Crypto markets slipped as investors awaited the Federal Reserve’s minutes, with a string of liquidity and industry developments weighing on sentiment.
Over the past three days, Ethereum ETF outflows totaled about $678 million, signalling short-term ETF-driven selling pressure. Bitcoin also weakened after reports pointed to roughly a $400 billion drain from the Fed’s reverse-repo facility — a large withdrawal of cash that can remove liquidity from short-term money markets and flow into risk assets like crypto less readily.
Beyond macro flows, sector-specific news added to the mood. A strategy-focused stock tied to crypto purchases dropped to four-month lows after disclosed BTC buys, while digital asset token (DAT) funding concerns grew: DATs have now eclipsed traditional venture capital funding in 2025, prompting fresh debate over capital concentration and project vetting.
On the adoption front, a mix of notable on-ramps and corporate moves underline continued infrastructure growth. Sharplink reportedly added 12,000 ETH to its holdings. Wyoming became the first U.S. state to launch a state-backed stablecoin, and market participants like Bessent are publicly betting on stablecoins to meet future debt demand. Bullish also settled a $1.15 billion IPO using stablecoins — a sign stablecoin rails are being used for large capital movements.
Retail and payments updates arrived alongside institutional activity: SUI trading went live on Robinhood, SoFi announced plans to integrate Bitcoin Lightning for payments, and plans surfaced to tokenise real‑world assets on Avalanche. Corporate moves and personnel shifts — including reports about ALT5 Sigma and a planned hire at Tether — kept headlines busy.
Why it matters: Short-term liquidity shifts (ETF outflows and reverse‑repo movements) can quickly change price trajectories, while stablecoin adoption and tokenisation efforts point to structural growth in on-chain funding and settlement. These two dynamics can tug markets in opposite directions — immediate volatility paired with longer-term adoption gains.
Risk note: Market moves described here reflect large capital flows and announcements that can increase volatility. Investors should consider liquidity risk, market structure, and their risk tolerance before trading.
Source: Decrypt. Read the original coverage for full details.