Bitcoin and Ethereum ETFs see massive outflows: $257.7M BTC and $91.19M ETH in 24 hours

Nillion has issued a clarification, announcing it will gradually shut down its Nillion L2 over the coming weeks, as the project is now operational on the Ethereum mainnet. Users still holding NIL tokens on the L2 are required to migrate their assets to Ethereum L1 before the shutdown, with a dedicated bridge portal provided. The team stated that the earlier post sparked concerns among some users, prompting this clarification, and emphasized that the adjustment is purely a maintenance operation.

Amid intensifying declines in high-yield bonds, credit risk for AI cloud computing firm CoreWeave hit an all-time high on Thursday. The company’s plans to further expand its borrowing scale have sparked concerns among bond investors. Data from ICE Data Services shows that the cost of CoreWeave’s five-year credit default swaps (CDS) rose by 74.5 basis points at one point to 1,194.5 basis points, marking an intraday all-time high. This means the swap market pricing reflects that the company’s default probability over the next five years exceeds 60%. Meanwhile, CoreWeave bonds were among the biggest decliners in the U.S. junk bond market on Thursday. The financing boom in the AI sector is unsettling bond investors, prompting the market to reassess credit risks for some large tech firms, as evidenced by surging credit default insurance prices, heightened market volatility, and weak bond performance. As an early entrant in the AI cloud computing space that relies heavily on the high-yield bond market to fund business expansion, CoreWeave has drawn particular attention.

Bitwise Chief Investment Officer Matt Hougan stated in a client report that Bitcoin is likely to benefit in the long run regardless of whether AI drives an economic boom, an investment bubble bursts, or the economy grows only moderately. In the scenario where the AI bubble bursts and triggers a recession similar to 2008, given AI’s geopolitical significance, he puts the probability of subsequent government bailouts at “nearly 100%”. Bitcoin may first face a sell-off before rallying sharply amid a surge in the money supply. If AI significantly lifts productivity and GDP while cutting costs in sectors like software and legal services, Hougan forecasts that scarce assets such as Bitcoin will appreciate. Should the economy sustain 3% growth, 4% interest rates and a near soft landing, Bitcoin will still be supported by ETF inflows, adoption by financial advisors, and allocations on corporate and sovereign balance sheets. He cautioned that Bitcoin will not rise in a straight line, with some scenarios potentially involving difficult initial phases. Threats including quantum computing, coordinated government crackdowns, or renewed fiscal austerity by Western governments could also undermine his thesis; he considers these scenarios unlikely but not impossible.

According to HTX market data, Bitcoin has rebounded to break through the $81,000 level, with a 1.29% decline in the past 24 hours.

According to HTX market data, Bitcoin has fallen below $80,000, recording a 3.48% drop in the past 24 hours.

According to Bloomberg, Nasdaq plans to immediately suspend trading of listed companies with a market capitalization below $5 million for 30 consecutive days, followed by delisting, to curb market manipulation such as "pump and dump" schemes in micro-cap stocks. The proposal has faced opposition from small U.S. businesses; regulators put its rollout on hold last month and are soliciting further public comments. Bloomberg data shows more than 190 Nasdaq-listed companies currently have a market cap of no more than $5 million, with roughly one-third based in Asia and nearly half in the U.S. Opposing companies argue that natural price fluctuations stemming from low trading volume are not equivalent to market manipulation, and the proposal could deter financing and harm normally operating businesses. Unlike existing delisting rules for low share prices, which provide a 180-day correction period, the new proposal does not offer an extended grace period. Nasdaq, for its part, stated that securities assigned very low valuations by the market are more prone to volatility, posing an ongoing challenge to fair and orderly trading. NYSE American also proposed a similar $5 million threshold in March this year, and the U.S. Securities and Exchange Commission (SEC) has delayed a final vote as well.