Key takeaways:Surging spot Bitcoin ETF outflows and a put-heavy options expiry point to fading institutional demand.Risk-reward shifts toward tech stocks, leaving crypto traders to seek catalysts beyond macroeconomic tailwinds.Bitcoin (BTC) traded down 9% in three days, hitting its lowest level since September 2024. The $58,000 retest triggered over $1 billion in liquidations across bullish BTC leveraged positions. Despite a modest recovery to $59,500, Bitcoin traders remain uneasy as the S&P 500 index and gold prices fully erased their intraday losses.Bitcoin/USD (orange) vs. gold/USD & Nasdaq 100 futures (green). Source: TradingViewThe market downturn on Thursday lined up with the release of…

Aave is the largest decentralized lending protocol, allowing users to lend and borrow crypto assets without intermediaries. Depositors earn yield by supplying tokens to liquidity pools, while borrowers post crypto collateral to take out loans, with smart contracts automatically managing the process.The protocol was thrust into the center of one of DeFi’s biggest crises in April after attackers tied to North Korea’s Lazarus Group exploited KelpDAO’s cross-chain bridge to mint roughly $292 million of unbacked rsETH. The hackers deposited the tokens as collateral on Aave and borrowed real assets against them, leaving the protocol with an estimated $190 million to…

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