Shiba Inu's layer-2 network Shibarium has entered a reset phase after a steep drop in visible on-chain activity, a move tied to ongoing infrastructure upgrades and backend reorganization. Network data shows Shibarium logged 557 transactions in the past 24 hours, down from 10,940 recorded on March 26—a decline of about 94%. The fall has sparked attention across the crypto market, but it does not necessarily signal a collapse in real usage. A large share of recent activity appears to be automated, system-level processing rather than user-initiated wallet transfers. Many entries are marked "Value 0 BONE," suggesting internal operations meant to support the upgraded stack instead of token movement between participants. The Shibarium explorer is also being rebuilt following the latest upgrade. Current figures indicate only 86% of blocks have been indexed, leaving some activity temporarily missing from public records. Incomplete indexing is likely distorting on-chain metrics during the transition, as backend systems synchronize and recalibrate how data is surfaced. Market conditions are also shaping sentiment around SHIB. The broader crypto market has remained in a consolidation range since early February, keeping overall momentum muted even as some traders rotate into altcoins. As of writing, SHIB slipped 0.94% over 24 hours to $0.00000583. Trading volume rose 9.5% to $78.77 million, pointing to modest participation despite subdued conditions. The recent dip in Shibarium's visible transaction count reflects a reset tied to infrastructure work. As indexing approaches completion, reported transaction data is expected to normalize and provide a clearer view of network activity.

Onchain investigator @zachxbt posted a detailed thread alleging compliance shortcomings at @circle, saying the company has failed to freeze more than $420 million in illicit USDC flows since 2022. He pointed to the @DriftProtocol exploit attributed to North Korea's Lazarus Group, alleging attackers bridged over 232 million USDC via Circle's own infrastructure over a six-hour window during U.S. business hours without any freeze. ZachXBT also cited a March 2026 civil case in which Circle froze 16 wallets tied to legitimate businesses. He said he personally holds USDC, but questioned whether Circle's compliance priorities reflect the scale of losses the crypto ecosystem faces when action is delayed.

An Iranian presidential official has tied any full reopening of the Strait of Hormuz to new legal and financial terms. On April 5, CCTV News cited Mehdi Tabatabai, deputy head of Iran's Presidential Office in charge of news and communications, as saying the waterway would only be fully reopened once a new legal framework is in place and prior vessel toll revenues are used to compensate Iran for losses incurred in past wars. Tabatabai also used social media to attack U.S. President Donald Trump and his policies, accusing him of hurling insults out of "desperation and anger" and arguing that reckless actions have ignited a full-scale conflict in the region. CNN reported that a separate "potential arrangement" is being discussed between Oman and Iran to restore transit. An Omani source said talks have been underway for roughly two weeks on a "safe passage agreement" to resume commercial shipping. Under the proposal, oil and gas tankers transiting the strait would register with Iran and agree to fly flags of non-hostile nations, a step that would effectively recognize Iran's jurisdiction over the strategic route. The effort is described as one of Oman's last attempts to prevent further escalation, consistent with its past role mediating between Washington and Tehran. The source cautioned that pushing an agreement forward during wartime is "extremely difficult", adding that the best outcome would be an immediate ceasefire. PolyBeats tracking shows the Polymarket prediction for the strait resuming navigation this month has fallen to 12%.

Ethereum has spent nearly a month trading around $2,000, with charts offering little clarity on a sustained rebound. Fresh on-chain signals, though, suggest a potentially constructive shift may be taking shape. In an April 4 post, pseudonymous analyst Darkfost said Ethereum's derivatives market is showing a regime change not seen since the last bearish phase, pointing to a recent turn in the "Net Taker Volume" metric. Net Taker Volume tracks the balance between market-buy and market-sell order volume in a crypto's derivatives market. Positive readings indicate buyers are dominating; negative readings signal heavier sell-side pressure. Citing CryptoQuant data, Darkfost noted Ethereum's Net Taker Volume has moved into positive territory by more than $104 million, the first such shift in the past three years. The analyst added that ETH faced strong selling pressure even as it rallied to record highs, but said the current change could help form a durable bottom and lay groundwork for a more bullish structure. Darkfost said a continued bid, paired with support from the spot market and ETFs, could allow Ethereum to resume a positive trend. US-listed spot Ethereum ETFs extended their weak streak, logging a third consecutive week of net outflows. Market data show more than $42.15 million was withdrawn over the past week. On Thursday, April 3, the products recorded total net outflows of over $71.12 million, underscoring softer investor demand. At the time of writing, ETH was trading around $2,058, up 0.6% over the past 24 hours.

A transfer of 2,000 BTC, valued at $133,690,148, was recorded moving from an unidentified wallet to a newly created unidentified wallet.

April 5 — Reuters reported that an OPEC+ committee meeting on Sunday raised concerns about potential attacks on energy assets amid heightened tensions involving the U.S., Israel and Iran. The committee said restoring damaged facilities can be expensive and time-consuming, which could weigh on supply. In its statement, the committee stressed the importance of safeguarding international maritime shipping routes to ensure uninterrupted energy flows. It also warned that strikes on energy infrastructure may reduce overall supply capacity because repairs and the return to full output often take significant time and capital. PolyBeats data showed that on the prediction market Polymarket, the implied probability of WTI crude settling above $130 a barrel by the end of April rose to 51%, while the probability of closing above $120 increased to 80%.

BlockBeats, April 5 — Reuters reported that an OPEC+ committee meeting on Sunday raised concerns about attacks on energy assets amid the conflict involving the U.S., Israel and Iran. The committee said repairing damaged facilities can be costly and time-consuming, which could weigh on supply. In its statement, the committee stressed that safeguarding international maritime routes is essential to keep energy flows uninterrupted. It also warned that bringing damaged energy assets back to full operating capacity requires significant time and expense, reducing overall supply capacity. PolyBeats data from the prediction market Polymarket show the implied probability of WTI crude closing above $130 in April has climbed to 51%, while the probability of a close above $120 has risen to 80%.

Michael Saylor suggested the pause has ended, signaling MicroStrategy (MSTR) will resume publishing announcements of its bitcoin purchases starting tomorrow.

Bitcoin (BTC) has remained in a descending channel since topping near $126,000 in October 2025. The prolonged slide has taken BTC below the Short-Term Holder (STH) Realized Price, indicating recent buyers are underwater. Checkonchain data shows 45.8% of circulating supply is currently at a loss, while 54.12% remains in profit. The growing share of underwater supply has pressured investors toward capitulation, with the largest impact seen among whales. ### Whales post steep realized losses Holders with 100 to 10,000 BTC realized a combined $30.9 billion in losses during Q1 2026. Within that cohort, whales logged the biggest hit, averaging $337 million in realized losses per day, according to CryptoRover. Glassnode data suggests this is the highest daily loss rate since the 2022 bear market, pointing to one of the most aggressive distribution phases on record. Long-term holders (LTH) contributed roughly $200 million in realized losses per day. Historically, persistent loss realization at these levels has not coincided with cycle lows. Prior bottoms typically formed after realized losses cooled to about $25 million per day on average, implying current conditions remain well above levels usually seen near market troughs. ### Supply held at a loss remains elevated Checkonchain also reports that BTC supply held at a loss across both LTH and STH cohorts has stayed unusually high, averaging about 4,000 BTC per day from March through early April. As underwater supply rose, investors appeared to cut risk, aligning with the recent spike in realized losses. ### Outlook: consolidation risk, with downside still in play While some of the selling could reflect strategic tax-loss harvesting, the broader pattern points to a market increasingly focused on capital preservation. Rising losses and continued loss realization have stretched positioning, keeping downside risk elevated. TradingView’s upside/downside volatility indicator shows a market stuck in indecision: upside volatility at 1.9, downside volatility at 1.6, and a 0.10 spread, signaling a mild bearish tilt. Momentum remains weak, a setup that has historically preceded extended consolidation. If current sentiment persists, BTC could trade sideways between $70,000 and $65,000. If realized losses accelerate as demand softens, BTC risks another breakdown, with a potential move toward $62,500. ### Summary BTC realized losses reached $30.9 billion in Q1 2026, with whale realized losses averaging more than $337 million per day. Despite heavier loss realization, volatility remains muted and price action remains indecisive.