Leading coin Bitcoin has been in a corrective phase since hitting its all-time high of $111,968 on May 22. The king coin has slipped below the key $105,000 support level to trade at $104,536 at press time, reflecting the selling pressure.
However, on-chain data suggests a potential rebound above this critical support level, with a possible retest of BTC’s all-time high on the horizon. This analysis breaks down the key insights.
BTC Liquidity Clusters Signal Surge Toward $109,000
An assessment of BTC’s liquidation heatmap shows a notable concentration of liquidity around the $109,933 price zone.
Liquidation heatmaps identify price levels where large clusters of leveraged positions are likely to be liquidated. These maps highlight areas of high liquidity, often color-coded to show intensity, with brighter zones (yellow) representing larger liquidation potential.
Usually, these cluster zones act as magnets for price action, as the market tends to move toward these areas to trigger liquidations and open fresh positions.
Therefore, for BTC, the convergence of a high volume of liquidity at the $109,933 price level indicates a strong trader interest in buying or closing short positions at that price. It creates room for a surge toward the $109,000 mark.
Further, the coin’s funding rate has remained positive despite its recent price pullback. At press time, this stands at 0.005%, per Coinglass.
The funding rate is a periodic payment between traders in perpetual futures contracts to keep the contract price aligned with the spot price. When the funding rate is positive, there is a higher demand for long positions.
This means more traders continue to bet on BTC’s price going up, even in the face of strengthening bearish momentum.
BTC Price Teeters Between $103,000 Support and $109,000 Liquidity Zone
BTC has posted a modest 1% gain in the past 24 hours, bouncing off the $103,952 support level. If demand soars, this support floor could hold firm and push prices above the psychological barrier at $105,000, potentially targeting $106,307.
A clean break above this zone may open the door to the $109,000 price area dense with leveraged positions.
BTC Price Analysis. Source: TradingView
However, increased profit-taking could drag BTC back below $103,952, with a further decline toward $102,590 likely.
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee as we discuss the growing influence of stablecoin issuers in the US Treasury market. With growing institutional adoption and regulatory legitimization of US dollar-pegged stablecoins, experts warn of artificial inflation of demand for the dollar.
Crypto News of the Day: Using Government Debt Instruments To Back Digital Dollars is Risky, Keiser Warns
The influence of stablecoin issuers in the US is growing, so much that Tether, which already issues the USDT stablecoin, plans to launch a US-only stablecoin by 2025. Tether aims to position stablecoins as strategic financial tools under the Trump administration.
Stablecoin supply by issuer in billions of US dollars. Source: Bain & Company
This chart shows Tether’s dominance in the stablecoin market, with overall supply going from $2 billion to more than $200 billion in recent years.
Meanwhile, the US Treasury projects stablecoins could reach a $2 trillion market by 2028, which could attract more players.
Nevertheless, as stablecoin influence in the Treasury market grows, the House Financial Services Committee is concerned.
Perhaps, however, the greater concern is stablecoin issuers’ using Treasury yields to buy Bitcoin. According to experts, this could undermine US government reserves.
A recent US Crypto News publication indicated reports of stablecoin issuers using Treasury yields to buy Bitcoin. Some say this could undermine initiatives like the proposed US Strategic Bitcoin Reserve, which aims to bolster national holdings of the pioneer crypto.
Growing Influence of Stablecoin Issuers in US Treasuries Market is Concerning, Max Keiser Says
Among them is Bitcoin pioneer Max Keiser, who voiced concerns over the growing influence of stablecoin issuers in the US Treasury market. Keiser warns that their use of government debt instruments to back digital dollars may have broader implications for the global financial system.
As of Q1 2025, Tether reported holding nearly $120 billion in short-term US Treasury securities and reverse repos. This makes it one of the largest non-sovereign holders of American government debt.
Meanwhile, Circle, issuer of USDC, disclosed more than $22 billion in Treasury bills in a February 2025 attestation.
These holdings collateralize dollar-pegged stablecoins, helping issuers maintain liquidity and trust. The issuers benefit from the interest income generated by the bonds.
While this practice is common and legal, Keiser contends it contributes to deeper systemic issues tied to fiat currency dynamics.
“This is exactly why the stablecoin issuers are buying Bitcoin, this is called a speculative attack on the US dollar. Feeding the debt spiral with fiat stablecoins, buying treasury bills, and then investing the interest into Bitcoin, allowing the stablecoin issuers to buy billions in Bitcoin for free,” Keiser told BeInCrypto.
Stablecoin issuers purchase US debt on secondary markets and earn interest, which they may or may not deploy into digital assets like Bitcoin. Keiser is critical of the broader financial architecture underpinning stablecoins.
“Issuing new stablecoins backed by US T-bills printed out of thin air is not a monetary system, but a financial hologram,” he said.
US Treasury bills are debt instruments issued by the federal government and sold to investors, including private companies like Tether and Circle, through regulated markets. These stablecoin issuers tokenize existing fiat currency held in reserve.
Keiser elaborated on what he sees as the long-term consequences of this model.
“It’s a speculative attack by private banks. It is financial repression, pushing rates down as ‘malinvestments’ increase. It is rinse and repeat,” he explained.
His critique also extends to the broader outlook for the US dollar, which, according to the Bitcoin pioneer, “is a quick, deadly fix; a USD hospice. Cue the final death throes of the US dollar.”
BeInCrypto has contacted Circle and Tether for comment and will update this article if they respond.
Max Keiser Proposes AI To Invent Novel Security Structures
Keiser also highlighted what he views as an emerging trend. He said high-profile investors and technologists use artificial intelligence (AI) and novel corporate strategies to increase Bitcoin exposure.
The Bitcoin maxi referenced Strategy Executive Chair Michael Saylor and investor-turned-politician Vivek Ramaswamy.
“Financial engineers like Michael Saylor and Vivek Ramaswamy are using AI to invent novel security structures to maximize the Bitcoin Treasury model. Vivek Ramaswamy plans to take his company, Strive Asset Management, public by merging with Asset Entities and starting to accumulate Bitcoin using the model that Saylor’s Strategy has already successfully adopted — using proceeds from stock and debt issuance,” Keiser remarked.
Though no confirmed public filings detailing Ramaswamy’s use of AI in this context, Keiser sees these developments as significant.
“The results are redefining finance globally and adding significantly to the Bitcoin demand. OG’s like myself, who have watched Bitcoin outperform everything for 15 years, are seeing, for the first time, investment strategies that are outperforming Bitcoin, and the implications are profound,” he said
Keiser believes such strategies could push Bitcoin’s market value even higher. He also implied that the extraordinary compounding rates of the past could be extended. This sentiment comes as Bitcoin captures more of the total addressable market and scales even higher price points.
The views expressed are those of Max Keiser and do not necessarily reflect the opinions of BeInCrypto.
Chart of the Day
International holdings of US Treasuries in billions of dollars. Source: Bain & Company
This chart shows that stablecoins have become a large holder in US treasuries.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
Sygnum’s off-exchange custody platform allows traders to mirror assets held in Sygnum’s custody while trading on an exchange like Deribit.
Cryptocurrency banking firm Sygnum is partnering with crypto derivatives exchange Deribit, providing its off-exchange custody platform, Sygnum Protect.
On March 5, Sygnum announced the expansion of Sygnum Protect, its off-exchange custody platform, to include Deribit, one of the world’s largest derivatives exchanges in crypto.
This integration enables institutional Deribit traders to hold their assets in Sygnum’s institutional-grade custody while accessing Deribit’s broad trading offering and liquidity.
MANTRA is planning to launch a $108,888,888 Ecosystem Fund to drive RWA innovation over the next four years and help accelerate projects in MANTRA’s blockchain ecosystem.
MANTRA’s native token OM has shown significant resilience in the current market downturn. OM is currently the only altcoin among the top 30 tokens to have posted positive gains over the past 24 hours.
Today, it announced the launch of a $108,888,888 Ecosystem Fund to propel RWA innovation in its blockchain ecosystem.
“In an era where blockchain technology is revolutionizing finance, the MEF will serve as a catalyst for groundbreaking projects that drive real-world adoption through a focus upon the tokenization of real world assets. We are opening doors for visionary founders and teams to join us in building and creating a thriving ecosystem,” claimed John Patrick Mullin, founder and CEO.
Mullin delivered these comments in an exclusive press release shared with BeInCrypto. MANTRA plans to deploy this fund over the next four years, working with “a strong network of partners and investors” to maximize RWA growth.
The firm also claimed that its new license approvals in Dubai will allow it to facilitate advanced financial services.
MANTRA successfully obtained a Virtual Asset Service Provider (VASP) license, which will allow it to act as a crypto exchange and offer broker-dealer, management, and Investment Services. With these tools, the network can direct RWA investment.
Today, we’re announcing the launch of the MEF – a $108,888,888 million investment initiative designed to propel real world asset innovation, adoption and growth.
But we’re not doing this alone. We’ve got leading incubators, accelerators and capital partners by our side;… pic.twitter.com/oyeCOJ9QrE
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 7, 2025
In fact, MANTRA’s native token is the only cryptocurrency among the top 30 to have any positive gains. It’s also among the top 5 highest gainers in the market today.
MANTRA (OM) Daily Price Chart. Source: BeInCrypto
Overall, investors seem extremely confident in MATRA’s growth and the network’s continuous development. The project’s latest investment fund reflects its commitment to influencing positive developments in the RWA ecosystem.
Meanwhile, the find will likely encourage more RWA projects to launch or shift to the network, increasing MANTRA’s utility. According to DefiLlama, the network only has $4.2 million in total value locked (TVL).
With this fund, the project’s main goal will be to improve participation and long-term engagement on the blockchain.
