After Bitcoin prices stabilized, the US spot Bitcoin ETF finally turned the tide. In March, it recorded a net inflow of $1.32 billion, marking the first monthly capital inflow since October last year. Previously, there were four consecutive months of outflows: $3.5 billion in November, $1.1 billion in December, $1.6 billion in January, and over $200 million in February. Now that the bleeding has stopped, it indicates that market sentiment is gradually warming.

The ETF holdings have also been relatively resilient. From a low of 1.38 million BTC in October, they dropped by only about 7%, to around 1.28 million BTC, then rebounded to approximately 1.31 million BTC. But the problem is, the average cost basis for these ETF investors is still $84,000, while the current price is just over $72,900, so everyone is still at a loss. This rebound needs to continue in order to recover.

Additionally, World Liberty Financial’s WLFI token recently encountered some issues. This crypto project related to a certain political figure saw its WLFI token drop to its lowest point since launch, a 12% decline. The problem is that they used their governance tokens as collateral to borrow stablecoins and cleared out the Dolomite platform’s liquidity pool. This approach is very risky because a decline in token price directly weakens borrowing capacity, with collateral concentrated in declining tokens, affecting depositors across the platform. Some pointed out that this exacerbates cycle risks, and WLFI’s treasury buybacks are now also at a loss. The operational mode of such projects indeed warrants caution.