Welcome back. 👋 Each week we cut through the noise and explain what’s driving crypto. Markets fell sharply this week, driven by a wave of liquidations and a pullback across major assets. But beneath the volatility, several structural developments continued to take shape in public finance, payments, and policy.

- Validator Digital

Crypto markets continued to unwind leverage after last week’s drawdown, with roughly $2 billion in liquidations during the sharpest part of the selloff, pushing Bitcoin briefly below $82k before a modest rebound. The move reflected stretched positioning rather than a change in fundamentals, but it does suggest that markets may need time to reset before establishing direction. Across the rest of the market, majors remained mixed as liquidity thinned and traders reduced risk, leaving prices choppy and directionless.

What Happened
The New Hampshire Business Finance Authority approved a $100 million bond backed by Bitcoin, making it the first state-level approval of its kind in the United States. The authorization allows the bond to move forward once an institutional buyer is secured. The move follows earlier digital asset work in states such as Wyoming and Texas, and represents a significant step toward using Bitcoin as collateral inside an established public finance structure.

How Bonds Work and What Makes This Different
A municipal bond is a way for a state to borrow money for public projects and repay it over time with interest. These bonds are usually backed by reliable revenue or reserves. In this proposal, Bitcoin would simply sit in that reserve role as collateral rather than be spent. It would function as security for the borrowing, just as cash or tax revenue might in a traditional bond.

Why States Explore This and the Federal Government Does Not
States must balance their budgets and cannot run long-term deficits, so they rely on bonds to raise funds and must secure those bonds with reliable collateral. The federal government operates differently. It issues United States Treasuries backed by the full faith and credit of the country, and it can expand the money supply through the Federal Reserve when necessary.

Why This Matters
The proposal shows that digital assets are beginning to move into the financial tools governments already use, rather than sitting apart from them. Treating Bitcoin as collateral places it alongside cash reserves and tax revenue, a sign that public institutions are starting to view it as a usable balance sheet asset. It reflects a broader shift in policy and market structure, where digital assets are being integrated into existing systems step by step instead of creating a separate financial track.

Large Wallets Rise While Bitcoin Falls
The number of wallets holding at least 1,000 BTC has jumped to 1,436, even as Bitcoin slipped below $90,000. The rise in large-holder accumulation during a pullback suggests that whales are buying weakness rather than exiting. It is often a sign that big money sees value at these levels, even if the broader market looks unsettled.

Over the past ten weeks, we built the foundation — what a blockchain is, how blocks link together, who keeps the chain honest, and how wallets and transactions work. That was Blockchain 101, the basics that make everything else possible.

Now we’re ready for the next layer. Blockchain 201 is about how the system actually gets used — the fuel, the rules, and the tools that bring blockchains to life. Each piece builds on what you already know, one step at a time.

Let’s start with the first ingredient every action needs: the gas that makes it all run.

If a transaction is a line on the page, then a gas fee is the stamp that pays to get that line written. Validators are doing real work to add your transaction to the record book, and the gas fee is how you reward them for including it.

Every action on a blockchain requires computation, and gas measures how much work your action needs. Simple actions cost a few drops of gas; complex actions need more — just like sending a postcard versus shipping a package.

Gas keeps the network running smoothly, prevents spam, and pays the people who secure the chain. And much of that gas is spent running something powerful — smart contracts, the next piece of the blockchain puzzle.

Next Week: What is a Smart Contract?

Blockchain 101: 2 min quiz on the foundation (Blockchain 101)

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See you next week,

Don’t speculate, validate.
- Validator Digital

Disclaimer: Individuals have unique circumstances, goals, and risk tolerances, so you should consult a certified investment professional and/or do your own diligence before making investment decisions. The author is not an investment advisor and may hold positions in the assets covered. Certified professionals can provide individualized investment advice tailored to your unique situation. This newsletter is for general educational purposes only, is not individualized, and as such should not be construed as investment advice.