The following article is adapted from The Block’s newsletter, The Daily, which appears on weekday afternoons.
Happy Tuesday! While a Cloudflare outage took out multiple crypto front-ends this morning, markets are looking a little less shaky. Let us keep you informed of the latest news.
In today’s newsletter, bitcoin briefly falls below $90,000 before recovering, Mt. Gox moves nearly $1 billion in BTC, El Salvador announces a $100 million bitcoin “purchase,” and more.
Meanwhile, Standard Chartered says Bitcoin’s sell-off is likely over, ahead of a year-end rally.
PS Don’t forget to check out The Funding, a bi-weekly overview of crypto VC trends. It’s a great read – and like The Daily, it’s free to subscribe!
Bitcoin briefly falls below $90,000 before the recovery begins
Bitcoin briefly fell below $90,000 to a seven-month low early Tuesday as institutional repositioning and short-term profit-taking intensified selling pressure.
- Analysts labeled the level a “significant” psychological break, with ETF outflows surpassing the $3 billion mark in the past three weeks, although Bitcoin’s price has since recovered above $93,000.
- Kronos Research CIO Vincent Liu said leveraged traders and exposure-adjusting funds continue to weigh on prices despite long-term holders’ confidence.
- Liquidity remains tight after the US government shutdown limited its ability to spend on non-essential activities, with macro uncertainty exacerbating market fragility.
- According to BTC Markets analyst Rachael Lucas, the next major support levels are at $85,000 to $87,000, with $80,000 being a critical boundary that could open a path to February’s low of $74,000, per Liu.
- Meanwhile, traders are focused on the December Fed decision and Thursday’s U.S. jobs data, with analysts warning that year-end tax revenues and geopolitical headlines could increase volatility.
Mount Gox moves nearly $1 billion worth of bitcoin to unmarked addresses
The defunct crypto exchange Mt. Gox transferred 10,608 BTC worth about $956 million to unmarked addresses late Monday, according to Arkham data.
- The transfers fit a pattern of bitcoin moves that have previously preceded creditor refunds, although the motive for these latest shipments remains unclear.
- Mount Gox’s trustee recently postponed full repayment until October 2026, even though some creditors previously began receiving distributions through Kraken and Bitstamp.
- Mount Gox still has 34,689 BTC in its portfolio, according to Arkham, a $3.2 billion stash that remains hanging above the market as rehabilitation efforts continue.
Cloudflare’s global network outage affects multiple crypto front-ends with widespread disruption
Cloudflare’s global network outage on Tuesday disrupted major crypto exchanges’ front-ends, DeFi protocols, block explorers and data dashboards, leading to widespread ‘500’ errors.
- Cloudflare identified the issue and subsequently implemented a fix, although some users may continue to experience intermittent errors as the recovery progresses.
- The incident highlights the industry’s dependence on a small group of cloud and network providers, echoing previous outages that similarly took major crypto and Web2 services offline.
- Industry experts warned that repeated outages at Cloudflare, AWS and others demonstrate why crypto platforms must build an infrastructure that builds on failure, and not rely on the resilience of a single vendor.
‘Game on’: Asset management giant Fidelity introduces Solana ETF
Asset management giant Fidelity launched its Solana ETF, FSOL, on Tuesday, becoming the latest issuer to debut a spot SOL fund in the US after Bitwise, Grayscale and VanEck.
- The fund also introduces Fidelity’s first strike feature, which the company says offers investors a new return opportunity while improving network security.
- “Easily the largest asset manager in this category, with BlackRock sitting out,” Bloomberg ETF analyst Eric Balchunas noted on X. “Game on.”
- Meanwhile, Canary Capital also launched its SOLC Solana ETF on Tuesday, which provides spot SOL exposure with wagering rewards powered by Marinade Select’s curated validator set.
El Salvador announces largest single-day BTC purchase of $100 million
The Bitcoin Office in El Salvador announced an addition of 1,090 BTC worth approximately $100 million – the largest single-day increase – bringing total holdings to 7,474 BTC, worth approximately $676 million.
- The purchase coincided with Bitcoin’s drop below $90,000, although questions remain over whether it was a true market purchase given the country’s IMF loan agreement that bans new public sector acquisitions.
- Conflicting statements from President Nayib Bukele and government financial officials, along with IMF reports attributing increases to portfolio consolidation, continue to cloud the transparency of El Salvador’s bitcoin strategy.
In the next 24 hours
- UK CPI inflation data is due at 2am ET on Wednesday. CPI figures for the Eurozone will follow at 5am. The latest minutes of the US FOMC meeting are scheduled for release at 2 p.m.
- U.S. FOMC members Thomas Barkin and John Williams will speak at 12:45 p.m. and 2 p.m., respectively.
- YZY is set to a unlock token.
- Devconnect continues in Buenos Aires.
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Disclaimer: This article was produced using OpenAI’s ChatGPT 3.5/4 and reviewed and edited by our editorial staff.
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