Executive brief
The digital asset market is navigating a period of intense volatility driven by a rapid sequence of geopolitical developments and structural DeFi failures. Bitcoin prices fluctuated significantly over the weekend, briefly touching $78,000 before retreating to $75,000 following conflicting reports regarding the closure of the Strait of Hormuz. While a temporary ceasefire initially spurred optimism, the subsequent re-closure of the vital oil route has reintroduced a risk-off sentiment across both traditional and crypto markets. This geopolitical driver remains the primary directional cue for the immediate term, with traders pricing in energy supply shocks in real time via 24/7 decentralised derivatives platforms.
Systemic risks within the decentralised finance sector have also come to the fore. The exploit of Kelp DAO for $292m has triggered widespread contagion, leading to a $6b drop in deposits at Aave as investors flee non-isolated lending protocols. This event highlights a critical opportunity for the industry to move toward more robust risk management frameworks, even as retail access expands through traditional channels. Significant structural shifts are occurring in the US, with Charles Schwab preparing to launch direct trading for its 39 million clients and the SEC removing the $25,000 pattern day trader barrier. These regulatory and institutional entries provide a massive tailwind for liquidity but carry the risk of heightened volatility as lower-margin retail speculation increases.
1) Top 20 news headlines
- Kelp DAO hit for $292m in 2026’s largest DeFi exploit; an attacker drained 116,500 rsETH from a cross-chain bridge, impacting liquidity across 20 chains.
- Bitcoin volatility spikes as Iran reverses Hormuz reopening; prices fell back to $76,000 following a short-lived ceasefire that initially liquidated $593m in bearish bets.
- SEC scraps $25,000 pattern day trader rule; retail investors will soon be able to day trade Bitcoin-linked products with a minimum account equity of just $2,000.
- Charles Schwab rolls out direct BTC and ETH trading; the brokerage giant will provide access to its 39 million clients with a 0.75% transaction fee.
- Morgan Stanley Bitcoin ETF hits $116m in cumulative inflows; the MSBT fund surpassed several existing competitors within its first seven trading sessions.
- Aave sees $6b deposit flight following Kelp DAO exploit; the protocol’s native token fell 16% as attackers used drained assets as collateral for bad debt.
- RAVE token collapses 90% amid manipulation probe; the token fell from a $27.33 peak to $1.15, wiping out more than $5b in market capitalisation.
- White House slams bank lobbying against CLARITY Act; officials accused banking associations of greed for trying to block stablecoin yields despite consumer costs of $800m.
- Kevin Warsh emerges as potential hawkish Fed Chair; markets reacted to the crypto-holding nominee with caution as he favors a tighter monetary regime and smaller balance sheet.
- Alcoa to sell New York smelter to NYDIG for Bitcoin mining; the dormant Massena East site offers heavy-duty grid infrastructure for energy-intensive digital operations.
- US Congress considers tax parity for stablecoins; a new draft bill proposes that gains from regulated payment stablecoins be excluded from gross income.
- Worldcoin tanks 13% despite identity tech expansion; the token price fell as World expanded iris-scanning integrations to platforms including Zoom and Docusign.
- Nomura survey shows 65% of institutions favor crypto; regulatory clarity and new investment products are driving deeper engagement among traditional fund managers.
- Strategy (STRC) adopts bi-monthly dividends; the move aims to reduce volatility and enable consistent Bitcoin purchasing power for the firm.
- SEC charges executive in $16m Bitcoin Latinum fraud; regulators allege the scheme involved false claims about an insured digital token.
- X Cashtags generate $1b in trading volume; the new social trading feature saw massive engagement in its first two days through integrations with Wealthsimple.
- Poland’s Prime Minister links Zondacrypto to interference; allegations of missing keys to a 4,500 BTC wallet surfaced amid a legislative veto battle.
- Caitlyn Jenner memecoin lawsuit dismissed; a federal judge ruled that the plaintiff failed to plausibly allege the token was an unregistered security.
- Wrapped XRP launches on Solana; XRP holders can now access Solana based DeFi platforms like Jupiter and Meteora without selling their assets.
- Russia moves to criminalise unregistered crypto services; a new bill would require groups to register with the Bank of Russia or face prison time.
2) BTC and ETH ETF flows
| Metric | BTC | ETH |
|---|---|---|
| Net inflow | $663,911,366.47 | $127,485,084.77 |
| Value traded | $4,794,943,928.27 | $1,080,543,793.80 |
| Net assets | $101,452,478,155.08 | $14,262,948,835.64 |
| Cumulative net inflow | $57,739,993,739.43 | $11,943,573,505.01 |
3) X trending news
- Strait of Hormuz closure; zero oil tankers passed through the strait today, marking a total closure of the vital waterway.
- RAVE crypto crash; the $RAVE token fell 95% in 24 hours, resulting in a $6.3b loss in market value.
- Federal Reserve losses; the Fed reported an $18.7b operating loss for 2025, bringing its three year total loss to $210.3b.
- Record money market outflows; money market funds saw a record weekly drawdown of $172.2b, with $1.2b flowing into crypto funds.
- Suspicious oil shorts; roughly $760m in oil short positions were placed just 20 minutes before the brief Hormuz reopening announcement.
- Semiconductor ETF surge; US semiconductor ETFs have attracted a record $4b in inflows so far in April.
- Bitcoin price levels; Bitcoin briefly reclaimed the $78,000 level following the initial reports of regional de-escalation.