Polymarket has placed the odds of a U.S. government shutdown at over 65%. However, Bank of America (BofA) believes that the repercussions will be minimal, predicting only a slight drag on GDP, a muted market reaction, and limited implications for the cryptocurrency market compared to previous debt ceiling crises.
In the world of digital assets, a significant event occurred as a dormant Bitcoin whale, whose wallet had been inactive for over 12 years, transferred funds amounting to $44 million. The transfer included around 400 BTC, executed in batches of 15 BTC, which completely emptied the wallet. Arkham’s analysis traced the funds back to miner rewards collected 15 years prior, although the identity and motivations of the wallet’s owner remain unknown. During its dormancy, the value of Bitcoin surged approximately 830 times, rising from about $135 to approximately $111,800 at the time of the transfers. This wallet’s activity corresponds with a recent trend of longstanding wallets becoming active again, likely as early Bitcoin investors take profits amid rising Bitcoin prices.
In another high-profile development, Andre Cronje’s new venture, Flying Tulip, successfully raised $200 million at a valuation of $1 billion during a private seed funding round. The project aims to create an all-encompassing on-chain exchange covering various DeFi services such as spot trading, derivatives, lending, stablecoins, and insurance. Cronje plans to raise an additional $800 million through a public sale, offering investors an “onchain redemption right” for downside protection while targeting around $40 million in annual yield from on-chain strategies.
In the realm of financial technology, Swift is collaborating with Consensys to implement a blockchain-based shared ledger aimed at improving real-time cross-border payment processing. This initiative will involve over 30 global banks, including major institutions like Bank of America and HSBC, who will assist in testing the new system. This project is touted as a significant move toward creating an interoperable on-chain financial framework while maintaining compliance with existing regulatory standards.
Meanwhile, the NFT market is seeing excitement with the launch of 4,600 Hypurr NFTs by Hyperliquid on its HyperEVM mainnet. The initial floor price surged to nearly $69,000, with the collection generating over $45 million in trading volume in a short period. Some standout sales include Hypurr #21, which sold for close to $470,000.
On the flow of funds, the cryptocurrency market has experienced a notable downturn, with global investment products witnessing a net outflow of $812 million last week. This drop was chiefly driven by a $719 million withdrawal from Bitcoin-based funds and $409 million from Ethereum products. Despite this trend, year-to-date flows remain robust, totaling $39.6 billion. In contrast, Solana and XRP saw inflows of $291 million and $93 million, respectively, likely fueled by expectations surrounding U.S. ETF launches.
As for upcoming events, key UK GDP data will be released early Tuesday morning, alongside a speech by ECB President Christine Lagarde. Additionally, token unlocks for Optimism and 1inch are on the calendar, with TOKEN2049 side events starting in Singapore and the BTC in D.C. conference in Washington, D.C. These next few days promise to be significant for those following developments in the digital asset ecosystem.
