Bitcoin Dips Below $80,000 Amid Fears of Black Monday

Bitcoin slid under $80,000 over the weekend, losing 3% on the week as U.S. trade tariffs hammered global equities. The S&P 500 and Nasdaq closed down nearly 6% on Thursday, triggering comparisons to Black Monday in 1987.

CNBC’s Jim Cramer warned, “Don't see anything yet that takes the October 87 scenario off the table,” as market-wide panic erased $8.2 trillion in equity value. Amid the carnage, Bitcoin's volatility stayed oddly muted, with the VIX hitting its highest close since the 2020 Covid crash.

Traders believe BTC could soon break its sideways pattern, with one noting, “This is pretty unheard of and due to this compression I'm pretty confident a large move for crypto is going to occur next week.” Some, like Max Keiser, are calling for dramatic upside, speculating that panic in traditional markets could send Bitcoin soaring.

Despite the downturn, some analysts see recent lows as bear traps. “This looks no different than the post-ETF dump and August 2024 crash,” said trader Cas Abbe, pointing to $92,000 as the level to watch for a bullish reversal.

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SEC Says Dollar-Backed Stablecoins Are Not Securities

The U.S. Securities and Exchange Commission announced that stablecoins pegged 1:1 to the U.S. dollar and backed by liquid, low-risk reserves will not be classified as securities. The guidance applies only to stablecoins redeemable for dollars and explicitly excludes yield-bearing or algorithmic stablecoins from the exemption.

The announcement follows recent momentum in Washington to establish a federal regulatory framework for the rapidly growing sector. Major stablecoin issuers like Circle and Tether, which manage USDC and USDT respectively, welcomed the clarity, as they collectively oversee more than $200 billion in assets.

Under former SEC Chair Gary Gensler, stablecoins were considered part of a legal gray zone, often labeled as “poker chips” for speculative trading. The new SEC position, aligned with ongoing legislation in Congress, suggests a more cooperative approach under the Trump administration’s pro-crypto policy stance.

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392,000 FTX Creditors Risk Losing $2.5B Over KYC Delay

About 392,000 FTX users risk losing a combined $2.5 billion in repayment claims unless they complete Know Your Customer (KYC) verification by June 1, according to court documents filed in Delaware. The original deadline of March 3 was extended to give more time for affected creditors to verify their identities and access funds. Claims under $50,000 account for about $655 million, while those above exceed $1.9 billion.

FTX’s bankruptcy plan aims to repay over $11 billion in customer claims, with 98% of creditors expected to receive at least 118% of their original value in cash. The next round of repayments is scheduled for May 30. Court officials have emphasized that claims will be disallowed entirely if the KYC process is not started by the new deadline.

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Tether Considers New Stablecoin Amid Legislative Pressure

Tether CEO Paolo Ardoino said that the company may launch a new stablecoin tailored for the U.S. market as Congress advances bills that could exclude non-compliant foreign issuers. Ardoino added that USDT would remain focused on emerging markets while a new token would meet domestic legal standards. He added that Tether is in talks with “Big Four” auditors, though none have signed on yet.

Both the House and Senate have introduced bills (the STABLE and GENIUS Acts) that would require foreign stablecoins to comply with U.S. AML laws. USDT, which dominates the market with over $144 billion in circulation, has never undergone a full financial audit. Despite skepticism from competitors, Ardoino said Tether has no plans to exit the U.S. entirely and is prepared to adjust its offerings as needed.

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Data of the Day

Decentralized finance protocols saw sharp revenue declines in March, with major platforms across Ethereum, Solana, and BNB Chain falling over 50% from February. Ethereum projects such as Lido, Aave, and Compound collectively generated just $24.5 million, down from $52 million a month prior. Solana’s top DeFi apps earned $42 million, while PancakeSwap on BNB Chain brought in $21 million.

MakerDAO, rebranded as Sky, was the only major protocol to post a revenue increase, earning $10 million, an 11% monthly gain. Analysts attributed the drop to reduced trading volumes and declining on-chain activity across all networks. The GMDEFI index, which tracks a basket of DeFi tokens, has fallen 40% year-to-date, reflecting broader weakness in the sector.

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More Breaking News

• Aave’s parent company Avara has launched Lens Chain mainnet, a low-cost Ethereum Layer 2 optimized for building decentralized social media apps.
• PumpFun has reopened livestreaming to 5% of users under strict new moderation rules after shutting it down last year due to abuse and harmful content.
• EigenLayer will launch its long-awaited slashing feature on April 17, completing its restaking protocol and enabling accountability for network operators.
• Cathie Wood’s Ark Invest bought $13.4 million in Coinbase stock after a 5% dip, increasing COIN's weighting across three of its flagship ETFs.
• Malta’s financial watchdog fined OKX Europe $1.2 million for money laundering violations, though regulators acknowledged recent compliance improvements.
• Satoshi Nakamoto turns 50 as Bitcoin continues to gain global traction, with the pseudonymous creator’s dormant wallet still holding over 1 million BTC.
• A token launched by Conor McGregor raised just $392,000 over its 28-hour presale period, failing to hit the $1,008,000 minimum raise target.

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