Market highlights
- Bitcoin declined below US$75,000 for the first time in a month before a small rebound.
- Trump Media's Truth Social withdrew its spot bitcoin and bitcoin-Ethereum ETF application.
- U.S. SEC delays plans for "innovation exemption" for crypto firms to trade tokenised stocks.
- President Trump ordered the Fed to assess crypto firms' access to Fed master accounts.
- US lawmakers introduced the ARMA bill to formally establish a US Strategic Bitcoin Reserve.
- South Carolina lawmakers introduced legislation banning a U.S. CBDC in the state.
Macro market overview
The rally in risk assets resumed this week on hopes of the U.S. and Iran moving closer to an agreement that may reopen the Strait of Hormuz. The subsequent inflation and interest rate relief that may occur, should the strait re-open, plus further solid earnings from major U.S. retailers, presumably sparked the gains. Reports say an agreement could be several days away.
In economic data, the Flash manufacturing and services purchasing managers' index (PMI) updates from around the world were mixed. Germany came in under forecast for its manufacturing PMI, but above forecast for services, while U.S. had an opposite result (above forecast manufacturing, below forecast services). This mixed data indicates that while there may be areas of weakness in some economies, they may be outweighed by strength in other areas.
U.S. Treasury yields declined throughout the second half of the week as risk-on sentiment appeared to emerge on the hopes of the U.S. and Iran reaching an agreement. The 30-year yield is now just over 5% and the ten-year yield is trading at almost 4.6%, while the two-year yield gained slightly to finish the week at 4.1%. Oil prices also declined on the recent developments, now trading around US$91.30 per barrel. CME's Fed Watch tool puts the likelihood of rates staying on hold at the U.S. Federal Reserve's June 17 meeting at 99.9%.
This week, market participants will presumably monitor developments in the Middle East, the U.S. personal consumption expenditures (PCE) index for April, and Q1 U.S. preliminary gross domestic product (GDP) figures.
Weekly performance: S&P 500 +0.9%, Dow Jones +2.1%, Nasdaq +0.5%.
Looking ahead:
- U.S. core PCE index - Thursday, May 28
- U.S. preliminary GDP - Thursday, May 28
Crypto Market Performance
Market Cap: $2.58T (+1.45%)
The broader crypto market saw declines in the first half of the week due to risk-off sentiment, before some sectors, including AI and financials, rebounded to finish the week. Crypto liquidations hit US$917 million throughout the week as bitcoin's decline below US$75,000 caused the liquidation of futures positions, predominantly across bitcoin and Ethereum. The declines seen across crypto throughout the first half of the week may have been due to rising treasury yields as risk increased. The crypto fear and greed index is neutral at 40.
Past performance is not a reliable indicator of future performance.
Bitcoin (BTC)
- Opened the week at US$77,406 and declined to a weekly low of US$74,197 on Saturday, May 23. It's the first time bitcoin has traded below US$75,000 in a month, as the declines caused liquidations of futures positions. Bitcoin has since gained on hopes of a deal that will reopen the Strait of Hormuz, and is now trading around US$77,250 (+0.3% 7D).
- BTC dominance ranged between 60.5% and 60.8% this week.
- Bitcoin investment products saw outflows of almost US$1.3 billion.
U.S. lawmakers introduced the American Reserve Modernization Act (ARMA) to formally establish a US Strategic Bitcoin Reserve for a minimum of 20 years, aiming to prevent future administrations from reversing the policy through executive action. The bill would codify federal bitcoin holdings, authorise additional acquisitions and frame bitcoin as a long-term strategic reserve asset alongside gold and foreign currencies.
Bitcoin treasury firm Nakamoto (NAKA) announced a 1-for-40 reverse stock split after its shares collapsed more than 99% from last year's highs. The move aims to lift NAKA above Nasdaq's US$1 minimum listing requirement, following heavy quarterly losses tied to bitcoin's price decline and continued pressure on the company's treasury model.
SpaceX's IPO filing revealed the company holds 18,712 bitcoin worth about US$1.45 billion, making it one of the world's largest corporate BTC holders. The filing showed SpaceX bought the bitcoin for roughly US$661 million, while also disclosing a US$112 million unrealised loss tied to the position last year.
Tether acquired SoftBank's stake in Twenty One Capital, the bitcoin-buying firm co-founded by the stablecoin issuer. SoftBank paid US$999.3 million for the shares in June 2025. Twenty One Capital's stock gained 5% on the news.
In bitcoin buying (and selling) news:
- BlackRock sold US$1 billion worth of bitcoin to settle investor redemptions for its iShares Bitcoin Trust.
- Addresses linked to Trump Media & Technology Group moved over 2,650 bitcoin (US$204 million) to Crypto.com addresses on Thursday, May 21. The purpose of the transaction is unclear and there hasn't been confirmation that the bitcoin will be sold.
- Mark Cuban announced that he's sold his bitcoin holdings citing that it didn't act as the inflation hedge he was expecting. Since the recent lows at US$60,000, bitcoin rallied up to 30%, while the S&P 500 gained 11% and gold declined by 14% over the same period, showing materially different performance compared with traditional finance assets.
Past performance is not a reliable indicator of future results.
Ethereum (ETH)
- Opened the week at US$2,129, declined to a weekly low of US$2,006 on Saturday, May 23 and gained on hopes of a deal between the U.S. and Iran. Ethereum is now trading around US$2,100 (-1.2% 7D).
- Ethereum dominance ranged between 9.9% and 10.1% this week.
- Ethereum-focused funds saw outflows of US$216 million.
Former Ethereum Foundation researcher Dankrad Feist proposed creating a new Ethereum-focused organisation with at least US$1 billion in ETH funding sourced from staking revenue. Following several high-profile departures, Feist criticised the Ethereum Foundation's leadership, governance and lack of economic alignment with ETH holders. Ethereum founder, Vitalik Buterin, said the Foundation will become a "smaller ship" focused on censorship resistance, privacy and security.
In Ethereum buying news:
- BitMine bought 60,000 ETH (US$126 million), bringing its total holdings to almost 5.3 million ETH, worth US$11.1 billion and equating to nearly 4.4% of supply. The company will join the Russell 1000 index from June 26 as its market cap continues to grow.
Past performance is not a reliable indicator of future results.
Altcoins
The altcoin season index is currently 36, which is bitcoin season.
NEAR upgrades
- Near Protocol gained 73.5%. The layer-1 network used for AI-related infrastructure rallied after announcing three upgrades focused on privacy, AI infrastructure and blockchain scaling. The updates included Confidential Intents for private transactions, AI-focused tooling through NEAR AI Cloud and IronClaw, and expanded cross-chain capabilities.
Tell the WLD
- Worldcoin gained 39.4%. The global identity and financial network created by OpenAI CEO, Sam Altman, Alex Blania and Max Novendstern saw gains on increased whale activity, presumably on reports that OpenAI may file for IPO as soon as Friday, May 29.
DeFi domination
- Hyperliquid gained 30%. The gains came as asset manager Canary Capital disclosed US$25.5 million in Hyperliquid exchange-traded fund (ETF) holdings. The filing boosted optimism around institutional exposure to the decentralised perpetuals exchange, with demand outpacing the token's supply reduction mechanism, which may have contributed to the gains.
- Morpho gained 31.5%. The DeFi protocol on the Ethereum network saw gains due to increased perpetuals activity, with long positions making up 54% of volume. Increased institutional interest in the platform is presumably driving the gains, as Coinbase recently announced users can borrow up to US$100,000 against their SOL holdings through the Morpho integration on Base.
- DeXe gained 24.3%. The gains came as market participants rotated into specific sectors within the altcoin market, including DeFi and AI, as some coins rebounded throughout the second half of the week.
GPU gains
- Render gained 20.7%. The decentralised GPU network saw gains as DeFi and AI rallied throughout the second half of the week. AI tokens saw positive price movement as demand for computing power remains strong.
Crypto ETF News
Digital asset investment products saw outflows of US$638.9 million as risk-off sentiment gathered momentum in the first half of the week.
In altcoins, Solana, XRP and HYPR saw inflows of US$15.6 million, US$22 million, and US$68 million, respectively.
Trump Media's Truth Social withdrew its spot bitcoin and bitcoin-Ethereum ETF application. The firm's sponsor and investment advisor, Yorkville America, said the company is pursuing a different regulatory framework for the products under the '40 Act instead of the '33 Act, which allows for a broader array of investment strategies.
Other crypto news
- The U.S. SEC delayed plans for its proposed "innovation exemption" that would allow crypto firms to trade tokenised stocks, following pushback from stock exchanges and TradFi stakeholders over investor protections and shareholder rights. Chief among their concerns is the ability for digital representations of a company's shares to be traded without knowledge or approval by the underlying corporations. There is currently no timeline for when the exemption may proceed.
- President Trump ordered the Federal Reserve to review whether crypto firms should have access to Fed master accounts, which provide direct access to payment systems and central bank services. The directive follows long-running industry complaints that regulators and banks restricted crypto companies' access to core financial infrastructure. The Federal Reserve has 120 days to evaluate the matter.
- South Carolina lawmakers introduced legislation banning a U.S. central bank digital currency (CBDC) from being used within the state, while protecting the rights of residents to self-custody crypto and operate bitcoin mining nodes. The bill would also prevent discriminatory zoning or noise restrictions targeting digital asset mining operations.
- A coalition of crypto firms, banks and policy groups testified before a U.S. House financial services subcommittee about modernising the 1970 Bank Secrecy Act. Stakeholders argued that current anti-money laundering rules are outdated. They proposed solutions, including risk-based compliance, clearer definitions for crypto intermediaries, and stronger coordination between regulators to reduce duplicative reporting burdens.
- Japan's Liberal Democratic Party proposed an on-chain finance strategy aimed at strengthening the yen's role in digital markets through tokenisation, stablecoins and blockchain-based financial infrastructure. The plan seeks to prevent capital flight into U.S. dollar stablecoins and position Japan as a leader in regulated digital finance innovation.
- Tether is partnering with the Georgian Government and central bank to launch GEL₮, a stablecoin pegged to the Georgian lari. The initiative aims to reduce payment costs, improve cross-border settlements and position Georgia as a crypto hub under a new regulatory framework. Tether said the token is not intended to function as a CBDC.
- Polymarket confirmed a private key compromise drained roughly US$700,000 from an internal rewards "top-up" wallet used on Polygon, after blockchain investigator ZachXBT flagged suspicious outflows. The stolen funds were split across 16 addresses. Polymarket said user funds, market settlements and core contracts were unaffected, describing the breach as an operational security failure.
- Terraform Labs alleged trading firm Jane Street used a private Telegram group to gather insider information before selling its US$192 million TerraUSD position before the ecosystem's collapse. The accusations were made in court filings tied to ongoing litigation between the two companies.
from Caleb & Brown Cryptocurrency Brokerage.
