The Daily: Circle selloff questioned as analysts defend outlook, Bhutan offloads $37M in BTC, Bitmine adds $145M in ETH, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Wednesday! Bitcoin (BTC) is holding firm despite shifting Fed expectations and rising geopolitical tension, with strong ETF inflows, Strategy buys, and stablecoin growth pointing to a liquidity-driven divergence, Kraken Chief Economist Thomas Perfumo told The Block.

In today's newsletter, analysts push back on the Circle selloff, Bhutan moves another $37 million worth of bitcoin, Tom Lee's Bitmine adds $145 million worth of ETH, and more.

Meanwhile, the SEC just clarified its crypto rules, but will they stick? Sarah Wynn takes a deep dive in The Block's latest feature. Plus, Morgan Stanley's Bitcoin ETF launch is likely "imminent," according to an analyst.

P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!

Circle selloff questioned as analysts defend outlook

Circle's (CRCL) recent 20% stock drop was overblown, according to analysts at Bernstein, who said investors are misreading the Clarity Act as its restrictions on stablecoin yield offerings primarily impact distributors rather than issuers.

• The analysts argued Circle's reserve-based revenue model remains largely unaffected, as the firm does not pay yield directly to USDC holders.
• However, the proposed rules could hit intermediaries like Coinbase harder, forcing platforms to rethink yield-driven user incentives, they said.
• Bitwise and William Blair also maintained bullish long-term views on the stock, with Bitwise CIO Matt Hougan projecting Circle could reach a $75 billion valuation by 2030, from just over $25 billion today.
• The analysts said stablecoin growth is driven by payments, trading, and infrastructure use rather than yield, reinforcing USDC's supply expansion from roughly $30 billion to $80 billion over the past two years.
• Cathie Wood's Ark Invest bought $16 million in Circle shares during the selloff, signaling further conviction in the long-term thesis despite near-term headwinds.

Bhutan offloads $37 million worth of bitcoin as selling accelerates: onchain analysts

The Royal Government of Bhutan transferred another 519.7 BTC worth about $37 million to two wallets, including one linked to trading firm QCP Capital, according to Arkham data.

• The move adds to a recent string of transfers, following a $72 million transaction last week and a nearly $12 million transfer earlier this month.
• Bhutan, which has long mined bitcoin using the nation's abundant hydroelectric power resources, still holds 4,453 BTC worth roughly $316 million, managed by its sovereign wealth fund Druk Holding and Investments.
• The transfers may signal potential sales, per onchain analysts, while a lack of recent inflows suggests the country's bitcoin mining activity has slowed or stopped.

Tom Lee's Bitmine adds $145 million worth of ETH in latest buy: onchain analysts

Bitmine (BMNR) bought another 67,111 ETH worth about $145 million from Kraken, continuing its aggressive accumulation strategy, according to onchain analysts.

• The purchase adds to Bitmine's disclosed holdings of roughly 4.66 million ETH, valued at around $10 billion and representing about 3.86% of Ethereum's circulating supply.
• The firm has accelerated its buying pace over the past three weeks, with Chair Tom Lee recently stating that ether is in the final stages of a "mini-crypto winter."
• Bitmine remains the largest known ETH treasury holder, ahead of SharpLink with about 863,021 ETH and The Ether Machine with around 496,712 ETH, according to SER data.

South Korea sees $60 billion in crypto outflows to overseas platforms and private wallets

South Korea recorded roughly $60 billion in crypto outflows to overseas platforms and private wallets in the second half of 2025, up 14% from the first half of the year, according to the Financial Services Commission.

• The regulator said the outflows were likely driven by arbitrage activity and similar strategies amid market volatility.
• User activity continued to grow, with exchange accounts rising to 11.1 million and deposits climbing 31%, even as overall market conditions weakened.
• Profitability at South Korean crypto exchanges fell sharply, with operating profits dropping 38% as trading volumes declined and crypto prices pulled back from their 2025 highs.

Irish drug dealer's lost 500 BTC reawakens after 10 years, likely moved by police

A long-dormant wallet tied to Irish drug dealer Clifton Collins suddenly moved 500 BTC worth about $35 million after more than 10 years, according to Arkham data.

• According to The Irish Times, the transfer was likely carried out by Ireland's Criminal Assets Bureau, which said it seized and accessed the bitcoin with support from Europol.
• Collins' total 6,000 BTC stash, once considered lost after he misplaced private keys hidden in a fishing rod case, has surged from a roughly $30,000 investment to over $427 million today.

In the next 24 hours

• U.S. jobless claims figures are due at 8:30 a.m. ET on Thursday.
• Aerodrome Finance and Blast are among the crypto projects set for token unlocks.
• Digital Asset Summit continues in NYC. Cheatcode kicks off in the UK.

Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.