tridEX

US federal agencies are expected to disclose their cryptocurrency holdings to the Department of the Treasury by April 7, following an executive order signed by President Donald Trump earlier this year.

Citing an unidentified White House official, journalist Eleanor Terrett reported that the deadline for federal agencies to report their crypto holdings to Treasury Secretary Scott Bessent is April 7.

The disclosures will remain confidential for now. “Unclear as of now if and when the findings could be made public,” Terrett wrote.

Crypto disclosure follows Bitcoin Reserve establishment

The reporting requirement followed an executive order signed on March 7 that directed the creation of a Strategic Bitcoin Reserve and a broader Digital Asset Stockpile. The Bitcoin (BTC) reserve will be seeded with BTC forfeited to federal agencies through civil or criminal asset seizures.

White House AI and crypto czar David Sacks described the reserve as a “digital Fort Knox for the cryptocurrency,” saying that the US will not sell any BTC held in the reserve. “It will be kept as a store of value,” Sacks added.

Sacks previously lamented the US government’s sales of 195,000 BTC for $366 million. The official said the BTC sold by the US government could’ve gone for billions if it had only held on to the assets. 

The reserve will initially be seeded by the BTC kept by the Treasury, while the other federal agencies will “evaluate their legal authority” to transfer their BTC into the reserve. 

Regarding the digital asset stockpile, Sacks said it would promote “responsible stewardship” of the government’s crypto assets under the Treasury. This includes potential sales from the stockpiles. 

On March 2, Trump said that the crypto reserve would include assets like XRP (XRP), Solana (SOL) and Cardano (ADA). The president later added Ether (ETH) and Bitcoin (BTC) to his crypto reserves list. 

Related: 10-year Treasury yield falls to 4% as DXY softens — Is it time to buy the Bitcoin price dip?

Crypto plunges as Trump tariffs shock global stocks

While Trump’s election may have positively impacted crypto markets, the US president’s next move has resulted in a market crash. 

On April 5, the Trump administration hit all countries with a 10% tariff. Some countries were given higher rates, including China at 34% and Japan at 24%. The European Union was also hit with a 20% tariff.  

Following Trump’s move, the overall crypto market capitalization declined by over 8%, slipping to $2.5 trillion. 

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

The Mantra blockchain network has launched a $108,888,888 ecosystem fund aimed at accelerating the growth of startups focused on real-world asset (RWA) tokenization and decentralized finance (DeFi), amid rising demand for stable, asset-backed digital products.

Mantra, a layer-1 (L1) blockchain built for tokenized RWAs, launched the Mantra Ecosystem Fund (MEF) to accelerate the growth and adoption of projects and startups building on its network, according to an April 7 announcement shared with Cointelegraph.

Mantra said it will deploy the capital over the next four years among “high-potential blockchain projects” worldwide, with investment opportunities sourced through Mantra’s network of partners. The fund’s backers include a wide range of institutional partners including Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Point Capital and Amber Group.

Related: 0G Foundation launches $88M fund for AI-powered DeFi agents

Mantra CEO John Patrick Mullin said the fund will operate an “open-arms policy, welcoming projects at any developmental stage globally with a particular focus on RWA’s and DeFi.” Mullin told Cointelegraph:

“The MEF thesis is to invest in top-tier teams building RWA and DeFi applications, as well as complimentary infrastructure, that will both directly and indirectly support the broader ecosystem.”

Mantra aims to become the underlying infrastructure layer for tokenized asset issues worldwide, Mullin said.

The launch of the fund comes a month after Mantra became the first DeFi platform to obtain a virtual asset service provider (VASP) license under Dubai’s Virtual Assets Regulatory Authority (VARA).

Related: Stablecoin rules needed in US before crypto tax reform, experts say

Investor demand grows for RWAs

The timing of the fund’s launch aligns with growing institutional interest in RWAs, which are seen by some as a hedge against crypto market volatility and broader economic uncertainty.

Global fears and uncertainty around US President Donald Trump’s tariffs have impacted investor sentiment across markets.

Despite a broader market slump triggered by US tariff-related concerns, the value of tokenized RWAs recently surged to a record high. According to data from RWA.xyz, total RWA market capitalization reached more than $19.6 billion as of early April, up from $17 billion in early February.

Industry watchers previously told Cointelegraph that Bitcoin’s lack of upside momentum may drive RWAs to a $50 billion all-time high before the end of 2025.

The world’s largest asset manager, BlackRock, has also signaled support for the RWA space.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) saw an over three-fold increase in the three weeks leading up to March 26, from $615 million to $1.87 billion.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Cryptocurrency exchange-traded products (ETPs) saw renewed outflows last week, with $240 million in investor capital pulled, according to an April 7 report from digital asset manager CoinShares.

The outflows reversed two consecutive weeks of inflows that totaled $870 million, leaving total digital asset ETP holdings at about $133 billion, CoinShares reported.

The new outflows likely reflect investor caution in response to global trade tariffs imposed by the United States and concerns over their potential threat to global economic growth, CoinShares head of research James Butterfill said.

Bitcoin ETPs flip monthly total negative

Bitcoin (BTC) ETPs led the downturn, with $207 million in weekly outflows. As a result, monthly flows turned negative for the first time this year, with $138 million in net outflows in the past 30 days.

Despite monthly outflows turning red, Bitcoin ETPs still maintain a significant amount of inflows year-to-date, totaling $1.3 billion, according to CoinShares data.

Ether (ETH)-linked ETPs also saw $38 million in weekly outflows but continued to hold $279 million in YTD inflows.

Multi-asset ETPs and short Bitcoin ETPs saw $144 million and $26 billion in YTD outflows, respectively, despite minor inflows last week.

Grayscale leads ETP outflows

Cryptocurrency ETPs by major crypto investment firm Grayscale Investments led the losses among issuers last week, with $95 million withdrawn from its products.

Grayscale’s year-to-date outflows now stand at $1.4 billion, the highest among all ETP providers tracked, according to CoinShares data.

Related: Grayscale launches two new Bitcoin outcome-oriented products

Meanwhile, iShares ETFs by BlackRock still maintained $3.2 billion in YTD inflows after seeing $56 million in outflows last week.

Crypto ETPs by ProShares and ARK Invest are the only two other major issuers that still have inflows YTD, amounting to $398 million and $146 million, respectively.

Magazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler’s Digest, March 30 – April 5

Hong Kong’s Securities and Futures Commission (SFC) has introduced new guidelines for crypto exchanges offering staking services.

In an April 7 announcement, the SFC announced new guidelines for crypto exchanges offering staking services and locally authorized funds exposed to digital assets involved in staking. The announcement follows recent remarks from Christina Choi, the SFC’s executive director of investment products, who said during a speech at the Hong Kong Web3 Festival:

“The SFC is committed to supporting Hong Kong’s Web3 journey.”

In its announcement, the regulator said it “recognizes the potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn yields.” Consequently, the latest guidance allows crypto exchanges to provide staking service offerings.

Related: Hong Kong investment firm’s shares surge 93% after buying just 1 Bitcoin

New rules for staking services

The new rules were communicated by the regulator in its latest circular sent to crypto exchanges under its jurisdiction. The SFC requires crypto exchanges to obtain written approval before offering staking services, retain control over staked virtual assets and not delegate custody to third parties.

Cryptocurrency exchanges engaged in staking must disclose all relevant risks and details concerning fees, minimum lock-up periods, unstaking processes, outage processes and custodial arrangements to their customers. Lastly, the providers must report on their staking activities to the SFC.

A similar circular was sent to SFC-regulated crypto fund operators, with the new rules being relevant to funds with more than 10% of their net asset value invested directly or indirectly in digital assets. Funds can only acquire virtual assets that are also directly available to the local public and rely on SFC-authorized platforms. Leveraged exposure is prohibited.

Funds can engage in staking if it is consistent with the fund’s objectives, while providing clear disclosure and robust controls. An investor notice and possibly shareholder approval may be required if staking implementation leads to material strategy or risk profile changes.

Hong Kong bets on Web3

During her recent speech, SFC’s Choi recognized that the Web3 space is still evolving and that “its full benefits will unfold in time, likely with twists and turns.” She cited the speculative industry of non-fungible tokens (NFTs) as a cautionary tale that justifies caution in the current regulatory approach:

“Therefore, rather than chasing every new spark, we believe in a pragmatic approach — strengthening the fundamentals and fostering a supportive ecosystem where Web3 can thrive in a sustainable manner.“

Related: Hong Kong remains an ‘open and vibrant market’ for crypto, says financial secretary

The official’s comments follow recent reports that cryptocurrency exchange Bybit announced the shutdown of its NFT marketplace as the market is running out of steam. The decision follows a similar decision by major NFT marketplace X2Y2 announced in late March.

The non-fungible token market is seeing a significant downturn. Daily NFT trading volume was over $18 million 364 days ago before Bybit’s announcements and stood at $5.34 million when the decision to shut down the platform was made public — a 70% fall.

When arguing why Web3 companies should choose Hong Kong as their headquarters, Choi pointed out that Hong Kong ranks third in the Global Financial Centres Index. Furthermore, local regulators have set clear guidelines for crypto industry firms, and Hong Kong provides easy access to Asian markets.

In her closing statements, Choi said, “We stand today at the crossroads where traditional finance and the digital economy are converging to drive promising outcomes for our financial markets.” She added:

“The zero-to-one breakthrough has been made, and its future success would very much depend on how we nurture this convergence, that is, how we go from one to 100.“

Her statements echo Hong Kong’s financial technology sector, which has seen 250% growth since 2022. The SFC recently introduced a new roadmap to position the city as a global cryptocurrency hub.

The “ASPIRe” roadmap hopes to future-proof the local virtual asset ecosystem. It involves 12 initiatives spread across five broad categories, which include providing market access, optimizing compliance and frameworks and improving blockchain efficiency.

Magazine: Korea to lift corporate crypto ban, beware crypto mining HDs: Asia Express

An unidentified cryptocurrency whale injected millions of dollars in emergency capital to avoid a potential liquidation of more than $300 million in Ether as markets slumped amid renewed macroeconomic pressure.

The whale is reportedly close to liquidation on a 220,000 Ether (ETH) position on MakerDAO, a decentralized finance (DeFi) lending platform. To stave off liquidation, the investor deposited 10,000 ETH — worth more than $14.5 million — and 3.54 million Dai (DAI) to raise the position’s liquidation price, blockchain analytics firm Lookonchain said in an April 7 post on X.

“If $ETH drops to $1,119.3, the 220,000 $ETH($340M) will be liquidated.”

The development came hours after another Ether investor was liquidated for over $106 million on the decentralized finance (DeFi) lending platform Sky.

The whale lost more than 67,000 ETH when the asset crashed by around 14% on April 6. Sky’s system employs an overcollateralization ratio, typically 150% or higher, meaning that users need to deposit at least $150 worth of ETH to borrow 100 DAI.

Related: Decentralized exchanges gain ground despite $6M Hyperliquid exploit

According to data from CoinGlass, more than 446,000 positions have been liquidated in the past 24 hours, with total losses surpassing $1.36 billion. That includes $1.21 billion in long positions and $152 million in shorts.

The largest single liquidation was a $7 million Bitcoin (BTC) position on crypto exchange OKX.

Related: Smart money still hunting for memecoins despite end of ‘supercycle’

Crypto markets crash after Trump’s tariff announcement, but 70% recovery chance by June

US President Donald Trump announced his reciprocal import tariffs on April 2, which sent tremors across global markets, leading to a $5 trillion loss by the S&P 500, its largest two-day drop on record.

Still, the tariff announcement may finally end the global uncertainty plaguing traditional and digital markets for the past two months.

“In my opinion, the tariffs are the representation of the uncertainty in the markets,” Michaël van de Poppe, founder of MN Consultancy, told Cointelegraph. “Liberation Day is basically the peak of that period, the climax of uncertainty. Now it’s out in the open. Everybody knows the new playing field.”

The end of tariff-related uncertainty may bring the start of a “rotation toward the crypto markets,” as investors will start buying the dip as digital assets become “undervalued,” said van de Poppe.

Crypto intelligence firm Nansen also estimated a 70% probability that the market may bottom by June, depending on how the tariff negotiations evolve.

Magazine: BTC’s ‘reasonable’ $180K target, NFTs plunge in 2024, and more: Hodler’s Digest Jan 12–18

Key takeaways

• Render Network connects GPU owners with creators, allowing users to rent idle graphics power for AI training, 3D rendering and crypto-related projects.

• The RNDR token powers the ecosystem, enabling fast, transparent and decentralized transactions between creators and node operators.

• Decentralized rendering is more accessible and cost-effective than traditional centralized GPU services, solving issues such as pricing, scalability and vendor lock-in.

• Proof-of-render ensures verified outputs, rewarding only completed, validated tasks while maintaining blockchain-level trust and transparency.

The hunger for powerful graphics processing units (GPUs) has skyrocketed. Whether it’s training complex AI models or rendering high-fidelity 3D graphics, the demand often outstrips supply.

Traditional centralized GPU services, while effective, can be costly and sometimes inaccessible to smaller developers or artists. This is where the Render Network steps in, offering a decentralized approach to GPU rendering.

By connecting individuals who have idle GPU power with those who need it, Render Network creates a collaborative ecosystem that benefits both parties. This not only democratizes access to high-performance computing but also introduces a crypto-economic model, utilizing its native RNDR token to facilitate transactions.

In the sections that follow, you’ll learn how Render Network is contributing to the evolution of AI development and 3D rendering through decentralization and blockchain technology.

What is Render Network?

At its core, Render Network is like an Airbnb for GPU power. If you’ve got a powerful graphics card sitting idle, you can rent it out. And if you’re someone building an AI model or rendering a complex 3D scene but don’t have enough GPU muscle, you can tap into that unused power — on demand.

Here’s how it works:

Creators

These are the people who need serious computing power — think AI researchers training models, 3D artists rendering animations or developers working on visually demanding projects. Instead of buying expensive hardware or paying top dollar for centralized cloud services, they can just hop on Render Network and get access to what they need when they need it.

Node operators

On the flip side, there are folks who have GPUs collecting dust (or at least not being fully used). Maybe it’s a gaming rig that’s idle during work hours or a small mining setup looking for a better use case. These operators can plug into Render Network, offer up their GPU power, and earn crypto — specifically RNDR tokens — for their trouble.

RNDR token

The RNDR token (RNDR) is the fuel that keeps this whole ecosystem running. It’s the currency used to pay for jobs on the network. Creators pay in RNDR; operators earn in RNDR. Everything happens transparently onchain, and the token system helps keep things fair and efficient.

In short: Creators get access to affordable, decentralized computing power; node operators get rewarded for sharing their resources; and RNDR tokens make it all tick. It’s a win-win setup that’s especially useful in AI and crypto-heavy workflows.

Did you know? Render Network employs blockchain technology to ensure that every transaction and rendering task is securely recorded, promoting transparency and trust among users.

The role of decentralization in GPU rendering

If you’ve ever tried renting GPU power from a big cloud provider, you know it can get expensive fast. And even then, you’re often competing with major corporations for access to the best hardware. The whole system works, sure, but it’s not exactly built with flexibility or accessibility in mind.

That’s where decentralization comes in. Render Network flips the script by spreading the workload across a global network of independent GPU owners. Instead of relying on a single provider, you’re tapping into thousands of available machines — from gaming rigs to pro-grade render farms — that might otherwise sit idle.

What’s the problem with centralized GPU rendering?

Centralized services come with a few key headaches:

• It’s pricey: Renting powerful GPUs from the likes of Amazon Web Services or Google Cloud can eat through your budget quickly, especially if you’re running long jobs like training an AI model.

• Scalability is limited: If you suddenly need more power, scaling up isn’t always smooth or instant. You’re stuck waiting in line — or paying more for priority access.

• Access isn’t equal: Big corporations tend to hoard the best GPU availability, which makes it harder for smaller teams or indie creators to get what they need when they need it.

• Vendor lock-in is real: Once you build your pipeline around one provider, switching later can be a pain (and expensive).

Why decentralization makes more sense

Now, here’s what a decentralized network like Render offers instead:

• Lower costs: Because you’re tapping into existing resources that would otherwise be unused, pricing tends to be way more affordable.

• Flexible scaling: Need more power? The network can grow with you — just pull in more nodes.

• Equal access: There’s no gatekeeping. Anyone can request GPU resources, and anyone can provide them. It’s a much more level playing field.

• Earn while you sleep: If you’ve got a powerful GPU, you can make it work for you by sharing it on the network when you’re not using it.

All in all, decentralized GPU rendering is quickly becoming the practical choice for AI builders, 3D artists and crypto-native developers who want more control over their tools and budget.

The crypto economy within Render Network

As you briefly explored, at the heart of Render Network’s decentralized rendering platform is its native cryptocurrency, the RNDR token. Let’s dive deeper. 

RNDR token mechanics

The RNDR token serves as the primary medium of exchange within the Render Network. Creators use RNDR tokens to pay for rendering services, while node operators earn these tokens by providing their GPU power to process rendering tasks. This system creates a self-sustaining economy where computational resources are efficiently allocated and fairly compensated. 

Additionally, a small percentage of RNDR tokens, ranging from 0.5% to 5%, is charged on every transaction to support the ongoing development and maintenance of the network.

Earning RNDR tokens

Once onboarded, node operators can connect their GPUs to the network and start accepting rendering jobs. After successfully completing and submitting a rendering task, the work undergoes verification to ensure quality standards are met. Upon approval, the corresponding RNDR tokens are transferred to the node operator’s digital wallet as compensation for their contribution.

Spending RNDR tokens

Creators looking to access rendering services can acquire RNDR tokens through various cryptocurrency exchanges. Once they have the tokens, they can submit their rendering projects to the network. The system calculates the required RNDR tokens based on the project’s complexity and resource demands. After the rendering is completed and the output meets the creator’s expectations, the RNDR tokens are released from escrow and transferred to the node operators who processed the job.

This token-based economy not only streamlines the transaction process within the Render Network but also fosters a collaborative environment where both creators and node operators benefit from the decentralized exchange of rendering services.

Did you know? Render Network utilizes a unique proof-of-render mechanism, which validates completed rendering tasks before compensating node operators. This system mirrors blockchain’s transaction validation processes, ensuring that only verified work is rewarded.

Getting started with Render Network

Here’s how to get started with Render Network.

For creators

Setting up an account and submitting rendering tasks require the following:

1. Obtain an OctaneRender license: Ensure you have an active OctaneRender license or subscription, which can be purchased from OTOY.

2. Access the Creator Portal: With your OctaneRender credentials, log in to the Creator Portal.

3. Prepare your project: Export your project as an ORBX file using OctaneRender. This format encapsulates all necessary assets and settings for rendering.

4. Submit your job: Upload the ORBX file to the Creator Portal, configure your rendering parameters (such as resolution and sample size), and choose a service tier that fits your needs.

5. Monitor and retrieve results: Once submitted, you can monitor the progress of your rendering tasks through the portal. Upon completion, download your rendered assets directly from the platform.

For node operators

Registering GPUs on the network requires:

1. Express interest: Complete the Render Network Interest Form to join the onboarding queue.

2. Await onboarding instructions: Once a slot becomes available, the Render Network team will provide further instructions for setting up your node.

By following these steps and best practices, both creators and node operators can effectively engage with the Render Network, leveraging its decentralized infrastructure for efficient rendering solutions.

A bright future for Render Network?

Render Network is quickly becoming a go-to solution for anyone needing serious GPU power — especially in AI and crypto. Decentralizing access to high-performance computing makes rendering and model training faster, cheaper and way more accessible.

What’s exciting is where it’s headed. The network is expanding to support more advanced AI workflows and exploring deeper integration with other blockchain ecosystems. That means more tools, more flexibility and even broader use cases — whether you’re building with AI, working in 3D or developing onchain applications.

At the end of the day, Render Network is creating a new kind of infrastructure where creators and GPU owners can work together, earn and scale. Whether you’re here to build or contribute, it could be a space worth jumping into.

Bitcoin (BTC) is turning back the clock this week as tariff mayhem drags BTC price action toward 2021.

• Bitcoin is giving up bull market support lines left and right as a new “death cross” completes on the BTC/USD daily chart.

• CPI week is firmly overshadowed by US trade tariffs and their increasingly global impact on stock markets.

• Both crypto and TradFi market participants are drawing comparisons to “Black Monday” 1987 and the COVID-19 cross-market crash.

• Bitcoin’s speculative investor base is firmly out of pocket and likely increasingly tempted to panic sell.

• Sentiment everywhere is nonexistent, with the TradFi Fear & Greed Index recording its lowest score in history.

BTC price “death cross” brings 2021 highs into play

Bitcoin risks falling below its old all-time highs from March 2024 next, Data from Cointelegraph Markets Pro and TradingView shows.

After slipping below $75,000 for the first time since November, BTC/USD is rapidly reawakening long forgotten bull market support lines. These include $69,000, a level that first appeared in 2021.

The dive, which came as a copycat move several days after stock markets began to suffer major losses, caught many by surprise.

Is our uncorrelated hedge in the room right now?

— Charles Edwards (@caprioleio) April 6, 2025

“This is $BTC’s last chance to maintain its macro uptrend structure,” popular analyst Kevin Svenson summarized in a warning on X.

Among the trend lines now lost as support is the 50-week exponential moving average (EMA) at around $77,000.

In an X thread on the coming week, popular trader CrypNuevo described price violating that level as the “only short triggerr I’ll be paying attention to.”

“If we drop below support and get back above it, then I’ll consider this as a deviation and that will be my long trigger fo a push up back to $87k,” he explained.

Trading resource Material Indicators, meanwhile flagged a telltale “death cross” on daily timeframes. This typical bearish signal involves the 50-day simple moving average (SMA) crossing below its 200-day equivalent.

“The momentum carrying through that Death Cross, puts BTC at a critical macro support test,” it told X followers. 

“Stay tuned…”

CPI week meets emergency rate cuts

Like last week, US trade tariffs are the major talking point across financial markets worldwide.

The impact of measures announced last week continues to be felt, as downside momentum on risk assets now becomes fueled by the prospect of more tariffs set for release on April 9.

Speaking to mainstream media over the weekend, Commerce Secretary Howard Lutnick confirmed that the US government would go ahead with the measures without delay.

“The tariffs are coming,” he told CBS News.

With sentiment diving and panic setting in among market participants from trading desks to hedge funds, little attention is being paid to the week’s other potential volatility catalysts.

These will come in the form of US inflation data, itself a key topic as tariffs risk causing unexpected price growth.

The March prints of the Consumer Price Index (CPI) and Producer Price Index (PPI) are due on April 10 and 11, respectively.

Previously, Jerome Powell, Chair of the Federal Reserve, said that while tariffs would have a palpable effect on the US inflation battle, it would be difficult to assess this accurately in advance.

“As the new policies and their likely economic effects become clear, we will have a better sense of the implications for the economy and for monetary policy,” he subsequently said during a speech last week.

Market expectations of the Fed easing policy to compensate for the tariffs are clearly reflected in interest rate forecasts.

The latest data from CME Group’s FedWatch Tool now shows that consensus favors a 0.25% rate cut at the Fed’s May meeting — sooner than the June deadline assumed until this weekend.

In informal circles, including social media and prediction platforms such as Polymarket, bets of an “emergency” rate cut coming sooner are rising rapidly.

“The Federal Reserve may have to make an emergency rate cut soon,” Professional Capital Management founder and CEO Anthony Pompliano predicted at the weekend. 

“Inflation has fallen to the lowest levels since 2020. If this continues, it will be a BIG problem.”

“Black Monday” 1987 or COVID-19 repeat?

In the short term, the “effects” of tariffs are feared to include a marketwide crash similar to “Black Monday” in 1987. 

As Cointelegraph reported, market responses to the first round of reciprocal tariffs laid the foundations for turmoil at the upcoming Wall Street open.

A 10% dip in two consecutive days has only happened for the fourth time in history.

October 1987.
October 2008.
March 2020.
April 2025.

In 1987 & 2020, it marked the bottom.
In 2008, it took one more month to mark the bottom.

— Michaël van de Poppe (@CryptoMichNL) April 6, 2025

For trader, analyst and entrepreneur Michaël van de Poppe, crypto’s Black Monday moment is already here.

“I think we’ll see a rollercoaster 1-2 weeks in which we’re having a test of the lows for Bitcoin. It can go as deep as $70K from here,” he warned X followers on April 7.

Van de Poppe saw an emergency Fed rate cut as the only logical escape path for stemming the risk-asset bleed.

Trading resource The Kobeissi Letter meanwhile pointed to heavy losses on both Chinese and Japanese stocks during the week’s first Asia trading session.

“We are seeing the market’s first circuit breakers since March 2020,” it reported.

Kobeissi described market sentiment as “polarized,” drawing multiple comparisons to the COVID-19 cross-market crash in March 2020 and beyond.

“This is by far the most panic we have seen in the market since March 2020. In fact, we may be nearing investor panic levels ABOVE March 2020,” it added. 

“It’s currently a widespread rush to the exit for investors.”

Bitcoin’s new hodler losses multiply

On Bitcoin, the investor cohort likely first to capitulate are short-term holders (STHs) — the market’s more speculative entities with a buy-in date within the last six months.

As Cointelegraph reported, these investors are highly sensitive to BTC price volatility, and that their panic selling creates a vicious circle for the market.

Data from onchain analytics platform CryptoQuant now shows that the STH cohort is falling increasingly into the red.

The Spent Output Profit Ratio (SOPR) metric, which tracks STH coins moving in profit or loss, is currently below breakeven.

“When STH-SOPR falls below 1.0, it reflects that short-term investors are realizing losses — a classic signal of capitulation,” CryptoQuant contributor Yonsei Dent noted in one of its “Quicktake” blog posts.

“Looking back at 2024, major price corrections were accompanied by sharp drops in STH-SOPR, often reaching or falling below the -2 standard deviation band. These moments — notably in May, July, and August — aligned with periods of panic selling among short-term market participants.”

Below $80,000, BTC/USD is now comfortably under the aggregate cost basis for STH investors, CryptoQuant confirms.

Bitcoin’s total aggregate cost basis, which includes long-term holders, currently sits at $43,000.

Sentiment eclipses bearish records

In a sobering yet arguably bizarre move, the extent of bearish sentiment on traditional markets, as measured by the Fear & Greed Index, has fallen to extremes.

Related: Bitcoin crash risk to $70K in 10 days increasing — Analyst says it’s BTC’s ‘practical bottom’

The latest data from the Index, which uses a basket of factors to compute the market mood, gives a reading of just 4/100.

“It’s never been this low: not in COVID, not after FTX collapse,” popular crypto commentator Atlas noted.

Crypto continues to weather the storm somewhat better, with the Crypto Fear & Greed Index at 23/100 on April 7.

Beyond the panic, some voices are cautiously hinting that now is an ideal moment to “buy the dip” — whether on stocks or crypto.

“This doesn’t necessarily mean the absolute bottom is in, but is generally at least a local opportunity,” the founder of quantitative Bitcoin and digital asset fund Capriole Investments, argued in an X thread.

Edwards tallied up both bullish and bearish arguments, and concluded that much risk remained, especially to Bitcoin’s bull market.

“To be fair Bitcoin did very well last week, but has played catch up (to the downside) over the weekend. Pending some large unforeseen news, it’s going to be hard for Bitcoin to fight a correlation=1 event across risk assets, we saw something similar in early 2020,” he commented. 

“That said, there is historically significant relative strength here to note. We can likely expect Bitcoin to rally the hardest off the bottom, whereever and whenever that is.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Opinion by: Ismael Hishon-Rezaizadeh, co-founder and CEO of Lagrange

Trade wars and proxy wars are underway in the current geopolitical power realignment, but the next phase won’t be fought with tariffs or drones. It will be decided by who leads in cryptography.

Just as past industrial and technological revolutions in its private sector yielded the US an edge in global power, the ability to secure and verify information through cryptographic breakthroughs, especially in zero-knowledge (ZK) proofs, will determine the balance of power in the digital age.

The US risks falling behind. While China and other nations invest aggressively in technological advancements, America lacks a national strategy to maintain leadership in this critical domain. It’s time to recognize cryptography as a foundational technological asset and a key to securing the country’s economic and national security future.

From industrial might

During the world wars of the previous century, the US maintained a dominant global position through industrial strength. The country supplied around 75% of the oil used by the Allies in WWI and around 85% of their oil in WWII. The US also manufactured approximately two-thirds of all military equipment used by the Allies in the latter, playing a pivotal role in the war’s outcome.

Industrial strength was not merely an asset. It was a strategic advantage in global conflicts. American influence will continue to be tied to the private sector’s innovations, especially as we move into more technologically advanced forms of warfare.

To software superiority

Superiority in software has become the most efficient way to sustain US leadership worldwide. Stuxnet offers an example in recent history. In 2010, the software-based operation led by the US and Israeli governments was able to remotely crash Iran’s nuclear development program without deploying a single soldier.

Recent: ‘National emergency’ as Trump’s tariffs dent crypto prices

Today’s private companies have followed suit and developed new software technologies for national defense purposes that have become essential in maintaining the US’s competitive edge. Defense contractors have enhanced US global influence with their contributions to AI, surveillance and advanced analytics for national security purposes. 

The historical trend is set to continue as cryptography starts to play an increasingly important role in defense technology.

Cryptography and zero-knowledge (ZK) proofs

The use cases for cryptography, specifically ZK-proofs, extend far beyond the protection of financial transactions. Consider a shift in focus from the AI race for a bit. In that case, ZK-proofs become critical for more immediately tangible purposes, such as securing the country’s digital infrastructure.

The US Department of Advanced Research Projects Agency and the Department of Defense have already acknowledged the strategic importance of ZK-proofs for defense and national security and developed the Securing Information for Encrypted Verification and Evaluation (SIEVE) program.

NASA and the European Space Agency are exploring blockchain and ZK-proofs to ensure the authenticity of satellite communication commands and prevent cyberattacks.

Private sector contributions are embedding secure cryptographic elements into drones to prevent hacking and ensure safe defense and critical infrastructure operations. At the same time, cybersecurity firms are leveraging blockchain to create secure digital identity ecosystems. 

The private sector is currently at the forefront of innovation in this field. In 2019, there was a boom in research papers focused on ZK-proof technology driven by private efforts to find better solutions in blockchain scalability via ZK-rollups. 

New and innovative approaches to ZK-proofs emerged, with most of the research being led and funded by crypto companies in the private sector. These are all production-ready, future-proof technologies that are finding their way into civilian applications but could be applied to military purposes just as quickly.

Global leadership through innovation

America’s dynamism in the digital age, particularly in cryptography and blockchain technologies, will define its future role as a global power. The US must make bold, strategic investments in private-sector and public-sector research and development for ZK-proofs to maintain its leadership in cryptographic technologies, which are now indispensable to national security, defense and economic stability. 

With a pro-crypto administration and a supportive Congress, the time has come to move beyond merely regulating crypto as an investment class. There must be active cultivation and support for innovation in cryptography and emerging technologies like zero-knowledge proofs. The centuries-old relationship between the private sector and the government must continue to defend national interests. 

This is America’s moment to build a new wave of industrial and technological dominance. It’s time to seize this opportunity and ensure the next century of global leadership is powered by American innovation.

Opinion by: Ismael Hishon-Rezaizadeh, co-founder and CEO of Lagrange.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.