ETF outflows and dollar strength pressure crypto as geopolitical tensions reshape risk appetite

link">Bitcoin is trading in a compressed range around $67K as macro headwinds create conflicting pressures. [The Block](https://www.theblock.co/post/395446/bitcoin-dips-below-67k-ether-under-2k-as-etf-outflows-and-dollar-strength-pressure-liquidity-analysts) reports BTC dipped below $67K with ETH falling under $2K as ETF outflows resumed and dollar strength pressured liquidity. US Bitcoin ETF outflows hit a three-week high, with [The Block](https://www.theblock.co/post/395430/us-bitcoin-etf-outflows-reach-three-week-high) noting that Ark Invest cut holdings in its own BTC fund, though analysts characterize this as short-term profit-taking rather than a shift in long-term conviction. The geopolitical backdrop is creating unusual dynamics. [JPMorgan](https://www.theblock.co/post/395369/jpmorgan-bitcoin-crypto-iran-war-gold-silver) analysts observe that Bitcoin is showing safe-haven-like demand during the Iran war, holding up better than gold and silver with signs of inflows and rising activity. This contrasts with traditional risk-off behavior and suggests institutional positioning may be evolving. [Bankless](https://www.youtube.com/watch?v=JYQFJpiM5P0) discusses how geopolitical tensions in Iran are affecting global markets, while [Empire](https://www.youtube.com/watch?v=Y60lUXB8Wd8) examines how energy markets and central bank constraints are creating a fragile setup where geopolitical shocks could collide with restrictive monetary policy. [Benjamin Cowen](https://www.youtube.com/watch?v=efzBx985xbU) provides framework analysis, evaluating Bitcoin through the lens of the broader business cycle rather than crypto-specific narratives. He emphasizes understanding the macro environment and managing risk as the cycle matures, noting how liquidity conditions and labor market dynamics shape the environment for risk assets.

Several major regulatory developments are reshaping the crypto landscape. Most significantly, [Tether](https://t.me/shoalresearch/13594) has entered a formal engagement with Big Four accounting firm KPMG to complete its first full independent financial audit, marking a major step toward institutional legitimacy for the $184 billion stablecoin issuer. [The Block](https://www.theblock.co/post/395423/tether-taps-kpmg-for-first-financial-audit) reports this represents a significant upgrade from monthly attestations with BDO Italia. In mortgage finance, [Fannie Mae](https://t.me/shoalresearch/13586) will accept crypto-backed mortgages for the first time according to WSJ reporting, with [The Block](https://www.theblock.co/post/395381/the-daily-fannie-maes-crypto-backed-mortgage-push-trust-wallets-ai-trading-agents-maras-15000-btc-sale-and-more) noting borrowers can now pledge link">Bitcoin or USDC to fund cash down payments on conforming mortgages through a Coinbase partnership. Personnel changes are also notable as [David Sacks](https://www.theblock.co/post/395399/crypto-czar-david-sacks-leaves-post-to-go-to-broader-white-house-tech-role-as-legislation-faces-challenges) is leaving his post as White House crypto and AI czar for a broader tech role as crypto legislation faces challenges. Meanwhile, [Rep. Waters](https://www.theblock.co/post/395413/rep-waters-questions-kansas-fed-kraken) is pressing the Kansas City Fed on approving Kraken's master account, arguing that access to critical financial infrastructure requires full transparency. [Bankless](https://www.youtube.com/watch?v=JYQFJpiM5P0) discusses the proposed Clarity Act and its potential impact on stablecoin yields and crypto finance more broadly.

[Trust Wallet](https://t.me/shoalresearch/13581) launched the Trust Wallet Agent Kit, infrastructure that enables AI agents to execute real crypto transactions including swaps, DCA, and limit orders across more than 25 blockchains within user-defined rules. [The Block](https://www.theblock.co/post/395286/cz-owned-trust-wallet-launches-ai-agents-that-can-execute-crypto-trades) notes this represents a significant step toward autonomous trading capabilities in the CZ-owned wallet ecosystem. The AI development landscape is accelerating rapidly. [Anthropic](https://t.me/shoalresearch/13593) confirmed testing "Claude Mythos" (also called "Capybara"), described as a "step change" in capability after an accidental data leak exposed its existence. The model reportedly shows dramatic improvements in coding, reasoning, and cybersecurity compared to previous releases. [Shoal Research](https://t.me/shoalresearch/13592) highlights an important debate between Vitalik Buterin and Extropic founder Beff Jezos on AI acceleration approaches - e/acc (effective accelerationism) versus d/acc (defensive/decentralized acceleration). The discussion centers on whether slowing AGI development by several years is worth the opportunity cost versus accelerating carefully to avoid losing control. In practical applications, [link">Hyperliquid](https://t.me/shoalresearch/13582) documented lessons from training HyperLLM-4b, a specialized language model for quantitative finance and trading, sharing insights on what worked and failed across seven development iterations. Meanwhile, [DefiLlama](https://t.me/shoalresearch/13590) launched MCP integration with 23 tools enabling AI agents to access and analyze onchain DeFi data.

Traditional finance infrastructure is expanding crypto integration across multiple fronts. [BlackRock's](https://www.theblock.co/post/395173/blackrock-tokenized-buidl-fund-taps-chronicle-new-verification-layer) $1.7 billion BUIDL tokenized Treasury fund integrated Chronicle for a new "verification layer," enhancing the largest tokenized fund's infrastructure. [Goldman Sachs-backed](https://www.theblock.co/post/395304/goldman-sachs-backed-canton-chain-integrates-with-layerzero) Canton Network, designed specifically for regulated institutions, integrated with LayerZero to enable cross-chain messaging for institutional assets. [Anchorage](https://www.theblock.co/post/395318/anchorage-federally-chartered-tron-inside-regulatory-perimeter) became the first federally chartered US firm to bring Tron "inside the regulatory perimeter," significant given Tron's position as a top chain for stablecoin usage that has largely operated outside the US due to regulatory concerns. Stock tokenization is advancing as [link">Hyperliquid ecosystem](https://t.me/shoalresearch/13585) gained access to 260+ Ondo tokenized stocks via Felix, marking the first time tokenized spot stocks and ETFs are available on the platform. The tokens are backed 1:1 by underlying assets held offchain, tokenized on Ethereum via Ondo Global Markets, then bridged to Hyperliquid. [ARK Invest](https://www.theblock.co/post/395395/cathie-woods-ark-invest-turns-to-kalshi-to-inform-investment-strategies-hedge-risk) is turning to prediction market Kalshi to inform investment strategies and hedge risk, indicating institutional adoption of crypto-adjacent prediction infrastructure for portfolio management.

DeFi protocols face escalating security challenges as attack vectors evolve. [Moonwell](https://www.theblock.co/post/395272/moonwell-governance-attack) is experiencing a governance attack where a $1,800 token purchase was used to push a malicious proposal threatening over $1 million in funds, highlighting vulnerabilities in governance token distribution. [Daily Intel](https://t.me/alearesearch/1399) reports that AI-powered hackers are increasingly targeting legacy smart contracts, using LLMs to scan thousands of lines of code per second for exploitable bugs. This represents a significant escalation in attack sophistication that could pose systemic risks to older DeFi protocols. On the positive side, [XRP](https://t.me/alearesearch/1399) received new AI-driven security tools as experts warn of growing threats from AI-armed hackers, suggesting the security arms race is advancing on both offensive and defensive fronts.

Corporate link">Bitcoin strategies are showing mixed signals. [MARA Holdings](https://t.me/shoalresearch/13583) sold 15,133 Bitcoin for approximately $1.1 billion between March 4-25, using proceeds to repurchase $1 billion in convertible notes at a discount and reduce debt by 30%. This represents a significant deleveraging move rather than a bearish Bitcoin stance. Conversely, [GameStop](https://www.theblock.co/post/395406/gamestop-didnt-sell-bitcoin) clarified in its latest 10-K filing that it did not sell the 4,709 BTC it acquired last year, but instead pledged it as collateral with Coinbase Credit. This suggests the gaming retailer maintains conviction in its Bitcoin position while using it for operational liquidity. An [Ethereum ICO participant](https://www.theblock.co/post/395419/ethereum-ico-wallet-offloads-23-million-worth-eth) offloaded $23 million in ETH according to Lookonchain, with the address tracing back to Ethereum's initial token sale where the investor purchased ether at about $0.31 per token, representing substantial early investor profit-taking.