South Korean police probe Polymarket users for illegal gambling, the US House plans to restrict lawmakers' betting on prediction markets, and Zcash addresses a protocol vulnerability, while BTC drops below $62K amid market fear sentiment. Global financial markets were dominated by extreme risk aversion today, with BTC and ETH leading the broader crypto sector lower as the market entered an intense phase of leveraged liquidations. As of today, BTC has continued to probe lower and once approached the key $61,000 defense line. It is now fluctuating near $62,000, with its cumulative weekly decline exceeding 16%. This marks its largest weekly drop since November 2022. The pressure has been amplified by an unprecedented 13-day streak of outflows from U.S. spot Bitcoin ETFs, with total net outflows reaching USD 4.4 billion. Heavy selling pressure has turned the $60,000 psychological support level into the final defensive line for bulls. ETH has performed even weaker. It has fallen below $1,700 and reached its lowest level in more than a year. Beyond macro pressure and Bitcoin-led weakness, ETH is also facing a community confidence crisis triggered by developer departures and foundation-related selling. The inflationary effect brought by Layer 2 networks has also weakened its long-term holding narrative. The Crypto Fear and Greed Index now stands at just 13, showing that the market remains in extreme fear. Total crypto liquidations reached USD 1.195 billion yesterday. With USD 1.89 billion worth of BTC and ETH options expiring today, short-term volatility may remain elevated. Investors should closely watch the strength of key support levels at $60,000 and $1,600.

Key News Highlights:

South Korean Police Launch Illegal Gambling Probe Into Polymarket Users

South Korean police have recently launched the country’s first criminal investigation into local users of decentralized prediction platform Polymarket over alleged illegal gambling. The move shows that regulatory scrutiny of emerging prediction markets has entered an unprecedentedly strict phase. According to the investigation by Gangwon Provincial Police, the case centers on betting activity related to presidential elections and public issues on Polymarket. Authorities believe these activities may violate South Korea’s criminal laws on gambling. Under the country’s current legal framework, only the government-designated and strictly regulated Sports Toto platform is authorized for legal betting. Any unauthorized online gambling activity may expose participants to fines of up to 10 million won, or about USD 6,500. Although Polymarket has already been fully blocked in several international jurisdictions, it remains accessible through certain channels in South Korea. This has prompted local authorities to use legal measures to curb the cross-border spread of this type of betting activity. The case highlights the gap between global regulators in defining prediction markets as either financial products or gambling activities. The outcome of this enforcement action could trigger broader compliance pressure on decentralized prediction platforms worldwide. Investors should closely monitor the potential impact of such cases on the legal operating status of these platforms.

U.S. House Eyes Summer Vote On Prediction Market Trading Restrictions

Republican lawmakers in the U.S. House of Representatives are working on a major legislative package that could introduce restrictions on lawmakers’ participation in prediction markets this summer. The bill aims to close an existing regulatory gap around congressional financial activity. House Administration Committee Chair Bryan Steil confirmed that he is working to attach prediction market restrictions to H.R. 7008, the stalled congressional stock trading ban bill. The goal is to move the package through committee review before bringing it to the full House for a vote. The proposed bill does not seek to ban prediction markets altogether. Instead, it would impose strict limits on specific prediction contracts tied to election outcomes, policy direction and public affairs. The purpose is to prevent members of Congress from using their positions to engage in insider-style trading or influence public opinion. In recent years, abnormal trading activity on prediction platforms has raised public concerns over the ethical risks faced by political figures. One widely discussed case involved a user who made more than USD 400,000 from a contract tied to Venezuela’s political situation. Such incidents have pushed Congress to confront potential conflicts of interest in prediction markets. If the legislation is eventually passed, it could have a lasting impact on the financial asset allocation and trading transparency of U.S. politicians. It would also reinforce market expectations that decentralized platforms may face tighter regulation.

Bitcoin Technical Breakdown Raises Concerns Over A Deeper Market Correction

Bitcoin has recently shown clear signs of a technical breakdown. As key support levels at $68,000 and $65,000 were lost one after another, the market structure has shifted toward a typical bearish pattern. Multiple technical indicators show that Bitcoin has fallen below short-term moving averages. Trading volume has also remained elevated during the decline, which suggests that selling pressure has been firm rather than a short-term shakeout. The market’s attention is now fully focused on the $60,000 key defense line. If this level is broken further, analysts generally expect the price to seek breathing room near the deeper support level of $55,000. On-chain data also shows that Bitcoin’s realized price is around $53,740. This level has served as a bottom-area support zone in past market correction cycles. At this stage, however, the long streak of ETF outflows means the market still lacks enough buying power to reverse the trend. A more concerning signal is the possible breakdown of a cup-and-handle structure on the weekly chart. In long-cycle technical analysis, this is often viewed as a dangerous signal. If Bitcoin fails to reclaim key support levels in the coming days, it may face more serious challenges. Some analysts have even pointed to the $33,000 area under a more extreme scenario. This shows that the current market is undergoing a deep price reset driven by both capital flows and fear.

Zcash Weighs Network Upgrade To Address Counterfeit Token Risk

Privacy-focused public blockchain Zcash has recently faced a confidence crisis after a potential counterfeit token vulnerability was discovered in the Orchard protocol. The issue prompted developers and Shielded Labs to quickly launch emergency remediation measures. Although the vulnerability has already been patched through an emergency upgrade, and the team initially assessed that it had not been exploited on a large scale before the fix, the incident has still dealt a serious blow to market confidence. ZEC saw sharp volatility and a deep pullback in a short period, briefly falling to a low of $264.80. To address the technical blind spot around supply verification in privacy protocols, developers are now actively discussing the introduction of a new shielded pool mechanism. They are also considering mandatory Turnstile Accounting, which aims to ensure the integrity of assets when funds leave an anonymous pool through clearer verification rules. At the same time, debate within the community over higher security audit standards has intensified. Several industry experts and privacy protocol researchers have stressed that Formal Verification will become a necessary requirement for future blockchain protocol upgrades. This approach uses mathematical proofs to ensure that system rules are rigorous and to reduce omissions in manual audits. The Zcash incident once again reminds the market that privacy protocols must balance anonymity with infrastructure resilience. The transparency of token supply logic remains a core factor in determining whether such projects can survive over the long term.

Disclaimer: The information provided in this section is for informational purposes only and doesn't represent any investment advice or FameEX's official view.