Bitcoin declined during today’s trading, giving back part of its recent weekend recovery, as pressure returned to the cryptocurrency market from several directions. The main driver was the rise in expectations for U.S. interest rates after a hawkish tone from the Federal Reserve, alongside continued institutional outflows from spot Bitcoin ETFs.
The largest cryptocurrency fell 2.5% to $62674.70, as global risk appetite weakened after a sharp selloff in technology stocks. This link between high risk assets was clear after the Nasdaq dropped more than 2%, adding further pressure on cryptocurrencies, which usually react strongly to liquidity conditions and interest rate expectations.
The market faced more weakness as institutions continued to exit Bitcoin exchange traded funds, with these funds recording outflows of nearly $160 million since the start of the week, following six straight weeks of withdrawals. Although the pace of outflows has slowed compared with previous periods, their continuation shows that institutional demand has not yet regained strength.
Retail demand in the United States also remained weak. The Coinbase premium index showed Bitcoin trading at a clear discount compared with the global price. This reading reflects subdued local demand after the selloff that has pressured the market since the beginning of the year.
Despite better than expected U.S. business activity data, it was not enough to change market sentiment, especially as investors await the Personal Consumption Expenditures price index, the Federal Reserve’s preferred inflation measure. Any strong inflation reading could support the case for higher interest rates for a longer period, keeping pressure on Bitcoin and the wider cryptocurrency market.
The Ethereum Foundation has also entered a new phase of internal discipline after announcing the elimination of 54 jobs, representing around one fifth of its workforce, as part of a restructuring plan that lasted several months and aims to reduce spending and redirect resources toward the most important areas within the network.
The new structure redistributes the Foundation across five main units covering protocol, access, users, community, and institutional work, alongside operations and management. This step reflects a clear intention to reduce organizational fragmentation and turn the Foundation into a smaller entity with stronger focus on core responsibilities, rather than expanding into multiple initiatives that consume treasury resources.
From a financial perspective, the cuts appear to be part of a deeper shift in how the Foundation manages its resources. Vitalik Buterin said the budget will be reduced by around 40% this year, with a gradual move toward a model closer to an endowment fund. Under this approach, annual spending is expected to fall from about 15% of remaining funds today to around 5% after 2030. The goal is not only to cut expenses, but also to protect the Foundation’s ability to operate for decades without draining its treasury.
Although the decision has a financial and strategic nature, its human and technical impact cannot be ignored. Some of those leaving were involved in developing the Ethereum protocol for many years, and the Foundation does not plan to fully replace all eliminated roles. This means the next phase will likely depend more on narrow priorities and smaller teams.
The restructuring also follows a long period of leadership changes inside the Foundation, with several senior figures leaving over the past 18 months, including executive leaders and protocol team officials. The Privacy and Scaling Explorations unit will also be closed as a standalone team, with some of its research work either merged or discontinued. This reinforces the idea that the Foundation is moving toward a stricter model in selecting which projects deserve funding and follow up.
The main message from the new structure is that the Ethereum Foundation wants to focus on the long term strength of the protocol, not on marketing or short term pressures. For that reason, areas such as post quantum security, zkEVM, and layer one privacy will remain among its research priorities, while creating a clearer path to attract financial institutions, companies, governments, universities, and nonprofits to use the Ethereum network.
All of this comes at a sensitive time for Ethereum’s price, as the token trades far below its annual high of $4955.90 and relatively close to its annual low of $1388.12. Ethereum has also been among the weakest performers in the major digital asset market during 2026, after falling nearly 60% from its August 2025 peak, compared with a smaller decline in Bitcoin over the same period. This makes the restructuring more than just an administrative adjustment. It is an attempt to rebuild confidence in the Foundation’s ability to manage resources during a difficult market cycle.
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