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Bitcoin dropped below $71,000 after negotiations between the United States and Iran collapsed, triggering renewed geopolitical uncertainty and a sell-off in risk assets. The breakdown in talks over nuclear issues, alongside threats from US President Donald Trump to blockade the Strait of Hormuz and restrict vessels linked to Iran, intensified fears about global trade and oil supply disruption. The Strait’s strategic importance as a major oil transit route has heightened concerns that prolonged conflict could push inflation higher, with some analysts warning US inflation could exceed 4% if tensions escalate further.
As a continuously traded asset, Bitcoin reacted immediately, with sharp declines wiping out recent gains and leading to significant long liquidations totalling around $350 million over 24 hours. Market participants highlighted that ongoing conflict and economic instability could weigh heavily on risk assets, while some suggested that weakening economic conditions might force the Federal Reserve to inject liquidity despite inflationary pressures. Investors are now watching upcoming inflation data and central bank commentary for further signals on the broader economic outlook. Source
Crypto markets have started the week under pressure as investors react to the collapse of US-Iran negotiations and the prospect of renewed military action. Rising geopolitical tensions, including threats of airstrikes and the continued blockade of the Strait of Hormuz, have pushed oil prices up sharply and unsettled global markets. This has increased inflation concerns in the United States, with fresh data such as the Producer Price Index due, alongside other indicators like jobless claims and manufacturing activity, all of which could influence interest rate decisions.
At the same time, major US banks are set to report earnings, adding another layer of uncertainty for financial markets. Higher inflation and the possibility of further rate hikes are seen as negative for crypto, contributing to a broad market decline. Total crypto market value has dropped significantly, with Bitcoin slipping towards the low $70,000 range and Ethereum and other altcoins erasing recent gains, reflecting a wider risk-off sentiment among investors. Source
A federal judge in Arizona has temporarily prevented state officials from enforcing gambling laws against Kalshi, siding with the US Commodity Futures Trading Commission in an ongoing dispute over how event-based trading products should be regulated. The court ruled that Kalshi’s contracts are likely to fall under federal derivatives law rather than state gambling rules, meaning they would be regulated at the national level instead of by individual states. The decision followed an attempt by Arizona authorities to apply local gambling laws to the platform’s event contracts, prompting federal intervention.
The ruling highlights a broader legal battle in the United States over prediction markets, where regulators and states disagree on whether these products should be treated as financial instruments or gambling. The temporary order blocks Arizona from taking enforcement action until late April while the court considers a longer-term injunction. Similar disputes are ongoing in other states, with some courts and lawmakers arguing these contracts are effectively sports betting, while federal regulators maintain they fall under existing commodities law. Source
U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell have reportedly warned major Wall Street banks about cybersecurity risks linked to Anthropic’s new Mythos AI model. In a meeting that included senior executives from institutions such as Citigroup, Bank of America, Wells Fargo, Morgan Stanley, and Goldman Sachs, officials discussed concerns that the advanced system could identify and potentially exploit vulnerabilities in operating systems and web browsers. The warning was aimed at encouraging banks to strengthen their cyber defences against possible AI-assisted attacks targeting financial infrastructure.
The concerns stem from reports that Mythos has demonstrated unusually strong capabilities in detecting software vulnerabilities, including previously unknown flaws. While these abilities could be used to improve cybersecurity by finding and fixing weaknesses, researchers and Anthropic itself have acknowledged that the same features could also be misused for offensive hacking. Due to these risks, access to the model has been restricted and it is currently being tested in controlled environments with selected partners. Source
University of California researchers have identified security risks in third-party large language model routers that sit between users and major AI providers such as OpenAI, Anthropic and Google. These routers can process requests in plaintext after terminating encryption, meaning they have access to sensitive information passing through AI agent workflows. The study found multiple attack methods, including injected malicious code and the extraction of credentials, raising concerns for users who rely on AI coding tools for tasks involving financial or blockchain systems.
In tests involving dozens of paid and free routers, researchers discovered evidence of compromised behaviour, including routers injecting malicious instructions, accessing cloud credentials, and in one case draining Ether from a controlled wallet using exposed private keys. The study highlights that even legitimate-looking infrastructure can be silently weaponised, especially when AI agents automatically execute commands without user confirmation. Researchers recommend avoiding the transmission of private keys or seed phrases through AI systems and suggest stronger verification methods to prevent unauthorised or malicious actions. Source
US and UK law enforcement agencies have partnered with major crypto firms to track and disrupt large-scale fraud under a joint initiative called Operation Atlantic. Held at the UK’s National Crime Agency headquarters in London, the operation involved organisations including Coinbase, Binance, Kraken, Chainalysis, Tether, the US Secret Service and UK authorities, and resulted in $45 million in crypto funds being identified as linked to fraud schemes, alongside $12 million being frozen in an effort to return money to victims.
The campaign focused largely on approval phishing scams, where victims are tricked into granting malicious access to their crypto wallets through fake prompts or alerts. More than 20,000 victims were identified, and over 120 web domains connected to fraudulent activity were flagged during the operation. Officials described the initiative as ongoing, with further analysis of intelligence continuing as authorities and private companies work together to combat increasingly sophisticated crypto-related crime. Source
The European Central Bank has expressed strong support for a European Commission proposal to transfer regulatory oversight of major crypto companies from individual EU member states to the EU’s central markets regulator, the European Securities and Markets Authority. In an opinion published on Friday, the ECB said it favours placing supervision of large, cross-border financial firms, including significant crypto platforms, under a single EU-level authority as part of efforts to deepen integration of financial markets and reduce regulatory fragmentation across the bloc.
The proposal would mark a major shift from the current system under the Markets in Crypto-Assets framework, which allows crypto firms to be licensed in one member state and operate across the EU. The ECB argued that centralised supervision would improve consistency, reduce risks, and address potential financial stability concerns linked to growing ties between banks and crypto firms. While the opinion is nonbinding and still subject to political negotiation, it is seen as a significant endorsement of the plan, which would require further agreement from EU lawmakers and governments before it could become law. Source
A new proposal from a StarkWare researcher suggests that Bitcoin could be made resistant to future quantum computing attacks without requiring any changes to the underlying Bitcoin protocol. The design, called a Quantum-Safe Bitcoin transaction scheme, aims to work within existing Bitcoin rules by replacing traditional elliptic-curve cryptography with hash-based methods and Lamport signatures, which are widely considered resistant to quantum attacks.
The approach involves users doing additional computational work before broadcasting a transaction, effectively solving a cryptographic puzzle that proves validity without relying on vulnerable signature schemes. This process would happen off-chain and is designed to fit within Bitcoin’s current scripting constraints, although it is described as complex, costly, and not suitable as a long-term scalable solution. The researcher presents it as a temporary safeguard rather than a full replacement for protocol-level upgrades, while noting that broader efforts such as Bitcoin Improvement Proposals are also exploring longer-term quantum-resistant designs. Source
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The article explains Markethive’s approach to user verification within its crypto-based ecosystem, focusing on its KEY Validation protocol as an alternative to traditional Know Your Customer (KYC) systems. It outlines the background of KYC regulations, tracing them back to anti-money laundering legislation and later global financial reforms, before describing how such rules have increasingly been applied to cryptocurrency exchanges under regulatory pressure.
Markethive positions its KEY Validation system as a privacy-focused alternative that avoids sharing user data with governments or regulators. Instead, it uses a video-based identity verification process stored within its own platform and combines this with tiered membership levels that unlock varying rewards, including credits, airdrops, and access to platform features. These levels range from free entry to high-cost “metal key” subscriptions, with higher tiers offering greater financial incentives and bonuses tied to engagement within the ecosystem. The system is also integrated with promotional rewards and referral-based incentives designed to encourage participation and platform growth. Source
Michael Saylor, co-founder of the Bitcoin treasury company Strategy, has indicated that the firm is preparing to buy more Bitcoin following a recent price dip. He suggested continued accumulation by sharing the company’s purchase history, reinforcing expectations that Strategy will keep expanding its holdings despite market volatility.
The company last bought 4,871 Bitcoin on April 6, bringing its total to 766,970 BTC, making it the largest corporate holder of Bitcoin. Strategy has accumulated its position through repeated purchases since 2020, often financed through debt and equity issuance. Despite reporting significant unrealised losses of around 14.5 billion dollars in early 2026 due to market declines, the firm continues to acquire Bitcoin at a rate exceeding new supply from miners, a strategy some analysts say could contribute to tighter market conditions. Source
BitTensor’s native token TAO has fallen sharply, dropping more than 18% in 24 hours after a public dispute between the network’s founder, Jacob Steeves, and Covenant AI, a major subnet operator within the ecosystem. The conflict escalated after Covenant AI announced it was leaving the network, accusing Steeves of centralised control over subnet operations, emissions, and community governance, which it argued undermined BitTensor’s claims of decentralisation.
Steeves rejected the allegations, stating he did not have the ability to suspend subnet emissions and suggesting that Covenant AI had misrepresented internal actions. Despite the denial, investor sentiment weakened, contributing to a broader sell-off that also erased much of the token’s recent gains. The dispute has drawn wider attention due to Covenant AI’s previous high-profile work in decentralised AI model training, and it highlights ongoing tensions within blockchain-based AI projects over governance and control. Source
Bitcoin mining and artificial intelligence may be heading in opposite directions when it comes to decentralisation, according to Galaxy Research’s Alex Thorn. He argues that Bitcoin mining, which was once highly decentralised when individuals used personal computers, has gradually become concentrated in industrial-scale operations requiring specialist ASIC hardware and large mining farms. In contrast, AI began in highly centralised cloud-based systems but could become more distributed over time as smaller, more efficient open-source models improve and overcome limitations such as data scarcity, context constraints and memory bottlenecks, potentially enabling AI to run locally on personal devices.
The development of edge AI, where models operate directly on local devices rather than central data centres, is expected to expand significantly, with the market projected to grow from around 25 billion dollars in 2025 to 119 billion dollars by 2033, driven by the rise of connected devices, real-time processing needs and greater demand for data privacy. Meanwhile, Bitcoin mining is also shifting geographically due to high energy costs in places like the United States, pushing operations towards regions such as Paraguay and Ethiopia where surplus hydroelectric power is available, which may decentralise mining across different continents and improve network resilience against regional disruptions. Source
Exodus has launched a new feature called Exodus Pay designed to turn its self-custodial crypto wallet into a payments app for everyday spending. The rollout is currently restricted to users in five US states, including New York, California, Nebraska, Texas and Florida, due to regulatory constraints. The company aims to position the feature as an alternative to centralised payment apps by allowing users to spend directly from their own wallet rather than relying on third-party platforms that control or hold funds.
Exodus Pay enables users to make purchases using cryptocurrencies such as Bitcoin or USDC stablecoins, with payments compatible with existing networks like Visa and Apple Pay. The company says it is trying to reduce friction in self-custody by simplifying the user experience, including features such as fee subsidies and the ability to send funds using phone numbers. Exodus plans to expand the service across the United States in the near future, with a broader rollout expected soon as the feature is integrated into existing wallets through an automatic update. Source
North Korean cyber operations targeting the crypto industry are increasingly shifting beyond purely remote hacking into more sophisticated, multi-layered infiltration tactics, according to recent reports. The most notable example is a $285 million exploit on the Drift decentralised exchange, which investigators and blockchain forensics firm TRM Labs say is linked to state-backed hackers and represents the largest crypto hack of 2026 so far. The attackers allegedly combined technical exploitation with social engineering, including posing as a trading firm and meeting protocol contributors in person at industry conferences over several months to build trust and gain access.
The operation reportedly involved complex preparation, including funding activity through mixers, deploying tokens to create artificial market credibility, and manipulating governance processes so malicious transactions were approved by multisig signers. Once executed, the exploit allowed the attackers to drain assets such as USDC, with laundering occurring rapidly afterwards. Alongside such attacks, North Korean-linked networks are also said to be embedding operatives into crypto and tech firms as fake remote workers, generating steady income while also supporting larger-scale thefts. Security researchers warn that these tactics reflect an evolving strategy that blends hacking, social engineering and long-term infiltration, making detection and prevention increasingly difficult. Source
The Artificial Superintelligence Alliance and developer platform Matterhorn have launched a new initiative aimed at reducing the risks of AI-generated smart contract code in crypto applications. The project focuses on so-called “vibe coding”, where developers describe an application in plain language and AI automatically produces smart contract code, speeding up development but increasing the risk of security flaws. To address this, Matterhorn and the ASI Alliance are introducing a combination of automated analysis tools, human security audits and testing systems to review code before it is deployed on-chain.
The platform, built around ASI and developed by the Artificial Superintelligence Alliance, which includes Fetch.ai, SingularityNET and CUDOS, aims to provide developers with an integrated environment for building and auditing decentralised applications. The system combines AI-assisted code generation with external security reviews and structured templates designed to improve safety, while acknowledging it cannot guarantee full security. The effort reflects wider concerns in the crypto industry about autonomous AI agents managing financial operations, as researchers and developers push for more mathematically verifiable approaches to reduce vulnerabilities in smart contracts. Source
Aave’s decentralised autonomous organisation (DAO) has approved a major funding package for Aave Labs, granting $25 million in stablecoins and an additional allocation of 75,000 AAVE tokens as part of the “Aave Will Win” framework. The proposal passed with nearly 75% approval and is designed to fund long-term protocol development, with the stablecoin payments distributed over 12 months and the token allocation vesting linearly over four years. The funding is intended to support Aave Labs’ operational costs while incentivising continued development of the Aave ecosystem.
The framework marks a shift towards a DAO-funded operating model for Aave, one of the largest decentralised finance protocols with more than $25 billion in total value locked. Under the plan, revenue generated from Aave products will flow into the DAO treasury rather than being retained by Aave Labs, and future governance proposals will determine additional grants tied to milestones and product launches. While supporters, including Aave founder Stani Kulechov, described the move as a key step in accelerating growth and competitiveness, some community members have raised concerns about governance structure, token allocation and decision-making dynamics within the protocol. Source
Morgan Stanley’s head of digital-asset strategy Amy Oldenburg has signalled that the firm’s crypto expansion will extend well beyond Bitcoin as it explores tokenisation, tax strategies and broader digital-asset products. She said the bank sees long-term potential in areas such as tokenised money-market funds and expects continued development of crypto offerings following its recent entry into spot Bitcoin ETFs. The firm has already allowed its wealth advisers to offer third-party Bitcoin ETFs to eligible clients, reflecting growing integration of crypto into traditional wealth management.
Oldenburg also suggested that Morgan Stanley could explore services such as tax-loss harvesting for digital assets through its subsidiary Parametric, which already runs rules-based investment strategies for clients. With more than 15,000 advisers and trillions in client assets, the bank is positioning its crypto strategy as a gradual expansion rather than a single-product focus, potentially including Ethereum and Solana exposure as well as yield and lending products in future. Analysts note that the firm’s large distribution network and competitive fees could help it gain traction in an increasingly crowded ETF market dominated by major players like BlackRock. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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