The Biggest Crypto Market Crash in History

The past weekend brought the largest cryptocurrency market crash in history. Bitcoin fell by a relatively modest 13% in just one hour, but many altcoins lost tens of percent, with some even collapsing close to zero. In total, the crypto market wiped out roughly $20 billion in value within moments.

What Caused the Crash?

According to new analyses, a technical error on Binance played a major role. The issue stemmed from a flaw in the collateral calculation system, which caused incorrect pricing for several tokens — including USDE, wBETH, and BnSOL. This error triggered a cascade of leveraged liquidations across the platform.

Binance later confirmed that it had recently modified its oracle system (used for price data) and that the crash coincided with technical issues during the update. The exchange has since announced that some affected users will be compensated for abnormal price movements.

Another possible catalyst was President Trump’s announcement of plans to impose new tariffs on Chinese imports. Curiously, reports emerged that an unknown trader opened a massive short position on bitcoin about 30 minutes before the announcement — earning an estimated $88 million from the subsequent crash.

Despite the turmoil, the market showed resilience. Over the weekend, bitcoin recovered to around $115,000, though it remains to be seen how quickly some altcoins will bounce back from their steep declines.

BNB Emerges as the Weekend’s Surprise Winner

In an unexpected twist, Binance Coin (BNB) ended up being the weekend’s standout performer.

After reaching a new all-time high (ATH) of $1,350 earlier in the week, BNB initially plunged more than 30% during the market crash. However, it quickly rebounded and, by Sunday, was trading above its previous ATH.

As one might say, “These are paradoxes, Mr. Vanek.”

Why BNB Is Rising

Experts point to several factors driving BNB’s resilience and growth:

• Expanding utility within the Binance ecosystem — from reduced trading fees and staking to widespread use in DeFi applications on the Binance Smart Chain.

• Regular token burns, which decrease the circulating supply and support long-term price appreciation.

• Strong community support and investor confidence, reinforcing BNB’s role as the backbone currency of one of the world’s largest crypto exchanges.

BlackRock’s Bitcoin ETF Reaches $100 Billion Milestone

BlackRock had reason to celebrate last week. Its iShares Bitcoin Trust (IBIT) surpassed $100 billion in assets under management (AUM) — making it the fastest ETF in history to reach that milestone.

Launched in January 2024, IBIT achieved this feat in just 435 days, far outpacing the previous record set by the Vanguard S&P 500 ETF, which took over five years (2,011 days) to reach the same level.

IBIT has also become BlackRock’s top-performing fund, generating approximately $244.5 million in annual fees, overtaking the iShares Russell 1000 Growth ETF.

Thanks to bitcoin’s rising price and sustained inflows, IBIT has become a cornerstone of both BlackRock’s portfolio and the broader digital asset market, symbolizing the mainstream integration of bitcoin into traditional finance.

Tether Announces New U.S.-Compliant Stablecoin

Tether, issuer of the world’s largest stablecoin USDT, announced plans to launch a new digital currency called USAT — designed specifically to comply with the U.S. GENIUS Act, the country’s first comprehensive federal regulation governing stablecoins.

The GENIUS Act introduces strict requirements around reserves, audits, transparency, and anti–money laundering (AML) compliance.

Why Launch a New Coin?

Tether’s existing USDT does not fully meet the new legal standards. Some of its reserves include assets such as bitcoin and precious metals, which are non-compliant under the GENIUS Act. In addition, USDT’s reserves are not subject to full traditional audits, and the location of those reserves is not publicly disclosed — another violation under U.S. law.

Instead of restructuring USDT, Tether opted to create USAT, a separate fully compliant stablecoin.

USAT will be issued in partnership with Anchorage Digital, a U.S.-regulated bank specializing in digital asset custody, while Cantor Fitzgerald will manage its reserves to ensure full transparency and auditability.

Roger Ver Likely to Avoid Prison in U.S. Tax Case

Roger Ver, once known as “Bitcoin Jesus” for his early evangelism of bitcoin, appears set to avoid prison after reaching a tentative settlement with the U.S. Department of Justice over tax fraud allegations.

Under the deal, Ver will pay approximately $48 million in back taxes related to unreported cryptocurrency gains from hundreds of thousands of bitcoins he held and sold before 2014 — the year he renounced his U.S. citizenship.

If the agreement is approved by the court and Ver fulfills its conditions, criminal charges will be dropped.

Ver remains a controversial figure in the crypto world. As one of the main backers of Bitcoin Cash (BCH) — the 2017 hard fork of Bitcoin — he has long been at odds with the Bitcoin (BTC) community. Even so, his case marks an important chapter in the ongoing intersection between crypto wealth and tax regulation.