Market Highlights
- Bitcoin broke its January ATH on May 22, reaching US$112,000.
- Texas became the second state to pass a BTC reserve bill.
- Sui’s ecosystem was compromised, which saw US$200 million drained from liquidity pools.
- Majority of TRUMP token holders at gala dinner transferred holdings to centralised exchanges.
- Trump Media reportedly plans to raise US$3B for crypto investments.
Markets Overview
Markets declined on Moody’s U.S. credit rating downgrade, concerns about the U.S. economic outlook and fresh tariff threats towards the EU and Apple.
The “One, big, beautiful bill,” President Trump’s tax bill, passed the House on May 22 by just one vote. Resistance is expected in the Senate as policymakers call for more commitment to reducing the government’s deficit.
The U.S. flash manufacturing and services PMIs came in above forecast at 52.3, while the German flash services PMI came in under forecast at 47.2 (a 30-month low).
Weekly performance: S&P 500 -2.6%, Nasdaq & Dow Jones -2.5%
Looking ahead: U.S. Personal Consumption Expenditures index update on May 30.
Crypto Market Sector Performance
Sector growth was mixed this week, with some sectors contracting while others made minor gains.
- Perp DEX: dYdX (-8.3%) declined, coinciding with a number of votes to delist certain coins, potentially decreasing trading volume.
- AI: Worldcoin (+19.8%) gained after announcing a US$135 million investment from a group of firms, including a16z and Bain Capital Crypto.
Bitcoin (BTC)
- Broke January’s ATH on May 22, reaching US$112,000.
- Opened the week at US$106,488, rallied to a new ATH, then retraced (+4% on the week).
- Declines were due to renewed trade tensions, but some of the losses were regained on extension of the EU tariffs deadline.
- US$2.9 billion inflows to bitcoin asset investment products this week.
The Texas House of Representatives passed Senate Bill 21, a bipartisan initiative to establish a state-managed bitcoin reserve. The bill now awaits a concurrence vote on House amendments before proceeding to Governor Greg Abbott for final approval.
In Michigan, policymakers introduced four new crypto bills. HB 4510 would allow public funds to be invested in bitcoin ETFs, HB 4511 seeks to block state support for CBDCs, and HB 4512 and HB 4513 seek to use abandoned oil wells for bitcoin mining operations.
Strategy is facing a class-action lawsuit alleging it misled investors about the risks of its aggressive BTC investment strategy. The suit follows a $5.9 billion unrealised loss in Q1 2025, which saw MSTR decline by 8.7%. The company also announced its US$2.1 billion, “crown jewel,” Perpetual Strife Preferred Stock (STRF), which will offer preferred shares at their market price. The company added 7,390 BTC to its holdings this week.
In other bitcoin buying news:
- Semler Scientific added US$50 million worth of BTC, raising its holdings to US$466 million.
- KULR Technology Group added US$9 million worth of BTC, raising its holdings to US$78 million.
Past performance is not a reliable indicator of future results.
Ethereum (ETH)
- Opened the week at US$2,498. (+2% on the week)
- Tested US$2,350 and then rallied to a weekly high of US$2,734.
- Price is approaching the US$2,800 break-even zone.
- US$326 million inflows to Ethereum investment products this week (a 15-week high).
Ethereum co-founder Vitalik Buterin called for the network to enhance its privacy and resilience features, citing recent shifts in Nordic countries like Sweden and Norway, which are reconsidering their move towards becoming fully cashless societies. Buterin emphasised that for Ethereum to serve as a true alternative to cash, it must offer both privacy and operational resilience.
Past performance is not a reliable indicator of future results.
Altcoins
DeFi gains
- Flamingo Finance (FLM) gained 45.4%. The DeFi network gained at the end of its eighth epoch, where 277,717 FLM were burned.
- Jupiter (JUP) gained 25.6%. The decentralised liquidity platform has seen gains due to its new lending product on Solana.
CHEX mate
- Chex Token (CHEX) gained 30.6%. The compliance-focused layer-1 blockchain gained on its Kraken listing announcement.
Riding the waves
- Ocean Protocol (OCEAN) gained 24.7%. The tokenised AI and data network saw gains on announcing details about its AI trading program.
Good energy
- Energy Web (EWT) gained 20.8%. The open-source network gained on announcing its latest project — a book and claim platform in partnership with McKinsey and other firms.
Past performance is not a reliable indicator of future results.
Crypto ETF News
Digital asset investment products saw US$3.3 billion inflows this week, bringing year-to-date inflows to a record US$10.8 billion.
Bitcoin and Ethereum ETFs added more than US$1 billion of inflows on May 22 as both assets rallied.
XRP ended its 80-week inflow streak, with US$37.2 million in outflows.
The U.S. SEC delayed its decision on whether to approve Solana, XRP and Dogecoin ETFs.
Other crypto news
- Sui’s (SUI) ecosystem was compromised as hackers attacked the decentralised exchange, Cetus, which saw US$200 million drained from Sui liquidity pools. Notable Sui meme coins lost over 75% of their value within an hour. Cetus paused contracts while it investigates the attack. Sui’s price was largely unaffected.
- The extent of Coinbase’s December 26 data breach was uncovered, as a notice filed with the Maine Attorney General’s Office outlined that 69,461 users were impacted. The exchange discovered the breach on May 11, and remediation costs could be up to US$400 million.
- The GENIUS Act passed a cloture vote on May 19. The bill will now proceed to the Senate floor for a full vote. On May 23, Democrats in the Senate introduced an amendment to prevent President Trump and related parties from profiting off stablecoin ventures while they’re in office. Once the bill passes the Senate, it will need to pass a House vote again before going to President Trump to be enacted.
- JPMorgan, Bank of America, Citigroup, and Wells Fargo are exploring a joint stablecoin venture to challenge Circle and Tether in the $245 billion stablecoin market if the GENIUS Act passes. The banks are exploring tokenised deposit products and permissioned blockchains, which have drawn criticism, given that they create the same private systems using blockchain technology.
- Trump Media Group is reportedly raising US$3 billion to invest in cryptocurrencies through US$2 billion in fresh equity and US$1 billion in convertible bonds. The company denied its plans when contacted by media outlets for comment. These developments follow last month’s binding agreement for Trump Media to launch retail investment products.
- President Trump’s gala dinner for the largest TRUMP token holders went ahead on May 22. Protestors gathered outside the event, while House Democrats introduced the Stop TRUMP in Crypto Act of 2025 hours before the dinner. On-chain data reveals that 17 of the 25 top TRUMP holders transferred their holdings to centralised exchanges following the event. TRUMP was down 14% the following day.
- Commodities and Futures Trading Commission (CFTC) Commissioner Summer Mersinger said that crypto perpetual futures may be approved for trading in the U.S. “very soon”. Perpetual futures contracts typically have higher trading volume than spot contracts.
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Disclaimer: This assessment does not consider your personal circumstances, and should not be construed as financial, legal or investment advice. These thoughts are ours only and should only be taken as educational by the reader. Under no circumstances do we make recommendation or assurance towards the views expressed in the blog-post. Past performance is not a reliable indicator of future results. The Company disclaims all duties and liabilities, including liability for negligence, for any loss or damage which is suffered or incurred by any person acting on any information provided.
from Caleb & Brown Cryptocurrency Brokerage.
