Bitcoin Holds Near $64K as Altcoin Selling Hits 5-Year High, Morpho Raises $175M

Crypto News

Enterprises are pouring capital into GPUs, cloud, and model tooling, yet a new global readiness study finds the real bottleneck sits elsewhere: data preparation. Researchers report that 94% of IT leaders rank data quality as the top driver of AI success, but most corporate data remains unclassified, poorly governed, and unfit for production workloads. Nvidia's storage engineering team, working with Pure Storage, argues that raw enterprise data must be explored, classified, secured, vectorized, and indexed before models can use it. A newly unveiled data-stream product aims to compress that preparation from months to minutes, underscoring that compute alone cannot convert AI spending into measurable returns.

Selling pressure across the altcoin market has reached its most extreme level in five years, according to on-chain data. Cumulative spot buy-versus-sell volume for tokens outside Bitcoin and Ethereum has fallen to roughly $280 billion in net selling on centralized exchanges, the deepest negative reading since records began in 2020. Analysts frame the move as a 15-month spot distribution rather than a routine correction. Yet some argue fresh all-time lows are unlikely, noting many assets have already entered a cycle depression phase where large players accumulate as retail capitulates. Rising Bitcoin dominance, they add, points to selective rotation rather than a broad altcoin collapse.

Regulatory developments dominated the session in the United States. Illinois Governor JB Pritzker signed a digital-asset tax law imposing a 0.2% levy on crypto transactions and services for state customers, effective January 1, 2027, with exchanges, custodians, and brokers responsible for collection. Industry groups warned it could become one of the strictest regimes in the country. Separately, the Federal Reserve held its benchmark rate at 3.50–3.75% for a fourth consecutive meeting, while Chair Kevin Warsh signaled scrapping forward guidance. CME also indicated it will sue the CFTC over its approval of crypto perpetual futures, arguing the products amount to swaps under Dodd-Frank.

Speculative appetite stayed concentrated in a narrow set of tokens even as broader liquidity thinned. Plasma traded near 164 won on Korean won markets, down about 3.5% after a sharp run-up, yet it topped sentiment rankings with a greed reading of 91, the highest in its category. Worldcoin and Stellar followed at 86, with Space ID at 82 and Uniswap at 81. Stellar stood out with a near 4.7% daily gain. The pattern illustrates how capital crowds into a handful of high-attention names during volatile phases, leaving lower-cap tokens starved of flows while traders chase momentum rather than rebuilding broad market breadth.

Institutional capital and security risk collided across decentralized finance. Lending protocol Morpho raised $175 million at roughly a $2 billion valuation in a round led by major venture investors, with Coinbase, Kraken, Anchorage, and Galaxy already building on its on-chain credit infrastructure. The same week, identity project Humanity suffered a private-key breach that drained at least 17 wallets and over $32 million, sending its token down nearly 80% as the attacker swapped holdings into Ethereum. Bitcoin spot ETFs, meanwhile, snapped a 13-day outflow streak with a slim $3 million inflow after roughly $4.4 billion exited since mid-May.

Enterprise software modernization drew fresh backing as Conduct AI closed a $60 million Series A to automate cleanup of legacy code. The round was co-led by two venture firms with participation from SAP and existing investors, funding an expansion of the platform's reach from SAP into Salesforce and Oracle environments alongside US hiring. The company targets large migrations such as moving from older ERP systems to S/4HANA, where its agents analyze source code, document why customizations exist, and generate implementation plans. Founders claim changes that once took five months can now be completed in half a day, positioning AI as a practical enterprise IT tool.

These threads share a single arc: capital is concentrating, not expanding. COINOTAG's aggregate data shows the Fear and Greed Index pinned at 15, deep in extreme fear, while Bitcoin dominance sits at 69.8% and total crypto market capitalization holds near $1.85 trillion. With Bitcoin trading around $64,000, the rotation into Bitcoin and a few high-conviction names mirrors the altcoin distribution and ETF fatigue visible on-chain. Fresh venture flows into AI infrastructure and on-chain lending, by contrast, show institutional money still seeking durable yield and utility even in this bear market. The signal is selective risk-taking: liquidity favors proven rails and dominant assets over speculative breadth.