Bitcoin’s [BTC] short-term holders were forced into the deepest stress phase of the cycle during the recent price drop to $59.1K. At the time, short-term holder whales were facing unrealized losses of $16.4 billion, increasing the risk of capitulation and helping explain the weak market sentiment.

Worth noting though that Bitcoin’s valuation has not hit historical capitulation extremes. Hence, investors should remember that further losses may be possible in the coming months.

Crypto analyst Darkfost highlighted the weak demand in the current market environment. The attached chart showed that Bitcoin ETFs have been facing the deepest drawdown on record.

An estimated $10.5 billion has exited Bitcoin ETFs since 12 October. This reflected the scale of the capital exodus, the analyst wrote.

AMBCrypto had covered the impact of ETF flows on market prices. The report also noted that investors must keep an eye on not just ETF flows, but also on other on-chain metrics to assess crypto asset trends.

The weakening Bitcoin miner position

The 30-day average of the Puell Multiple fell to 0.74, from 0.83 at the end of May. The metric tracks the ratio of miners’ daily revenue to their yearly average value.

The Puell Multiple fell to 0.58, and the decline in its monthly average reflected a compression in daily revenue due to falling prices.

According to analyst Axel Adler Jr, the 0.50 Puell Multiple threshold marked the beginning of massive equipment shutdowns in 2022. The metric was quickly closing in on this threshold.

Miner Capitulation measures the percentage change in the price of Bitcoin since the last drop in network difficulty. Negative readings imply falling prices since the latest difficulty adjustment.

The metric was at -21% at press time, well below the -15% threshold that marks severe pressure on miners. Harsher conditions, signaled by increasingly negative values on the metric above, can also indicate massive equipment shutdowns.

The two miner metrics pointed to increasingly difficult conditions for Bitcoin miners. The severe capital outflows in recent months and the prevailing bearish momentum and market sentiment could worsen the BTC situation too.

Final Summary

Bitcoin ETFs have been facing the deepest drawdown on record.
Miner capitulation isn’t here yet, but they are under significant stress and deteriorating conditions could result in mining equipment shutdowns like the 2022 bottom.

WLD emerged as among the stronger performers in the market today after posting notable gains over the last 24 hours. This, after the token’s prices  surged by 12% to $0.54.

This move came on the back of buyers become increasingly aggressive, helping the altcoin build on its recent momentum on the charts.

Trading volume also picked up sharply during the rally, suggesting the move may be attracting broader market attention rather than being driven by a handful of trades. The network’s trading volume recorded a 13% surge to $1.83 billion.

Buyers are back in charge 

For much of the recent market weakness, sellers had little trouble pushing the prices lower. That dynamic might be changing though.

Recent order flow data revealed buyers taking a larger share of market activity. This might explain why Worldcoin [WLD] has been able to sustain its gains throughout the session. In fact, long positions accounted for 62% of the total market exposure at press time.

The rise in volume seemed to support that view too. More traders have been participating in the move, giving bulls a stronger foundation than they had during previous recovery attempts.

Is institutional demand also on the rise?

At the time of writing, institutional dynamics appeared to be in support of the positive buyer sentiments. This, after a period of playing averse to the ongoing volatile market. 

The network’s Total Open Interest, for instance, recorded a daily uptick of $70 million to hit a value of $286 million. 

Can WLD keep pushing higher?

The latest rally doesn’t automatically confirm a trend reversal, but it does show a clear shift in sentiment. At press time, the token was trading above a key EMA support with the demand zone between $0.58 to $0.65 the only key barrier ahead.

Buyers had momentum, volume was rising, and market participation seemed to be improving too. If those conditions remain in place, WLD could continue building on its recent gains in the sessions ahead.

All in all, WLD buyers showed up, volume followed, and WLD responded. That’s why the token is one of the market’s standout performers today.

Final Summary

Strategy is back to buying Bitcoin [BTC] after selling a small part of its holdings last week. Interesting timing, because long-term Bitcoin holders have been seeing much lower profits than before lately.

Needless to say, this puts Bitcoin in a tricky zone.

Strategy adds 1,550 BTC

According to former CEO Michael Saylor’s announcement, Strategy acquired 1,550 BTC for about $101 million. That takes its total Bitcoin reserves to 845,256 BTC.

The purchase came shortly after last week’s sale of 32 Bitcoin. This sale raised too many eyebrows because the company is widely known for steadily accumulating.

Alongside this new purchase, Strategy also increased its USD reserves by $100 million, bringing it to $1 billion.

LTH MVRV falls, long-term holder profits slow down

Again, the timing here is pretty notable because long-term holders have been feeling the heat.

Bitcoin’s Long-Term Holder MVRV ratio dropped to 1.26, according to data from Alphractal. This suggested that this group has been sitting on modest unrealized profits on average.

These readings usually come around difficult phases. In the past, the metric stayed low for weeks or even months before a clearer trend came about. So, this does not guarantee a breakout.

Bitcoin may be moving closer to a buying area, but the market still needs to confirm it.

Bitcoin holds near $63K

At press time, the price chart also revealed why the market is not out of the woods yet. Bitcoin was trading near $63K after a fall, and the short-term trend seemed heavy.

AMBCrypto previously reported that whale activity picked up near the $60K-zone. One large holder bought BTC near $59.7K and later moved it to Binance for a quick profit.

Here, it’s worth noting that quick whale profit-taking can create resistance even when Bitcoin attempts to recover.

The RSI indicated oversold conditions. While that can sometimes lead to a relief bounce, it does not confirm a full recovery.

The MACD was also negative, meaning that the bearish pace hadn’t gone away either.

Final Summary

Strategy added 1,550 BTC worth $101 million.
Bitcoin’s trend retained its weakness as the LTH MVRV fell to 1.26.

SEI’s price action is struggling to find support, with the $0.049 level broken. Selling pressure remains strong, and derivatives data show traders turning cautious. At press time, Open Interest (OI) has fallen 7% to $29 million, signaling capital is leaving the market rather than flowing in.

That wouldn’t be a big deal on its own. However, the situation involving bullish traders is the more significant issue.

Bulls are being forced out

Long liquidations have been picking up as SEI struggled to regain momentum. In the last 24 hours only, the network’s long liquidation amounted to $553.2k, which is significant compared to the volume of sellers forced out of the market.

Many traders were positioned for a rebound, but the recent weakness has forced some of those positions to close. As the number of liquidations increases, additional selling pressure is created, making it more difficult for the price to stabilize.

Over the last few sessions, this trend has become increasingly difficult to ignore.

At the same time, participation is fading. The steady decline in OI suggests fewer traders are willing to stay exposed to SEI at current levels. 

Instead of buying the dip, many appear to be waiting for clearer signals before returning to the market. That hesitation is giving sellers room to stay in control.

What comes next for SEI?

Currently, the bears have the upper hand. At the time of writing, the token price action was aggressively trading below the key Exponential Moving Averages (EMAs) supports.

Moreover, falling OI and rising long liquidations rarely form a bullish combination. Unless demand returns and liquidation pressure begins to ease, SEI could remain vulnerable to further downside in the short term.

For now, traders aren’t focused on the next rally. They’re watching to see whether the market can finally find a reason to stop selling. In case the cards turn and bulls accumulate enough momentum, a retracement to fill the imbalance zone at around $0.06 cannot be overruled.

Final Summary

SEI Open Interest dropped to its lowest weekly level following the recent crypto shakedown.
Rising long liquidations are adding pressure as traders abandon bullish positions.

On Wednesday, the 3rd of June, DeXe [DEXE] rallied almost 36% in a matter of hours. Driven by a massive surge in short liquidations, the crypto AI token’s price surge was accompanied by spot accumulation.

Yet, this buying was not enough to fend off a retracement of these gains. By the 4th of June, 27 hours after the initial spike, DEXE had fallen from $24.49 to $17.19.

This kind of volatility suggested that liquidation sweeps were the key driver of the price move. Overleveraged derivatives traders on both the long and short sides were taken out.

Interestingly, the altcoin has bounced nearly 15% from Thursday’s low around $17. These gains, coming after the volatility storm earlier this week, suggested that bulls might still have the upper hand.

Meanwhile, Bitcoin [BTC] has relinquished control of the $60k level. This will further destabilize the already shattered confidence in most altcoins. Will DeXe fall in line with the wider market or continue its remarkable performance?

The bullish DEXE case

The October 2025 crash took DEXE to a new swing low. On the chart above, the price reached a low of $0.136, but it was revealed back then that thin liquidity on Binance led to severe, oversized price drops on certain altcoin pairs on the exchange.

The price action in February 2026 saw a continuation of the downtrend, but a breach of the $4.19 swing high shifted the swing structure bullishly. DEXE has not looked back since then and even managed to beat the October highs at $13.63.

Traders’ call to action: Play the range

While the higher timeframe trend remained bullish, the past few days saw heavy volatility and a potential range formation. At the time of writing, the mid-point of this range, at $20, has been flipped to resistance.

It appeared likely that the range low at $17.18 would be tested as support in the coming days.

Traders can look to buy this retest but should also remember that the higher timeframe uptrend can see a deep, healthy pullback in the coming weeks. Therefore, a drop below the range lows can be used to flip the short-term bias bearishly.

Final Summary

DeXe has seen high volatility, driven by massive liquidations, in recent days.
Despite the market-wide downturn and recent volatility, the crypto AI token remained in a higher time frame uptrend.

Since December 2025, Bitcoin’s [BTC] hashrate has slowly fallen. After an almost continuous uptick in hashrate from Q3 2021, the downturn of the past six months has been concerning.

In a post on CryptoQuant Insights, analyst Woominkyu pointed out that a meaningful pullback in the hashrate’s 30-day moving average was not unprecedented. The most notable dips were during the China mining ban in 2021, and the bear markets of 2018 and 2022.

The current drops of roughly 6.6% in the 7-day MA and 3% in the 30-day MA are far shallower than previous capitulation events, the analyst noted. Instead, the hashrate rollover represented miner capitulation. This could lead to a market bottom in the coming months.

In a post on X, Founder and CEO of Into The CryptoVerse, Benjamin Cowen, said

While this time may feel different, this is normally where BTC is at this point in midterm years.

Bitcoin sentiment reaches extreme fear, but capitulation is yet to be seen

The bull-bear index takes factors such as spot aggression, OI, funding, ETF flows, and exchange flows into account. According to the same, the BEAR side is active, but not close to the -40% extremes that marked the severe sell-off in February.

The moderate capital outflows showed controlled weakness, not outright panicked capitulation in the Bitcoin market.

Sentiment has collapsed through the floor. Extreme fear tends to yield greater risk/reward to brave buyers, but by itself, extreme fear does not mark a market bottom.

Emotion has fallen more than the capital flows, the analyst observed. It set up an interesting scenario as Bitcoin sank to its February lows.

There is a chance of a positive reaction at $62K, but any bounce would be a relief move instead of a recovery.

A breakdown below $60K would open the path to the real capitulation event.

Final Summary

Hashrate drop is part of the cycle, and Bitcoin’s retreat has not been wildly different from previous midterm years.
There is a chance of a price bounce from $62K, but recovery is not yet in sight.

Bitcoin [BTC] fell by another 3.9% in the last 24 hours, extending its price plunge to a local low of $61.4K. Strategy announced a 32 BTC sale, the first since 2022. Heavy spot ETF outflows helped drive the price even lower.

As expected, this caused a lot of capitulation, especially from short-term holders who bought during the rally of the past three months.

AMBCrypto had warned that a cascade of long liquidations could hit the market, especially since it was already reeling under hefty selling pressure. Other metrics pointed to reduced demand and greater distribution from holders.

Exploring the Bitcoin bearish regime shift

The impulse performance metric has a fast and slow impulse component. Both were bearish after the downturn over the past two weeks. The fast impulse was near -90, and the slow impulse had fallen to -59, according to crypto analyst Axel Adler Jr.

It underlined deteriorating Bitcoin market conditions. The current regime has been firmly bearish, and the slow impulse would need to climb back into positive territory to signal a regime shift.

The shifting regime was backed by a change in the taker demand trends. Since March, aggressive buyers had kept the 30-day net taker volume position in positive territory. The histogram turned negative recently though.

The relief rally had been fueled by hopeful buyers, but this demand has since been exhausted. The impulse and net taker volumes confirmed a bearish scenario in progress that can be hard to recover from.

In a post on X, analyst Darkfost pointed out that BTC exchange flows have dramatically altered direction. In April, there was a weekly outflow of 2,500 BTC. Recently, this weekly average turned into a 2,410 BTC inflow.

The hike in exchange inflows indicated heightened selling pressure. At a time when the U.S stock market is soaring, falling crypto trends can hasten investors jumping ship.

The drop in the Coinbase Premium Index in recent weeks reflected the lack of willingness from U.S-based investors to pay a premium for BTC. In other words, demand could be drying up, and conviction may be low.

Final Summary

The slow impulse metric’s shift highlighted a bearish regime shift, in line with the higher timeframe downtrend.
Falling Coinbase Premiums and bearish net taker volumes underlined the selling pressure on BTC.

On 18 May, Worldcoin [WLD] tested the bottom of a local range formation at $0.233. It has not looked back since. In fact, the bulls have been on a mission, driving a 70% rally in two weeks.

The spot trading volume trends have been healthy too. In the past two weeks, the volume has been consistently well above average. The volume reflected strong market participant belief in the price move.

And yet, in the short-term, Bitcoin’s [BTC] weakness has forced losses. In the last 24 hours, for instance, the daily trading volume has fallen by 15% as Worldcoin‘s price retraced 11%.

Can the bulls overcome this selling threat, or has the rally already reached its zenith?

Worldcoin’s rally can yield opportunities for patient investors

WLD’s latest moves have been part of a bullish wave in the AI sector in recent weeks. Even during the recent downturn, crypto AI tokens fell by only 1.5% over the past week, compared to Bitcoin’s 11.9%.

WLD’s breach of the $0.329 swing high represented a bullish structural shift in May. Despite intraday volatility, the move has kept going though and the trading volume has been well above the 20-period moving average.

In fact, the $0.44-area has been a key resistance zone since February. The recent retest of this supply zone did not see a convincing breakout. Instead, WLD surged to $0.48 before retreating swiftly back below $0.40.

The cluster of short liquidations around $0.44 was taken out too and at press time, a subsequent retracement was underway.

Traders’ call to action – Wait to buy

Given that the 3-day structure has shifted bullishly, it makes sense that WLD swing traders can look for buying opportunities.

At the moment, the altcoin is undergoing a retracement phase. Its 4-hour chart highlighted a bullish structure, aligning with the higher timeframe structure. A retracement into the golden pocket between $0.319-$0.354 would offer an ideal buying opportunity.

A drop below $0.275 would break the H4 structure and could be used as invalidation for the bullish idea. On the other hand, a retracement towards $0.319 and a subsequent rally can be expected to reach $0.532.

Final Summary

Bitcoin’s weakness has hurt Worldcoin’s price in the last 24 hours, but the crypto AI sector narrative remains relatively strong.
Combined with the higher timeframe price structure, WLD bulls have reason to remain bullish.

An Ethereum [ETH]-based initial coin offering (ICO) called HongCoin, introduced in 2016, recently made headlines after 1,003.62 ETH was recovered.

This was made possible with the assistance of Florent, a white-hat security researcher. This was equivalent to $2 million, which had been locked for nine years. 

What caused the funds to be locked in for nine years? 

For context, investors were expected to receive automatic refunds of their contributions because the project had initially fallen short of its fundraising goal.

Unfortunately, these repayments could not be made due to a defect in the contract’s refund mechanism, which essentially locked the money indefinitely. During his investigation of the dormant contract, Florent found an integer overflow vulnerability in an administrator function.

This vulnerability is typical of early Ethereum smart contracts and allows numerical values to wrap around when they surpass their upper limit.

The researcher was able to avoid the flawed refund condition, reset a holder’s balance, and regain access to the refund process without stealing or misappropriating any money by carefully crafting a specific input.

How did Florent recover the locked funds?

Following a successful recovery method test, the researcher shared the process with the HongCoin team, who subsequently carried out 41 on-chain transactions to unlock the trapped Ethereum.

As a result, 48 original investors can now reclaim their funds, marking a rare example of a vulnerability being used for a beneficial purpose. However, this is not his first recovery of this kind. Florent previously had released 19.329 ETH, or roughly $40,590, from two previous contracts on 24 May.

The first involved a failed ICO in January 2018 that involved 5.141 ETH and an unnamed public refund function.

The second involved a Liquality Wallet user who claimed to have refunded 14.190 ETH from seven expired atomic swaps on the user’s behalf after Liquality shut down its app in 2024.

ETH’s market dynamics

At the time of writing, ETH was trading at $1,982.30, down 1.85% over the previous day and more than 13% over the previous month.

On the contrary, Ethereum’s Spot Taker CVD (Cumulative Volume Delta) has been primarily fluctuating between aggressive buying and selling streaks in 2026, indicating a fiercely competitive market.

The press time data suggested that although buyers may still be in control, the strength of buying fell in comparison to previous peaks.

This, after AMBCrypto recently revealed an exploit that used a well-known ERC4626 vulnerability class to drain about $152,000 from several lending markets. 

Final Summary

White-hat security researcher Florent spearheaded the recovery after identifying an integer overflow vulnerability in the administrator function of the contract.
48 initial investors can now finally receive their money back as a result of this recovery.

The crypto market is suffering from a liquidity drought even as global market conditions show signs of improvement elsewhere.

The most evident signal of this drought is the $1.81 trillion in total market capitalization that has exited the market, dampening the overall outlook significantly.

$1.2 billion exits Binance in May as stablecoin reserves decline $7 billion

The crypto market has recorded one of its most significant capital outflows in recent times, with Binance Stablecoin Netflow data serving as the clearest lens into this dynamic, given the exchange’s global dominance.

According to the latest data, $1.2 billion in stablecoins has left Binance in May, signaling that investors are converting their holdings into stablecoins and stepping back from active market participation.

This marks a sharp reversal from the $2.5 billion inflow recorded in March and the $750 million inflow in April, reflecting a growing conservatism among investors driven by fear of continued volatility.

On a broader scale, the trend has been persistent. Since November 2025—the month following the broader crypto market crash—Binance stablecoin reserves have declined by $7 billion, reaching $44 billion at the time of this report. The sustained nature of this outflow points to a structural shift in investor behavior rather than a temporary reaction to short-term price movements.

Rising bond yields and West Asia tensions drive investors toward risk-off assets

A key driver behind crypto’s underperformance has been the instability spreading across the global economy, stemming primarily from the West Asia war and the closure of the Strait of Hormuz, which has fueled oil-driven inflation concerns and raised the probability of monetary tightening.

Bond yield performance offers one of the clearer gauges of this instability.

On the 19th of May, the U.S. 10-year bond yield reached 4.63%, a level last seen in January 2025, while Japan’s 10-year government bond yield hit an all-time high of 2.81% in the past 24 hours alone.

Rising bond yields signal that investors are pricing in economic stress and the possibility of higher interest rates, pushing capital toward less volatile and more risk-off assets.

For Bitcoin [BTC] and the broader altcoin market, this type of macro environment is deeply unfavorable.

Bitcoin underperforms the S&P 500 by 27 points

The stock market has continued to outperform Bitcoin, and a comparison of price movement in 2025 makes the disparity stark. Bitcoin is down 17% while the S&P 500 has gained 5% over the same period, according to Curvo.

The gap has persisted into 2026. On a year-to-date basis, Bitcoin is down 15.54% while the S&P 500 has posted an impressive gain of 11.78% despite the ongoing economic headwinds.

This divergence confirms that the market is not yet suited for a risk-on investment environment, and that economic conditions may need to fully stabilize before major capital rotation back into risk assets resumes in any meaningful way.

Final Summary

Binance stablecoin reserves have shed $1.2 billion in May, reversing $2.5 billion in March inflows and $750 million in April.
The U.S. 10-year bond yield has reached 4.63% while Japan’s government bond yield hits an all-time high of 2.81%, as Bitcoin underperforms the S&P 500 by over 27 percentage points year-to-date.