Crypto sentiment falls to extreme fear while AI expands across media, jobs and security, raising new questions about trust and oversight.
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Sentiment has dropped to extreme fear levels as geopolitical tensions rise, yet capital continues to move through the ecosystem. US spot Bitcoin ETFs recorded fresh inflows after months of outflows, while stablecoins gained further validation as payment demand pushes companies like Block to expand support.
Meanwhile, regulatory and legal debates continue to shape the sector, from a dismissed lawsuit against Binance to renewed discussions about the legitimate privacy uses of crypto mixers. Adoption trends also remain strong globally. Latin America is emerging as one of the fastest-growing crypto markets, driven by cross-border payments and stablecoin usage.
Across AI, the technology’s influence is spreading rapidly into workplaces, media and national security. Companies are deploying AI to streamline production and reduce staffing, while governments and regulators grapple with the risks of misuse, surveillance and misinformation.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Court Dismisses Binance Terrorism Financing Lawsuit
A lawsuit accusing Binance and its former chief executive, Changpeng Zhao, of helping terrorists move funds has been dismissed, with the courts ruling that there was no plausible link between the exchange and any specific attacks.
Crypto Sentiment Falls to Extreme Fear Levels
The Crypto Fear and Greed Index has dropped to 18, signalling extreme fear amid rising geopolitical tensions. Bitcoin remains in a bear market following an October 2025 crash that cut its value by roughly half.
Kalshi Sued Over Khamenei Death Market Policy
Prediction market Kalshi is being sued for failing to disclose a “death carve-out” in a contract related to Iran’s Supreme Leader. Users claimed the policy was predatory, and Kalshi has offered partial reimbursements.
Block to Support Stablecoins With Strong Demand
Jack Dorsey has announced that Block will support stablecoins following strong customer demand, despite his longstanding support for BTC. The move follows similar steps taken by competitors such as PayPal and Stripe.
Latin American Crypto Adoption Accelerates
Crypto transaction volume in Latin America reached US$730 billion in 2025, representing a 60% increase driven largely by payments. Argentina and Brazil lead the region, with stablecoins widely used for cross-border transfers.
Spot Bitcoin ETFs Record Consecutive Inflows
US spot BTC ETFs recorded US$568 million in inflows this week, ending a five-month period of outflows. ETH ETFs have also seen positive momentum with two consecutive weeks of gains.
US Treasury Acknowledges Crypto Mixer Benefits
A US Treasury report to Congress recognised that crypto mixers can have legitimate uses for protecting financial privacy. However, the report warned that non-custodial mixers are frequently exploited for money laundering.
Trump Cyber Strategy Highlights Blockchain Security
The Trump administration’s new national cyber strategy identifies blockchain security as a strategic priority for US technological leadership. The policy groups blockchain alongside AI and quantum computing as critical tech.
Artificial Intelligence (AI)
ChatGPT Uncovers Systemic Ritual Abuse Reports
Survivors of organised ritual abuse are increasingly using ChatGPT as a tool for support and exploration, while also unveiling the extent of ritual abuse occurring within the UK. The trend is being tracked by the National Association of People Abused in Childhood.
Block Cuts 4,000 Staff Citing AI Productivity Gains
Jack Dorsey’s recent layoffs have left employees frustrated. Despite claims of boosting efficiency with AI tools, workers expressed that the technology is not yet capable of replacing human roles at this scale.
Grammarly Accused of Using Identities Without Consent
Grammarly’s “Expert Review” feature provides writing advice inspired by real journalists without their permission, and professionals have voiced concerns that the AI-generated guidance is misleading and based on outdated information.
Netflix Acquires Ben Affleck’s AI Startup
Netflix has acquired the post-production startup InterPositive from actor and filmmaker Ben Affleck. The tools focus on technical production tasks such as adjusting lighting and removing stunt wires rather than generating full films.
Chatbots Guide Users to Illegal Online Casinos
Several leading AI chatbots have been found recommending unlicensed online casinos. For example, Meta AI reportedly described mandatory safety measures as a “buzzkill” while explaining how users could avoid restrictions.
The Pentagon Labels Anthropic As A Supply Chain Risk
The US Department of Defense has barred contractors from using Anthropic’s Claude system after the company refused to allow its use for lethal weapons. Anthropic plans to challenge the designation in court, arguing that it lacks legal justification.
Meta Smart Glasses Captures Sensitive Info
Contractors in Kenya reported that they review sensitive footage captured by Meta’s AI-powered smart glasses, including private moments and images of financial information, even though Meta says that systems are in place to remove identifying details.
North Korea Use AI to Obtain Western Tech Jobs
North Korean operatives are reportedly using voice-changing software and face-swapping tools to obtain remote IT jobs at Western companies. The workers allegedly channel funds and sensitive data back to the state.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
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