Executive brief

The digital asset market is experiencing a significant downturn as a confluence of geopolitical tension and macro-economic volatility triggers a sharp de-risking phase. Bitcoin fell below $67,000 and Ethereum dropped toward $2,000 as markets reacted to reports of escalating conflict in the Middle East, while Nasdaq crypto stocks were battered in a broader correction. This escalation has pressured risk assets globally, with the Nasdaq 100 falling 11% from its recent high since the conflict began. Institutional sentiment appears to be cooling in tandem, with investors yanking $171 million from bitcoin ETFs in the largest single-day outflow in three weeks.

Despite the immediate price volatility, structural developments continue within the institutional plumbing. Tether has hired KPMG for its first full audit of USDT as it gears up for US expansion, while the NYSE owner invested a fresh $600 million into Polymarket, bringing its total commitment to prediction markets to nearly $2 billion. In a significant move for mainstream finance, Fannie Mae will allow crypto-backed mortgages, potentially unlocking liquidity for homeowners. However, regulatory shifts remain a focus as White House crypto czar David Sacks transitions to a presidential advisory role. The primary driver for the near term remains the energy and bond market crisis, with the 10-year Treasury yield nearing 4.5%. A key risk remains the possibility of inflationary pressure from surging gas prices and oil shocks, which may delay Federal Reserve rate cuts.

1) Top 20 news headlines

2) BTC and ETH ETF flows

Metric BTC ETH
Net inflow -$171,215,465.2 -$92,544,772.715
Value traded $2,493,457,146.66 $878,488,718.5
Net assets $88,355,726,427.10388 $11,701,724,311.921999
Cumulative net inflow $56,160,439,330.793 $11,571,365,977.271

3) X trending news

  • Oil prices surge above $100; crude benchmarks climbed after reports of strikes on Iranian power plants.
  • S&P 500 erased $4.5 trillion; market capitalisation has collapsed by trillions since the Iran War began on 28 February.
  • Gold rising above $4,550; the precious metal added $1.3 trillion in market cap as investors seek safe havens.
  • FBI Director Kash Patel’s email hacked; the DOJ confirmed a breach of the director’s personal account by Iran-linked hackers.
  • Fed rate cuts not expected until 2027; markets are now pricing in a 51% chance of an interest rate hike by March 2027.
  • Russia bans gasoline exports; the ban is set to start 1 April as Asia’s energy crisis accelerates.