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🔥💥 Bitcoin's $1.3B Selloff: Institutions Seize Crypto Dip!

Hello there you embodiment of curiosity;

Welcome to today's edition of Osiris News, if you spent the weekend watching the charts with the kind of morbid curiosity usually reserved for nature documentaries about things eating other things, you are not alone. The market was a violent place, loud noises, sudden moves, and then, just as quickly, it went quiet.

The story today is about a cleansing fire. On Friday, a geopolitical spark ignited a dry forest of over-leveraged positions, triggering the largest liquidation event in crypto history. Brutal, efficient, and, yes, necessary. A trader in Miami watched a year’s gains vanish in ninety minutes, then reappear by Sunday afternoon. The theme is the market’s reflex to old-world politics, and the two stories that emerged from the ashes: fragile, centralized plumbing that buckled under pressure, and deep-pocketed, patient capital that bought the blood.

🔍 Quick Overview

• Market Rebound: A $1T wipeout snapped back fast, crypto’s bounce beat a politician’s promise.

• Exchange Scrutiny: Outages, payouts, and new probes, some “fortresses” leaked like boats.

• Institutional Conviction: Big money bought the dip, funneling billions into BTC and ETH as hedges.

• AI’s Crypto Surge: AI-linked tokens ripped on OpenAI momentum, algos replacing pickaxes.

• Stablecoin Shakes: USDe slipped its peg on Binance, a reminder digital dollars can wobble.

Trending News

🌐📉 USDe Briefly Depegs to 65 Cents Amid $19 Billion Crypto Liquidation

Ethena's USDe stablecoin briefly plunged to $0.65 on Binance during a massive $19 billion crypto liquidation event triggered by new US tariffs on China. The protocol confirmed USDe remained over-collateralized and mint/redeem functions were operational, with a swift recovery to its dollar peg. This incident highlights stablecoin fragility under extreme market stress and the crypto market's sensitivity to global geopolitical shifts.

💰🚀 Crypto Funds See $3.17 Billion Inflows Despite Historic Market Selloff

Global crypto investment products recorded $3.17 billion in net inflows last week, pushing year-to-date inflows to $48.7 billion, even as $20 billion in leveraged positions were wiped out. U.S. spot Bitcoin ETFs alone attracted $2.71 billion, indicating strong investor conviction and a view of price dips as buying opportunities. This demonstrates the growing influence of regulated investment vehicles and sustained institutional interest in digital assets.

🏛️⚠️ Ex-CEO Faces Insider Trading Claims After $150M Profit on Tariffs

A prominent trader, linked to former BitForex CEO Garrett Jin, allegedly profited over $150 million from shorting Bitcoin and Ether just before President Trump announced new Chinese tariffs. The timing sparked insider trading accusations, which Jin denied, stating the funds belonged to clients. This event raises questions about market integrity and the potential for illicit gains during volatile geopolitical shifts.

🏛️🔍 Major Banks Explore Joint G7 Currency-Backed Stablecoin Initiative

A coalition of major global financial institutions, including Bank of America and Goldman Sachs, is exploring a 1:1 reserve-backed digital currency for public blockchains. This initiative aims to streamline transactions, enhance market competition, and ensure full regulatory compliance. The move signifies a significant shift as traditional finance players enter the digital currency space, potentially competing with existing stablecoin markets.

This tiny pause brought to you by “please let this help pay the bills” 👀

Beyond the Noise

The first punch landed Friday at 4:52 p.m. Eastern. President Trump announced 100% tariffs on China, and the market’s nervous system short-circuited. Nearly $20 billion in crypto positions were liquidated in 24 hours. The total market cap shed $1 trillion from its high. Panic. Bitcoin knifed below $102,000 on some venues; Ethereum briefly slipped under $3,700. It was the “emotional reset” leverage needed, a reminder that gravity bites hardest when you borrow wings. The system felt strain, and parts of it cracked.

As retail leverage burned off, a different buyer stepped in. Institutions loaded up: BitMine Immersion added 202,000 ETH (~$820M), lifting its stash to over 2.5% of ETH’s supply. MARA bought 400 BTC. Strategy added 220 BTC. Crypto ETPs saw $3.17B in weekly inflows. The “debasement trade” hardened: even former skeptics now frame Bitcoin as a diversification tool. While screens flashed red, the long-term thesis went green.

The stress test exposed ugly plumbing. Centralized exchanges touted as “institutional grade” stumbled. Coinbase and Binance reported performance issues. On Binance, a flawed oracle fed bad data to Ethena, pushing USDe to $0.65 locally and triggering unnecessary liquidations; Binance is paying $283M in compensation. As Dragonfly’s Haseeb Qureshi noted, good liquidation engines don’t trip on flash crashes. Every tick a stablecoin wobbles has real-world fallout for users promised stability. Crypto.com’s CEO publicly called for regulatory reviews of exchange practices.

DeFi wasn’t spotless either. Core protocols like Aave sailed through, but Uniswap Labs’ front end continued geoblocking Ukrainian IPs, “Swap anytime, anywhere” meeting the reality of sanctions risk. A developer in Kyiv moving funds between sirens found the “decentralized” future gated by a web front end. The open question remains: how to ensure global, permissionless access without a handful of chokepoints.

Zooming out, macro politics did the damage. Not hacks, not protocol failures, tariffs and rare-earth saber-rattling. China’s leverage over key minerals met U.S. tariff threats; markets reeled. Gold quietly set a fresh high near $4,100. The Pentagon is bidding $1B to stockpile minerals. Investors are buying Bitcoin. Different arenas, same bet: in a world of fractured supply chains and soft money, sovereignty over scarce resources wins.

Amid the carnage, parallel narratives kept advancing. AI didn’t pause: OpenAI’s momentum drove the AI Applications sector up 93% week-over-week; SKYAI rebounded 92%. Cultural adoption marched on: the corporate entity behind Dogecoin is pursuing a Nasdaq listing. And this year’s Nobel Peace Prize to María Corina Machado, who has called Bitcoin “resistance money”, underscored that for many, crypto is survival tech, not speculation.

This Caught My Eye:

• Bhutan ranks 5th globally in sovereign Bitcoin holdings, with 11,286 BTC, valued at over $1.3 billion, putting it ahead of countries like El Salvador.

• Uniquely, Bhutan acquired its Bitcoin entirely through mining, powered by 100% renewable hydropower from the Himalayas, making it one of the cleanest large-scale BTC mining operations in the world.

Looking Ahead

The market is breathing again. A historic amount of leverage was purged; the foundation now sits with longer-horizon holders. The question is what happens to the broken pieces. Exchange performance was disappointing, and a localized stablecoin de-peg left scars. Expect louder calls for oversight of centralized venues, regulators now have a case study in system risk.

We’re watching two forces collide: the chaotic snap of geopolitics that can shock prices in minutes, and the slow, immovable bid of institutions that view that chaos as the reason to own crypto. This round went to the accumulators. The challenge now is building infrastructure resilient enough for the next collision. The fever broke; rebuilding starts now.

Until tomorrow,
- Dr.P