The world has spent six weeks with its eyes glued to a 21 nautical mile strip of sea where the fate of the global economy seems to hinge.
This week offered a striking example of Bitcoin’s potential as a neutral global reserve asset, as Iran indicated it may accept fees in Bitcoin for passage through the Strait of Hormuz.
Layer that on top of one of the world’s largest banks recording its most successful ETF launch with a new Bitcoin ETF, and momentum for Bitcoin appears to be building from multiple significant angles.
Other top stories from the week include:
Developer may have just defused endless Bitcoin quantum FUD.
Justin Sun accuses Trump linked WLFI token of blacklisting backdoor
Bhutan trims BTC stack while the biggest players continue accumulating.
Latest News
Adoption
Avihu Levy proposes quantum-safe Bitcoin transactions that require no soft fork, using a RIPEMD-160 hash-to-signature design claiming ~118-bit security while staying within Bitcoin’s existing script limits.
Block’s Bitcoin Day campaign distributes over $900K worth of BTC in 3 days, rewarding first-time buyers, Square merchant payments, and Bitkey withdrawals to accelerate Bitcoin self-custody adoption.
Ark Labs partners with DFX to bring fiat on and off-ramps and Bitcoin payments to Arkade, enabling BTC purchases across 137 SPAR Switzerland markets with direct wallet settlement and vIBAN support.
Regulation
Justin Sun accuses Trump-linked WLFI token of undisclosed smart contract backdoor enabling unilateral blacklisting and freezing of holders’ tokens, claiming his wallet was targeted last year.
DoorDash data breaches are being linked to targeted robberies of Bitcoin holders, with suspects posing as delivery drivers and allegedly using app data to identify victims in California.
Bitcoin Depot discloses that hackers breached their systems, stealing settlement account credentials, and transferred about 50.9 BTC worth $3.6M from company wallets.
Markets
Morgan Stanley launches the cheapest US spot BTC ETF at 0.14%, records the best day-one trading of any ETF they’ve launched, and becomes the first major US bank to offer a spot Bitcoin ETF.
Adam Back denies a New York Times 18-month investigation by John Carreyrou claiming he is Satoshi Nakamoto, rejecting the report linking him to Bitcoin’s creator after years of speculation.
Nunchuk launches two open-source repositories to allow the development of AI agents capable of managing Bitcoin wallets within predefined spending limits.
Treasury
Strategy’s $STRC preferred stock traded Friday with $526M liquidity, one cent volatility, and higher liquidity relative to market cap than all Magnificent Seven stocks, closing at par.
Bhutan has reportedly sold about 70% of its Bitcoin holdings, dropping from 13,000 BTC to under 4,000 BTC, including a transfer of 319 BTC worth roughly $22.7M this week.
Cango, the Bitcoin miner, sold 2,000 BTC in March to repay Bitcoin-backed loans, leaving a 1,025 BTC treasury, amid NYSE delisting risk due to low share price.
Mining
The US leads global Bitcoin hashrate with 37.4% share, followed by Russia at 16.9% and China at 12%, while Kyrgyzstan posts 300% YoY growth after approving transparent mining regulations.
BTQ Tech finds quantum computers pose no threat to Bitcoin mining, estimating 100M qubits and 10,000 MW needed, with requirements rising to near star-level energy at current network difficulty.
CleanSpark will shut down a 25 MW Tennessee Bitcoin mining site tied to its GRIID acquisition under a 2023 settlement, after residents sued in 2021 alleging excessive noise.
Politics
US government moves over 2 BTC to Coinbase Prime, with Arkham linking funds to a 2025 Glenn Olivio steroid and money laundering case, highlighting how seized crypto is now handled.
Ireland deploys Army to remove protest vehicles as Deputy Commissioner Shawna Coxon warns truckers to end fuel tax blockades or face “full rigors of the law”; she led Toronto trucker crackdown.
Iran reportedly requires ships to pay Bitcoin tolls before crossing the Strait of Hormuz, charging $1 per barrel, with vessels given seconds to complete transactions avoiding sanctions tracing, according reports.
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Bam’s 2 Sats
Macro Fears, but with a Hint of Massive Accumulation
After months of the doldrums, this week is starting to look better. Three major events point to massive accumulation and could signal a narrative shift, perhaps even a new way of understanding Bitcoin’s cycle dynamics.
These three data points are:
Sovereigns turning to BTC to avoid counterparty risk.
Banks are entering the Bitcoin ETF market with great timing.
Financial engineering from a single player absorbing all newly mined Bitcoin.
Sovereigns Eye Bitcoin as Neutral Money
As the war appears to slow and the world tries to interpret a fragile ceasefire, Iran reportedly said ships crossing the Strait of Hormuz must pay transit fees in Bitcoin.
Now, if there is one thing we have learned from government and politics in recent months, it is that we cannot take these statements at face value. There is no guarantee this will actually happen, but even as rhetoric it highlights the need for a non sovereign medium of exchange and store of value that countries can use without fearing confiscation, as Russia experienced during its war with Ukraine a few years ago.
To do the mental math, let’s break down what this scenario would mean in Bitcoin terms.
If Iran charges $2M per ship to cross the Strait of Hormuz in Bitcoin, at roughly $72,000 per BTC that equals about 27.7 BTC per ship. With around 130 ships daily, annual demand would approach 1.3 million BTC.
In other words, Iran alone could generate demand greater than any current player, surpassing the holdings of BlackRock's Bitcoin ETF or Strategy in less than a year. Assuming, of course, that it actually happens, the price stays the same, and the country decides to hold the bitcoin long term.
Straight of Hormuz on BTC Map
The Banks Have Entered the Chat
Second, the banks have now officially entered the game. Morgan Stanley launched its Bitcoin ETF with the lowest fees in the market, achieving the strongest first-day launch of any ETF it has introduced.
This is a much bigger signal than many realize. Morgan Stanley’s MSBT launched at relatively low Bitcoin prices after a bull market, setting it up for strong performance statistics when returns are evaluated from inception.
Is it a coincidence, or did they actually time the market? Only time will tell, but ETFs now appear to be flipping back to positive inflows, accumulating more than 11,000 BTC this week.
Strategy's Relentless Accumulation
Third, Strategy continues its massive accumulation spree, reportedly gathering more than 10,000 BTC in a week through its STRC preferred stock. Maintaining a 66-to-33 preferred-to-ATM mix could push total accumulation to near 15,000 BTC, roughly one month of mining supply in 5 trading days.
It is remarkable that a single entity is not only accumulating far more than total mining issuance, but has been doing so consistently since August 2023.
OGs Don't Sell Forever
It seems the narrative is shifting. OGs can sell for extended periods, but a handful of entities now appear capable of absorbing the entire mining supply, and then some.
As this trend continues, with Strategy’s accumulation being mirrored by followers, ETFs flipping back into accumulation mode, and sovereigns recognizing Bitcoin’s role in a chaotic world, it may only be a matter of time before strong conditions return.
- Bam
