The intersection between cryptocurrencies and traditional macro markets intensified this week as geopolitical shocks rocked global equities. The VIX surged to 27 as escalating U.S.-Iran tensions drove oil prices higher, triggering a broad risk-off move that erased over $1 trillion from U.S. stock markets. Bitcoin and other digital assets also fell, but beneath the surface, several institutional developments signaled a shift in sentiment.
Goldman Sachs: Bitcoin May Have Reached Cyclical Bottom
Analysts at Goldman Sachs published a report on Wednesday suggesting that cryptocurrency prices may have bottomed after months of correction. They cited improving liquidity conditions and reduced forced selling as key factors. The report also highlighted that several crypto-related stocks were showing “interesting setups” for entry. Other prominent analysts, including Fidelity’s Jurrien Timmer and CMT analyst Katie Stockton, echoed similar views, noting that Bitcoin’s support around $60,000 looks technically robust.
While Goldman stopped short of a definitive bullish call, the acknowledgment from one of Wall Street’s most influential banks adds weight to the recovery narrative. However, the bank cautioned that macro uncertainties, including geopolitical risks and Federal Reserve policy, remain.
Fannie Mae and Coinbase Launch Crypto-Backed Mortgages
In a groundbreaking move, government-sponsored enterprise Fannie Mae announced a partnership with Better Home and Finance and Coinbase to offer mortgages backed by cryptocurrency assets. Borrowers can now use their Bitcoin or USDC held in Coinbase accounts as collateral to obtain cash for home down payments, without needing to sell their digital assets.
Coinbase stated that “homeownership is one of the most powerful drivers of generational wealth, but accessing it is becoming increasingly difficult.” This product is seen as a major step toward integrating digital assets into mainstream finance. By involving Fannie Mae, a key player in the U.S. housing market, the initiative provides a regulated framework that could pave the way for broader adoption.
David Sacks Steps Down as ‘Crypto Czar’
Venture capitalist David Sacks has left his role as a special government official overseeing cryptocurrency policy, transitioning to co-chair of the President’s Council of Advisors on Science and Technology. During his tenure as the so-called “Crypto Czar,” Bitcoin fell approximately 40%, the CLARITY Act stalled, and a national Bitcoin strategic reserve failed to materialize. Industry observers noted that Sacks, despite his Silicon Valley pedigree, wielded less influence than expected in Washington.
The departure marks an uncertain phase for U.S. crypto regulation, but some believe a fresh approach could be beneficial for the industry.
Wall Street’s Silent Blockchain Migration Accelerates
Behind the headlines of market turmoil, the migration of Wall Street to blockchain technology continues at a rapid pace. Experts point out that major institutions are increasingly adopting asset tokenization and on-chain settlement to improve speed, liquidity, and capital efficiency. Wall Street veteran Rosenthal remarked: “Every institution moving in this direction believes the same thing: on-chain infrastructure will dramatically increase the velocity of money. History is unequivocal about what that produces.”
This structural shift, while invisible to most retail investors during the current downturn, could provide a powerful foundation for the next crypto bull run.