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As ETF flows turn negative, Bitcoin falls below $70k, while DeFi development continues with new Ethereum lending protocols.
Conclusion
- Bitcoin falls below $70k as ETF flows turn negative, while Ethereum lending protocol Mutuum Finance expands testnet activity.
- Mutuum Finance is testing its Ethereum lending platform, allowing users to lend, borrow and earn through informal pools.
- The protocol allows users to deposit crypto, receive mtTokens and borrow from assets without selling their assets.
Bitcoin came under fresh pressure after breaking below the $70,000 level as US ETFs turned negative after several sessions of strong inflows. While earlier buying activity helped lift assets, analysts say the market remains fragile as institutional trends and broader demand signals change.
In this context, development activities within the framework of decentralized finance continue. A new Ethereum-based lending protocol, Mutuum Finance, is expanding operations on the Sepolia testnet, where users can currently test lending, borrowing and staking features ahead of the planned launch of the mainnet.
Bitcoin falls below $70k as ETF flows turn negative
Bitcoin slipped back below the $70,000 level after the US Bitcoin ETF reversed after days of strong entries. The earlier rally was supported by more than $1.1 billion in ETF inflows in three sessions, including $458.2 million on March 2, $225.2 million on March 3 and $461.9 million on March 4. However, the trend came to a halt on March 5, when ETFs recorded $227.9 million in net inflows.
Despite the rebound, analysts noted that the market’s recent strength was largely driven by spot demand rather than excessive leverage. Bitfinex reported that nearly $3.5 billion in spot purchases have taken place since March 1, and aggressive buying on exchanges has helped Bitcoin recover key price levels. Coinbase’s premium also turned positive after being negative for nearly 40 days, indicating renewed demand from US investors.
However, market sentiment remains cautious. Binance Research stated that although institutional demand has improved and ETF spot flows have recently turned positive on a weekly basis, overall sentiment remains volatile. Funding rates have fallen to their lowest levels since 2023, and analysts say long-term fiscal pressure on commodity sales is gradually easing.
Bitcoin has mostly traded in the $60,000 to $71,000 range in recent weeks. Analysts from Nansen said the market still needs a clear break above the band to confirm stronger momentum. At the time of reporting, Bitcoin was trading around $69,925, down about 4.1% in 24 hours, with Ethereum and other major altcoins posting similar declines.
Complete finance
The new cryptocurrency MUTM, priced at $0.04 and with funds raised over $20.7 million, has launched its V1 protocol on the Sepolia testnet. The number of token holders has exceeded 19,000, while the activity of the protocol is expanding, and more than $200 million in TVL has been recorded in testnet liquidity.
What is Mutual Finance?
Mutuum Finance is a lending and borrowing protocol built on the Ethereum network that allows users to earn passive income by lending and borrowing crypto assets in a no-holds-barred environment.
For example, if the user decides to lend cryptocurrency assets such as USDT, the user can receive a percentage of the profit based on the annual percentage yield (APY), which depends on the use of the pool and the demand for the loan. If the average annual APY is around 8%, a $5,000 USDT deposit can generate around $400 in passive income in a year.
Users who deposit assets in the Mutuum Finance protocol receive mtTokens in exchange for the deposited amount. For example, ETH deposits generate mtETH, while USDT deposits generate mtUSDT. Since mtTokens adhere to the ERC-20 token standard, they can be transferred to appropriate addresses and withdrawn at any time. These tokens represent the position of the user’s deposit when collecting income from the lending activity.
mtTokens can also be staked, allowing users to receive dividends in MUTM tokens. A part of the fees obtained from the operation of the protocol will be allocated to buy MUTM tokens from the open market, which can increase the demand for the token.
A loan allows users to access liquidity without selling their existing assets. For example, a user who owns ETH that may rise in price can mortgage it instead of selling it and borrow other crypto assets to cover the cost while maintaining the potential appreciation of ETH.
The lending and borrowing protocol has been verified by Halborn Security, a blockchain security company. After the audit was approved, the V1 protocol was launched on the Sepolia testnet, where users can test key features, including mtTokens, debt tokens, stability factor monitoring, and an automated liquidator bot.
A staking function is also available in the current version of the protocol, which allows users to see how the MUTM token rewards will be distributed in the future before the platform is launched on the mainnet.
Recent Bitcoin price swings and ETF volatility continue to shape overall market sentiment, while development activity in decentralized finance projects continues to advance. As Bitcoin tests key levels, platforms like Mutuum Finance are moving forward with testnet development and feature testing ahead of the planned mainnet launch, reflecting the ongoing growth of infrastructure in the crypto ecosystem.
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