The European Securities and Markets Authority (ESMA) has warned that the rapid growth of the crypto market could pose significant risks to the broader financial system, particularly as digital assets become more intertwined with traditional finance.

In its latest Markets Risk Monitor report, ESMA pointed to increasing investor interest, rising market capitalization, and expanding institutional involvement as key factors accelerating crypto’s integration into the mainstream. While the regulator acknowledged that crypto markets are still relatively small, it cautioned that the pace of development—especially with products like exchange-traded funds and tokenized financial instruments—could amplify vulnerabilities.

ESMA highlighted several key risks, including high volatility, operational fragility, and liquidity mismatches. It also emphasized concerns around the reliance on a small number of centralized trading platforms, which could act as points of failure in times of market stress.

The authority further warned that the increased presence of retail investors, often lacking adequate risk awareness, heightens the potential for disorderly market conditions. As crypto firms continue expanding their footprint in Europe, the regulator stressed the importance of monitoring how risks might spill over into the traditional financial system.

With the Markets in Crypto-Assets (MiCA) regulation set to be fully enforced by 2025, ESMA reaffirmed its commitment to implementing a comprehensive regulatory framework. However, the agency also underscored the need for coordinated international oversight to address the inherently cross-border nature of the crypto industry.

The warning signals a growing urgency among European regulators to stay ahead of evolving risks as digital asset markets mature and become increasingly interconnected with the global financial ecosystem.

Despite being the second-largest cryptocurrency by market cap, Ethereum (ETH) has outperformed Bitcoin (BTC) in just 15% of its trading history, according to recent market analysis.

Since Ethereum’s launch in 2015, it has occasionally outpaced Bitcoin during specific bullish phases—particularly during altcoin seasons or key upgrade periods like the DeFi summer of 2020 and the NFT boom in 2021. However, over the broader market timeline, Bitcoin has consistently maintained dominance in terms of performance, price stability, and institutional demand.

The data underscores Bitcoin’s resilience as the leading digital asset and highlights the challenges ETH has faced in closing the gap. Ethereum’s fluctuating gas fees, delayed network upgrades, and increasing competition from other smart contract platforms have contributed to its underperformance relative to BTC.

However, Ethereum remains central to Web3 infrastructure and continues to drive innovation in decentralized applications. Analysts note that while Bitcoin may lead in market dominance, Ethereum’s long-term value proposition lies in its ecosystem growth, particularly with Layer-2 expansion and the rise of real-world asset tokenization.

Still, for long-term investors comparing returns, Bitcoin has proven to be the more consistent performer—reinforcing its status as digital gold in the crypto economy.

Cybersecurity researchers have uncovered a new malware campaign that disguises itself within Microsoft Office extension packages to steal cryptocurrency by silently replacing wallet addresses.

The attack involves malicious Office add-ins that, once installed, operate in the background by monitoring clipboard activity. When a user copies a crypto wallet address—for example, during a transaction—the malware instantly replaces it with a wallet address controlled by the attacker, rerouting funds without the user’s knowledge.

This tactic, known as clipboard hijacking, is not new, but its delivery method through Office extensions represents a concerning evolution. Users typically trust Office add-ins for productivity enhancements, making them an ideal vector for stealthy infections.

Researchers warn that the malware is difficult to detect due to its low-profile behavior and integration with legitimate software workflows. It doesn’t trigger conventional security alarms and can persist undetected for long periods, increasing the risk of financial loss.

Security experts are urging crypto users to double-check wallet addresses before confirming transactions and avoid downloading unofficial Office add-ins. Meanwhile, businesses and institutions are advised to strengthen endpoint security and restrict unauthorized plugin installations to mitigate exposure.