Ethereum Upgrade Sparks Controversy, Bitcoin Under Pressure: Crypto Market Volatility Intensifies

The cryptocurrency market has seen increased volatility recently, with Bitcoin falling nearly 5% in a single day, marking its second-largest correction since the pandemic began, leading to cautious market sentiment. Simultaneously, Ethereum is facing unprecedented structural questions. Renowned research firm Culper Research released a report stating that while the EIP-4844 (aka "Fusaka") upgrade significantly improved network throughput and reduced transaction fees by up to 90%, it also weakened validator returns, threatening the sustainability of Ethereum's staking economy. Despite the continuous rise in on-chain active addresses and transaction volume, the research team warns that these figures may stem from bot activity or stacked transactions, rather than genuine user growth. Furthermore, the increasing dominance of large mining companies like BitMine in the staking market means that further declines in returns could trigger staker withdrawals, creating a vicious cycle.

In traditional finance, BlackRock suspended some withdrawals from its HPS Corporate Credit Fund due to large-scale redemptions, raising concerns about the quality of technology loans. The fund has directed significant capital to artificial intelligence-related companies, and the recent valuation of its loan to Infinite Commercial Holdings being written down to zero has heightened investor concerns about high-risk technology credit assets. These long-term loans are difficult to quickly liquidate, and liquidity management faces severe challenges in the face of concentrated redemption pressure.

Currently, the cryptocurrency market is simultaneously bearing the triple impact of technological evolution, economic model adjustments, and the transmission of traditional financial risks. Whether Ethereum's upgrade dividend can translate into long-term value, and whether Bitcoin's decline foreshadows a larger correction, will be the core issues the market focuses on in the coming months.