to Bitcoin. It underscores Tether’s robust profitability and its long-term confidence in Bitcoin’s enduring value, positioning them as a significant corporate whale in the BTC ocean. To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin price action. This post Bitcoin Receives Massive Strategic Boost as Tether Reinvests Billions first appeared on BitcoinWorld and is written by Editorial Team
Hidden Road launches cash-settled OTC crypto swap service after Ripple acquisition. The service targets US institutional investors, increasing market liquidity and flexibility. Continue Reading: Hidden Road Launches Innovative OTC Crypto Swap Service in the US The post Hidden Road Launches Innovative OTC Crypto Swap Service in the US appeared first on COINTURK NEWS .
Data shows the Toncoin (TON) Open Interest has registered a spike in the past day. Here’s what could happen next, according to historical trends. Toncoin Open Interest Has Hit Its Highest Since February In a new post on X, the on-chain analytics firm Glassnode has talked about the latest trend in the Open Interest for Toncoin. The “Open Interest” here refers to a metric that keeps track of the total amount of perpetual futures positions related to TON (in USD) that are currently open on all derivatives platforms. When the value of this metric rises, it means the investors are opening up more positions related to the asset on the market. Generally, the total leverage in the sector goes up when new positions appear, so this kind of trend can lead to higher volatility for the cryptocurrency’s price. Related Reading: Shiba Inu Trapped Inside Triangle: 17% Move Incoming? On the other hand, the indicator going down suggests that investors are closing their own positions voluntarily or being forcibly liquidated by their exchange. Either way, the asset can behave in a more stable manner following such a trend due to the drop in leverage. Now, here is the chart shared by the analytics firm that shows the trend in the Toncoin Open Interest over the last few months: As displayed in the above graph, the Toncoin Open Interest has just seen a very sharp spike, a sign that traders have opened up a large number of futures positions. More specifically, the metric’s value has gone up from $143 million to $190 million over the last 24 hours. From the chart, it’s visible that this quick 33% jump initially came as the coin’s price witnessed a rapid increase, but interestingly, it maintained its upward trajectory even as the asset saw a pullback. “Past spikes like this have often preceded corrections – worth watching closely,” notes Glassnode. The last time the Toncoin Open Interest formed this pattern was at the end of March/start of April. What followed back then was a price drawdown of about 32%. Related Reading: Ethereum May Be One Dip Away From Mass Losses—Data Warns TON isn’t the only digital asset that has seen an uptick in speculation recently. As the analytics firm has pointed out in its latest weekly report, Bitcoin has also been observing a major rise in its Open Interest. As is visible in the chart, the Bitcoin Open Interest fell to a low of $36.8 billion in April as the cryptocurrency’s price itself went down. Since then, however, the indicator has shot up by 51% alongside the bull rally, reaching the $55.6 billion mark. The report explains that this suggests “a build up of leverage is underway.” TON Price At the time of writing, Toncoin is trading around $3.34, up more than 11% in the last 24 hours. Featured image from iStock.com, Glassnode.com, chart from TradingView.com
ETH also leads in stablecoin growth, showing institutional confidence.
BitcoinWorld JPMorgan Report: Ethereum Network Activity Lags Post-Pectra Upgrade A recent analysis from financial giant JPMorgan has cast a critical eye on the state of the Ethereum network following what the report identifies as the rollout of the Pectra Upgrade . While the market capitalization of Ethereum (ETH) has seen an uptick, the bank’s findings suggest this hasn’t translated into a meaningful boost in core network usage or significant inflows into potential spot ETH ETF products. What Did JPMorgan’s Analysis Reveal About Ethereum? According to details reported by The Block, the core of JPMorgan ‘s assessment revolves around a perceived disconnect between market valuation and on-chain activity. Here’s a breakdown of their key observations: Market Cap vs. Activity: The report acknowledges an increase in Ethereum ‘s market cap, suggesting positive market sentiment or anticipation. However, it notes a lack of corresponding significant growth in fundamental network activity metrics. CME Futures vs. Spot ETFs: A noticeable increase in long positions within the CME ETH futures market was highlighted. This contrasts sharply with the absence of significant inflows into spot ETH ETF s, which are still awaiting approval or broader availability in many key markets. Individual Investor Interest: The divergence between institutional-leaning futures activity and the lack of spot ETF inflows (often seen as a proxy for broader retail/individual interest) led analysts to conclude that individual investor enthusiasm for Ethereum currently remains subdued. This analysis provides a snapshot of how a major financial institution views the current dynamics within the Ethereum ecosystem, focusing on tangible market and on-chain data rather than just price movements. Understanding Ethereum Network Activity and the Pectra Upgrade When analysts like those at JPMorgan talk about Ethereum Network Activity , they are referring to a range of on-chain metrics that indicate how much the network is actually being used. These can include: Transaction Count: The number of successful transactions processed on the network. Active Addresses: The daily or monthly count of unique wallet addresses sending or receiving ETH or interacting with smart contracts. Gas Usage: The total amount of ‘gas’ (the unit of computation on Ethereum) consumed by transactions, reflecting the complexity and volume of operations like DeFi interactions or NFT transfers. Smart Contract Interactions: The number of times users interact with decentralized applications (dApps), decentralized finance (DeFi) protocols, or NFT platforms built on Ethereum. A major network upgrade, such as the Pectra Upgrade (referencing the proposed Prague/Electra combination or potentially a recent one like Dencun, depending on the report’s specific timing and terminology), is typically expected to improve the network’s efficiency, scalability, or functionality. These improvements are often anticipated to lead to increased usage, lower costs, and thus, a boost in Ethereum Network Activity . JPMorgan’s report highlights that, in their view, this expected activity surge hasn’t materialized despite the upgrade’s rollout. The Puzzle: Why Low Spot ETH ETF Inflows Despite Futures Interest? The distinction made by JPMorgan between CME ETH futures and spot ETH ETF s is significant. CME futures are primarily utilized by institutional traders and sophisticated investors for hedging or speculating on price movements without holding the underlying asset. Spot ETH ETF s, on the other hand, would hold actual ETH and are often seen as a more accessible investment vehicle for retail investors and traditional financial advisors, offering exposure to the asset class through regulated brokerage accounts. The observed increase in CME futures activity suggests continued institutional interest in having exposure to Ethereum ‘s price. However, the lack of substantial inflows into available or anticipated spot ETH ETF products points to potential hurdles for broader adoption. These hurdles could include regulatory uncertainty (especially in jurisdictions where spot ETH ETFs are not yet approved), lingering caution among traditional investors regarding direct crypto exposure, or simply a lack of strong conviction among individual investors at the current price levels. This divergence supports JPMorgan ‘s conclusion that while institutional players might be engaging with ETH derivatives, the enthusiasm from the wider individual investor base, often targeted by spot ETFs, appears muted. Implications for the Ethereum Network and Investor Sentiment What does JPMorgan ‘s analysis suggest about the current state of the Ethereum Network Activity and investor sentiment? It implies that: Upgrades Alone May Not Drive Adoption: While technical improvements from the Pectra Upgrade are valuable, they might not be sufficient on their own to immediately translate into significantly increased user activity or attract widespread new investment via easily accessible products like spot ETFs. Retail Adoption Remains a Challenge: The path to bringing millions of new individual users and investors onto the Ethereum Network or into ETH investment vehicles still faces considerable obstacles, whether they are related to complexity, perceived risk, or lack of accessible investment products. Institutional vs. Retail Divergence: There appears to be a notable difference in how institutional and retail investors are currently engaging with Ethereum , with institutions seemingly more comfortable with derivatives like futures than individuals are with potential spot investment products. This perspective from a major financial institution serves as a reminder that despite positive developments like network upgrades and increasing market cap, the growth and adoption of the Ethereum Network are complex processes influenced by technology, market structure, regulation, and investor psychology. Looking Ahead: What to Watch For Given JPMorgan ‘s assessment, what should market participants and Ethereum enthusiasts monitor in the coming months? Key indicators will include: Ethereum Network Activity Metrics: Keep an eye on transaction counts, active addresses, and gas usage. A sustained upward trend in these metrics would contradict the report’s findings and signal organic growth. Spot ETH ETF Developments: Regulatory decisions and the actual performance and inflows of spot ETH ETF s in jurisdictions where they are approved will be crucial gauges of individual investor demand. Broader Market Sentiment: The overall health and direction of the crypto market significantly influence activity and investment in individual assets like Ethereum . Impact of Future Upgrades: While the report focused on the period after the referenced upgrade, the long-term effects of Pectra Upgrade features (or subsequent developments) on network usability and cost could still drive activity over time. While JPMorgan ‘s report offers a cautious view, it provides valuable data points for understanding the current landscape. The lack of immediate widespread individual investor enthusiasm via spot ETFs and network activity doesn’t negate Ethereum’s long-term potential but highlights the challenges in translating technical advancements and institutional interest into broad-based adoption. Summary: JPMorgan’s Sobering Take on Ethereum Post-Upgrade In conclusion, JPMorgan ‘s recent report presents a somewhat sobering perspective on Ethereum ‘s performance following the cited Pectra Upgrade . Despite an increase in market valuation and institutional engagement via futures, the bank found little evidence of a significant surge in fundamental Ethereum Network Activity or strong individual investor demand as reflected in spot ETH ETF inflows. This analysis underscores the ongoing journey for Ethereum to translate its technical prowess and market presence into widespread, tangible usage and broad retail investment. To learn more about the latest Ethereum trends, explore our article on key developments shaping Ethereum price action. This post JPMorgan Report: Ethereum Network Activity Lags Post-Pectra Upgrade first appeared on BitcoinWorld and is written by Editorial Team