The euphoria didn’t last long. After soaring to $125,000 just days ago, Bitcoin price’s sharp $16,000 plunge on Friday reminded traders that volatility still rules the crypto market. A wave of $5 billion in liquidations hit as leverage, thin liquidity, and margin failures triggered cascading sell-offs. The slump deepened after U.S. President Donald Trump announced 100% tariffs on China, rattling global markets and driving BTC below $110K.
Layer-2 tokens like Optimism and Arbitrum sank over 30%, while sentiment indices crashed to fearful lows. Yet amid the carnage, Coinbase and Mastercard battled for BVNK’s $2B deal, BNB Chain scored a $1B builder fund, and newcomer Lighter stunned markets with a $2B post-airdrop valuation.
Scroll down for this week’s full crypto market news recap and what could shape the next major move.
Optimism Plunges 30% as Market Rout Hits Layer-2 Tokens
Optimism (OP) crashed nearly 30% to $0.48 as crypto markets erased $250 billion in value following Bitcoin’s drop to $111K. Layer-2 tokens like Arbitrum and Story Protocol also tumbled, while OP breached major support levels, signaling bearish sentiment despite steady network fundamentals.
Crypto Fear & Greed Index Plunges as Market Loses $500B
Crypto sentiment flipped sharply this week as the Fear and Greed Index dropped to 35 and the Altcoin Season Index slid to 37 amid a $500 billion market wipeout. The sell-off followed renewed U.S.–China trade tensions after President Trump announced new tariffs.
Coinbase, Mastercard Battle for $2B BVNK Acquisition
Coinbase and Mastercard are reportedly vying to acquire stablecoin infrastructure firm BVNK for up to $2.5 billion. The deal would strengthen their foothold in blockchain-based payments as stablecoin adoption accelerates under new U.S. regulations, with BVNK’s tech enabling instant global settlements and treasury solutions.
Altcoins Tumble as Dollar Strength and Liquidations Hit Market
Crypto markets fell 2% to $4.26T as Bitcoin stayed below $122K and altcoins like Mantle and Aster led losses. A stronger U.S. dollar, $690M in liquidations, and stalled ETF approvals weighed heavily, while a U.S. government shutdown deepened uncertainty across markets.
Solana, BNB, and Fetch Dominate Crypto Chatter
Social data from Santiment shows Solana, BNB, and Fetch leading crypto conversations this week as Bitcoin hit a new $126K high. Traders buzzed over Solana’s ETF speculation, BNB’s march toward $2K, and Fetch’s turbulent token migration amid growing retail and institutional engagement.
YZi Labs Launches $1B Builder Fund to Power BNB Ecosystem Growth
YZi Labs unveiled a massive $1 billion Builder Fund to accelerate innovation on BNB Chain, targeting DeFi, RWA, AI, and DeSci projects. The fund offers up to $500K per founder, along with mentorship through global residencies, reinforcing BNB’s expanding ecosystem and long-term growth vision.
Peter Brandt’s Bearish XRP Price Prediction Is Wrong
Veteran trader Peter Brandt warned of a bearish breakout for XRP, citing a descending triangle pattern. However, analysts argue he’s overlooking bullish setups and pending SEC approval for spot XRP ETFs, which could attract over $8 billion in inflows and push prices toward $5.
Bitcoin Outlook: AI Bubble and Chart Pattern Pose Short-Term Risks
After peaking at $126,500, Bitcoin pulled back as profit-taking and stock market weakness set in. Analysts remain broadly bullish on ETF inflows and rate-cut hopes, but warn of two risks: a potential AI market bubble burst and a bearish rising wedge pattern forming below $100K.
Grayscale Launches First U.S. Spot Staking Crypto ETPs
Grayscale has unveiled the first U.S.-listed spot staking ETPs for Ethereum and Solana, ETHE, ETH, and GSOL, allowing investors to earn staking yields via regulated exchanges. Backed by SEC guidance on liquid staking, the launch brings on-chain rewards to traditional portfolios and signals rising institutional acceptance of crypto yield products.
Lighter’s Airdrop Sparks $2B Valuation Buzz
Perp DEX newcomer Lighter is drawing massive attention after Polymarket traders bet it could debut with a $2 billion fully diluted valuation, just days post-airdrop. Backed by surging trading volumes topping $6.6 billion daily, Lighter is quickly emerging as a serious rival to Hyperliquid and Aster.
