Executive brief
The digital asset market is navigating a complex intersection of regulatory momentum and macroeconomic volatility as Bitcoin fell below the $78,000 level. While the Clarity Act advanced through the Senate Banking Committee, providing a potential boon for domestic innovation, the optimism was tempered by a liquidation cascade that flushed $500m in leveraged longs. Rising US Treasury yields, with the 10-year reaching 4.599%, and persistent inflation fears have increased the opportunity cost for non-yielding assets. This macro pressure serves as a significant directional cue, suggesting that Bitcoin may test support levels near $75,000 if ETF outflows persist. This is further complicated by the news that Jerome Powell has officially stepped down after 8 years as Federal Reserve Chair, introducing a new era of central bank uncertainty.
The institutional landscape remains active despite the price correction. Intesa Sanpaolo, Italy’s largest bank, more than doubled its crypto holdings to $235m in the first quarter, while SBI and Rakuten in Japan are moving to launch crypto investment trusts. However, security risks continue to weigh on the DeFi sector following a THORChain exploit that drained approximately $10.7m. This follows the recent KelpDAO hack, which has prompted a migration of assets toward more secure infrastructure like Chainlink’s bridge.
Strategic liability management is also in focus as MicroStrategy announced plans to repurchase $1.5b of convertible bonds, identifying Bitcoin sales as a potential funding option. This introduces a specific risk cue, as market perception of such sales could trigger preemptive price movements. Furthermore, the competitive battle between decentralised platforms like Hyperliquid and traditional incumbents CME and ICE over 24/7 markets highlights the growing tension as Wall Street adopts crypto-style infrastructure. Investors should watch for the SpaceX IPO in June, which is expected to seek a $75b valuation, as it may serve as a broader indicator of market liquidity.
1) Top 20 news headlines
- The Clarity Act took a step forward: State of Crypto; the bill cleared the Senate Banking Committee in a bipartisan 15 to 9 vote.
- Bitcoin has one level left before macro pressure opens the path to $75k; the 10-year Treasury yield reached 4.599%, putting pressure on the $78,000 support level.
- THORChain confirms $10m exploit, rolls out recovery portal; the attacker drained more than $11m across at least 9 different chains.
- Italy’s largest bank more than doubles crypto holdings to $235m; Intesa Sanpaolo grew its digital asset portfolio from $100m to $235m in the first quarter.
- Wall Street’s fight with Hyperliquid could decide who controls 24/7 markets; CME and ICE are pressing regulators to rein in platforms that handle $176.4b in 30-day volume.
- Strategy has put Bitcoin sales on the table for repurchases; the firm plans to repurchase $1.5b of convertible notes using cash or Bitcoin proceeds.
- SpaceX targets June 11 IPO pricing; the company picked Nasdaq for a historic market debut following an accelerated SEC review.
- Gemini jumps 25% on $100m Bitcoin infusion; revenue at the exchange improved 42% year-over-year to $50.3m despite overall losses.
- Jump Crypto’s ‘Firedancer’ update on Solana rollout; the lead engineer provided a status update on the new software client for the Solana ecosystem.
- Lombard joins LayerZero exodus; $4b in assets are switching to Chainlink’s bridge following security concerns.
- Japan’s SBI, Rakuten plan to offer crypto investment trusts; 11 other companies are considering similar moves once the regulatory environment is clear.
- Bhutan disputes $1b Bitcoin drawdown; the country says it has not sold any assets despite Arkham data showing $1b flowing to exchanges.
- Kraken parent Payward cuts 150 staff; the exchange is streamlining operations ahead of a planned IPO at a $20b valuation.
- Russian stablecoin built to dodge sanctions; the A7A5 project claims it can survive geopolitical shifts through faster trade settlement.
- Saudi Arabia is tokenizing its economy; the chairman of droppRWA has secured $12.5b in mandates to tokenize real estate.
- Myanmar proposes life in prison for crypto scammers; a new bill suggests sentences ranging from 10 years to life for digital currency fraud.
- Polish lawmakers back revised crypto bill; the bill to implement the EU MiCA framework passed in a 241 to 200 vote.
- South Korea plans July rules for tokenized securities; detailed rules are being prepared before a legal framework takes effect in 2027.
- Bitwise launches US-listed Hyperliquid fund; the BHYP fund offers spot exposure and staking rewards for the HYPE token.
- Solayer launches Visa-compatible card; the new card allows users to spend USDC balances across online and contactless transactions.
2) BTC and ETH ETF flows
| Metric | BTC | ETH |
|---|---|---|
| Net inflow | -$290.4m | -$65.6m |
| Value traded | $2.4b | $557.7m |
| Net assets | $104.3b | $12.9b |
| Cumulative net inflow | $58.3b | $11.8b |
3) X trending news
- Situation Room meeting; President Trump is expected to convene his national security team on Tuesday to discuss Iran options.
- Treasury dumping; Japanese investors sold $29.6b in US Treasuries in the first quarter, the largest sale since 2022.
- SpaceX IPO valuation; the company is now expected to raise as much as $75b in its market debut next month.
- Powell steps down; Jerome Powell has officially finished his 8 year tenure as Chair of the Federal Reserve.
- Hormuz toll system; Iran has prepared a mechanism to manage traffic and impose fees in the Strait of Hormuz.
- Ebola emergency; the World Health Organization has declared the current Ebola outbreak a global health emergency.
- US budget surplus; the Treasury budget surplus fell $43b year-over-year in April to $215b.