Friday’s flash crash reduced short-term risk appetite but did not affect Bitcoin’s long-term potential, possibly delaying a new all-time high by weeks or even months. Key takeaways: Bitcoin’s resilience after Friday’s $19 billion flash crash shows long-term demand remains strong despite short-term risk aversion. Derivatives traders remain cautious, with arbitrage opportunities and negative funding rates signaling heightened counterparty risk. Read more
A massive Bitcoin short placed minutes before US President Donald Trump announced tariffs with China on Friday has raised questions about insider trading. Garrett Jin, the former CEO of now-defunct cryptocurrency exchange BitForex, has denied many of the claims levied against him by a pseudonymous online sleuth that involved shorting the market. In a Monday X post, Jin said he had “no connection with the Trump family,” denying allegations of insider trading after crypto researcher Eye claimed he controlled a wallet address used by a whale to short Bitcoin (BTC). The wallet was used to open a short position less than an hour before US President Donald Trump announced “a tariff of 100% on China” on Friday, likely contributing to the price of the cryptocurrency dropping significantly. Read more
The laws will likely impact social media companies and websites offering services to California residents, including minors, using AI tools. California Governor Gavin Newsom announced that the US state would establish regulatory safeguards for social media platforms and AI companion chatbots in an effort to protect children. In a Monday notice, the governor’s office said Newsom had signed several bills into law that will require platforms to add age verification features, protocols to address suicide and self-harm, and warnings for companion chatbots. The AI bill, SB 243, was introduced by state Senators Steve Padilla and Josh Becker in January. Padilla cited examples of children communicating with AI companion bots, allegedly resulting in some instances of encouraging suicide. The bill requires platforms to disclose to minors that the chatbots are AI-generated and may not be suitable for children, according to Padilla. Read more