OVERVIEW

‘Diamond Hands’ Now Diagnosed as Psychological Disorder 💎 

Before we dive in, here’s today’s crypto market heatmap:

Source: Santiment

And here’s a look at crypto’s total market and altcoin market cap charts:

Source: TradingView

NEWS IN THREE SENTENCES
Crypto News 📰

💵 Paxos CEO Begs Congress to Not Let the Dollar Get Eaten by Stablecoins

Charles Cascarilla showed up to Congress to make the case for regulated stablecoins, warning that if the U.S. doesn’t act fast, the dollar might get dunked on by tokenized gold or a Chinese CBDC. He wants clear regulations, reciprocity for foreign issuers, and stablecoin oversight that doesn’t require an Ivy League law degree to understand. Lawmakers nodded along, likely still trying to figure out the difference between PayPal’s PYUSD.X ( ▲ 0.0% ) and Monopoly money. Paxos.

📈 Franklin Templeton Throws Its Hat Into the Solana ETF Circus

Franklin Templeton, managing a casual $1.5 trillion, just filed for a SOL.X ( ▼ 0.12% ) ETF. With Litecoin, Dogecoin, and now Solana ETFs getting green-lit odds, it’s clear the SEC is handing out approvals like Oprah giving away cars. TheBlock.

💥 European Banking System Goes Down, But Sure, Let’s Trust Them With a Digital Euro

The European Central Bank’s real-time payment system crashed for hours, proving once again that institutions can’t even keep the basics running. Lawmakers are now questioning how the ECB plans to handle a digital euro when their infrastructure collapses faster than confidence in the banking sector. Meanwhile, ECB board members are whining that Trump’s stablecoin push is making them look bad. TheDailyHODL.

🐢 Ethereum Struggles to Keep Up While Bitcoin Runs Laps

Bitcoin rebounded 3% after inflation data gave traders a reason to stop panicking, but Ethereum barely moved because, well, Ethereum. Devs finally achieved “finality” on the Holesky testnet, but investors still have to wait months for the Pectra upgrade while ETH price action remains as exciting as watching paint dry. Analysts predict ETH.X ( ▼ 2.33% ) could hit $7K this year—assuming, of course, no delays, no technical issues, and no investor impatience, which means, yeah, good luck with that. Decrypt.

TECHNICAL ANALYSIS
Could We Go Lower? 🙏 

I’m all about keeping things real. Historically, when Bitcoin is in an expansion phase, pullbacks between -30% and -40% are normal. 🧠 

BTCUSD Weekly Chart – Click to enlarge.

From the all-time high, a -30% drop would put BTC.X ( ▲ 0.22% ) right on the 61.8% ($75k value area) line of the Fibonacci Channel on the chart above. The 61.8% Fib level is exactly where Bitcoin found its bottom in 2024.

But if BTC were to tackle a -40% drop from the ATH, then that puts it at the very bottom of the Fib channel in the $65k value area. And just like the 61.8% Fib level, the bottom of the Fib channel is where Bitcoin support in late 2022 and gain in the Fall of 2023.

So the answer is yes, we could see Bitcoin and the broader crypto market keep going lower.

But here’s something to keep in mind: as more and more ‘big money’ has entered Bitcoin and crypto, the size and range of the retracements have gotten smaller. So keep those eyes peeled. 👀 

STOCKTWITS PRODUCT UPDATE
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Source: Stocktwits

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ON-CHAIN ANALYSIS
Burnt Bag Briefing 🔥 

Want to know whether the bulls or bears are feeling the most pain today? Well, this is the place to look. 👀

24-Hour Liquidation Heat Map – Source: coinglass – Click to enlarge.

In the past 24 hours, 87,890 traders were liquidated, with total liquidations reaching nearly $381.19 million.

The largest single liquidation occurred on HTX, a BTCUSD pair valued at $60 million.

Longs lost $167.91 million, while shorts were hit for $213.27 million. 🤕

NEWS IN THREE SENTENCES
AI & Privacy News 🕵️

🤖 Model Context Protocol Thinks AI Needs a Data Lifeline

MCP, brought to you by Anthropic, wants to fix the “AI-isolated-from-data” problem by creating a one-size-fits-all protocol that connects AI models to live information. The whole pitch is that it eliminates the chaotic mess of fragmented API integrations, which developers know all too well from years of suffering. It claims to improve AI relevance, unify data access, and reduce maintenance overhead. aelf.

🕵️ Secret Labs Hands Out More Grant Money

SCRT.X ( ▼ 1.2% ) just threw cash at another round of projects, hoping one of them might finally prove privacy tech is more than a buzzword. Winners include Unbound Science ($23.5K for decentralized research), Fina ($60K for privacy-preserving P2P trading), and SolarRepublic ($30K to fix contract migration headaches). If you missed out, don’t worry—applications for Q2 are still open. Secret Network.

NEWS IN THREE SENTENCES
Metaverse, NFT, & Gaming News 🎮️

🎮 Nimblebites’ Super-B Brings Blockchain to Brick-World Gaming, Because Why Not?

South Korean devs at Nimblebites are launching Super-B, a game where players fight, build, and socialize in a blocky digital universe. It’s using SUI.X ( ▼ 1.27% ) blockchain for digital ownership and Walrus for decentralized storage, ensuring that every tiny pixelated item you earn is forever yours—assuming, of course, the game doesn’t shut down in three years. AI-driven interactions are also in the mix, because even Web3 games need their own version of Clippy. Sui.

NEWS IN THREE SENTENCES
Real World Asset Tokenization (RWA) News 🪙 

🌍 Swypt and Lisk Bring Stablecoin Payments to Africa, Because Banks Are Too Slow

Swypt is tapping into LSK.X ( ▼ 1.12% )’s blockchain to expand stablecoin payments across Africa, allowing users to swap USDT and other assets straight into mobile money. They’re also letting businesses accept stablecoin payments, effectively giving traditional banking a much-needed kick in the teeth. Meanwhile, Project Mocha is trying to tokenize Kenyan coffee farms. Lisk.

🚀 Sei’s Autobahn Consensus Wants to Make Traditional Markets ‘Go Faster’

SEI.X ( ▼ 3.82% )’s next upgrade introduces Autobahn, a new consensus mechanism that claims to settle transactions in 400ms—because in finance, even a blink is too slow. With institutions like BlackRock and Franklin Templeton eyeing blockchain for treasury operations, Sei is positioning itself as the go-to infrastructure for tokenized real-world assets. If they pull it off, expect Wall Street traders to suddenly pretend they’ve understood crypto all along. Sei.

NEWS IN THREE SENTENCES
DeFi, DEX, & Lending Protocol News 🏦

🌊 Flow’s DeFi Scene Keeps Growing, Stablecoins and Bridges Everywhere

Flow’s DeFi ecosystem has ballooned to $49M TVL, fueled by protocols like KittyPunch, Trado, and Bridge.flow.com, which now lets you move USDC.X ( ▲ 0.0% ) , PYUSD, and WETH with less hassle. LayerZero, Axelar, and Stargate Finance have also jumped in, making it easier to bridge assets across chains without losing half your funds in fees. With more lending, staking, and farming tools rolling out, FLOW.X ( ▲ 1.29% ) is trying to prove it’s more than just an NFT graveyard. Flow.

🛠️ ICON Network Expands Solver Tech, Promises Better Swaps and Cross-Chain Liquidity

ICX.X ( ▲ 0.69% )’s solver upgrade now includes “Exact Out” swaps, meaning traders can specify exactly how much crypto they want to receive instead of blindly guessing. New integrations with Solana, Stellar, and Polygon are also coming soon, ensuring that cross-chain DeFi remains the convoluted mess we all know and love. And bug fixes are delaying the next liquidity update. ICON.

LINKS
Links That Don’t Suck 🔗

🤯 Rumble buys 188 Bitcoins worth $17.1 million

🐋 Crypto whale liquidated for $308M in leveraged Ether trade

🍦 Four-year-old boy calls police to report mum for eating his ice cream

⚔️ Bitcoin battles US sellers as CPI inflation sees first drop since mid-2024

😐️ Hideki Kamiya on leaving PlatinumGames: “I couldn’t allow myself to kill my soul”

🙄 SEC delays ETF filings for Dogecoin, XRP and others as agency awaits Paul Atkins’ confirmation

📕 OpenAI is working on a new AI model Sam Altman says is ‘good at creative writing’ but to me it reads like a 15-year-old’s journal

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Author Disclosure: The author of this newsletter holds positions in ADA, IMX, COPI, MIN, AGIX, ALGO, ZEC, XLM, and NEAR. 📋