Digital asset investment products recorded another week of outflows, extending the capital flight to four weeks.

As has been the case throughout the bearish phase, Bitcoin and Ethereum led the negative trend, with investor caution amid market volatility and the overriding sentiment key catalysts.

However, CoinShares reports that Solana and XRP notched inflows despite recent price declines.

Crypto ETP outflows extend to four weeks

According to James Butterfill, head of research at CoinShares, digital asset investment products saw a fourth consecutive week of outflows totalling $173 million for the period to February 13, 2026.

The redemptions bring the cumulative four-week run to over $3.7 billion, Butterfill wrote in a weekly report published on Monday.

CoinShares notes that the week started positively with inflows of $575 million on Monday, Feb. 9, 2026.

However, that flipped red as risk assets sold off, pushing $853 million from crypto exchange-traded products by mid-week.

That dip coincided with fresh price weakness across major cryptocurrencies, a scenario that intensified as BTC touched new lows around $60k.

Gains for stocks and cryptocurrencies nonetheless saw sentiment flip slightly bullish on the latest CPI data release.

According to Butterfill, the market recorded $105 million in inflows on Friday.

Yet, net flows remained negative for the week. ETP trading volumes dropped sharply to $27 billion from a record $63 billion the previous week.

Analysts note that this pattern reflects the overall profit-taking and risk-aversion environment.

A look at regional distribution suggests US-based products continue to bear the brunt of the outflows.

Solana and XRP defy outflows trend

Although BTC and ETH led the way in terms of volumes of outflows this past week, a few altcoins showed resilience.

The market saw strong institutional interest in Solana and XRP even as prices faced pressure.

Over the past week, XRP ETFs and other digital asset investment products drew $33.4 million, while Solana attracted more than $31 million.

Both altcoins build on last week’s figures of roughly $48.5 million for SOL and $62.9 million for XRP, according to CoinShares data.

Elsewhere, the oracle network Chainlink (LINK) also saw inflows, albeit a modest $1.1 million.

Butterfill says the inflows reflect bullish sentiment on key coins, a factor that points to investor confidence in selective altcoin markets.

Bitcoin and Ethereum lead ETP weekly outflows

Bitcoin experienced the harshest weekly outflows as bears showcased their strength.

Data shows investors pulled over $133 million from various BTC-tied products.

Uncertainty meant even short Bitcoin investment products added to the overall pressure, recording outflows totaling $15.4 million over the past two weeks.

The same outlook hit Ethereum, which saw more than $85 million in outflows amid waning investor appetite.

The post Solana, XRP attract inflows despite 4-week crypto ETP outflows streak appeared first on CoinJournal.

Solana, XRP attract inflows despite 4-week crypto ETP outflows streak

Source: https://coinjournal.net/news/solana-xrp-attract-inflows-despite-4-week-crypto-etp-outflows-streak/ ***

A hacker who recently exploited Unleash Protocol has begun laundering stolen funds through the Ethereum-based privacy service Tornado Cash, according to on-chain data and blockchain security firms.

The attacker is attempting to obscure the trail of roughly 1,337 ETH, valued at close to $4 million, drained from Unleash earlier this week.

Security companies PeckShield and CertiK have reported that the funds were transferred to Ethereum and broken into multiple batches, often around 100 ETH each, before being deposited into Tornado Cash, a well-known crypto mixing protocol.

Governance takeover led to the Unleash exploit

Unleash confirmed on Tuesday that it had suffered a significant security breach, resulting in approximately $3.9 million in losses.

The protocol has paused operations and launched a forensic investigation into the incident.

According to Unleash, preliminary findings indicate that an externally owned wallet gained unauthorised administrative control over the protocol via its multisignature (multisig) governance system.

The attacker then executed an unauthorised contract upgrade that enabled withdrawals of user funds without proper approvals.

“This upgrade enabled asset withdrawals that were not approved by the Unleash team and occurred outside our intended governance and operational procedures,” the team said in a statement posted on X.

Security analysts suggest the compromise may have been the result of phishing or another form of social engineering that allowed the attacker to gain control over governance keys, effectively bypassing standard safeguards.

The stolen assets bridged and mixed

The stolen assets reportedly included Wrapped IP (WIP), USDC, Wrapped Ether (WETH), stIP, and vIP tokens.

On-chain analysis shows that most of these assets were first bridged to Ethereum, then consolidated into ETH and routed through Tornado Cash, an approach commonly used by hackers to hinder tracking and recovery efforts.

CertiK said it initially detected suspicious withdrawals of WETH and IP-related tokens that were sent to an externally owned address created using Safe’s SafeProxyFactory, a popular smart contract framework for multisig wallets.

#CertiKInsight

We have detected deposits of 1337.1 ETH (~$3.9M) into Tornado Cash from 0xc946981F5dFBFA10cf858B95d51Fc06DCD15BfE3.

The fund traces to suspicious withdrawals of Wrapped ETH and Story tokens from a multisig that may have been compromised.… pic.twitter.com/YIFEAEwilc

— CertiK Alert (@CertiKAlert) December 30, 2025

No broader ecosystem impact, says Unleash

Unleash emphasised that the breach was confined to its own governance and administrative contracts.

The Unleash team stated there is currently no evidence that Story Protocol, the Layer 1 blockchain Unleash is built on, was compromised.

“The impact appears limited to Unleash-specific contracts and administrative controls,” the Unleash team said, adding that Story Protocol’s validators, core infrastructure, and contracts remain unaffected.

Unleash is one of the higher-profile applications in the Story Protocol ecosystem, which focuses on tokenised intellectual property and on-chain IP management.

PIP Labs, the company behind Story Protocol, has raised around $140 million in funding from prominent investors.

Users warned as investigation continues

The Unleash team has urged users not to interact with the protocol while the investigation is ongoing and said it will provide updates on the incident and potential remediation measures as more verified information becomes available.

As of the time of writing, Unleash had not disclosed whether it plans to pursue fund recovery efforts or compensation for affected users, and the use of Tornado Cash by the hacker may significantly complicate any attempts to trace or reclaim the stolen assets.

The post Unleash Protocol hacker moves stolen funds through Tornado Cash appeared first on CoinJournal.

Unleash Protocol hacker moves stolen funds through Tornado Cash

Source: https://coinjournal.net/news/unleash-protocol-hacker-moves-stolen-funds-through-tornado-cash/

Check our Market Overview

Chainlink’s native token LINK bounced back 3.6% on Friday, climbing to $16.96 as institutional buyers stepped in near key support levels.

The rebound follows strong trading volume with over 3 million tokens exchanged during the morning breakout.

More importantly, payments-focused blockchain Stellar announced a major integration with Chainlink’s suite of services, including the Cross-Chain Interoperability Protocol (CCIP), Data Feeds, and Data Streams.

This collaboration signals growing institutional demand for secure financial infrastructure and positions both networks to capitalize on the expanding real-world asset tokenization market, which analysts project could reach $2 trillion by 2028.​

Stellar’s strategic play into RWA and DeFi

Stellar’s decision to join the Chainlink Scale program marks a significant strategic move for the payments-focused blockchain.

The integration gives developers and institutions on Stellar access to battle-tested infrastructure that currently secures over $100 billion in total value locked across DeFi protocols.​

The timing couldn’t be better. Stellar reported impressive growth metrics in Q3 2025, logging $5.4 billion in real-world asset transaction volume.

The network also experienced a 700% quarterly surge in smart contract invocations and welcomed a 37% increase in full-time developers.

These metrics reflect a growing ecosystem hungry for institutional-grade tools to bridge traditional finance with blockchain infrastructure.​

With Chainlink’s CCIP integration, Stellar developers can now move assets across blockchains without rewriting smart contracts. This streamlines complex operations like cross-chain lending and yield farming into single, atomic processes.

Data Feeds and Data Streams complement this by providing real-time, trusted pricing information—critical for DeFi protocols handling significant capital flows.​

Standard Chartered’s Geoffrey Kendrick recently projected a $2 trillion DeFi tokenization boom by 2028, driven by surging demand for tokenized equities, funds, and stablecoin-based money-market products.

Stellar’s adoption of Chainlink positions it squarely to capture a share of this trend, especially as Wall Street institutions increasingly explore tokenized assets.​

What this means for LINK’s technical picture

The 3.6% rebound placed LINK above critical technical levels, though weakness during U.S. trading hours pulled the token back below the $17 mark.

Traders now watch support at $16.37, with near-term upside targets at $17.46 and $18.00.​

Technical analysts suggest LINK is emerging from an oversold setup.

The Relative Strength Index recently hovered at levels indicating fading bearish momentum, while Bollinger Bands positioned LINK near the lower band, a signal of potential reversal.

The 78% volume surge during the breakout confirmed institutional participation, though short-term rebalancing created some profit-taking.​

For the broader picture, crypto analysts expect LINK to trade between $16.77 and $18.79 in November 2025, with potential upside toward $20–$25 if buyers sustain momentum above key resistance levels.​

The Stellar integration demonstrates that enterprise adoption of Chainlink’s technology remains robust despite recent price weakness.

Whether LINK extends its rebound depends largely on broader crypto market sentiment and sustained institutional buying interest around current support zones.​

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Chainlink (LINK) rebounds 3.6% as Stellar integration broadens RWA reach

Source: https://coinjournal.net/news/chainlink-link-rebounds-3-6-as-stellar-integration-broadens-rwa-reach/

• Analysts predict possible strong rebound this week.

Bitcoin took a sharp plunge on Friday, falling more than 12% after President Trump announced a 100% tariff on Chinese imports, sparking fears of a new trade war.

The news sent shockwaves through the crypto market, wiping out over $19 billion in liquidations and causing panic selling among millions of traders.

Bitcoin briefly dropped below $105,000 before bouncing back slightly.

This plunge mirrored broader market fears as investors rushed to safer assets, amidst uncertainty over escalating US-China tensions and economic stability.

But, in the face of deep uncertainty, some experts are keeping calm and asked investors to show some faith in the fundamentals of the flagship cryptocurrency.

Why Bitcoin can make a big rebound this week

As per Cryptonews.com, economist Timothy Peterson thinks there’s a good chance Bitcoin could make a strong comeback this week, possibly jumping as much as 21%.

Looking at historical data going back to 2013, he notes that October has actually been Bitcoin’s second-best month, averaging a gain of 20.1%, just behind November.

Big drops in October are pretty rare; they’ve only happened four times in the past ten years, and three of those were followed by sharp recoveries.

Even though Bitcoin recently dipped below $102,000 after President Donald Trump announced new tariffs, Peterson stays optimistic.

He points out that about half of October’s usual gains might already be in the books, but the rest of the month still looks favorable for a solid rebound.

Based on Bitcoin’s typical cycles of liquidity and market sentiment, analysts are hopeful that the month could end with Bitcoin regaining momentum and possibly breaking through some key resistance levels in the weeks ahead.

Why the latest crash is not unusual

Volatility is just part of life in the crypto world. Digital assets don’t just react to economic headlines; they are also highly sensitive to social media chatter, regulatory news, and tech developments.

Experts say that while these ups-and-downs can be risky, they also open the door for traders and investors who know how to ride the waves.

Historically, October tends to be a bumpy month for crypto, but these dips are often followed by strong rebounds as the market finds its balance.

Bottom line: the crypto space is fast-moving and unpredictable, with big risks, but potentially big rewards too.

Several factors drive this heightened volatility. For one, the market is still relatively young, so price discovery is ongoing, new investors and speculative trades can swing prices dramatically.

Unlike traditional financial markets, crypto isn’t heavily regulated, so announcements of new policies or legal actions can spark sharp reactions.

The fact that crypto markets run 24/7 only adds fuel to the fire, with no breaks or circuit breakers to cool things down.

The post Why Bitcoin could rebound up to 21% this week: experts explain appeared first on CoinJournal.

Why Bitcoin could rebound up to 21% this week: experts explain

Source: https://coinjournal.net/news/why-bitcoin-could-rebound-up-to-21-this-week-experts-explain/

US President Donald Trump is reportedly thinking about giving American households a tariff rebate somewhere between $1,000 and $2,000.

He is pitching it as a kind of “dividend for the people,” and naturally, it could shake up both consumer spending and the markets.

The main aim? To chip away at the $37 trillion national debt.

But here’s the interesting part, people are already speculating this move could spark another altcoin rally, kind of like what we saw back in 2020–2021 when pandemic stimulus checks sent retail investors rushing into crypto.

Trump’s tariff dividend: Policy and legal challenges

The rebates Trump is talking about would come from the revenue generated by his aggressive tariff policies.

So far in 2025, those tariffs have brought in about $215 billion, and some projections suggest it could hit $300 billion by the end of the year.

Trump has been clear that reducing the national debt is still the main goal, but he’s also hinted at sending cash directly to Americans, saying something like, “We’re thinking maybe $1,000 to $2,000 – it would be great.”

The administration even claims that tariffs could eventually pull in over $1 trillion a year, though that’s still very much up in the air.

But here’s the catch: the legality of these tariffs is under serious judicial review.

The Supreme Court is set to hear a case in November 2025 to decide whether the president actually has the constitutional authority to impose broad tariffs.

Past rulings from the US Court of Appeals for the Federal Circuit have already raised questions.

Treasury Secretary Scott Bessent has even warned that if the courts rule against them, the government might have to refund anywhere from $750 billion to $1 trillion in collected and projected revenue.

So, while the rebate idea sounds exciting, this legal uncertainty makes it far from guaranteed.

Altcoin markets: a potential surge?

Analysts are saying that if these rebates actually happen, we could see a surge in altcoin investing.

A 2023 study by Harvard’s Marco Di Maggio found that when households get extra cash, it often leads to more people buying crypto, especially retail investors looking for yield or a hedge against inflation.

That’s exactly what happened during the 2020–2021 altcoin boom, when Bitcoin’s dominance fell from 73% to 39%, thanks largely to pandemic stimulus checks flowing into digital assets.

Things are a bit different now, interest rates are over 4%, and the total crypto market cap has grown to $4 trillion.

But experts like Wintermute strategists say any new “alt season” would likely be more selective, focusing on coins with real utility instead of pure speculation.

Still, the psychological boost from direct payments, along with expected Federal Reserve rate cuts, could get retail investors excited again.

Platforms like XRP and Solana might be among the big winners if attention shifts toward innovation-driven blockchains.

The post Could Trump’s $2,000 tariff rebates for Americans stimulate an altcoin surge? appeared first on CoinJournal.

Could Trump’s $2,000 tariff rebates for Americans stimulate an altcoin surge?

Source: https://coinjournal.net/news/trump-considers-2000-tariff-rebates-for-americans-could-stimulate-altcoin-surge/

Crypto markets woke up on Wednesday with a spring in their step, charging higher as investors braced for a major central bank event.

Bitcoin set the pace, rallying over 4% to clear the $116,000 mark, fueled in large part by growing bets that the US Federal Reserve is finally ready to deliver an interest rate cut on Wednesday.

As rate-cut speculation took center stage, Bitcoin’s market cap soared to well over $2 trillion, cementing the number-one crypto’s dominance after weeks of volatile swings.

Markets eye Fed-driven breakout

Ethereum, the world’s top smart-contract platform, held strong above the $4,500 threshold. Investors have been piling into ETH on prospects for a supply squeeze, as well as ongoing accumulation by institutional players positioning ahead of the Fed’s meeting.

Traders argued that a successful breakout above the stubborn $4,800 technical resistance could spark a new phase of risk-on flows across crypto, especially if macro conditions cooperate in the coming weeks.

Solana added even more energy to the rally, gliding near $240, as a string of protocol upgrades and surging developer momentum fueled optimism about the network’s long-term prospects.

Major exchanges reported large spot inflows, and Solana’s rapid-fire transaction speeds kept it in the conversation as a serious contender among the leading altcoins.

Meme-friendly Dogecoin, ever the wild card, hovered around $0.27, down slightly on the day, but still up more than 100% from a year ago.

Increased social activity and new integrations have helped Dogecoin keep its playful reputation, as trade volumes remain lively whenever the broader market shifts.

Meanwhile, XRP is holding just under $3, stuck in a tight range as markets anxiously anticipate the launch of the first US spot XRP ETF on September 18.

Speculation around the ETF’s potential inflows and its possible effect on price has helped XRP stay in focus despite the broader sector’s roller-coaster action.

Technical watchers say a rally through $3.18 could unleash a new round of bullish momentum for Ripple’s token.

Crypto industry poised for Q4 shakeup

It isn’t just price charts and volatility levels dictating sentiment this week: all eyes remain locked on Washington as the US Federal Reserve kicks off its most consequential policy meeting in recent memory.

With inflation trending lower and unemployment ticking up, markets broadly expect Fed Chair Jerome Powell to announce a 25 basis point rate cut, the first since 2020.

For crypto, where high-growth bets are directly tied to easier money, the Fed’s pivot could drive a decisive shift in market psychology.

“Fed easing typically gives permission for the crypto rally to keep going,” said one strategist.

Many in the industry expect fresh liquidity to spark increased inflows, particularly into blue-chip tokens like Bitcoin and Ethereum, and may even encourage more institutional adoption as risk appetite returns.

Away from the Fed drama, September is seeing a tidal wave of token unlocks, as over $4.5 billion in coins come into circulation across high-profile projects like Sui, Aptos, Ethena, and Arbitrum.

While some worry about the impact of new supply, others view it as a crucial stress test for market depth and investor demand.

Finally, excitement around the pending debut of the first US-based spot XRP ETF may mark a turning point for altcoins.

If the ETF attracts robust inflows, along the lines of Bitcoin and Ethereum ETFs launched earlier this year, it could shift the narrative and trigger sustained price rallies in the sector.

The post Bitcoin leads rally amid Fed rate cut hopes, major ETFs boost crypto outlook appeared first on CoinJournal.

Bitcoin leads rally amid Fed rate cut hopes, major ETFs boost crypto outlook

Source: https://coinjournal.net/news/bitcoin-leads-rally-amid-fed-rate-cut-hopes-major-etfs-boost-crypto-outlook/

The post Bitcoin tests $116K resistance ahead of Fed decision; new token launches stir market appeared first on CoinJournal.

Bitcoin tests $116K resistance ahead of Fed decision; new token launches stir market

Source: https://coinjournal.net/news/bitcoin-tests-116k-resistance-ahead-of-fed-decision-new-token-launches-stir-market/

An unnatural, almost unsettling calm has descended upon the cryptocurrency market.

Bitcoin is pinned, trading in one of its tightest ranges in months near 111,000 dollars, its volatility compressed to multi-month lows.

But this is not the quiet of stability; it is the tense, electric stillness that precedes a storm. Traders know the lull is temporary, a collective holding of breath before two powerful, market-moving events arrive to unleash the next decisive move.

The entire financial world is now focused on a two-part drama: the release of September’s US inflation data, followed by the Federal Reserve’s high-stakes interest rate decision a week later.

The outcome of these events will not just influence stocks and bonds; it will likely break the crypto market’s fragile trance.

The coiled spring: a verdict awaits

The market has already placed its bet. On the prediction market Polymarket, traders are assigning a commanding 82 percent chance of a quarter-point rate cut from the Fed on September 17.

But beyond that single, seemingly certain event, the path forward fractures into deep uncertainty. October expectations are a coin toss, with nearly even odds for another cut or a pause.

This divergence is the very definition of a coiled spring, a setup that explains why the current absence of volatility is so deceptive.

This is a market waiting for a signal, and the signal is coming.

“Markets often look calm just before they move. Bitcoin is trading in one of its tightest ranges in months, and volatility across crypto has compressed to multi-month lows,” said Gracie Lin, CEO of OKX Singapore. 

“With US inflation data like Core CPI out on Sept. 11 and the Fed’s much-anticipated rate decision just ahead, this quiet period is setting the stage for the next decisive move… history shows the market will find its next direction soon enough.”

The real trade: will a flood of capital be unleashed?

While the Fed’s decision will grab the headlines, the real, multi-trillion dollar question is what happens next.

According to the market maker Enflux, the pivotal trade is not about the cut itself, but about whether it finally pushes the mountain of cash currently sitting on the sidelines into riskier assets like crypto.

“The real debate now is not if cuts come, but whether liquidity deployment shifts into BTC, ETH, and even riskier assets,” the firm told CoinDesk.

This is the central tension gripping the market. The specter of a dovish Fed is already sending traditional safe havens like gold soaring to record highs.

Yet, Bitcoin remains stuck. If the Fed delivers, will that be the catalyst that finally unlocks a wave of new capital and fuels the return of the volatility that traders crave?

The quiet is about to end, and the market is about to get its answer.

The post Why the crypto market is bracing for a violent move appeared first on CoinJournal.

Why the crypto market is bracing for a violent move

Source: https://coinjournal.net/news/why-the-crypto-market-is-bracing-for-a-violent-move/

A feast is raging on Wall Street. A dismal US jobs report has sent stocks and bonds soaring, as investors celebrate the near-certainty of a Federal Reserve interest rate cut.

But in a strange and unsettling paradox, the cryptocurrency market has refused its invitation to the party.

Instead of joining the rally, digital assets are trapped in a nervous, range-bound state, haunted by the specter of a looming inflation report and a deep internal conflict between short-term fear and long-term faith.

While the broader markets are buzzing with optimism, crypto traders remain staunchly defensive.

Bitcoin is holding steady above 111,600 dollars, but is showing no signs of a breakout.

Options markets confirm this cautious stance, with QCP Capital noting that risk reversals are heavily skewed toward puts, a clear sign that traders are paying a premium to protect against a downturn ahead of Thursday’s crucial US Consumer Price Index (CPI) report.

The split-screen reality

This is the great “split-screen reality” of the 2025 crypto market, a term coined by the market maker Enflux.

On one screen, you have the chaotic, headline-driven world of speculative trading, currently paralyzed by fear.

On the other, a much quieter but more profound story is unfolding: the slow, steady, and relentless construction of the rails for mainstream institutional adoption.

Enflux argues that while traders are fixated on the CPI print, they are missing the more significant developments.

The SEC is creating forward-looking rules, and crypto-native firms like Coinbase are being integrated into major indices.

This, they contend, is the real story. “Structural legitimacy, not speculation, remains the real story of 2025,” Enflux wrote in a note to CoinDesk.

A tale of two paths to legitimacy

This split-screen narrative played out in real-time on Friday in a powerful and revealing way.

Michael Saylor’s Strategy, a pure-play Bitcoin treasury, was passed over for inclusion in the S&P 500 despite meeting all the technical criteria.

In its place, the index unexpectedly welcomed Robinhood, a crypto-adjacent firm with a more diversified, traditional business model.

The market’s verdict was swift: Robinhood’s stock surged 7 percent, underscoring a clear preference for companies that offer a regulated and familiar bridge to the world of digital assets.

The wild west still haunts the east

At the same time, the other side of the screen was flashing with the kind of drama that keeps institutional capital on the sidelines.

The DeFi protocol WLFI sent shockwaves through the market by freezing over 270 wallets—including that of the high-profile whale Justin Sun—to supposedly “protect users” after a crash.

The move, a stunning display of centralized power in a supposedly decentralized world, rattled even seasoned players.

The question quickly spread through insider channels: “If they can do it to Sun, who’s next?”.

“On one side, speculative narratives like WLFI risk cannibalizing themselves through governance drama,” Enflux wrote.

On the other hand, institutional-grade infrastructure and regulation are solidifying at a pace that suggests the rails for mainstream adoption are being laid faster than most expect.

This is the central conflict defining the market. For traders, the short-term noise of the CPI report is deafening. But for long-term investors, the signal of structural legitimacy is growing stronger every day.

The question now is which of these two powerful forces will ultimately win the war for crypto’s soul.

The post Market at war with itself: why crypto is ignoring a massive Wall Street rally appeared first on CoinJournal.

Market at war with itself: why crypto is ignoring a massive Wall Street rally

Source: https://coinjournal.net/news/market-at-war-with-itself-why-crypto-is-ignoring-a-massive-wall-street-rally/

The music has stopped. While traditional stocks and bonds are surging on the promise of an imminent Federal Reserve rate cut, the high-flying world of cryptocurrency is conspicuously refusing to join the party.

A brutal wave of selling has swept through the digital asset space, with the sharpest and most painful losses being inflicted on the very tokens and companies that have direct ties to President Donald Trump’s family.

The carnage has been swift and severe. Shares of ALT5 Sigma Corp., a treasury company for the Trump-linked DeFi project World Liberty Financial, slumped around 12 percent on Thursday and are now down more than 50 percent in the past week.

The project’s own WLFI token has been hit even harder, dropping about 25 percent and now down roughly 50 percent since its much-hyped Labor Day debut.

Even American Bitcoin Corp.—the mining outfit involving Eric Trump that just began trading—has not been spared, with its shares dropping by as much as 22 percent.

The Nasdaq crackdown: a new sheriff in town

This targeted sell-off is being amplified by a growing sense that the regulatory tide is turning.

A new report from The Information on Thursday sent a chill through the market, revealing that the Nasdaq is now requiring some of the so-called digital-asset treasury (DAT) companies to receive shareholder approval before issuing new shares to buy more tokens.

This is a direct shot across the bow of a business model that has fueled the recent crypto boom.

Pioneered by MicroStrategy’s Michael Saylor, the strategy of issuing shares to fund massive coin purchases without taking on debt has been adopted by a flood of companies, many of them struggling firms that pivoted to crypto to save their businesses.

To date, a staggering 184 publicly traded companies have announced their intention to raise more than 132 billion dollars to buy various coins, according to Architect Partners.

The Nasdaq’s move, while seen as a prudent step to protect shareholders, threatens to choke off the very mechanism that has been driving the market higher.

“Full disclosure and an opportunity to have a say should be expected and demanded if not provided for. Yes, likely slows the pace of transaction velocity but perhaps a good thing,” said Eric Risley, founder of Architect Partners.

A market de-risks as the Powell pivot looms

The pain is not confined to the Trump-linked ventures.

The broader market is feeling the chill, with treasury companies holding assets like Ether and Solana also seeing their shares drop, pulling down the prices of the underlying coins with them.

Bitcoin, the market’s bellwether, has fallen about 2 percent to around 109,800 dollars, a sign of a market that is actively de-risking ahead of a pivotal moment.

The latest US labor market data has only reinforced the view of a cooling economy, setting the stage for the Federal Reserve’s high-stakes meeting later this month.

“From macro perspective people are derisking a bit ahead of tomorrow’s employment data, which is a big economic data point ahead of Fed meeting later in month,” said Shiliang Tang, managing partner of Monarq Asset Management.

The party, it seems, is over, and the market is now bracing for the inevitable hangover.

The post Cryptocurrencies fall as Trump-linked tokens and stocks come under pressure appeared first on CoinJournal.

Cryptocurrencies fall as Trump-linked tokens and stocks come under pressure

Source: https://coinjournal.net/news/cryptocurrencies-fall-as-trump-linked-tokens-and-stocks-come-under-pressure/