Hi Siai,

It's been one of those weeks where markets remind everyone that risk assets move together when sentiment shifts.

Crypto sold off, but it wasn't alone. Equities pulled back, leverage was unwound across multiple markets, and even traditional safe havens paused as investors reacted to macro and policy signals. This wasn't a crypto-specific event, it was a broader risk-off move\

.

Moments like this tend to separate short-term positioning from long-term conviction. While price action grabbed the headlines, the more important story played out quietly in the background: institutions continue to allocate, regulators continue to formalise frameworks, and liquidity conditions are beginning to ease again.

Here's what actually mattered this week.

DAY1x UPDATES

• Crypto Packs

  Crypto Packs make it easier to build diversified positions without paying a convenience tax. Instead of manually placing multiple trades, you can gain exposure to curated baskets of assets in a single action, all at our standard Day1x 0.1% trading fee. They're designed for long-term builders who want simplicity without overpaying for it.

• Last week's video: Is gold the ULTIMATE "sh*tcoin?"

  In last week's video, we explored the uncomfortable parallels between gold and crypto narratives, why Bitcoin still behaves like a risk asset in the short term, and what actually matters when markets de-leverage.
  
  

  If you missed it, it's worth a watch.

CRYPTO NEWS

• Bitcoin Plunges Below $77,000 Following Trump's Fed Chair Nomination

  Bitcoin fell into the mid-$70,000s following Donald Trump's nomination of hawkish economist Kevin Warsh as Federal Reserve Chair. Fears of tighter monetary policy sparked a risk-off move that triggered more than $1.6B in liquidations.
  
  While painful short-term, this type of deleveraging often acts as a reset, flushing out excess speculation and creating a healthier base for recovery as institutional participation continues to grow.

• Fed to Inject $14.3B in Liquidity
  

  The U.S. Federal Reserve is set to inject $14.3B into the financial system via a liquidity program starting soon. Historically, similar injections have supported risk assets, including Bitcoin.

  
  With leverage reduced and liquidity returning, the setup becomes increasingly constructive for crypto markets.

• Japan's SBI Pushes for BTC-XRP ETF

  Japanese financial giant SBI has filed for a regulated dual-asset ETF combining Bitcoin and XRP. This move highlights growing mainstream adoption in Asia and signals increasing comfort with regulated crypto exposure from major financial institutions.

• Institutions Lean In Despite Market Volatility

  Institutional crypto exposure rose to 55% in 2025, with over $95B flowing into U.S. spot Bitcoin ETFs. Regulatory clarity, including frameworks like the GENIUS Act, is making it easier for institutions to enter safely.

  
  At the same time, a Coinbase survey shows 70% of institutions believe Bitcoin is currently undervalued, citing adoption, scarcity, and long-term fundamentals, even if short-term sentiment remains cautious.

• UK Advances Full Crypto Regulatory Framework

  The UK is laying the groundwork for comprehensive crypto regulation. The FCA announced its Pre-Application Support Service will open in July 2026, while HM Treasury introduced new regulations to bring crypto fully under the Financial Services and Markets Act. 
  
  Together, these moves create a clearer path to compliance, increased legitimacy, and stronger investor confidence across the sector.

THE BOTTOM LINE

Short-term volatility is doing what it always does: shaking out leverage. But behind the noise, institutions are accumulating, regulators are clarifying rules, and liquidity is starting to return.

Markets don't move in straight lines, but the long-term structure continues to strengthen.

As always, trade smart and manage risk. If you have any questions or requests, just let me know.

Have a great week,

Michael Chmielewski
Head of Growth & Product