BTC Drops to $86K as Crypto Liquidations Reach $1.6 Billion

BTC Drops to $86K as Crypto Liquidations Reach $1.6 Billion

Bitcoin plummeted to $85,899 on Tuesday, marking its lowest level since November, before recovering slightly to $87,220. The decline comes amid a three-day sell-off in equities, with $756.68 million in long positions liquidated as traders scramble to exit risk assets, according to CoinGlass.

The downturn follows President Trump’s latest trade tariff threats against Mexico and Canada, compounding economic uncertainty that has weighed on markets. Equities have also faced a few difficult sessions over the last week and the pressure has spilled over into Bitcoin and crypto markets.

Further panic selling was triggered by $1.6 billion in total crypto liquidations, as Bitcoin ETFs suffered their worst outflows in months. Fidelity’s FBTC lost $247 million, while BlackRock’s IBIT shed $158.6 million, contributing to $516.4 million in total outflows from U.S. spot Bitcoin ETFs on Monday.

Meanwhile, altcoins saw even steeper declines, with Ethereum and Solana both tumbling 8%, and meme coins collapsing by 15.5% in the past 24 hours. Analysts caution that if Bitcoin fails to hold support, a further decline to $75,000-$70,000 remains possible, with short-term recovery hinging on fresh institutional demand or new market catalysts.

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The SEC Drops its Investigation Into Uniswap Labs

The U.S. Securities and Exchange Commission has closed its investigation into Uniswap Labs, ending nearly three years of scrutiny into the decentralized exchange. The decision follows the SEC's recent withdrawal of cases against Coinbase, OpenSea, and Robinhood, signaling a significant regulatory shift under the new administration.

Uniswap hailed the outcome as a landmark victory for decentralized finance, reinforcing its legal standing in the U.S. “This is a huge win for DeFi and reaffirms what we’ve always known – that the technology we build is on the right side of the law,” Uniswap said in a statement. UNI’s price initially jumped to $8.28 before settling at $7.87, as investors absorbed the broader market downturn.

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Miyaguchi Takes Presidency of the Ethereum Foundation

Aya Miyaguchi has been appointed President of the Ethereum Foundation, stepping up from her role as Executive Director amid community scrutiny. Ethereum co-founder Vitalik Buterin confirmed leadership changes are in motion, stating, “As I see it, the role of an ED is to create an environment where others can shine and do their best work.”

The Ethereum Foundation has faced criticism for slow scaling progress and a lack of transparency, but Buterin has reaffirmed its commitment to improving governance. Miyaguchi’s leadership will focus on institutional partnerships and community engagement, while Buterin explores structural reforms to modernize the foundation’s role in Ethereum.

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Bybit Launches Bounty War Against Lazarus Hackers

Bybit has declared an all-out “war against Lazarus”, launching a bounty program and tracking system to freeze stolen funds from its $1.5 billion hack. CEO Ben Zhou announced that users who submit wallet addresses leading to frozen assets will receive 5% of the recovered amount, with $42.3 million already locked from the hackers' addresses.

The exchange’s lazarusbounty.com platform tracks 6,338 wallet addresses linked to the North Korean hacking group and aims to shame entities that refuse to cooperate. “We will not stop until Lazarus or bad actors in the industry is eliminated,” Zhou wrote, emphasizing Bybit’s commitment to transparency and industry-wide security.

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Data of the Day

Market analyst Miles Deutscher pointed out that PumpFun’s meteoric rise has caused a shift in the altcoin market, with speculative capital moving away from top projects and towards lower-cap, on-chain tokens. This shift has led to severe losses for many retail investors, who have faced 70-80% drawdowns.

Deutscher remarked that PumpFun “fundamentally changed the game, arguably for the worse,” turning crypto into “the biggest casino on the planet.” While early adopters made substantial gains, late entrants suffered heavily from the crashes of illiquid meme coins, fueling a broader decline in altcoin market sentiment.

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More Breaking News

• Nasdaq has filed to list the Grayscale Polkadot ETF, adding to a growing list of altcoin ETF applications awaiting SEC approval.
• Sam Bankman-Fried posted on X for the first time since January 2023, sharing his views on the recent mass layoffs in the U.S. government.
• OKX affiliate Aux Cayes FinTech has settled with the DOJ for $500 million over operating an unlicensed money-transmitting business in the US.
• Tron is set to launch a 'Gas Free' feature for Tether USDT transactions next week, eliminating the need for TRX to cover gas fees.
• Starknet is getting its first gaming appchain, Nums, which will use its SN Stack technology to allow players to earn $NUMS tokens.
• South Dakota lawmakers have effectively killed a bill that would have allowed the state to invest in Bitcoin by deferring it beyond the legislative session.
• Bitcoin mining stocks Bitdeer and Cipher Mining tumbled after earnings reports revealed ongoing profitability struggles following the 2024 Bitcoin halving.

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