Bitcoin traded near $64,680, down 0.44% on the session, after the Bank of Korea raised its benchmark rate to 2.75%, the first hike in more than three years, aimed at curbing inflation. Ethereum outperformed on the day at $1,918, up 1.89%, against a total market cap of $2.31 trillion and BTC dominance of 56.3%. The Fear & Greed Index sat at 25, still in extreme fear territory, while the Altcoin Index read 49/100.
Why it matters
South Korea's rate decision is the cleanest macro signal of the week. Capital that rotated into Korean equities and crypto during the prior easing cycle now faces a higher local hurdle rate, and won-denominated flows have historically fed both Korean exchange volumes and, indirectly, global BTC liquidity. The fact that BTC held the $64K level through the announcement suggests the market had partially priced in the move.
Market impact
On the DeFi side, Aave pushed its V4 protocol to Avalanche to broaden tokenized asset lending, while LayerZero executor wallets were breached for roughly $2.4 million. Separately, a $6 million vault exploit forced Summer.fi to wind down operations. Funding rounds continued to clear, with Celestia Labs backing a sovereign M&A vehicle, Nava Ventures leading Cyclops's $20M Series A, and Tether leading Pact Labs's $7M round. Small-cap leaders were TENDIES +314.7%, Akedo Games +110%, and DigiByte +45.1%.
Source: [source](http://telegraph.controller.bot/files/8336652911/AgACAgIAAxkBAAJCF2pYgUQQ5krUIZ4CMM17DS6XZiaBAAJCF2sbBwXISl1dWzPzEKk5AQADAgADeQADPQQ)
Frequently asked questions
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Why did the Bank of Korea raise rates to 2.75%?
South Korea lifted its benchmark rate from prior levels to 2.75% to curb inflation. It was the first hike in more than three years, signaling a shift away from the prior easing cycle.
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How did BTC and ETH react to the rate decision?
Bitcoin held near $64,680, down 0.44% on the session, while Ethereum outperformed at $1,918, up 1.89%. Total market cap stood at $2.31T with BTC dominance at 56.3%.
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What happened in the LayerZero executor wallet breach?
LayerZero executor wallets were drained of roughly $2.4 million in a security breach, adding another incident to the cross-chain messaging risk ledger.
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Why is Summer.fi shutting down?
Summer.fi is winding down operations after a $6 million vault exploit, highlighting the operational risk profile of solo-custody DeFi venues.
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What did Aave announce on Avalanche?
Aave expanded its V4 protocol to Avalanche to accelerate tokenized asset lending, broadening the protocol's reach into real-world asset markets.
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