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On April 7, the CBOE Volatility Index (VIX) posted a rare spike to 60, a level seen as a barometer of extreme market fear and uncertainty. According to Dan Tapiero, CEO of 10Tfund, the VIX has hit 60 only five times in the last 35 years, and data suggests a rebound for risk assets such as Bitcoin (BTC) in 6 to 12 months. CBOE Volatility Index. Source: Cointelegraph/TradingView

The VIX, which is widely considered a "fear gauge," reflects investor expectations of market turbulence based on S&P 500 options trading. As illustrated in the chart, extreme spikes were seen in 2008 and 2020, typically coinciding with market bottoms, where panic-driven sellers paved the way for generational market entries.

In light of that, Tapiero argued that the current spike is no different, with the worst of market fears likely "priced in," setting the stage for a positive future. Tapiero said that “odds favor better future.”

Likewise, Julien Bittel, head of macro research at Global Macro Investor (GMI), supported Tapiero’s claim and said that tech stocks are at their most oversold since the COVID-19 crash, with over 55% of Nasdaq 100 stocks posting a 14-day RSI below 30. Such a market signal has occurred only during major crises like the 2008 Lehman Brothers collapse and the 2020 COVID-19 pandemic.

Bittel explained that after the VIX touched 60 last week, it implied peak uncertainty, which breeds fear in investors’ minds. Briefly touching on the US Investors Intelligence Survey, Bittel compared the current bullish sentiment of 23.6% to the lowest reading since December 2008.

TRUMP tokenholders face steep losses as the first vesting unlock goes live on April 18, releasing 40 million tokens, worth roughly $309 million, into circulation at a 90% discount from its peak.

The unlocked tokens account for 20% of the current circulating supply and could introduce fresh volatility as a previously illiquid portion of the supply hits the market. According to CoinGecko, the TRUMP token price has fluctuated between $7.46 and $7.83 in the past 24 hours.

April 18 marks the first unlock event for the TRUMP token, with steady, smaller unlocks following from that date.

The TRUMP token is down 89.5% from its all-time high of $73.43 recorded on Jan. 19, just two days after launching ahead of US President Donald Trump's inauguration. The token's value collapsed in the weeks following its debut, with over 800,000 wallets suffering a total of $2 billion in losses, according to estimates from blockchain analytics firm Chainalysis

Gains or losses are only realized upon sale, meaning holders won’t incur actual losses unless they choose to sell their tokens. According to the token’s website, the unlocked tokens will belong to the “Creators and CIC Digital LLC.”

Cryptocurrency exchange Kraken introduced foreign exchange (forex) perpetual futures contracts to its Kraken Pro platform on April 18, giving traders further exposure to global currency markets.

The first two perpetual forex futures available on the platform will be the euro-US dollar (EUR-USD) and the British pound-US dollar (GBP-USD) contracts, according to a company announcement.

Both contracts feature 20x leverage and no expiry date, meaning they do not have to be rolled or settled by a deadline, unlike traditional futures contracts, which have an expiry date.

Kraken’s move is the latest in a series of expansions from the company, as it seeks to blur the line between digital assets and traditional financial products — a trend reflected across the crypto industry.

Related: Kraken secures restricted dealer registration in Canada

Bitcoin (BTC) has been trading in a tight range for a few days, but a minor positive is that the bulls have kept the price above $83,000. Usually, a low volatility period is followed by a range expansion, but it is difficult to predict the direction of the breakout with certainty.

Cryptocurrency analysts remain bullish on Bitcoin’s prospects because gold’s rally in 2017 and 2020 was followed by a sharp rise in Bitcoin's price. Theya head of growth Joe Consorti said in a post on X that Bitcoin follows gold with a lag of roughly 100 to 150 days. 

If Bitcoin moves as per Consorti’s expectations, a new all-time high could be hit between Q3 and Q4 of 2025. On similar lines, trading and analytics account Cryptollica projected a medium-term target of $155,000 for Bitcoin.

Along with Bitcoin, analysts are also bullish on altcoins. Swiss bank Sygnum said in its Q2 2025 investment outlook that improved regulations for crypto use cases have prepared the ground for a strong altcoins rally in the second quarter, as “none of the positive developments have been priced in.”

Could Bitcoin and the altcoins break above their respective overhead resistance levels and start a recovery? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Federal prosecutors said they will continue pursuing their case against Braden John Karony, the former CEO of crypto firm SafeMoon, despite the US Justice Department issuing a memo suggesting a policy of abandoning “regulation by prosecution” related to digital assets.

In an April 18 filing in the US District Court for the Eastern District of New York, US Attorney for EDNY John Durham said his office had reviewed the April 7 DOJ memo issued by Deputy Attorney General Todd Blanche and intended to proceed with a trial against Karony.

The former SafeMoon CEO faces securities fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy charges for allegedly “divert[ing] and misappropriat[ing] millions of dollars’ worth” of the platform’s SFM token between 2021 and 2022.

Karony, initially indicted in October 2023 under former US Attorney for EDNY Breon Peace, argued in February that his criminal trial should be delayed, hinting that securities laws enforcement under the Donald Trump presidency could see “significant changes.” The judge denied the motion and later ordered jury selection for the trial to begin on May 5. 

However, Karony’s legal team made its claims about securities laws under Trump potentially undergoing “policy changes” before the Securities and Exchange Commission (SEC) dismissed cases and dropped investigations into many crypto firms facing allegations of violating securities laws. Blanche’s April 7 memo also suggested that the DOJ under Trump would direct jurisdictions not to pursue many crypto enforcement cases.

Crypto investor sentiment took another significant hit this week after Mantra’s OM token collapsed by over 90% within hours on Sunday, April 13, triggering knee-jerk comparisons to previous black swan events such as the Terra-Luna collapse.

Elsewhere, Coinbase’s report for institutional investors added to concerns by highlighting that cryptocurrencies may be in a bear market until a recovery occurs in the third quarter of 2025.

Mantra OM token crash exposes “critical” liquidity issues in crypto

Mantra’s recent token collapse highlights an issue within the crypto industry of fluctuating weekend liquidity levels creating additional downside volatility, which may have exacerbated the token’s crash.

The Mantra (OM) token’s price collapsed by over 90% on Sunday, April 13, from roughly $6.30 to below $0.50, triggering market manipulation allegations among disillusioned investors, Cointelegraph reported.

While blockchain analysts are still piecing together the reasons behind the OM collapse, the event highlights some crucial issues for the crypto industry, according to Gracy Chen, CEO of the cryptocurrency exchange Bitget.

Bitcoin’s spot price could take a hit after the US Federal Reserve reported some of the worst manufacturing data in recent history, according to several cryptocurrency analysts.

On April 17, the Philadelphia Federal Reserve Manufacturing Index — a monthly survey of 250 US-based manufacturers — reported the sharpest declines in overall business activity since 2020. 

The data puts Bitcoin (BTC) “under short term pressure,” researchers at Bitunix, a crypto exchange, said in a post on the X platform. They added that Bitcoin could still see a “strong comeback” if its price holds above $83,000 per coin.  

As of April 18, Bitcoin has been trading at approximately $84,000 per coin, according to data from Google Finance.

The Federal Reserve’s bearish report comes as factories brace for the impact of US President Donald Trump’s plans to impose sweeping tariffs on US imports, potentially raising production costs for manufacturers.

“[I]ndicators for general activity, new orders, and shipments all fell and turned negative… suggest[ing] subdued expectations for growth over the next six months,” the report said. 

Bitcoin’s (BTC) richest traders and investors are increasingly bullish on BTC despite facing downside risks from unfavorable macroeconomic factors, the latest onchain data suggests.

Bitcoin whales absorbing 300% of new supply

Bitcoin whales and sharks are now absorbing BTC at record rates—over 300% of yearly issuance—while exchanges are losing coins at a historic pace, according to Glassnode.

Notably, Bitcoin’s yearly absorption rate by exchanges has plunged below -200% as outflows continue. This signals a growing preference for self-custody or long-term investment.

Meanwhile, larger holders (100–1,000+ BTC) are scooping up more than three times the new issuance, marking the fastest rate of accumulation among sharks and whales in Bitcoin’s history.

This marks a structural shift as traditional finance increasingly adopts BTC, particularly with the approval spot Bitcoin ETFs last year. The result is less BTC supply on crypto exchanges and long-term bullish conviction among big holders.

Oregon Attorney General Dan Rayfield is planning a lawsuit against crypto exchange Coinbase, alleging the company is selling unregistered securities to residents of the US state, after the United States Securities and Exchange Commission's (SEC) dropped its federal case against the exchange.

According to Coinbase's chief legal officer, Paul Grewal, the lawsuit is an exact "copycat case" of SEC’s 2023 lawsuit against the exchange, which the federal agency agreed to drop in February. Grewal added:

The lawsuit signals that the crypto industry still faces regulatory hurdles and pushback at the state level, even after securing several legal victories on the federal level. Pushback from state regulators could fragment crypto regulations in the US and complicate cohesive national policy.

Related: Coinbase distances Base from highly criticized memecoin that dumped $15M

Several US states drop lawsuits against Coinbase following SEC moves

The SEC reversed its stance on cryptocurrencies following the resignation of former chairman Gary Gensler in January.

South Korea kicked off 2025 with political chaos, regulatory heat and a crypto market finally brought to heel — or at least forced to grow up.

The nation closed 2024 in disarray following then-President Yoon Suk Yeol’s botched martial law stunt in December.

In the aftermath, authorities spent the first quarter drawing lines in the sand as financial watchdogs slapped cryptocurrency exchanges with probes and lifted the ban on corporate trading accounts. Meanwhile, crypto adoption hit record highs as trading volume cooled.

Here’s a breakdown of the key developments that shaped South Korea’s crypto sector in Q1 of 2025.

South Korean crypto traders given yet another two-year tax exemption

Jan. 1 — Crypto tax postponed

A planned 20% capital gains tax on crypto did not take effect on Jan. 1 after lawmakers agreed to delay it until 2027. This was the third postponement: first from 2022 to 2023, then again to 2025.

Opinion by: Axel Schorn and Dr. Duc Au

Traditional stocks, bonds and commodities markets have long benefited from well-established standards governing the flow of information and data. These standards underpin the seamless functioning of trading, settlement and regulatory compliance, ensuring all participants can rely on the same consistent frameworks.

As the financial industry moves into decentralized finance (DeFi) with the introduction of digital assets, like crypto assets and tokenized securities, the lack of such standards presents a growing challenge. 

While digital assets promise transformative potential, their fragmented information landscape risks undermining their adoption and integration into the broader financial ecosystem.

Independent platforms like CoinMarketCap or CoinGecko provide information on various tokens, but this data varies significantly regarding market capitalization, total supply and other relevant reference data. Several global initiatives by private foundations and associations are working toward standardization. 

Early cypherpunk Adam Back, cited by Satoshi Nakamoto in the Bitcoin white paper, suggested that quantum computing pressure may reveal whether the blockchain’s pseudonymous creator is alive.

During an interview after a Q&A session at the “Satoshi Spritz” event in Turin on April 18, Back suggested that quantum computing may force Nakamoto to move their Bitcoin (BTC). That’s because, according to Back, Bitcoin holders will be forced to move their assets to newer, quantum-resistant signature-based addresses.

Back said that current quantum computers do not pose a credible threat to Bitcoin’s cryptography but will likely threaten it in the future. Back estimated that quantum computers may evolve to that extent in “maybe 20 years.”

Related: Bitcoin’s quantum-resistant hard fork is inevitable — It’s the only chance to fix node incentives

When the threat becomes real, Back said the Bitcoin community will have to choose between deprecating old, vulnerable addresses or letting those funds be stolen:

As gold prices break new highs, many Bitcoiners are seeking ways to obtain exposure to the precious metal, but have been met with hurdles along the way.

Although physical gold is accessible in the form of jewelry, gold bars and coins, many industry executives are concerned about aspects like its quality, liquidity when selling, and buying at a premium above spot prices.

Still, gold advocates are confident that the precious metal is much easier to buy than Bitcoin (BTC), given the complexities of storing private keys and a steep learning curve for new crypto investors.

Both Bitcoin and gold are available in the form of tokenized assets, exchange-traded funds (ETFs) and other equity instruments, but the question of owning these assets in their original form reveals some differences.

Community: Buying Bitcoin is easier and faster

“Buying Bitcoin is significantly easier and faster than buying physical gold,” Ross Shemeliak, co-founder of the tokenization platform Stobox, told Cointelegraph.

Blockchain firm Astar Network implemented changes to its tokenomics to reduce inflationary pressures in its ecosystem. 

On April 18, Astar Network announced that it reduced the blockchain’s base staking rewards to 10% from 25% to curb token inflation. 

The company said the change promotes a more stable annual percentage rate (APR) for users as staking inches closer to a more ideal ratio. The firm said this ensures that rewards “remain meaningful” without causing excessive inflation. 

“This change lowers automatic token issuance, reducing overall inflationary pressure while maintaining strong incentives for users to stake their ASTR,” Astar Network wrote. 

Astar Network implements inflation-control mechanisms

Unlike Bitcoin, which has a fixed total supply, the ASTR token operates under a dynamic inflation model without a cap on its maximum token supply. As the blockchain operates, it emits more tokens, increasing the supply. 

Bitcoin (BTC) speculators may spark “significant” BTC price volatility as a large tranche of coins moves onchain.

In one of its “Quicktake” blog posts on April 18, onchain analytics platform CryptoQuant warned that a Bitcoin market shake-up is due.

CryptoQuant: “Volatility is coming” for BTC price

Bitcoin short-term holders (STHs) are signaling that the current calm BTC price behavior may not last long.

CryptoQuant reveals that 170,000 BTC owned by entities with a purchase date between three and six months ago has begun to circulate.

“Around 170,000 BTC are moving from the 3–6 month holder cohort,” contributor Mignolet confirmed. 

Global grocery giant Spar has rolled out Bitcoin-based payments in a Swiss city, marking another step in the growing adoption of cryptocurrency for everyday transactions.

A Spar supermarket in Zug, Switzerland, has implemented Bitcoin (BTC) payments via the Lightning Network.

The store’s Bitcoin payments went live on BTC Mao, a community-driven project highlighting stores that accept BTC payments, DFX Swiss, a crypto-to-fiat payment solution firm, announced in an April 17 LinkedIn post.

“This SPAR location is among the first supermarkets in Switzerland where you can pay directly at the checkout using Bitcoin (via LNURL), thanks to our new hashtag#OpenCryptoPay solution, an open P2P standard for in-person crypto payments,” DFX said.

Switzerland has long been regarded as one of the more crypto-friendly European jurisdictions with some of the earliest crypto-adoption initiatives.

A hacker behind the $7.5 million KiloEx exploit returned all the stolen funds four days after the attack.

Decentralized exchange (DEX) KiloEx had suspended platform operations after suffering the $7.5 million exploit, Cointelegraph reported on April 15.

In a surprising turn of events, the wallet address behind the exploit has returned all of the stolen cryptocurrency loot to the DEX. 

“#KiloEx exploiter -labeled addresses have returned ~$5.5M worth of cryptos to #KiloEx,” according to an April 18 X post from blockchain security platform PeckShieldAlert.

Minutes after the transfer occurred, KiloEx announced the full recovery of all the stolen funds, the exchange wrote in an April 18 X post.

Hong Kong-based crypto investment firm HashKey Capital announced the launch of an XRP fund, with plans to convert it into an exchange-traded fund (ETF) in the future.

According to an April 18 announcement, the fund, officially titled the HashKey XRP Tracker Fund, is reportedly “the first investment fund in Asia designed to track the performance of XRP.”

XRP developer Ripple will serve as the fund’s anchor investor. In a separate X post, HashKey Capital said the fund aims to bring “more institutional capital into regulated XRP products and the broader digital asset ecosystem.”

Close collaboration with Ripple

In another X post, HashKey Capital said the fund marks the beginning of a closer collaboration with Ripple. The two firms “are exploring new investment products, cross-border DeFi solutions, and tokenization —including the possibility of launching a money market fund (MMF) on the XRP ledger.”

Related: Ripple vs. XRP vs. XRP Ledger: What’s the difference?

Altcoins may see a resurgence in the second quarter of 2025 as regulations for digital assets continue to improve, according to Swiss bank Sygnum.

In its Q2 2025 investment outlook, Sygnum said the space has seen “drastically improved” regulations for crypto use cases, creating the foundations for a strong alt-sector rally for the second quarter. However, it added that “none of the positive developments have been priced in.” 

In April, Bitcoin dominance reached a four-year high, signaling that crypto investors are rotating their funds into an asset perceived to be relatively safer. 

Still, Sygnum said regulatory developments in the US, such as President Donald Trump’s establishment of a Digital Asset Stockpile and advancing stablecoin regulations, may propel broader crypto adoption.

“We expect protocols successful in gaining user traction to outperform and Bitcoin’s dominance to decline,” Sygnum wrote. 

The Synthetix protocol’s native stablecoin, Synthetix USD (SUSD), has slipped further away from its US dollar peg, reaching new all-time lows under $0.70. 

However, the firm reiterates that this isn’t the first time the asset has been under significant stress, and several risk measures are in place.

“Synthetix and sUSD have weathered multiple bear markets and periods of stablecoin volatility; this is not the first resilience test,” a spokesperson from Synthetix told Cointelegraph.

SUSD down almost 31% from its intended 1:1 peg

sUSD is a crypto-collateralized stablecoin. Users lock up SNX tokens to mint sUSD, making its stability highly dependent on the market value of Synthetix (SNX). 

At the time of publication, sUSD (SUSD) is trading at $0.70, 30% below its intended 1:1 peg with the US dollar, according to CoinMarketCap data.

There has been a 66% year-on-year decrease in the number of crypto rug pulls this year compared to 2024, but recent data shows the size of each rug pull has been increasing.

Rug pulls have dropped in frequency year-over-year, with early 2024 recording 21 separate incidents, compared to only seven so far in 2025, according to an April 16 report from blockchain analytics platform DappRadar.

However, since the beginning of 2025, the Web3 ecosystem has lost nearly $6 billion to rug pulls, according to DappRadar’s report. However, the report attributes 92% of that to Mantra’s OM token collapse, which the founders have strongly denied was a rug pull.

In comparison, during the same period in early 2024, three months into the year, total losses from rug pulls hit $90 million.

“This shift suggests that rug pulls are becoming less frequent, but far more devastating when they do occur,” DappRadar analyst Sara Gherghelas said. 

Manta Network co-founder Kenny Li says he was targeted by a highly sophisticated phishing attack on Zoom that used live recordings of familiar people in an attempt to have him download malware. 

The meeting seemed real with the impersonated person’s camera on, but the lack of sound and a suspicious prompt to download a script raised red flags, Li said in an April 17 X post.

“I could see their legit faces. Everything looked very real. But I couldn’t hear them. It said my Zoom needs an update. But it asked me to download a script file. I immediately left.”

Li then asked the impersonator to verify themselves over a Telegram call, however, they didn’t comply and proceeded to erase all messages and block him soon after.

Li believes the North Korean state-backed Lazarus Group was behind the attack.

American film producer, record executive and art collector David Geffen has hit back at crypto entrepreneur Justin Sun in a countersuit disputing ownership claims over a multimillion-dollar sculpture.

The billionaire American media mogul filed a counterclaim against Sun on April 16, calling the Tron founder’s suit a “sham” and adding claims of “unethical and/or illegal business activities.”

Sun sued Geffen in February, claiming that the statue was stolen from him by a former employee who then sold the artwork to Geffen in a deal worth around $65 million in artwork and cash.

Sun purchased the Alberto Giacometti sculpture titled “Le Nez” at a Sotheby’s auction in 2021 for $78 million, working with the assistance of his former art adviser, Xiong Zihan Sydney.

In the 100-page countersuit, Geffen claims that Sun and Xiong “contrived this fraudulent lawsuit” after they couldn’t profitably sell two paintings that Geffen had exchanged for the sculpture, along with $10.5 million in cash.

Yemeni citizens are increasingly using decentralized finance (DeFi) protocols to bank themselves amid US sanctions aimed at the Houthi group, which they have deemed a terrorist organization. 

In the past, internet infrastructure challenges and low financial literacy among the war-torn population contributed to relatively limited crypto adoption, according to an April 17 report from blockchain intelligence firm TRM Labs.

“However, there are signs of growing interest and usage driven primarily by necessity rather than speculation,” the blockchain intelligence firm said. 

Yemen has been in a civil war between the government and the Houthi group since September 2014. The US has also frequently sanctioned financial infrastructure in the country to disrupt Houthi activity, with the most recent action on April 17 hitting the International Bank of Yemen.

DeFi platforms account for most of Yemen’s crypto-related web traffic, taking up over 63% of observed activity, while global centralized exchanges account for 18% of crypto-related web traffic, TRM Labs data shows.

Bitcoin’s relatively stable price movements despite macroeconomic uncertainty is likely due to resilient spot Bitcoin ETF holders and Michael Saylor’s firm continuing to buy aggressively, according to a Bloomberg analyst.

“The ETFs and Saylor have been buying up all ‘dumps’ from the tourists, FTX refugees, GBTC discounters, legal unlocks, govt confiscations and Lord knows who else,” Bloomberg ETF analyst Eric Balchunas said in an April 16 X post.

Bitcoin ETF holders hold despite market volatility

Balchunas pointed out that spot Bitcoin (BTC) ETFs have attracted $131.04 million over the past 30 days and are up $2.4 billion since Jan. 1. Balchunas called this “impressive,” noting it helps explain why Bitcoin has “been relatively stable.”

“Its owners are more stable,” Balchunas said. Balchunas said Bitcoin ETF investors have “much stronger hands than most people think.” He said this “should” increase the stability and lower Bitcoin’s volatility and correlation in the long term. 

Saylor’s firm, Strategy, made its latest Bitcoin purchase on April 14, acquiring 3,459 BTC for $285.5 million at an average price of $82,618 per coin. According to Saylor Tracker, Strategy holds 531,644 Bitcoin at the time of publication.

Crypto research firm Galaxy Research has made a proposal to adjust the voting system that decides the outcome of future Solana inflation following the failure to come to a consensus in a previous vote.

On April 17, Galaxy introduced a Solana proposal called “Multiple Election Stake-Weight Aggregation” (MESA) to reduce the inflation rate of its native token, SOL (SOL). The researchers described the proposal as a “more market-based approach to agreeing on the rate of future SOL emissions.”

Rather than using traditional yes/no voting for inflation rates, MESA allows validators to vote on multiple deflation rates and uses the weighted average as the outcome.

“Instead of cycling through inflation reduction proposals until one passes, what if validators could allocate their votes to one or many changes, with the aggregate of ‘yes’ outcomes becoming the adopted emissions curve?” Galaxy explained.  

The motivation for the concept comes from a previous proposal (SIMD-228), which showed community agreement that SOL inflation should be reduced, but the binary voting system couldn’t find consensus on specific parameters. 

Update (April 18 at 3:28 am UTC): This article has been updated to include a comment from Bitcoin Laws founder Julian Fahrer.

One of Arizona’s crypto reserve bills has been passed by the House and is now one successful vote away from heading to the governor’s desk for official approval.

Arizona's Strategic Digital Assets Reserve Bill (SB 1373) was approved on April 17 by the House Committee of the Whole, which involves 60 House members weighing in on the bill before a third and final reading and a full floor vote.

SB 1373 seeks to establish a Digital Assets Strategic Reserve Fund made up of digital assets seized through criminal proceedings to be managed by the state’s treasurer. 

Arizona’s treasurer would be permitted to invest up to 10% of the fund’s total monies in any fiscal year in digital assets. The treasurer would also be able to loan the fund’s assets in order to increase returns, provided it doesn’t increase financial risks.

Slovenia’s Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation. 

The bill proposes to tax traders when they sell their cryptocurrency for fiat or pay for goods and services, but crypto-to-crypto and transfers between wallets owned by the same user will be exempt, Slovenia’s Finance Ministry said in an April 17 statement.

Under the proposed legislation, crypto tax will be aligned with existing tax laws. Slovenia taxpayers will be required to keep a record of all their transactions for annual tax returns. The tax base would be calculated on profits by subtracting the purchase price from the sale price. 

In a statement to the Slovenia Times, finance minister Klemen Boštjančič said it’s unreasonable that crypto trading for individuals isn’t currently taxed in the country. 

“The goal of taxation of crypto assets is not to generate tax revenue, but we find it illogical and unreasonable that one of the most speculative financial instruments is not taxed at all,” he said in a statement translated from Slovenian.

Bitcoin’s (BTC) realized market cap reached a new all-time high of $872 billion, but data from Glassnode reflects investors’ lack of enthusiasm at BTC’s current price levels.

In a recent X post, the analytics platform pointed out that despite the realized cap milestone, the monthly growth rate of the metric has dropped to 0.9% month over month, which implied a risk-off sentiment in the market.

Realized cap measures the total value of all Bitcoin at the price they last moved, reflecting the actual capital invested, providing insight into Bitcoin’s economic activity. A slowing growth rate highlights a positive but reduced capital inflow, suggesting fewer new investors or less activity from current holders.

Additionally, Glassnode’s realized profit and loss chart recently exhibited a sharp decline of 40%, which signals high profit-taking or loss realization. The data platform explained,

While new investors remained sidelined, existing investors are probably adopting a cautious approach due to the short-term holder’s realized price. Data from CryptoQuant suggested that the current short-term realized price is $91,600. With BTC currently consolidating under the threshold, it implies short-term holders are underwater, which can increase selling pressure if they sell to cut their losses.