Crypto markets came under renewed pressure this week as Binance began converting its SAFU security fund into Bitcoin, while institutional investors pulled billions from crypto ETFs. Other key developments included regulatory progress by Ripple XRP in the EU, the expansion of Polymarket onto Solana via Jupiter, and growing regulatory pressure on major market participants. At the same time, companies pursuing Ethereum treasury strategies are increasingly feeling the strain from the price downturn.

Bitcoin (BTC) fell sharply over the weekend, slipping below the $78,000 level and pushing many spot exchange-traded fund (ETF) investors into aggregate losses. The decline came amid thinning liquidity, the unwinding of leveraged positions, and a cooling of institutional risk appetite. Developments across derivatives markets, regulatory signals from Hong Kong, and broader macroeconomic uncertainty contributed to a volatile period for digital assets.

The cryptocurrency market experienced turbulence over the past 12 hours, with Bitcoin testing cycle lows near $77,000 and triggering more than $2.5 billion in forced liquidations. The sell-off rippled across the industry, leaving Tom Lee’s BitMine with more than $6 billion in unrealized Ethereum losses and exposing security risks after Solana-based DeFi protocol Step Finance disclosed a treasury breach that moved over $27 million worth of SOL on-chain. At the same time, political and corporate developments continued to reshape the crypto landscape.

Crypto markets faced renewed pressure over the past 24 hours as major digital assets sold off amid leverage-driven liquidations, weakening miner economics, and heightened risk aversion. Ether (ETH) prices slid toward the $2,300 level, contributing to multi-billion-dollar unrealized losses for large treasury holders, while Bitcoin (BTC) fell below key cost-basis thresholds for major institutional investors. At the same time, Bitcoin’s network hashrate recorded its sharpest decline since the post-China mining ban recovery period, and a major Solana (SOL)-based DeFi protocol disclosed a significant treasury exploit.

Two prominent figures in the cryptocurrency world, Chris Larsen and Tim Draper, are injecting $40 million into California politics to support moderate, business-friendly candidates and counter the influence of labor unions. This significant financial commitment aims to reshape the state legislature and influence policy debates, particularly concerning a proposed wealth tax.

The non-fungible token (NFT) market experienced a significant downturn this past week, with total sales volume plummeting by 38.25% to $74.88 million. This sharp decline occurred even as market participation saw an increase in both buyers and sellers. The broader cryptocurrency market also faced headwinds, with Bitcoin experiencing a substantial 71% drop in sales.

Ondo Finance, a prominent player in the tokenization space, has lauded the New York Stock Exchange's ( NYSE ) potential move towards 24/7 trading for tokenized stocks. Ian de Bode, president at Ondo Finance, believes this initiative could be a pivotal solution to the persistent liquidity challenges that have plagued the burgeoning market for tokenized equities, effectively bridging the gap between traditional finance and decentralized markets.

Bitcoin has experienced a significant price correction, dipping below the $81,000 mark and raising concerns about the crucial $80,000 support level. This downturn follows substantial outflows from spot Bitcoin ETFs and a broader market sentiment shift, with options markets now reflecting heightened investor anxiety.

XRP has experienced significant volatility following a record-breaking ETF outflow, raising concerns among investors about its short-term price trajectory. Despite some institutional buying, a massive withdrawal has led to a notable price drop, with analysts eyeing potential further declines.

The cryptocurrency market weakened this week as Bitcoin and Ethereum posted sharp declines, reflecting a broader shift toward risk aversion driven by macroeconomic uncertainty and heightened regulatory scrutiny. Developments ranged from continued outflows from crypto-linked exchange-traded funds (ETFs) and deteriorating market sentiment to regulatory actions by U.S. authorities and renewed debate over the causes of October’s market-wide liquidation event.