News

1. Sources: The U.S. House of Representatives will release a draft cryptocurrency regulation before the May 6 hearing 2. Metaplanet to issue 3 billion yen zero-coupon ordinary bonds to increase Bitcoin holdings 3. China's Ministry of Commerce: The U.S. has recently proactively conveyed information to China through various channels 4. Riot Platforms: Q1 mining output was 1,530 BTC, with a total Bitcoin holding of 19,223 5. Strategy announced its first-quarter financial report, with a $5.9 billion impairment on Bitcoin reserves 6. Digital asset derivatives company Two Prime: No longer accepting ETH lending, focusing solely on BTC

On May 2, it was reported that digital asset derivatives company Two Prime announced that despite its success on ETH, it will focus on BTC asset management and lending in the future. The statistical trading behavior, value proposition, and community culture of ETH have failed to the point where participation is not worthwhile. In the scenario where BTC becomes an alternative, the risk-reward of ETH is simply unreasonable. Two Prime claims that as an algorithmic trading company, it values data over narrative. Data shows that ETH has undergone fundamental changes. Its correlation with BTC has decreased, and tail risk has significantly increased. Now, its trading style resembles that of a meme coin rather than a predictable asset. Even during the turbulent period of the first quarter of 2025, Bitcoin maintained its fundamental trend, while ETH experienced multiple standard deviation fluctuations. This stems from a risk-averse environment and widespread selling by long-term ETH holders. This poses problems for algorithmic trading and ETH-backed lending, as the asset's performance is no longer predictable, even considering the high volatility expected in the digital asset market.