“Ending the last administration’s regulatory war on crypto”

Daily Updates:

• President Trump gave a two-minute video presentation at the Blockworks Digital Assets Summit in New York yesterday, which began with an emphasis on “how the United States is going to dominate crypto”. 
• The presentation itself did not reveal anything new, with the President spending most of the two-minute speech recapping the crypto-positive actions his administration has taken since he has taken office: hosting the White House Crypto Summit, creating a strategic Bitcoin reserve and digital assets stockpile, “ending the last administration’s regulatory war on crypto” and, finally, calling “on Congress to pass landmark legislation creating simple, common sense rules for stablecoins”. 
• BTC’s drop from $86.3K down to $83K within two hours of Trump’s video statement suggests market participants had anticipated something more than what the President delivered – indeed, sources on X and other social media outlets suggested he would announce zero percent capital gains taxes on crypto, or provide further updates on the strategic reserve.

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• Most of the market quickly sold off – ETH once again dropped below $2K and is currently trading just shy of that level again. 
• BTC’s term structure of volatility has steepened, with at-the-money implied volatility for 7-day tenors currently at its lowest level since late February. That collapse in vol at the front-end has resulted in a convergence between 7-day delivered and 7-day implied volatility.
• Yesterday’s brief pause in bearish sentiment, which saw volatility smiles skewing towards OTM calls for all tenors, has now reversed for short-dated optionality. Tenors less than 30 days once again express appetite for downside protection.

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• The Head of Switzerland’s National Bank stated the central bank does “not have plans to buy crypto assets”, citing the “large fluctuations in value” as one major reason as well as “question marks” over the liquidity of cryptocurrencies. 

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• Pump.fun, a memecoin launchpad protocol, has launched PumpSwap, a decentralised exchange (DEX) built on Solana. It offers instant migrations for all Pump.fun coins that complete their bonding curve to PumpSwap, which replaces Raydium. It also offers zero migration fees (down from 6 SOL), increased liquidity, and upcoming creator revenue sharing. 

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