Bitcoin Breaks $117,000

According to a Financial Times report, Wall Street quantitative trading giant Jane Street suffered major losses from its investment in AI hedge fund Situational Awareness, posting roughly $15 billion in losses in July. People familiar with the matter revealed that Jane Street disclosed the loss figures in a financial update to its creditors, tied to a roughly $14.6 billion private debt financing deal. Led by JPMorgan Chase, the transaction involved shifting around $11 billion in public debt to private investors including Pacific Investment Management Company (Pimco). The loss stemmed from a sharp pullback in U.S. AI stocks in July. Situational Awareness is an AI-themed hedge fund founded by former OpenAI employee Leopold Aschenbrenner, which had received investment from Jane Street. The fund, which had previously made concentrated, highly leveraged bets on AI stocks, was hit hard during the market reversal and forced to sell some of its public stock positions to Citadel. Despite the massive monthly loss, Jane Street has maintained strong profitability in recent years. Data shows the firm’s net trading revenue hit a record $16.1 billion in the first quarter of 2026, and roughly $40 billion for full-year 2025. Market observers note that the loss is unusual for a long-time low-profile proprietary trading firm that holds a significant position in global markets. Jane Street’s subsequent shift to the private debt market for financing will also reduce the scope of its financial disclosures to public markets.

News that the U.S. Securities and Exchange Commission (SEC) delayed its tokenized securities regulatory plan weighed on market sentiment, with multiple crypto firms focused on asset tokenization seeing their stock prices fall on Friday. Among them, digital asset platform Bullish saw its stock drop around 8% at one point in morning trading, while blockchain lender Figure fell roughly 9%; Coinbase’s stock declined about 2%, and stablecoin issuer Circle dipped nearly 4%. Additionally, Securitize, the issuer of BlackRock’s tokenized fund BUIDL, saw its stock fall 5% at one point during the session. The market volatility stems from the SEC’s renewed delay of its long-awaited "innovation exemption" program, which was originally expected to lower regulatory barriers for firms issuing and trading tokenized securities and push Wall Street into the on-chain securities space. Meanwhile, the SEC canceled a planned related meeting that was set to discuss whether to introduce a new regulatory framework for certain crypto asset investment contracts. Amid regulatory uncertainty, the tokenization concept has not only hit listed companies but also weighed on broader crypto market performance. Uniswap’s native token UNI, the decentralized exchange’s token, fell around 7% over the past 24 hours, making it one of the worst-performing assets in the CoinDesk 20 Index. Owen Lau, a senior analyst at Clear Street, said the SEC’s delay acts as a "speed bump" for the tokenization sector but does not alter its long-term trajectory. Firms including Coinbase and Bullish are still advancing their tokenized stock businesses, while the Nasdaq and New York Stock Exchange are also building out related infrastructure. Market focus will now shift to when U.S. regulators will clarify rules for tokenized securities, and whether the Digital Asset Market Structure Act (CLARITY Act) and disputes over the SEC’s authority will further impact the industry’s development process.

According to monitoring by EmberCN, the monthly unlock of tokens held by the Pump.fun team and investors was completed 5 hours ago, releasing a total of 4.94 billion PUMP tokens valued at approximately $13.6 million. Data shows the unlocked tokens were subsequently distributed to 125 wallet addresses. It remains unclear whether the related wallets will sell the tokens on the market, but large-scale unlocks typically increase short-term circulating supply pressure, and the market will closely monitor subsequent fund movements.

According to monitoring by Onchain Lens, Jump Crypto has continued transferring Bitcoin (BTC) to Binance this week, with total deposits reaching around 1,560 BTC valued at approximately $99.2 million, suspected to be for a sale operation. The latest data shows Jump Crypto transferred an additional 286.83 BTC to Binance just two hours ago, worth roughly $18.01 million. As of now, Jump Crypto’s wallet still holds around 1,410 BTC valued at about $88.58 million. The market will continue to track its subsequent transfers and changes in holdings.

According to monitoring by Onchain Lens, a Hyperliquid trader opened a long BTC position three hours ago, purchasing 96.25 BTC with the position valued at approximately $6.05 million. The position uses 40x leverage, with an entry price of $62,900.9 and a liquidation price of $59,147.3.

According to Politico, the one-month ceasefire agreement between the U.S. and Iran will expire next Monday. If it fails to be extended, the nearly six-month-long war could re-escalate. White House officials said as of Friday afternoon, negotiations remain at a "standstill" with no word of an extension arrangement. "The timeline is not the key; the crux is whether Iran is willing to return to the negotiating table, which it has not done yet." Negotiations are difficult partly due to Iran's fragmented internal power structure: the Revolutionary Guards, religious forces, and the government hold differing stances, and all factions must approve an agreement for it to take effect. Disagreements center on sanctions, frozen assets, and access to the Strait of Hormuz. The U.S. side said any form of toll or access control is "unacceptable." The Trump administration stated that if Iran rejects the agreement, the U.S. reserves "all options." Sanctions and blockades have severely damaged Iran's economy, and Iran should return to the negotiating table. However, sources familiar with the matter believe the U.S. may have underestimated Iran's resilience. To stabilize the situation before the midterm elections, the U.S. needs to act quickly. (Jinshi)