The cryptocurrency market experienced a notable decline on Friday, with its total valuation dropping 4% to approximately $2.7 trillion. This downturn follows an announcement from South Carolina lawmakers indicating plans to invest up to 1 million BTC, which could significantly impact local economic dynamics.
In a surprising twist, Cronos emerged as the only asset among the top 40 cryptocurrencies to post gains after the U.S. Securities and Exchange Commission (SEC) dismissed charges against the cryptocurrency, signaling a potential shift in regulatory sentiment.
Bitcoin Market Overview
Bitcoin’s price witnessed a significant setback, falling below the critical support level of $85,000. At the time of reporting, it had descended to as low as $84,200, raising concerns among investors about the asset’s stability.
Crypto Market Liquidations
The recent market losses led to over $449 million in liquidations across cryptocurrency derivatives, illustrating the volatility that has characterized the market. Additionally, the U.S. government was observed transferring 97 BTC and 884 ETH, igniting speculation regarding potential sell-offs that could further destabilize the market.
Altcoin Market Dynamics
In the altcoin sector, Ethereum (ETH), which ranks as the second-largest cryptocurrency, dropped below the $1,900 mark, reflecting a sharp correction from its highs earlier in the year. Other major players, such as Ripple’s XRP and Solana (SOL), recorded declines of approximately 5%, positioning them among the worst performers of the day alongside Cardano (ADA). Analysts attribute the recent downturn to new tariffs introduced by U.S. President Donald Trump, which have added to the prevailing geopolitical tensions in Europe and introduced further economic uncertainty.
Chart Insights: Solana, ETH, XRP Among Significant Declines
For Solana, the current 7% decrease raises doubts about its capacity to maintain momentum in a cautious market environment. Ethereum is experiencing a 6% dip at present, primarily driven by profit-taking following favorable developments related to WLFI’s stablecoin launch on its network, along with the BNB chain. XRP has seen a 7% decline due to intensified selling pressure as traders capitalize on profits following the SEC’s decision to drop charges against Ripple. The overall crypto market remains on alert, as a failure for Bitcoin to close above the $85,000 threshold could exacerbate losses in altcoins.
Crypto Regulatory Updates
In a significant regulatory development, the Federal Deposit Insurance Corporation (FDIC) announced new guidance allowing banks under its supervision to engage in crypto-related activities without the need for prior approval. This update, detailed in the Financial Institution Letter (FIL-7-2025), supersedes previous regulations from 2022, reflecting a shift towards a more accommodating regulatory framework for banks interested in digital assets. FDIC Acting Chairman Travis Hill described this decision as a departure from more restrictive policies, indicating a progressive approach to blockchain and cryptocurrency within the banking sector.
UAE Introduces New Dirham Symbol Ahead of Digital Currency Launch
The Central Bank of the United Arab Emirates (UAE) has unveiled new symbols for the dirham, both in its physical and digital forms, strengthening the nation’s financial identity and aspirations as a global payments hub. The physical dirham’s new symbol integrates the first letter of its English name with two horizontal lines, drawing inspiration from the UAE flag to symbolize currency stability. Meanwhile, the digital dirham symbol, featuring a circular design in the colors of the UAE flag, represents a proactive step towards the adoption of digital currency. Although no specific launch date has been provided for the digital dirham, this initiative aligns with the UAE’s broader strategy to modernize its financial infrastructure and facilitate cross-border transactions.
Galaxy Digital Settles $200 Million with New York Attorney General Over LUNA Promotion
The New York Attorney General’s office has secured a $200 million settlement with Galaxy Digital concerning its promotion of LUNA, the failed algorithmic cryptocurrency that played a significant role in the $40 billion market collapse in 2022. The settlement alleges that Galaxy violated the Martin Act and Executive Law by not disclosing its financial interests while promoting LUNA. Founded by Michael Novogratz, Galaxy Digital was deeply involved in the rise and fall of LUNA. The collapse was triggered when the algorithmic mechanism supporting its associated stablecoin, TerraUSD (UST), failed. Do Kwon, the founder of Terraform Labs, the creator of LUNA and UST, remains in custody in Montenegro, awaiting extradition to face fraud and securities charges in the United States.
France’s State Bank Launches Fund for Smaller Cryptocurrencies
France’s state-owned investment bank, Bpifrance, has announced plans to allocate up to €25 million (approximately $26.95 million) for direct investments in lesser-known cryptocurrencies. This initiative marks the bank’s inaugural dedicated crypto fund, following previous investments totaling €150 million in blockchain-related projects. The objective is to bolster emerging French crypto startups by acquiring tokens before they are available on exchanges. Arnaud Caudoux, deputy CEO of Bpifrance, emphasized the strategic significance of this move, especially in light of the rapid evolution of crypto policies in the United States. This fund aligns with France’s ambition to lead in blockchain innovation, as government officials reaffirm their commitment to nurturing a competitive digital economy.
