- Bitcoin slipped to $61.5K as the crypto market cap fell to $2.12 trillion.
- MIM stablecoin loses peg while leveraged ETH traders face heavy losses.
- BlackRock moved $257M in BTC and ETH to Coinbase, drawing market attention.
Bitcoin fell to around $61,500, down 2% in the past 24 hours, while Ethereum traded near $1,648 with a 1.4% daily loss. XRP slipped below $1.10, Solana fell to $69, and Dogecoin dropped more than 2.5%.
The broader market also weakened. Total crypto market capitalization declined to $2.12 trillion, down 1.5% over 24 hours. Market sentiment remained firmly bearish, with the Crypto Fear & Greed Index sitting at 18, a level classified as extreme fear.
Meanwhile, behind the scenes, institutions and traders have been actively making moves, some losing while others aim for the long run.
Stablecoins, Leverage Traders Face Heavy Pressure
One of the biggest stories of the day came from Abracadabra Finance after its MIM stablecoin lost its dollar peg and plunged to roughly $0.50. The protocol responded with emergency measures, including higher borrowing costs and the suspension of incentive programs, while it works to restore the peg.
Leverage traders also faced another difficult session. Machi Big Brother saw a 25x leveraged Ethereum long position liquidated for a loss of approximately $1.9 million before opening another 25x ETH long position. His cumulative trading losses have now exceeded $35 million.
Another large Ethereum bull continued absorbing losses. The trader known as the “Iron-Head Bull,” who is long roughly 120,000 ETH, added $8 million in margin as unrealized losses climbed above $77 million.
Also, MemeCore’s M token crashed more than 80% within a day before staging a partial rebound.
Institutions Continue Making Moves
BlackRock transferred approximately 2,700 BTC and 52,956 ETH, worth a combined $257 million, to Coinbase. Market participants are closely monitoring whether additional transfers follow.
Asset manager 21Shares maintained a constructive long-term outlook on Bitcoin. In its latest report, the firm said the current correction resembles previous post-halving pullbacks and projected Bitcoin could recover toward $100,000 by the end of the year.
The company noted that Bitcoin remains above the average investor cost basis of roughly $54,000 despite falling from its 2025 peak near $126,000.
At the same time, Coinbase selected Luxembourg as its MiCA headquarters in Europe, while Binance withdrew its MiCA application in Greece and said it would seek authorization in another European Union member state.
Regulation and Enforcement in Focus
The US Department of Justice seized a cloud computing account linked to the Cambodian Huione Group, which authorities say provided infrastructure for one of the world’s largest crypto laundering and cybercrime networks.
In Washington, lawmakers debated a proposal that could give crypto and fintech firms more direct access to the Federal Reserve’s payment system through streamlined accounts.
President Donald Trump also refused to sign a bipartisan bill containing a four-year ban on a US central bank digital currency, instead pushing Congress to prioritize his SAVE AMERICA ACT election legislation.
Funding Activity Remains Strong
Compute marketplace Ornn raised $33 million in a seed round led by a16z Crypto. Blockchain data infrastructure startup Cambrian secured a $6 million seed round co-led by Franklin Templeton and Polychain Capital.
Sports prediction platform Onyx Odds closed a $20 million funding round led by Payward, the parent company of Kraken, while prediction market giant Kalshi reportedly began seeking a new financing round at a valuation of roughly $40 billion.
Meanwhile, Polymarket expanded its reach through a Telegram integration powered by the TON network, allowing users to access prediction markets directly within the messaging platform.
Mining Stress and Diverging Market Views
Daily miner revenue has dropped to around $30 million, down sharply from more than $50 million last year. Analysts at TheBlock estimate Bitcoin’s production cost is near $78,000, well above the current market price.
Roughly one-fifth of miners are now operating at a loss, while public mining companies sold more than 32,000 BTC during the first quarter to cover expenses.
On the other hand, Litecoin mining pool founder Jiang Zhuoer argued that Bitcoin could ultimately bottom between $42,000 and $44,000 during the fourth quarter of 2026 before a new recovery phase begins.
Related: What Just Triggered the Gold, Silver, Bitcoin and ETH Market Dump?
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