Bitcoin faces more losses as memecoin hype fades

Bitcoin could drop to $73,000 due to macroeconomic pressures, according to a new report by 10X Research. The firm sees similar patterns to the end of past bull markets, citing central bank policies, investor caution, and fading crypto hype.

Bitcoin rebounded to $83,000 on Tuesday but remains down 14% in the past month and well below its January high of $109,000, when enthusiasm over Trump’s pro-crypto stance pushed prices up.

10X Research pointed to the collapse of the memecoin frenzy that had fueled the rally, with retail traders now holding "portfolios packed with tokens on a slow march to zero."

Trump’s Solana-based memecoin, $TRUMP, is now trading at $10.50, down 85% from its all-time high of $73.43. Other major cryptocurrencies like Bitcoin and Ethereum have also dropped over 8% in the past week.

Traders are hedging against further declines, with demand for put options – contracts that profit if Bitcoin falls – rising significantly. Nick Forster, founder of Derive.xyz, noted that investors are becoming more cautious ahead of key U.S. economic data.

US traders lost billions to airdrop blocks

A new Dragonfly report estimates that geoblocking in crypto airdrops has cost U.S. users between $1.84 billion and $5 billion since 2020.

Airdrops are free token distributions to reward crypto users. However, many projects block U.S. residents due to regulatory concerns, preventing them from claiming tokens.

Dragonfly noted that beyond individual losses, the U.S. government has missed out on up to $1.1 billion in tax revenue. The firm suggests that regulators should align airdrops with credit card rewards to provide legal clarity.

The SEC under Trump has recently dropped lawsuits against crypto firms, signaling a more cooperative approach. Whether that will extend to clearer rules for airdrops remains to be seen.

SEC delays decision on XRP ETF

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Grayscale’s application for a spot XRP exchange-traded fund (ETF), citing the need for more time to evaluate the proposal.

The delay comes as more asset managers file for XRP ETFs, including Franklin Templeton, WisdomTree, and 21Shares.

XRP has held up better than Bitcoin and Ethereum during the recent downturn, rising to $2.19 – up 9% this week.

Institutional interest in crypto ETFs has exploded, with Bitcoin ETFs now managing nearly $100 billion in assets, making them one of the fastest-growing investment products in history.

Cathie Wood predicts economic boom

ARK Invest CEO Cathie Wood believes the U.S. economy is on the verge of a massive productivity boom, driven by artificial intelligence, blockchain, and emerging technologies.

Speaking on her podcast, Wood said the economy is exiting a "rolling recession" and heading toward a deflationary boom by late 2025.

She pointed to SEC deregulation under Trump, particularly in crypto and AI sectors, as a sign that markets could see accelerated growth.

However, critics argue that ARK’s investment strategies have struggled, with her flagship fund underperforming the S&P 500 in recent years.

Despite skepticism, Wood remains bullish, saying:
"We’re on the threshold of some of the biggest productivity gains in history."

South Korean official stole relief funds for crypto

A South Korean civil servant embezzled $342,000 in public funds, including donations meant for flood recovery, to invest in crypto, according to an audit report released Tuesday.

The official, sentenced to five years in prison, used forged documents to open a bank account under the Cheongju City Hall name, funneling stolen money into crypto investments.

The case highlights ongoing concerns over financial transparency in South Korea, where other politicians, including former Democratic Party member Kim Nam-guk, have also been investigated for off-the-books crypto transactions.

Crypto market shifts as hype fades

Despite Bitcoin’s recent downturn, the institutional side of crypto continues to grow.

• SEC delays the XRP ETF decision, but major asset managers keep filing for crypto ETFs.
• U.S. investors lost billions in airdrops due to outdated regulations.
• Cathie Wood predicts an economic boom, aligning with Trump’s pro-tech stance.
• South Korean fraud case shows crypto’s role in financial misconduct.

Even as meme coin hype fades, institutional adoption is deepening, regulation is evolving, and crypto’s role in financial markets is becoming more permanent.