Crypto markets faced turbulence with $500 million in liquidations as Bitcoin and Ethereum dipped, while Strategy investors dropped a lawsuit over its BTC strategy. Eric Trump pitched Bitcoin as class-equalizing finance, and 21Shares launched the first institutional ETP tied to Hyperliquid’s HYPE token. Meanwhile, Circle advanced USDC adoption through new Mastercard and Finastra partnerships, embedding stablecoins deeper into global payment rails.
Bitcoin, Ethereum Retreat as $500M in Liquidations Hit Markets
Crypto markets turned red on Friday as hot U.S. inflation data triggered a broad sell-off across digital assets and equities. Bitcoin dropped below $109,000, marking its lowest level since early July and sliding nearly 12% from its recent all-time high of $124,128. Ethereum also fell sharply, losing 6% in 24 hours to trade around $4,295 — now down 13% from its record peak set just days earlier.
The correction rippled across futures markets, where traders caught long were hit hardest. CoinGlass data showed $446 million in long positions liquidated within 24 hours, with total liquidations topping $535 million. Major altcoins joined the downturn: XRP shed 6% to $2.84, and Solana slipped 3% to $209 after touching a six-month high the day prior.
Macro data drove the move, as the U.S. personal consumption expenditures (PCE) index showed core inflation running at 2.9% in July — slightly above expectations and up from June. Analysts warned that September, historically a weak month for both crypto and equities, could see further selling pressure if inflationary concerns persist.
Strategy Investors Drop Lawsuit Over Bitcoin Profitability Claims
Strategy scored a legal win this week as investors voluntarily dismissed a class-action lawsuit accusing the company of misleading shareholders about its profitability under new accounting standards. The case, filed in May, alleged that Strategy overstated the benefits of switching to fair value accounting for Bitcoin — a change that allows firms to mark both gains and losses on their balance sheet.
While critics said the shift inflated expectations of stronger results, Strategy shocked investors earlier this year by posting a $4.22 billion net loss in Q1 2025, despite Bitcoin’s historic rally. The lawsuit claimed executives misled shareholders on how the accounting change would translate into earnings power.
The dismissal, filed with prejudice in a Virginia federal court, means the claims cannot be refiled. Strategy, which holds over $68 billion in BTC, remains the largest corporate Bitcoin treasury. The outcome may help stabilize investor sentiment after months of scrutiny, though questions remain about how effectively fair value reporting reflects underlying performance.
Eric Trump Calls Bitcoin a Level Playing Field at Bitcoin Asia
At the Bitcoin Asia conference in Hong Kong, Eric Trump argued that Bitcoin represents the first financial system “with no disparity between socioeconomic classes.” The son of U.S. President Donald Trump framed the cryptocurrency as a leveller, claiming it gives equal opportunity to “the person in sub-Saharan Africa and the executive on Wall Street.”
Trump contrasted Bitcoin with traditional finance, which he said has long privileged elites able to negotiate favorable loan terms or fee structures. He credited Bitcoin’s decentralized structure with removing such levers, creating a market more accessible to everyday participants.
However, observers noted tension between the rhetoric and reality. Much of Trump’s own discussion focused on sovereign wealth funds, Fortune 500 firms, and nation-states accumulating Bitcoin — highlighting its growing concentration among institutions. Analysts said his remarks reflect the enduring debate over whether Bitcoin can fulfill its egalitarian ideals, even as it cements its role as a macro-scale institutional asset.
21Shares Launches Hyperliquid ETP for Institutional Investors
Swiss asset manager 21Shares has listed the first institutional-grade product tied to Hyperliquid’s native token, HYPE, on the SIX Swiss Exchange. The ETP gives investors regulated access to Hyperliquid without requiring wallets or onchain custody, extending exposure to one of DeFi’s fastest-growing derivatives venues.
Hyperliquid has quickly emerged as a dominant decentralized exchange for perpetual futures, processing more than $8 billion in daily volume and $2 trillion in cumulative trades since its 2023 launch. July marked its highest activity yet, with $319 billion in monthly volume and a 35% share of blockchain revenue across DeFi. Analysts note the platform’s unique onchain order book and rapid settlement design as key differentiators.
The ETP listing follows HYPE’s recent all-time high of $50.99 and represents another step in bridging decentralized trading infrastructure with institutional markets. With institutional wrappers now in place, Hyperliquid’s ecosystem could see deeper inflows from asset managers seeking regulated exposure to emerging DeFi protocols.
Circle Expands USDC Reach With Mastercard, Finastra Deals
Stablecoin issuer Circle has unveiled two major partnerships to embed USDC into mainstream financial networks. Mastercard will enable acquirers and merchants across Eastern Europe, the Middle East, and Africa to settle transactions in USDC and EURC, marking the payments giant’s first stablecoin settlement integration in the region.
Separately, London-based fintech Finastra is integrating USDC into its Global PAYplus platform, which processes over $5 trillion in daily cross-border transactions. The move will allow banks in 50 countries to settle payments in USDC while maintaining fiat-denominated instructions, streamlining cross-border flows with stablecoin rails.
The partnerships follow the passage of the GENIUS Act in the U.S. and Circle’s recent IPO, signaling the firm’s push to globalize USDC adoption. With additional collaborations across Asia, including discussions with South Korea’s largest banks, Circle is positioning USDC as a core settlement layer for both retail and institutional payments worldwide.
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