Cryptocurrencies experienced a significant downturn, with bitcoin (BTC) plummeting to below $66,000 and altcoins witnessing declines ranging from 10% to 15% on what proved to be a challenging day for risk assets.

Ryze Labs, in a report, warned investors to brace for continued market weakness beyond the current decline, attributing it partly to the ongoing tax season.

During the U.S. trading session, digital assets succumbed to risk-off sentiment prevalent in traditional markets, exacerbated by heightened geopolitical tensions. Bitcoin, which had flirted with the $71,000 mark earlier in the day, saw a rapid descent to $66,000 before rebounding slightly to $66,700, marking a more than 5% decrease over 24 hours.

Ether (ETH), the second-largest cryptocurrency by market cap, mirrored bitcoin’s decline, plunging as much as 12% to $3,100 before a modest recovery trimmed the losses to 8%.

The broader crypto market was hit harder, with the CoinDesk 20 Index (CD20) witnessing a nearly 10% drop. Altcoins like Cardano’s ADA, Avalanche’s AVAX, bitcoin cash (BCH), filecoin (FIL), and aptos (APT) suffered losses ranging from 15% to 20%.

The market turbulence triggered the largest leverage washout in a month, with approximately $850 million of leveraged derivatives trading positions across all digital assets liquidated, according to CoinGlass data. Long positions, amounting to $770 million, were particularly affected, as investors betting on rising prices found themselves caught off guard by the sudden downturn.

The dip in crypto prices coincided with a decline in stock markets amid escalating geopolitical tensions in the Middle East. U.S. authorities’ warnings of a potential significant attack by Iran on Israel contributed to a risk-off atmosphere, prompting investors to seek refuge in traditional safe-haven assets such as Treasury bonds and the U.S. dollar index (DXY).

Meanwhile, digital asset investment firm Ryze Labs cautioned of short-term market softness due to the upcoming tax season but maintained a positive long-term outlook. It anticipates relief for the asset class as policymakers may adjust monetary policy to facilitate U.S. government debt rollovers.

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Hong Kong is on the brink of approving Bitcoin and Ether Exchange-Traded Funds (ETFs) as soon as Monday, according to sources familiar with the matter. This development represents a significant advancement for the cryptocurrency sector within the region.

Harvest Fund Management, in conjunction with Bosera Asset Management and HashKey Capital, is poised to receive approval for its spot Bitcoin and Ether ETF applications. By the end of April, these ETFs are anticipated to secure the green light from the Securities and Futures Commission (SFC). Furthermore, the SFC is reportedly collaborating with Hong Kong Exchanges & Clearing Ltd to finalize the approval process.

Although the precise timeline remains uncertain, sources indicate that initial approvals, which may encompass Hong Kong Bitcoin ETFs, could materialize as early as Monday.

Regulators in the region have already given the green light for the launch of crypto-based ETFs. Notably, CSOP Ether Futures, Samsung Bitcoin Futures, and CSOP Bitcoin Futures collectively boast an estimated value of $170 million.

Bitcoin ETFs have demonstrated robust inflows since their launch, contributing to a resurgence in the cryptocurrency markets. By mid-April, the total assets under management for the 11 ETFs are projected to soar to a record $73 billion, with $59 billion raised to date. The net flows into Blackrock’s iShares Bitcoin Trust have surpassed $15 billion in just three months.

As of the beginning of this week, Harvest was anticipated to secure approval to launch a spot Bitcoin ETF in the city. Both Harvest and China Asset Management received approval from the SFC to offer virtual asset fund management services on April 9.

Regulators are actively working towards enabling investors to purchase spot ETFs. Julia Leung, deputy chief executive director of intermediaries for the SFC, affirmed that the regulator is “actively seeking to establish a regime to approve ETFs that provide investor guarantees for mainstream virtual assets.”

Despite encountering setbacks such as the emergence of JPEX, an unlicensed crypto exchange implicated in an alleged $1.6 million fraud, Hong Kong remains steadfast in its ambitions to support crypto entrepreneurs and restore its reputation as a global business center.

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The first edition of the Trump Digital Trading Card NFTs has experienced a significant downturn in sales, with trading volumes plummeting by 99% over the last 30 days. Data from OpenSea reveals a stark decline in transactions, with no activity recorded in the past week. This marks a sharp contrast from the initial buzz surrounding the collection, which generated over $50 million in total trading volume since its launch in December 2022.

Trump’s Relationship with Crypto

Former U.S. President Donald Trump has shown increasing interest in crypto and bitcoin, evident from his foray into the NFT market with the release of digital trading cards. However, waning interest in the original collection coincides with Trump’s upcoming criminal trial, where he faces allegations of falsifying business records related to hush money payments.

Comparison to Overall NFT Market

While overall NFT trading volumes have moderated compared to the frenzied activity of 2021, the broader market has exhibited relative stability in recent months. Ethereum-based NFT sales volumes reached $489 million in March, according to CryptoSlam! data, indicating ongoing activity despite the subdued performance of specific collections like Trump’s.

Second Series Performance and Promotions

In contrast to the decline in the first edition, the second series of Trump’s digital trading cards has seen relatively better performance, albeit with a 57% decrease in trading volumes over the past 30 days. Recent promotions for the collection included the opportunity for collectors to win a dinner invitation with Trump at Mar-a-Lago, scheduled for May 8, as announced on X.

Ownership and Management of NFT INT LLC

NFT INT LLC, the entity responsible for managing the NFT drops and promotions, operates independently from Donald J. Trump, The Trump Organization, and affiliated entities. While the website for the digital trading cards states that NFT INT LLC holds a paid license from CIC Digital LLC to use Trump’s name and likeness, Trump’s previous association with CIC Digital LLC has raised questions about ownership and management.

The minting of NFTs based on Trump’s likeness occurs on the Polygon blockchain, adding a layer of digital authentication to the collection.

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BlackRock’s IBIT spot bitcoin exchange-traded fund (ETF) has achieved a significant milestone, with total inflows surpassing $15 billion within just three months since its launch on January 11. This remarkable achievement places IBIT among the top 100 ETFs by assets under management (AUM), highlighting the strong demand for exposure to bitcoin among investors.

Dominance in Spot Bitcoin ETF Inflows

BlackRock’s IBIT has emerged as a leader in yesterday’s inflows for U.S. spot bitcoin ETFs, attracting $192.1 million. This surge in inflows outpaced the $124.9 million in outflows from Grayscale’s higher-fee GBTC fund, according to data from CoinGlass. Bitwise’s BITB, Valkyrie’s BRRR, and Fidelity’s FBTC also experienced notable inflows, contributing to the overall growth of the spot bitcoin ETF market.

Renewed Marketing Efforts

The milestone achievement coincides with a renewed advertising push for BlackRock’s IBIT, as competition intensifies in the ETF market. iShares, BlackRock’s ETF division, has ramped up its marketing efforts to promote the IBIT product, with banner ads appearing prominently on platforms like Bloomberg. The increased visibility underscores the escalating marketing battle among ETF providers vying for investor attention.

Steady Trading Volume and Asset Growth

Despite fluctuations in bitcoin’s price, trading volume for spot bitcoin ETFs remained steady, with IBIT leading in trading activity. However, daily volume saw a decline from its peak on March 5, indicating a stabilization in trading activity following previous surges. Meanwhile, BlackRock’s IBIT continues to experience significant asset growth, nearing the $20 billion mark in AUM. The fund’s rapid ascent in assets underscores its popularity among investors seeking exposure to bitcoin.

Overall, the success of BlackRock’s IBIT spot bitcoin ETF highlights the growing demand for cryptocurrency investment vehicles in the traditional financial market. With its rapid inflow growth and increasing market presence, IBIT is poised to remain a key player in the evolving landscape of digital asset investment.

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Russian authorities have conducted raids on four major “illegal” data centers in Siberia, resulting in the seizure of over 3,200 cryptocurrency mining rigs. The Novosibirsk branch of the Russian power provider Rosseti, in collaboration with law enforcement agencies, led the crackdown on these illicit operations.

Criminal Charges Filed Against Mining Center Operators

According to reports from Rosseti via RBC Crypto, police have leveled criminal charges against the operators of these mining centers. The facilities were identified as part of an interconnected “network” of illegal crypto-mining operations scattered throughout the city of Novosibirsk.

Massive Electricity Theft Uncovered

Rosseti revealed that the illicit mining centers collectively stole an estimated $2.1 million worth of electricity from the Novosibirsk power grid. During the raids, authorities confiscated nine power transformers along with the 3,225 cryptocurrency mining devices.

Widespread Presence of Illegal Mining Farms

Novosibirsk, the largest city in Siberia, has emerged as a significant hub for Russia’s rapidly growing crypto mining industry, alongside Irkutsk located nearly 2,000km to the east. However, concerns have arisen over the surge in illegal mining activities, characterized by unauthorized connections to the power grid for electricity theft.

Police Crackdown and Legal Ramifications

In a coordinated effort, Novosibirsk police officers shut down operations at all four illegal crypto-mining farms simultaneously. The raids targeted facilities located near a wastewater treatment plant, in a forest on the outskirts, near a city landfill, and within a private sector area. Despite the sophisticated power equipment used by the operators, none of the centers were authorized to connect to the power grids.

Officials have pressed charges against the operators, highlighting the severity of the electricity theft. If convicted, the perpetrators could face significant jail time for their involvement in illegal crypto-mining operations.

The crackdown underscores the ongoing battle against illicit cryptocurrency activities, emphasizing the need for regulatory enforcement to maintain integrity within the industry.

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