US senators probe SEC's Justin Sun case as $105 oil triggers BTC correction fears; while BTC hovers at $67K, extreme market panic meets robust buying support at lower levels. The crypto market is currently showing a low-level rebound. Bitcoin recovered to around $68,171 at its intraday high and posted a 24-hour gain of 1.87%, while Ethereum firmly reclaimed the $2,000 level and rose 3.15%. Even though price action has turned slightly warmer, overall sentiment remains deeply depressed. The Crypto Fear & Greed Index is still at just 12, which signals that investors remain in a state of Extreme Fear. Derivatives data also shows that total liquidations across the market reached USD 259 million over the past 24 hours, including USD 149 million in short liquidations, which points to notable short-covering pressure. Funding rates have also become more divided. Ethereum’s funding rate has returned to the +0.01% baseline, suggesting that bearish sentiment has eased. Bitcoin funding rates. However, it still remains negative across several major exchanges, which reflects a heavier wait-and-see attitude toward BTC. In terms of capital flows, spot Bitcoin ETFs recorded USD 69.4404 million in net inflows yesterday, while spot Ethereum ETFs posted USD 4.9583 million in net inflows. On-chain data further shows that a whale withdrew 1,635 BTC worth about USD 110 million from a major CEX over the past week, while a newly created address opened a 20x short position on Ethereum valued at USD 20.49 million and is currently sitting at an unrealized loss. The broader market is still locked in a tug-of-war between bulls and bears.

Key News Highlights:

US Senators Question SEC Enforcement Fairness and Its Connection to the Tron Founder Case

Political scrutiny over the SEC’s regulatory decisions is intensifying in the United States. Democratic Senators Richard Blumenthal and Elizabeth Warren recently sent a letter to SEC Chair Paul Atkins requesting an explanation for the departure of Margaret Ryan, the head of the agency’s enforcement division. The controversy centers on the fact that just 11 days before Ryan left the SEC, the agency dropped its fraud lawsuit against Tron founder Justin Sun. Sun is also a partner of the crypto platform World Liberty Financial, which is closely tied to the current administration. The senators are questioning whether SEC leadership has granted favorable treatment to figures linked to the president’s circle, and they warn that this could create a “pay-to-play” model of enforcement. In the letter, Blumenthal cited data showing that illicit crypto activity is projected to reach USD 154 billion in 2025, and he accused the Tron network of accounting for an unusually large share of illicit financing flows. The Senate is now demanding that the SEC provide all communications related to crypto enforcement actions involving crypto firms since January 2025, including correspondence with the president’s family and their business partners. This development reflects growing concern that crypto regulation inside US agencies is becoming increasingly politicized, which could have far-reaching implications for enforcement transparency in future cases involving major crypto projects and individuals.

Oil Breaks Above $105 and Revives Concerns Over a Historical Bitcoin Correlation Reset

As WTI crude surged above $105 per barrel on Monday and reached its highest level in nearly three years, market debate quickly turned to whether Bitcoin could face renewed downside pressure from rising energy-driven inflation concerns. Looking at past episodes, Bitcoin has often gone through meaningful corrections after oil crossed this threshold. In June 2014, when geopolitical tensions in Iraq pushed oil above $100, Bitcoin fell 21% over the following 10 weeks. In March 2022, after the outbreak of the Russia-Ukraine war sent oil back above $105, Bitcoin also pulled back 14% within seven days. A third oil spike in May 2022 coincided with a much sharper 27% drop in Bitcoin, but analysts note that it would be too simplistic to blame oil alone. At that time, the market was also being hit by major systemic risks, including Mt. Gox liquidation concerns and the collapse of Terra-Luna. Although many traders now treat $105 oil as a bearish signal, the direct statistical relationship between Bitcoin and crude remains uncertain. Current market volatility appears to be driven more by a combination of macro expectations and geopolitical instability than by any single commodity price. Investors should therefore pay closer attention to shifts in the broader liquidity environment rather than focusing only on an energy price threshold.

Rare Buy-Side Imbalance Emerges in Bitcoin Order Books as Liquidation Map Points to $71K

Bitcoin recently triggered a rare buy-side imbalance signal after falling below $65K. Market data shows that the Bid-Ask Ratio across multiple order book depth levels has moved into the 99th percentile, which suggests exceptionally strong buying support and demand absorption at lower levels. This kind of aggressive buy-side response often signals the formation of a short-term bottom. Bitcoin then rebounded quickly into the $67K to $68K range. This confirms that bearish momentum had partially faded. From a technical structure perspective, Bitcoin has already completed a bullish breakout on the four-hour chart. If it can continue to close above $66,700, the rebound may extend further. Liquidation map data also shows that more than USD 1.6 billion in leveraged short positions is currently stacked near $71K, making that zone a potential target for a short squeeze. In addition, historical data suggests that April 1 has often acted as a turning point for monthly local lows. Over the past nine months, there has been a 67% chance that a rebound began after that date. Monday still tends to carry a pattern of intraday upside followed by a pullback, but the current buy-side imbalance and the large concentration of possible short liquidations are providing data-based support for a structural market repair at the start of April.

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