Executive brief

Bitcoin has demonstrated notable resilience in the face of significant macro volatility driven by an escalating conflict between the US and Iran. While Brent crude oil surged as high as $120 per barrel before reversing sharply, Bitcoin remained relatively stable, reclaiming the $69,000 level after an initial dip to $66,000. This price action suggests a potential decoupling from traditional risk assets like equities, which suffered heavy losses across Asian and US markets. A key driver for this stability is the continued institutional appetite, highlighted by Michael Saylor’s Strategy making a $1.3b purchase of 17,994 BTC, bringing its total holdings to 738,731 BTC.

However, the mining sector faces increasing pressure as network difficulty and power costs rise. New analysis indicates that US miners now require a Bitcoin price above $74,444 to break even on operating costs, with full accounting profitability remaining elusive until prices exceed $114,000. This creates a potential risk of further miner capitulation if prices stagnate below these levels. On the regulatory front, a significant shift is visible as the US Treasury acknowledged legitimate privacy uses for crypto mixers, even as the banking lobby prepares to sue the OCC over national trust charters granted to crypto firms. Investors should view the current environment as a test of Bitcoin’s role as a non-correlated asset. While oil shocks threaten global growth, the scarcity and predictability of the Bitcoin network continue to attract capital, though the risk of a mini crypto winter persists until a definitive breakout above $74,000 is achieved.

1) Top 20 news headlines

2) BTC and ETH ETF flows

Metric BTC ETH
Net inflow -$348.8m -$82.9m
Value traded $3.1b $828.8m
Net assets $87.1b $11.3b
Cumulative net inflow $55.4b $11.6b

3) X trending news