Preface
Bitcoin and Ethereum have dropped by 4.74% and 11.23% respectively in the past 24 hours, with current prices at $84,878 and $2,358. The ETH/BTC exchange rate stands at 0.027. The Crypto Fear & Greed Index is at 10, indicating extreme fear in the market.

Market Trending

The market’s downturn continued yesterday, with global cryptocurrency market capitalization declining by 3.16% in 24 hours to a low of $2.78 trillion, as Bitcoin fell below $83,000.
Following a sharp drop the previous day, the crypto market showed slight signs of recovery, but President Trump’s announcement of a 25% tariff on EU imports intensified concerns over trade tensions and inflation, dampening investor appetite for risk assets like Bitcoin. In this context, Bitcoin dropped to $82,248, marking its lowest value in nearly three months.
On a positive note, altcoins did not experience a complete collapse alongside Bitcoin’s decline, with some showing signs of resistance and even slight upward movements. In the DeFi ecosystem, UNI and AAVE experienced minor fluctuations due to resistance levels, while tokens like REZ and ENA saw brief recoveries. AI-related tokens continued to perform well, with AI16Z, FARTCOIN, and NC rising over 10%, and the recently launched KAITO consistently hitting new highs. However, the meme sector suffered significant losses, with DOGE precariously close to its support level at $0.2, while PEPE, SHIB, and TRUMP also reached recent lows.
Despite the short-term impact of tariffs on the market, historical data suggests that the crypto market typically responds to tariff shocks with a pattern of short-term impacts followed by long-term benefits. Market participants should closely monitor recent macroeconomic developments; if global markets enter a downturn due to tariff policies, cryptocurrencies may paradoxically become an essential part of investment portfolios.

Spot Bitcoin ETF Flows

The U.S. Bitcoin spot ETF saw a net outflow of $63.99 million yesterday, with FBTC experiencing a net outflow of $48.39 million, and ARKB seeing a net outflow of $8.65 million.
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Daily Spotlight

Today’s spotlight is KAITO, which has seen a 24-hour increase of 41.2%. Kaito is an information, attention, and capital distribution hub based on cryptocurrency, serving as an interoperable InfoFi layer that connects creators, users, and brands in a novel way. By indexing thousands of sources such as social media, governance forums, research, news, podcasts, and meeting notes, and combining them with proprietary search algorithms, semantic LLM capabilities, and real-time analytics, Kaito Pro simplifies access to high-quality, actionable insights in the crypto space. Kaito Yaps utilizes advanced AI algorithms to extract and interpret rich signals (such as social graphs and semantic understanding) to quantify attention. Kaito Connect is an AI-driven InfoFi network that enables markets to allocate attention and capital in a fairer, more transparent, and efficient manner while rewarding all participants. KAITO has risen against the trend for five consecutive days, with a 24-hour increase of 41.2%, currently priced at $2.4315.

Check Out the Latest Prices, Charts, and Data of KAITO/USDT Spot and KAITO/USDT Perp!

The Word on the Street

The U.S. House Committee is pushing to repeal the IRS’s taxation rules on DeFi. Reports indicate that the U.S. House Committee has passed a resolution aimed at overturning the IRS’s tax reporting policy for decentralized finance (DeFi) platforms, with a vote of 26 to 16. This resolution, proposed under the Congressional Review Act, seeks to nullify the IRS’s tax reporting requirements for DeFi platforms established last December. The IRS had previously mandated that DeFi protocols comply with reporting standards for brokers, which sparked strong opposition from the crypto industry. The industry argues that this move threatens the operational framework of DeFi protocols and could encompass a large number of non-broker entities. The resolution still requires majority approval from both the House and Senate and must be signed by the President to take effect. Supporters argue that the IRS’s rules are “unfair and unworkable,” while opponents contend that repealing the rules could result in a loss of approximately $3.9 billion in tax revenue for the U.S. over the next decade.

Project Funding

According to Fortune, the gift card crypto platform Raise has announced the completion of a $63 million financing round, led by Haun Ventures, with participation from Paper Ventures, Selini Capital, GSR, and Solana co-founder Raj Gokal. The company declined to disclose the valuation for this financing round.