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Gold Drops Sharply Despite Ongoing Middle East War

Gold prices fell sharply on Monday in Asian markets as concerns over inflation and high interest rates reduced safe-haven demand, despite the continued intensity of the U.S.-Israel conflict with Iran. Spot gold declined 4.6% to $4,287.05 per ounce, while gold futures dropped 6.1% to $4,323.31, erasing a significant portion of gains accumulated since the start of the year. The metal also fell to its lowest level since late December, even as geopolitical tensions escalated following President Donald Trump’s 48-hour ultimatum to Iran to reopen the Strait of Hormuz and Tehran’s warning of retaliation.

Asian Stocks Fall as War Escalation Triggers Risk-Off Sentiment

Asian stock markets declined on Monday as fears of escalation in the U.S.-Israel conflict with Iran intensified following President Trump’s ultimatum to Tehran. The risk-off sentiment led to broad selling across equities, with Japan and South Korea among the worst-performing markets, alongside India, due to their higher vulnerability to disruptions in global energy supply. Rising oil prices and concerns that inflation could force central banks into more hawkish policies further pressured markets, while oil prices continued to climb across the region.

Grayscale Files for HYPE ETF as Hyperliquid Activity Surges

Grayscale filed an S-1 registration statement for a new ETF that would include Hyperliquid’s native token HYPE and target a Nasdaq listing. The Hyperliquid network has seen strong growth, with weekly derivatives trading volume exceeding $50 billion and 24-hour fee revenue reaching $1.6 million, establishing it as a dominant player in the market. The increased activity has fueled bullish expectations for HYPE, with Arthur Hayes suggesting it could rise to $150, while Grayscale’s move also opens the possibility of future staking integration.

Resolv’s USR Stablecoin Depegs After $25M Exploit

Resolv’s USR stablecoin lost its dollar peg after an attacker exploited a vulnerability in the minting contract to create approximately $80 million in unbacked tokens and withdraw around $25 million. The exploit was enabled by structural design flaws, including a privileged account controlled by a single key, lack of oracle or supply checks, and the absence of minting limits, allowing the attacker to mint 50 million USR with only 100,000 USDC. The token briefly collapsed to just above $0.02 and was trading around $0.27 as of Monday, while Resolv warned users not to trade the asset and stated it is working with law enforcement and on-chain analytics firms to recover funds.

Commodity Perpetuals Gain Traction on Hyperliquid

Traders on decentralized exchange Hyperliquid are increasingly shifting toward commodity-linked perpetual futures. In the past 24 hours, oil and silver contracts on the platform surpassed $900 million in total trading volume, significantly outperforming major crypto assets such as SOL and XRP, highlighting growing interest in real-world asset exposure within crypto derivatives markets.

SBF’s Parents Defend Conviction in First TV Interview

Sam Bankman-Fried’s parents used their first television interview to argue that his conviction was unjust, claiming that FTX customers have been fully repaid with principal and interest. Critics countered that repayments were calculated based on 2022 valuations, meaning many crypto holders received significantly less than current market value despite nominal recoveries exceeding 100%. Their defense that Alameda’s use of customer funds was routine borrowing conflicts with post-FTX regulatory reforms and forms part of a broader appeal effort, including a potential pardon request that has so far been rejected by Donald Trump.

South Korean Stablecoin Balances Drop 55% as Capital Shifts to Equities

Stablecoin balances across South Korea’s five largest crypto exchanges have declined by approximately 55% since July 2025, with outflows accelerating after the Korean won weakened beyond 1,500 against the dollar in mid-March. The decline coincides with rising inflows into domestic equities, supported by tax-advantaged “repatriation” accounts, signaling a broader shift in investor positioning. The trend has helped fuel the KOSPI rally, particularly in semiconductor stocks, while reducing retail liquidity in crypto markets.

Ethereum Faces Growing Internal Tensions in 2026

Ethereum’s early 2026 period has exposed increasing tensions within its ecosystem, ranging from Vitalik Buterin’s criticism of Layer 2 scaling approaches to rising concerns about quantum threats, leadership changes, and expanding AI initiatives. While network upgrades have improved efficiency and reduced costs, deeper structural questions around fragmentation, security, and long-term direction remain, prompting a broader reassessment of Ethereum’s priorities.

Strategy’s STRC Shares Drive Bitcoin Accumulation but Carry Risks

Strategy’s STRC preferred shares have become a key engine for funding large-scale bitcoin accumulation, targeting a stable $100 share price supported by variable dividends and enabling multi-billion-dollar issuance and institutional participation. However, analysts warn that the primary risks stem from governance structure and subordination rather than dividend coverage, noting that the company could suspend payouts and shift financial stress to investors. The model’s success depends heavily on strong bitcoin prices and open capital markets, with prolonged downturns potentially breaking the $100 price anchor and leading to losses for investors who view the instrument as a high-yield, cash-like product.

Bitcoin Miners Face Mounting Losses as Energy Costs Surge

Bitcoin miners are operating at significant losses, with average production costs around $88,000 while market prices hover near $69,200. Rising energy costs driven by geopolitical tensions in the Middle East, oil prices above $100, and disruptions around the Strait of Hormuz are increasing electricity expenses. This has led to declining hashrate, slower block times, and sharp drops in network difficulty. The worsening economics are forcing miners to sell more bitcoin and shift toward AI and high-performance computing for more stable revenue, adding further pressure to an already leveraged market.

Bitcoin Options Signal Extreme Caution Despite Price Stability

Bitcoin derivatives markets are showing heightened caution, with the put/call open interest ratio reaching 0.84, its highest level since June 2021, while put premiums relative to spot volume hit all-time highs. Despite stable spot prices, investors are paying record costs for downside protection, indicating defensive positioning. Leverage has declined and realized volatility has dropped from 80 to 50, reflecting a more cautious market environment, although historically similar option divergences have preceded significant bitcoin rallies, with VanEck data showing average gains of 13% over 90 days and 133% over 360 days in comparable periods.