Former Treasury Secretary Downplays Economic Recession Concerns, Calls Stock Market Pullback a Natural Phenomenon

BitMEX co-founder Arthur Hayes has issued a reminder that Flop Labs has not yet released its FLOP token, nor is there any presale or meme coin associated with the project. Hayes noted that FLOP is not officially live, and cautioned the community against mistaking related tokens circulating in the market for official assets. He added that Flop Labs plans to launch an airdrop in the coming months and roll out its mainnet next year. Earlier public information showed the project had previously targeted a large-scale airdrop in Q4 2026, with the mainnet genesis block set for Q1 2027. Hayes had earlier announced he would lead Flop Labs, which is designed to build economic infrastructure for AI Agents, with FLOP serving as the native asset for AI Agents to pay for resources such as computing power and storage.

After the U.S. Treasury expanded its long-term U.S. Treasury bond repurchase operations, the 30-year U.S. Treasury yield fell from a 19-year high of 5.34% to around 5.19%, while Bitcoin rose roughly 25% in several days, briefly topping $79,000. Around $4 billion in cryptocurrency short positions were liquidated during this period, further amplifying the rally. The U.S. Treasury had earlier announced it would raise the size of its longest-dated Treasury repurchase operations from $2 billion per operation to $4 billion. Analysts noted that this operation is not equivalent to the Federal Reserve’s quantitative easing (QE); its main function is to improve the liquidity of older bonds and optimize the debt structure, but the market views it as a policy support signal for long-term U.S. Treasury yields. Analysts believe the key driver of Bitcoin’s recent rally is not the repurchase operation itself, but the market’s prior over-concentration of short positions. As long-term U.S. Treasury yields fell, short sellers were forced to cover their positions, triggering a powerful short squeeze. Meanwhile, U.S. spot Bitcoin ETFs saw a net inflow of around $650 million this week, and Trump once again urged Congress to advance the CLARITY Act, further boosting market risk appetite. Jeff Ko, chief analyst at CoinEx, said the key now is whether Bitcoin can hold its 200-day moving average around $69,000 and turn it from resistance into support. Market participants also warned that if the 10-year U.S. Treasury yield re-breaks above 4.7% and the 30-year yield approaches 5.3%, Bitcoin’s current breakout could face renewed tests. Bitcoin has now broken above its 200-day moving average and continues to rise; the next phase of the market will focus on whether it can sustain its rally in a high-yield environment.

Strategy currently holds 840,447 Bitcoin, with a total cost of $63.36 billion and an average entry price of $75,385. At Bitcoin’s current price of $77,430, the company’s Bitcoin holdings now have an unrealized profit of $1.7187 billion.

The Sandbox officials announced that the team has confirmed and fully contained the recent SAND cross-chain bridge vulnerability incident, which involved the Base and BNB Smart Chain (BSC) networks. The incident’s impact is limited, with the number of tokens involved accounting for less than 0.01% of SAND’s total supply. SAND on Ethereum and Polygon remains unaffected; user wallets were not compromised, and no action is required for affected token holders or liquidity providers. Attackers minted unbacked SAND tokens on Base and BSC networks via the vulnerability, per disclosures. Currently, The Sandbox has shut down SAND cross-chain functionality on both networks. SAND on Base and BSC has been isolated and is temporarily non-transferable or non-exchangeable. The Sandbox reminds users not to buy, sell, or trade SAND on Base and BSC, as liquidity on these networks has been impacted. The team has completed a pre-incident snapshot, is developing a compensation plan for affected liquidity pool (LP) users, and continues to investigate the full scope of the vulnerability. A full incident report and technical post-mortem will be released later.

According to monitoring by TradingBeats (formerly Hyperinsight), a crypto whale recently deposited approximately $4 million in USDC into Hyperliquid and opened a long position on HYPE. The wallet address established a 134,930 HYPE long position with 4x leverage, valued at around $10.7 million. Its entry price was $81.64, liquidation price stands at $64.47, and the current unrealized loss amounts to $315,000. The whale’s address is 0xa9d1c0fe2aa58038bac208ad390f69e7ce0c29a2.

Tesla has announced on social platforms that it will hold the Cybercab launch event on September 3, 2026, in Austin, Texas, United States. The automaker’s self-driving electric Cybercab officially entered production in North America this April, and the vehicle is AI-powered, with no steering wheel, pedals, or rearview mirrors.