- strkBTC will enable private Bitcoin transactions on Starknet’s DeFi network.
- STRK is down nearly 70% in 90 days, closely tracking Bitcoin’s movements.
- The key STRK price levels to watch are the support at $0.04 and the resistance at $0.045.
Starknet is gearing up for a major move in the decentralised finance (DeFi) space with the upcoming launch of strkBTC, a Bitcoin-based asset designed to bring privacy and confidentiality to transactions on its Layer-2 network.
According to a press release by Starknet, the new asset will allow users to transact Bitcoin within DeFi without exposing balances or counterparties.
It is built with shielded transfers in mind, giving users the flexibility to maintain privacy while interacting with the DeFi ecosystem.
strkBTC will be issued deterministically from verifiable Bitcoin deposits, meaning that the minting process does not rely on discretionary control.
This ensures that the token’s supply mirrors actual Bitcoin deposits on the network, creating a transparent and verifiable foundation for its use.
Users can choose between public and shielded modes, enabling confidential transactions while still preserving regulatory compliance.
This is achieved through selective disclosure mechanisms, which allow necessary audits without exposing the broader network activity.
The launch of strkBTC is part of Starknet’s strategy to increase Bitcoin adoption in DeFi while addressing concerns that have historically held back institutional participation.
By combining privacy, composability, and auditability, Starknet aims to attract both retail and institutional users to its ecosystem.
Starknet (STRK) market reaction
Starknet’s native token, STRK, has been under significant pressure in recent months.
The token has dropped roughly 70% over the past 90 days, reflecting a broader trend in cryptocurrency markets.
Its current price sits near $0.042, with a 24-hour decline of over 8%.
However, market activity remains moderate, with a 24-hour trading volume of around $52 million and a total value locked (TVL) on the network of roughly $446 million.
The upcoming strkBTC launch may provide a catalyst for renewed interest.
The introduction of a privacy-focused Bitcoin asset could enhance the utility of the Starknet network and increase demand for STRK as a governance and utility token.
In addition, STRK’s performance is closely tied to Bitcoin’s price movements, and the stabilisation of BTC above $66,000 could help STRK consolidate in the range of $0.04 to $0.045.
On the other hand, a sustained move below $0.04 may see the STRK token test the $0.035 support zone.
Investors should also keep an eye on broader market sentiment indicators, such as the Fear & Greed Index.
Historically, movements out of extreme fear have preceded market rebounds, suggesting that even in a downtrend, relief rallies are possible.
STRK price forecast
Starknet (STRK) remains in a cautious position, with short-term consolidation possible, although long-term direction is dependent on broader crypto market recovery and the success of strkBTC’s adoption within Starknet’s DeFi ecosystem.
The launch of strkBTC adds an important layer of fundamental support for STRK, as the token’s utility within the network is set to increase.
For short-term traders, the key levels to watch include the immediate support at $0.04 and the resistance at $0.045.
A break above $0.045 could signal the start of a more sustained recovery, especially if Bitcoin shows strength simultaneously.
Conversely, a drop below $0.04 would likely signal further downside toward $0.035, continuing the current bearish trend.