Dormant BTC activity fell to its lowest level since Q3 2022, suggesting long-term holders have slowed distribution after heavy profit-taking.
The reported progress on the CLARITY Act is perhaps the most surprising.
July has been historically a positive month for bitcoin and this edition hasn’t disappointed so far. The cryptocurrency began the month on the wrong foot, dipping below $58,000 for the first time in nearly two years, but it rebounded swiftly in the following weeks.
Earlier today, it rocketed past $66,000 for the first time in over a month, gaining over $8,000 since that July 1 low. Here are some of the possible reasons behind it.
Whale and ETF Accumulation
As June was coming to an end and it became known that it would be a highly painful month for the asset with a nosedive of over 20%, we outlined several factors that had to change in July for a price resurgence. One of them was the ETF inflows. The financial vehicles went on a violent eight-week withdrawal-only streak, which was finally snapped a couple of weeks ago.
Moreover, investors continued to pour funds into the ETFs, which ended two weeks in the green in a row for the first time in months. July 20 extended the streak as the funds attracted almost $227 million.
The second major reason for the price revival is whale behavior. Data shared by CryptoQuant indicated that large market participants holding between 1,000 and 10,000 BTC increased their 60-day net accumulation to roughly 66,700 units, which is close to the recent record seen a month ago.
“This is the cohort’s strongest accumulation reading since February 17, when net accumulation briefly exceeded 106,000 BTC.”
News From the US
The third reason has a more macro scent. It came a week ago when the US CPI numbers for June were announced, showing softer-than-expected inflation rates. BTC rallied immediately after the news went live as lower inflation reduced the pressure on the Fed to hike interest rates. Similar market conditions are regarded as beneficial for risk-on assets like bitcoin.
Last but perhaps most importantly at the moment comes a development on the CLARITY Act. After the odds of approval dropped toward 30% just days ago, reports emerged that the White House had agreed on an ethics package for the key legislation and sent the language to certain Senate republicans for further validation.
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Although the details are still scarce, industry experts believe this is a major step in the right direction for the bill, and it increases the chances for a 2026 approval.
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Dubai, UAE, July 17th, 2026, Chainwire
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, today released its Q1 2026 BTC spot execution analysis, showing that its Rapid Price Improvement (RPI) mechanism consistently delivered lower trading slippage than comparable execution measurements across major cryptocurrency exchanges.
As digital asset markets continue to mature, execution quality has emerged as an increasingly important measure of market performance alongside trading fees and quoted liquidity. Bybit’s latest analysis demonstrates that improvements in market structure can materially reduce trading costs for both retail and institutional participants.
Across simulated BTC/USDT spot trades ranging from US$10,000 to US$1 million, Bybit consistently delivered lower average slippage than two leading global exchanges. For US$10,000 orders, average slippage was approximately 52% lower than one exchange and 84% lower than the other, with similar advantages observed across larger trade sizes.
Q1 2026 BTC/USDT Average Spot Slippage (Basis Points)
*Source: Bybit internal execution analysis, Q1 2026. *
“Our focus is not simply increasing displayed liquidity but improving the prices users actually receive when trades are executed,” said Sean Ballard, Head of Derivatives and Institutional Business, Trading Risk at Bybit. “Execution quality has become one of the most meaningful measures of exchange performance. By combining deep liquidity with Rapid Price Improvement, we are delivering consistently better execution outcomes across a broad range of trade sizes.”
Market Structure Designed Around Execution Quality
Bybit’s Rapid Price Improvement mechanism is a proprietary execution model inspired by retail price improvement frameworks widely used in traditional equity markets. Eligible spot orders are matched against a dedicated pool of liquidity providers quoting prices inside the visible bid-ask spread, enabling users to receive execution prices that are often better than those displayed on the public order book.
Unlike many implementations that restrict price-improvement liquidity to selected client segments, Bybit extends eligible RPI execution across BTC and major USD stablecoin spot trading pairs, allowing a broader range of users to benefit from improved execution quality.
Consistent Performance Across Trade Sizes
The analysis found that Bybit’s execution advantage remained consistent from retail-sized orders through institutional block trades.
Compared with the benchmark exchanges included in the study:
- Against Exchange A, Bybit reduced average BTC spot slippage by approximately 52% for US$10,000 orders (0.01 vs. 0.02 bps).
- Against Exchange B, Bybit achieved approximately 84% lower average slippage for US$10,000 orders (0.01 vs. 0.06 bps).
The consistency of these results suggests that the improvement is structural rather than limited to specific order sizes or market conditions.
Liquidity Depth Supports Better Execution
Execution quality is supported by the depth of executable liquidity available in the market.
During Q1 2026, Bybit’s BTC/USDT market averaged US$10.4 millions of executable depth within a 5-basis-point spread, compared with US$5.4 million for Exchange A and US$1.9 million for Exchange B. Within a 10-basis-point spread, average executable depth reached US$15.1 million, versus US$11.4 million and US$3.6 million, respectively.
This additional executable liquidity is driven in part by liquidity providers participating through Bybit’s Rapid Price Improvement (RPI) mechanism, where eligible orders can access tighter pricing than is available through the standard order book. Users can access this liquidity through the Bybit Web interface, the Bybit App, or via the publicly available RPI Orderbook API, which provides visibility into RPI liquidity and enables clients to incorporate it into their own trading workflows and execution analysis.
Most third-party exchange liquidity rankings rely primarily on publicly displayed order-book data accessed through standard exchange APIs. While this methodology provides valuable insight into quoted liquidity, it may not capture all executable liquidity available through price-improvement mechanisms such as RPI. As a result, traditional order-book depth alone may not fully reflect the liquidity available to traders at the point of execution.
Methodology and Disclaimer
The analysis presented in this release is based on Bybit’s internal assessment of BTC/USDT spot market activity during Q1 2026. Slippage calculations incorporate both standard displayed order-book liquidity and eligible Rapid Price Improvement (RPI) liquidity available at the time of execution. Competitor comparisons are based on publicly available market data and standardized slippage calculations applied consistently across identical order sizes under comparable market conditions.
Because Bybit’s analysis includes executable liquidity available through its publicly accessible RPI Orderbook API, results may differ from third-party liquidity rankings that rely solely on standard order-book APIs. Actual execution quality may vary depending on market conditions, order type, trading volume, volatility, latency, and other market factors.
About Bybit
Bybit is The New Financial Platform.
We believe every person should have access to every financial opportunity on earth. That’s why we’re building the first intelligent platform that connects anyone, anywhere to the world’s finance.
Trusted by more than 80 million users worldwide, Bybit brings together investing, trading, payments, and wealth-building in a single secure and intelligent ecosystem. Through the combination of AI-powered technology, deep global liquidity, robust security, and transparent operations, Bybit makes global finance more accessible, efficient, and empowering for everyone.
Built for everyone. Powered by intelligence. Open to the world.
Learn more at Bybit.com.
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Dubai, United Arab Emirates, July 9th, 2026, Chainwire
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, reported that Bybit’s Private Wealth Management (PWM) BTC fund products have recorded a comprehensive annualized return of approximately 4.9% over the past 60 days, with select individual funds delivering 30-day annualized percentage rates exceeding 40%. Through its BTC-invested, BTC-settled fund structure, Bybit PWM’s BTC strategies offers a more advanced allocation solution to users holding larger BTC positions.
Launched in September 2025, Bybit PWM manages over $239 million in assets across over 160 portfolios. In June 2026, Bybit introduced PWM 2.0, expanding direct dashboard access to eligible VIP2+ users and allowing PWM users to customize their wealth solutions with ease.
“BTC continues to trade well below its previous highs in the first half of 2026, leaving many BTC holders weighing how to manage their holdings through a period of volatility. Even for BTC faithfuls, the central question is often not whether to sell BTC for short-term liquidity, but how to keep BTC working while remaining exposed to the asset itself,” said Jerry Li, Head of Earn and Wealth Management at Bybit. ”Our BTC-denominated PWM funds and Earn products are built around that premise, enabling users to invest and settle in BTC while accessing yield.”
Bybit PWM products currently start from a minimum of 10 BTC, positioning the offering toward larger BTC holders. For users who prefer not to subscribe directly with BTC, some PWM funds can also be accessed through USDT, with the flexibility to gradually convert returns into BTC over time.
Beyond PWM, Bybit offers a broader set of BTC yield options intended to serve different types of holders:
- On-Chain Earn provides an entry-level BTC yield product that allows users to stake BTC for returns while retaining exposure to the asset. It is built for straightforward, long-term BTC holders who want a basic yield solution.
- PWM offers BTC-invested, BTC-settled fund structures tailored for larger BTC holdings. In addition to BTC strategies, USDT-denominated fund options are also available, allowing yield to be gradually converted into BTC over time. The product is positioned for larger-ticket users and wealth management use cases with a current minimum entry of 10 BTC.
- Advanced Earn provides structured BTC products for users seeking more advanced investment mechanics, including Dual Asset, which features VIP-exclusive boosted APR products, and Discount Buy, which serves users looking to diversify their BTC yield strategy beyond a single product type.
No matter the market condition, Bybit’s offerings and diverse BTC strategies reflect an approach to balancing BTC accumulation and yield. Larger holders can pursue PWM’s fund-based allocation, holders with smaller positions can access on-chain yield through fBTC, and users with higher risk appetite can explore structured products such as Dual Asset and Discount Buy.
Terms and conditions apply. For more details on eligibility and potential restrictions, users may visit explore Bybit Earn and Bybit PWM.
#Bybit / #NewFinancialPlatform
About Bybit
Bybit is The New Financial Platform.
We believe every person should have access to every financial opportunity on earth. That’s why we’re building the first intelligent platform that connects anyone, anywhere to the world’s finance.
Trusted by more than 80 million users worldwide, Bybit brings together investing, trading, payments, and wealth-building in a single secure and intelligent ecosystem. Through the combination of AI-powered technology, deep global liquidity, robust security, and transparent operations, Bybit makes global finance more accessible, efficient, and empowering for everyone.
Built for everyone. Powered by intelligence. Open to the world.
Learn more at Bybit.com
For more details about Bybit, please visit Bybit Press
For media inquiries, please contact: media@bybit.com
For updates, please follow: Bybit’s Communities and Social Media
Discord | Facebook | Instagram | LinkedIn | Reddit | Telegram | TikTok | X | Youtube
Contact
Head of PR
Tony Au
Bybit
tony.au@bybit.com
American Bitcoin Corp (Nasdaq: ABTC) has moved its treasury past 8,000 bitcoin, the company said. The total marks a climb from about 5,401 BTC at the end of 2025, a gain of close to 50% across six months.
The company, a majority-owned subsidiary of Hut 8 Corp and backed by the Trump family, said its bitcoin reserve and its bitcoin-per-share have grown close to threefold since its Nasdaq debut. Co-founder Eric Trump has framed the growth as disciplined and large in scale.
American Bitcoin builds its stack through two channels: mining production and treasury purchases. In the first quarter of 2026, the firm mined 817 BTC and added 1,620 BTC to its reserve, a rise of about 30 percent in three months. That pace has carried into the summer.
Mining capacity has grown to match the treasury ambitions. In March, the company deployed 11,298 ASIC miners at its site in Drumheller, Alberta, a move that lifted capacity by about 12 percent and added 3.05 EH/s. The cost to mine a single bitcoin fell to about $36,200 in the first quarter, a drop of 23 percent from $46,900 in the prior quarter.
The financial picture remains mixed. American Bitcoin reported a net loss of $81.8 million for the first quarter on revenue of $62.1 million, a result that reflects a wider crypto market decline and the heavy spending behind its expansion.
American Bitcoin’s reverse stock split
The company also reshaped its share structure. A 1-for-15 reverse stock split took effect at 5:00 p.m. on July 2, with shares trading on a split-adjusted basis from July 6. Shareholders approved the measure at the annual meeting on June 22.
The strategy sets American Bitcoin apart from a segment of the mining industry that has shifted resources toward artificial-intelligence data centers. Rather than pivot, the firm has doubled down on bitcoin mining and treasury accumulation, a bet that ties its fortunes to the price of the asset it collects.
At more than 8,000 BTC, American Bitcoin ranks among the larger corporate holders of the asset, and its stack has, at points, surpassed that of Galaxy Digital.
The company positions itself as a pure-play bitcoin accumulation platform, a structure that gives public investors exposure to both mining output and a growing reserve.
Whether the model rewards shareholders depends on the path of bitcoin and the discipline of the company’s spending. For the moment, the treasury keeps its climb.
Shares of ABTC were up 7% at time of writing.
Strategy sells 3,588 Bitcoin for $216M to fund dividends
Michael Saylor’s Strategy sold 3,588 Bitcoin (BTC) to fund preferred stock dividend payments and replenish its cash reserves.
Strategy sold the Bitcoin for $216 million, reducing its total holdings to 843,775 Bitcoin, according to a Monday 8-K filing with the US Securities and Exchange Commission.
This included 1,363 Bitcoin sold at an average price of $59,256 between last Monday and Tuesday, and 2,225 Bitcoin sold at an average price of $60,773 between Wednesday and Sunday.
Strategy disclosed the sale of 32 Bitcoin in early June, as its first reported Bitcoin sale since the 2022 tax-loss transaction.
Before Strategy disclosed its latest Bitcoin sale, Bernstein said the company was unlikely to be forced to sell its holdings, citing its liquidity position and cash reserve coverage.
Bernstein’s report said Strategy had 17 months of cash to cover dividend obligations and interest payments. It added that the company remained a net buyer of Bitcoin and served as a strong “balancing force” in a market where leading US Bitcoin miners are net sellers due to their pivot to AI.
Donald Trump says ‘nothing wrong’ with $1.4B crypto windfall while in office
US President Donald Trump has responded to criticism of his 2025 financial disclosures, showing that he earned $1.4 billion in income from crypto-related ventures while in office.
In a Thursday interview with CNBC’s Joe Kernen, Trump said that there was “nothing illegal” and “nothing wrong” with profiting from his crypto investments as president. He claimed that other people were responsible for his investments and he didn’t “even know who they are,” not directly answering questions about perceived conflicts of interest as president.
Trump’s comments followed the release of his 2025 financial disclosure report by the US Office of Government Ethics, showing that he took in more than $2 billion from his businesses and investments, about $1.4 billion of which was connected to crypto projects like his memecoin and family’s platform World Liberty Financial. Many advocacy organizations have characterized the investments as a “grift” allowing the president to influence related legislation like the Digital Asset Market Clarity (CLARITY) Act.
Trump disclosed that his memecoin generated about $636 million, World Liberty sales about $588 million and $197 million from equity in a stablecoin venture.
US senator calls for ban on elected officials issuing memecoins
Senator Kirsten Gillibrand, one of the US lawmakers behind negotiations for a digital asset market structure bill in Congress, has proposed barring elected officials and the president from issuing or sponsoring their own tokens, citing President Donald Trump’s and First Lady Melania Trump’s memecoins.
In a Friday notice, Gillibrand said that Congress should support measures barring elected officials and their spouses from “issuing or sponsoring their own digital assets.” The New York lawmaker said that the proposed restriction would include any US president and their spouse, but did not specifically mention extending the provision to the office of the vice president or other members of their families.
“This is a commonsense requirement that should get broad bipartisan support – public officials and their spouses should not be issuing memecoins,” said Gillibrand. “We cannot let self-dealing destroy an opportunity to strengthen consumer protections, crack down on illicit finance, and expand economic opportunity for the millions of Americans our financial system has left behind.”
Vitalik Buterin shares top priorities for new ‘Lean Ethereum’ strawmap
Ethereum co-founder Vitalik Buterin has named quantum resistance, scalability and privacy as three of Ethereum’s top priorities under a new “Lean Ethereum” strawmap, which lays out the network’s technical direction for the remainder of the decade.
In a post to X on Saturday, Buterin said the collection of upgrades will roll out over the next three to four years, touching nearly every layer of Ethereum in a transformation he compared in scale to the September 2022 Merge, which shifted the network away from energy-intensive mining.
“Quantum safety has shifted up a LOT in priority,” he said, adding that finalizing a quantum-safe solution for blobs has “become urgent.” Enhancing privacy is another priority, Buterin said, stating that it has become a “first class goal.”
Dankrad Feist, a former Ethereum Foundation researcher behind the payments-focused layer-1 Tempo blockchain, praised the new plan but argued the 3-4 year timeline is too slow, stating that AI could help developers ship the upgrades within a year.
Financial companies join forces for US dollar stablecoin, keeping reserve earnings
More than 140 companies have reportedly signed onto a US dollar-pegged stablecoin project that allows them to “receive all of the earnings” from its reserves.
In a Tuesday notice, Open Standard said it was launching the Open USD (OUSD) stablecoin, a US dollar-pegged coin supported by financial companies including Visa and Mastercard, as well as crypto companies Coinbase, Ripple, OKX and Bybit. The project will allow businesses to mint OUSD “at no cost and with no artificial limits on volume,” and keep earnings from the coin’s reserves.
“When Visa, Stripe, Mastercard, Coinbase and Google coordinate on a new stablecoin, the signal is unmistakable,” said Rhino.fi co-founder and CEO Will Harborne. “Open USD is the first launch with a real chance to win share from USDT and USDC, because reserve revenue flows back to everyone who holds it. But that same incentive is what drives fragmentation at scale.”
As the week continued, some of the signatories denied making any firm commitments to the consortium.
Winners and losers
At the end of the week, Bitcoin (BTC) is at $64,039, Ether (ETH) at $1798, and XRP (XRP) is at $1.14. The total market cap is at $2.12 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin winners of the week are MemeCore (M) at 105%, Lighter (LIT) at 39%, and ether.fi (ETHFI) at 29%.
The top three altcoin losers of the week are Venice Token (VVV) at -13%, Stable (STABLE) at -10% and Audiera (BEAT) at -5%.
Top Prediction of the Week
Bollinger Bands creator eyes Bitcoin bear-market end, ‘W’-shaped reversal
John Bollinger, creator of the Bollinger Bands volatility indicator, believes he has spied a “W”-shaped double bottom on BTC/USD on the charts.
“$BTC has seen a series of bullish patterns broken, evidence of the power of the downtrend,” he commented in X posts on Friday.
“Will this ‘W’ be the one that breaks the trend?”
“W”-shaped reversals involve two swing lows with a rejected rebound in between, with price ultimately breaking through that rejection level to form a new uptrend.
Bollinger has been bullish on BTC for some time. In early May, he revealed a new long position via his Bitcoin investment vehicle.
As Cointelegraph reported, an increasing number of price indicators are flashing signals not seen since the last bear market in 2022. Despite this, market participants broadly believe that the next macro bottom is still to come and is due in Q3 or later.
Top FUD of the week
Tim Draper says Arkham got Bitcoin wallet attribution ‘wrong’
Billionaire investor and longtime Bitcoin bull Tim Draper said blockchain analytics company Arkham incorrectly linked him to a wallet involved in a large Bitcoin transfer to Coinbase Prime.
“It just wasn’t me. I haven’t touched it. Arkham has it wrong,” Draper told Cointelegraph, adding that he still expects Bitcoin to reach $250,000 within one year.
The statement came after blockchain analytics platform Lookonchain reported Friday that a wallet “possibly linked” to Draper had transferred 1,000 Bitcoin worth about $62 million to Coinbase Prime, citing data from Arkham.
Draper is best known in the crypto community as one of Bitcoin’s earliest high-profile investors, having won a US Marshals Service auction for nearly 30,000 Bitcoin seized by US authorities from Silk Road-related holdings in 2014. The holdings are now worth $1.9 billion, meaning Draper selling could have a big impact on Bitcoin’s.
Bitcoin profit and loss ratio falls to 43-month low
Bitcoin’s realized profit and loss ratio has fallen to a 43-month low of -0.35, a figure that signals extreme market-wide loss conditions but has historically coincided with market bottoms, blockchain analytics platform CryptoQuant said.
The Bitcoin realized P&L ratio — which measures the net percentage of Bitcoin (BTC) in profit or loss relative to total supply — hasn’t fallen this low since December 2022, shortly after FTX shockingly collapsed and sent Bitcoin below $16,000.
“Historically the indicator has marked BTC bottoms with extreme precision,” CryptoQuant said on Thursday. In 2015 and 2019, the Bitcoin realized P&L ratio also fell below -0.35 before price rallies followed.
The data could lift market sentiment, which has repeatedly fallen to near-record lows during the course of Bitcoin’s latest 50% drawdown from $126,080, set in October. Market sentiment has risen cautiously over the last 10 days, with Bitcoin up more than 7% since tanking to a near two-year low of $58,190 on June 25.
Upbit says it only expressed interest in future OUSD participation
South Korean crypto exchange Upbit said it is not participating in the issuance of Open USD, after its operator Dunamu was named among more than 140 businesses involved in the new stablecoin initiative.
“Upbit has only indicated our potential willingness to consider taking part in the future expansion of the OpenStandard ecosystem,” an Upbit spokesperson told Cointelegraph.
The clarification follows similar pushback from Samsung Electronics and other South Korean companies listed by Open Standard.
According to a Friday report by ChosunBiz, Samsung said it had not held formal discussions with the project and did not know what role it was expected to perform. Meanwhile, Shinhan Financial Group and KBank reportedly said they had only indicated that they would consider the initiative.
Cointelegraph reached out to Open Standard for comments but did not receive a response before publication.
Top Cointelegraph Features of the Week
The biggest blockchain upgrades still to come in 2026
From Ethereum’s Glamsterdam and Solana’s Alpenglow, to proposed post quantum security changes for Bitcoin, 2026’s key crypto upgrades are some of the most significant in years.
Has Strategy’s capital overhaul put an end to ‘death spiral’ fears?
Has Strategy’s new capital overhaul defused the fears swirling around STRC, or has it simply bought more time before the next bout of stress?
From Bitcoin critics to blockchain believers: The 5 biggest crypto backflips
From crypto hater Nouriel Roubini launching the Technodollar to Bitcoin critic Peter Schiff putting out tokenized gold, meet the skeptics who are now cashing in on crypto.
Today in crypto, Celsius founder Alex Mashinsky permanently lost the ability to trade on US commodities markets as the Ethereum Foundation lost another high-ranking contributor, and Capital B shareholders approved up to $120 billion in financing capacity to fund future Bitcoin buys.
CFTC permanently bans Celsius’ Mashinsky from trading
The US Commodity Futures Trading Commission resolved its yearslong legal battle against Celsius Network founder Alex Mashinsky on Thursday, permanently banning him from registering with it and trading in markets it oversees.
Earlier this year, the CFTC and the US Securities and Exchange Commission issued guidance saying they considered most major cryptocurrencies to be commodities, and Mashinsky’s ban means he will never be able to trade commodities, futures and derivatives.
Source: CFTC
The settlement ends, what the CFTC said when it filed it in 2023, was its first case against a digital asset lending platform and marks the end of one of the last remaining regulatory actions pending against Mashinsky.
Mashinsky was sentenced to 12 years in prison in May 2025 after pleading guilty to securities and commodities fraud for misleading Celsius’ customers about the safety of the crypto lending platform, which collapsed during a major market drawdown in 2022.
He still faces charges filed by the SEC in July 2023. The regulator told a federal court in late May that it has “engaged in substantive settlement discussions” with Mashinsky, but no agreement had been reached.
Ethereum Foundation leadership exodus continues with director’s departure
The Ethereum Foundation has lost another high-ranking contributor, amid increasing scrutiny of the research organization as the network faces ongoing questions about talent retention and governance philosophy.
In a post on X, co-executive director Hsiao-Wei Wang announced that she had stepped down from her role, effective immediately, following a recent sabbatical. Wang wrote that “Ethereum has always been bigger than any role” and indicated that she has not yet decided what she will do next.
Ethereum co-founder Vitalik Buterin commented on Wang’s an X post, acknowledging that she had taken on “the most challenging position in the Ethereum Foundation” alongside Tomasz Stanczak, who also stepped down from his leadership role earlier this year.
Source: Vitalik Buterin
The Ethereum Foundation has logged an estimated 19 layoffs and departures this year, although the loss of senior executives and core contributors has drawn the most attention. The wave of departures comes as the foundation grapples with intensifying competition, ongoing debate over Ethereum’s governance and long-term development strategy, and continued pressure on Ether’s market performance.
Capital B shareholders approve up to $120 billion in financing capacity
France-listed Bitcoin treasury company Capital B’s shareholders approved authorizations allowing the company to raise up to 105 billion euros ($120.4 billion) to fund future Bitcoin purchases.
Over 95% of shareholders approved the establishment of up to 5 billion euros in capital increases, equivalent to as many as 125 billion new shares at the current nominal value, as well as the issuance of up to 100 billion euros in credit instruments, Capital B announced on Wednesday.
The company said the issuance of the new capital instruments will “accelerate its Bitcoin accumulation strategy, focused on increasing the number of Bitcoin per fully diluted share over time.”
Source: Capital B
During its general meeting on Wednesday, Capital B reported 300.65 million in total shares with voting rights. If fully exercised, issuing 125 billion in new shares would result in existing shareholders being diluted to about 0.24% of the company’s ownership.
For Elon Musk’s company, it’s a rounding error against a valuation of over $1.8 trillion: small enough that the stock will never trade on it, yet large enough to normalize the asset in a way no dedicated vehicle can.
For years, onchain analysts estimated SpaceX held about 8,300 bitcoin. The S-1 then revealed the real number was more than twice that, meaning one of the most scrutinized private companies in the world held a billion-dollar bitcoin position, and the public’s best guess was off by half until securities law forced the answer.
Now the position lives under public company rules.
Fair-value accounting means every quarterly report marks bitcoin to market, recording gains and losses whether or not SpaceX trades the coin. Tesla showed how that looks in a drawdown, booking hundreds of millions in paper losses on a position it wasn’t selling.
SpaceX arrives with bitcoin 37% already below its January high, though its roughly $35,000 cost basis means the stake is still up about 80% from its initial buys.
Neither Tesla nor SpaceX — both Elon Musk-owned firms — have ever shown an appetite for trading its stack. These companies continue to hold (at least for now) bitcoin through public earnings cycles and analyst questions, while the position swings, hands every Fortune 500 finance chief a working example of a mega-caps that treat bitcoin as a reserve asset, absorbs the earnings noise and moves on.
Bitcoin’s latest oversold RSI mirrors 2020 and February 2026 setups that preceded 50% and 30% rebounds, putting $70K back in focus.
Key takeaways:
- Ether derivatives metrics flip to a heavily bearish bias as cascading liquidations cut off a relief bounce.
- A critical ZCash bug discovered by AI triggers widespread fears of contagion, driving a contraction in Ethereum TVL.
Ether (ETH) plummeted to a 13-month low of $1,540 on Friday, following the bearish trend across the broader cryptocurrency market. Traders now fear a deeper price correction, given weakness in ETH derivatives metrics and heightened risk after a bug was found in the Zcash blockchain.
ETH perpetual futures annualized funding rate. Source: Laevitas
The Ether futures annualized funding rate flipped negative on Friday, indicating increased demand for short positions. Even with ETH trading 67% below its all-time high from August 2025, confidence among bulls has been shattered after $1.28 billion in leveraged longs were liquidated over 5 days.
ETH options premium put-to-call ratio at Deribit. Source: Laevitas
Demand for downside price protection surged as the Deribit ETH options put-to-call premium spiked to 3.7 times on Friday. The indicator has consistently shown excess demand for put (sell) options since Monday. Low conviction among holders fuels uncertainty, giving bears an easy path to take control.
ETH price followed Zcash: Why?
The severe decline in Ethereum network Total Value Locked (TVL) to its lowest since February 2024 has also negatively impacted trader sentiment. Smaller deposits in decentralized applications (DApps) tend to reduce ecosystem revenue, ultimately reducing demand for ETH use in smart contracts.
Ethereum network DApps Total Value Locked, USD. Source: DefiLlama
Some of Ethereum’s top DApps experienced severe TVL contractions, including Spark (-50%), Ether.fi (-49%), EigenCloud (-41%), and KernelDAO (-39%). Part of the exodus from smart contracts can be attributed to a critical vulnerability allowing unlimited ZEC minting in the largest ZCash zero-knowledge pool. The bug was found on May 29 using the Opus 4.8 AI model from Anthropic.
Given that the ZCash bug had existed since 2022 without anyone ever detecting it, traders fear that other blockchains and smart contracts could also be at risk. Advances in AI-driven security failure detection have put investors on high alert, especially after cryptocurrency hacks totaled $630 million in April.
KelpDAO’s $293 million hack and Drift Protocol’s $280 million exploit accounted for 82% of the monthly losses across 25 protocols, triggering panic across the decentralized finance (DeFi) industry. The hacks occurred across multiple networks, including Ethereum, Solana, Base, BNB Chain, Sui and PulseChain.
Percent of ETH supply in profit since they last moved. Source: Glassnode
Currently, only 30% of the ETH supply is profitable relative to when those coins were last moved. This setup has occurred only a few times in history, with the most recent instance being the mid-March 2020 COVID crash. Prior to that, this strong buy signal also emerged in mid-December 2019, preceding a 118% rally within 60 days.
Related: FG Nexus offloads additional $17.8M Ether as losses top $100M
With over $500 million in leveraged ETH long positions liquidated in 48 hours, there are no signs of a relief bounce. The largest Ethereum treasury firm, Bitmine (BMNR US), is sitting on an unprecedented $10.5 billion unrealized loss, as the company holds 4.5% of the entire ETH supply.
ETH could slide further below $1,550 as investor confidence deteriorates following multiple hacks across the DeFi industry and the inflationary bug found in the shielded Zcash protocol.
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