Bitcoin Faces Institutional Headwinds and DeFi Struggles Amidst Broader Onchain Finance Expansion
Bitcoin Faces Institutional Headwinds and DeFi Struggles Amidst Broader Onchain Finance Expansion
The crypto market presents a mixed picture, with Bitcoin facing significant pressure. Institutional investors are reportedly offloading substantial amounts of BTC, leading to predictions of a potential price slide. Furthermore, the Bitcoin DeFi ecosystem saw a setback with Botanix shutting down, citing insufficient demand for Bitcoin-native decentralized finance solutions. Meanwhile, the broader onchain finance sector shows growth, with Trad.Fi aiming to bring $650 million in private credit onchain, and Pyth expanding its continuous pricing indexes for traditional assets, adopted by major exchanges like Coinbase and Kraken, signaling a bridging of traditional and digital markets.
Coinbase, Kraken and dYdX are adopting Pyth's new indexes, which provide continuous pricing for US stocks, gold and oil outside market hours.
Bitcoin’s institutional support weakened as ETFs and companies dumped almost 2,000 BTC daily and Strategy’s buying lost momentum.
Trad.Fi plans to bring up to $650 million in equipment-finance credit onchain, targeting a trillion-dollar US market still dominated by paperwork.
The Spiderchain developer told users to withdraw assets by July 9 after concluding demand for Bitcoin-native DeFi was not sufficient to support the network.