Crypto News Today: Bitcoin panic reaches historical extreme, senators call for investigation of Trum

Bitcoin starts the week: Traders look for direction amid short talk, political noise and large institutional capital flows.

Data company Sanitation shows that since July 31, Bitcoin (BTC)'s positive to negative comment ratio has dropped to 0.54. In short, in major cryptocurrency communities, the number of short statements is nearly twice that of long statements.

Politically, a group of U.S. senators have asked the U.S. Securities and Exchange Commission (SEC) to investigate President Trump's Meme coins. This adds another regulatory perspective to the market that needs to be digested.

Institutional capital flows have also attracted much attention. BlackRock transferred 1,948 BTC units (approximately US$122 million) to Coinbase Prime. But analysts said this was just a regular ETF settlement activity and there was nothing unusual about it. All these factors together set the emotional tone for today's trading.

Bitcoin market sentiment falls into historic panic range

Bitcoin prices are currently facing one of the weakest sentiment readings of the year. Sanitation data shows that since July 31, Bitcoin's positive to negative comment ratio has dropped to 0.54, which means that on X, Reddit, Telegram and other cryptocurrency platforms, the number of bearish comments is almost twice that of bearish comments.

The analyst firm attributed the decline in confidence to multiple market events, including a crisis of trust related to Coldcard and Strategy's sale of 1,638 BTC units (worth $105 million). Traders are also debating whether more companies will follow in and out of Bitcoin to support dividends, reserves and share buybacks.

Still, Sanitation points out that periods of extreme panic in history have often been accompanied by the exhaustion of panicked sellers. Once the passive selling pressure abates, the market often rebounds as stronger buyers return.

BlackRock transfers attract institutional attention

Institutional activities are also attracting attention, after blockchain trackers detected that 1,948 BTC (worth US$122.03 million) were transferred from BlackRock to Coinbase Prime.

The deal initially raised concerns about potential selling pressure. However, market observers explain that Coinbase Prime is the main custodian of BlackRock's Spot Bitcoin ETF (IBIT). Based on the ETF's cash creation and redemption model, such transfers are part of the normal settlement process and do not automatically indicate that BlackRock is reducing its Bitcoin exposure.

Temporary seller pressure may still emerge during redemption activities, but analysts note that the broader institutional investment logic surrounding spot bitcoin ETFs has not changed.

Related Bitcoin News: Cold Wallet Theft Loss May Spread to US$130 Million, Attackers Continue to Steal Funds

Senators Push SEC to Investigate Trump Meme Coins

Political dynamics have also entered the realm of cryptocurrency discussions. U.S. senators have formally called on the Securities and Exchange Commission (SEC) to investigate President Donald Trump's Meme coins, saying the project could be a "carpet pulling" scam.

The request itself does not represent enforcement action by the SEC, but it introduces another regulatory development into the market that traders need to pay attention to. The request for investigation comes as digital asset markets are already coping with cautious investor sentiment and increasing scrutiny across the cryptocurrency space.

Coinbase looks at the larger AI payments economy

In addition to Bitcoin prices, Coinbase CEO Brian Armstrong's vision for AI-driven payments continues to spark discussions within the industry. Coinbase said it has processed more than 100 million proxy payments in the past nine months, with an average transaction value of approximately $0.32.

Most of this activity still comes from trading agency-related tokens rather than autonomous AI business activities. However, nearly 99% of these payments are settled through USDC, and more than 90% are processed through the Base network before final settlement to the Ethereum main network. Collaboration with companies such as Anthropic raises hope that AI-driven payment infrastructure will continue to grow as applications become popular.

For bitcoin prices, traders are watching to see if market sentiment changes after reaching extreme panic levels. Combined with new regulatory news and continued institutional activity, the next few trading days should provide us with a clearer picture of where the market is heading.

FAQs

Why is Bitcoin market sentiment at historic panic levels?

Bitcoin market sentiment weakened after a series of negative events, including Strategy's sale of 1,638 BTC, concerns about more companies selling bitcoins, and increased uncertainty in the entire cryptocurrency market. Sanitation data shows that the ratio of positive to negative comments has dropped to 0.54, meaning that the number of bearish comments is almost twice that of bearish comments.

Why did BlackRock transfer US$122 million worth of Bitcoin to Coinbase Prime?

This transfer is widely regarded as part of the normal settlement process of the BlackRock Spot Bitcoin ETF (IBIT). Since Coinbase Prime is the main custodian of the ETF, such transactions do not necessarily mean that BlackRock is selling its Bitcoin holdings.

Why are U.S. senators calling on the SEC to investigate Trump's Meme coins?

A group of U.S. senators have asked the U.S. Securities and Exchange Commission (SEC) to investigate President Donald Trump's Meme coin, accusing it of possible a "carpet pulling" scam. The request is not an enforcement action, but adds another regulatory issue for cryptocurrency investors to focus on.