Bitcoin posted a nearly 25% drawdown in Q1, as macro volatility intensified and markets leaned toward tighter U.S. monetary policy. Rate expectations shifted toward potential hikes into 2027, while sentiment weakened and short-term holders sent about 21,700 BTC to exchanges in the past 24 hours at a loss. The mix of falling risk appetite and muted institutional demand is raising questions about whether the pullback is turning into a broader bearish phase.

Morgan Stanley has filed with the U.S. Securities and Exchange Commission for a spot Bitcoin ETF that would charge a 0.14% expense ratio. The proposed 14-basis-point fee is below Grayscale's 0.15% Bitcoin Mini Trust and BlackRock's iShares Bitcoin Trust at 0.25%. The move highlights intensifying cost competition as issuers look to attract both institutional and retail flows.

A weekly roundup highlighted heightened cross-market volatility and fresh signs of traditional finance embracing digital assets, including Goldman Sachs pointing to a potential cyclical bottom for crypto. Separately, Fannie Mae said it will support crypto-backed mortgages in a product built with Better Home and Finance and Coinbase, allowing borrowers to use assets such as bitcoin or USDC held on Coinbase as part of a home purchase.

A bipartisan group of U.S. senators introduced the Public Integrity in Financial Prediction Markets Act of 2026 on Thursday, aiming to bar government officials from trading prediction-market contracts using nonpublic information. The proposal would fine violators an amount equal to twice any profits, and it requires reporting within 30 days for any wager over $250 with detailed trade disclosures.

On March 28, 2026, Bitcoin climbed back to $66,436 after dipping to around $65,500 a day earlier, as on-chain and derivatives data pointed to cautious positioning. Short-term holders reportedly sold 21,700 BTC at a loss in 24 hours, while options markets implied a 53% chance BTC remains below $66,000 through the April 24 expiry.

On March 28, Patrick Witt, executive director of the President's Council on Digital Assets, warned that blocking the CLARITY Act draft could lead to a future Democratic administration taking a tougher approach to stablecoin yield, DeFi, and crypto. Coinbase said the industry is preparing a coordinated counterproposal aimed at preserving stablecoin rewards, while other industry figures flagged separate issues around DeFi developer protections and crypto tax provisions. Coinbase's David Duong said the stablecoin-yield dispute may be resolved within three weeks, with a Senate Banking markup possible in the second half of April and final passage potentially in early May if floor time permits.

Monument Bank said on March 25, 2026 it will tokenize £250 million ($315 million) of retail client deposits on Cardano's Midnight sidechain, with the funds remaining sterling-backed and covered by the Financial Services Compensation Scheme. Despite the announcement, ADA traded around $0.248 on March 28, 2026, while Santiment-tracked whale cohorts accumulated 270 million ADA from March 25–27.

Bhutan has net sold about $120 million in Bitcoin in 2026 so far, cutting its holdings by roughly 1,700 BTC. On March 27, 123.7 BTC (about $8.5 million) was moved from a main wallet to a new address, following a pattern of breaking sales into smaller batches.