Morning Crypto Wrap — 24 May 2026

Executive brief

Bitcoin has fallen below the $75,000 level as the market processes a significant $2.26b outflow from US spot ETFs over a fortnight. This volatility triggered a massive $941m liquidation event across derivatives markets, with long positions bearing approximately 92% of the total wipeout. The decline is being driven by a combination of technical exhaustion and a shift in the macro landscape, specifically as Kevin Warsh was sworn in as the new Federal Reserve Chairman. Fed Governor Christopher Waller has cautioned that rate hikes could return if inflation, driven by energy prices from the Iran conflict, remains elevated. While geopolitical tensions have pressured risk assets, mediators report the US and Iran are nearing a 60 day ceasefire extension and a memorandum of understanding to reopen the Strait of Hormuz.

Institutional developments continue to provide a counter-narrative to the price slump. The SEC approved Nasdaq to list Bitcoin index options, while OKX and ICE are bridging traditional and digital markets with oil-linked perpetual futures. However, regulatory hurdles remain; the AFL-CIO has voiced opposition to the CLARITY Act, citing risks to workers’ pension plans. This creates a complex risk cue where structural adoption is accelerating but liquidity is constrained by 5% Treasury yields. Opportunity may be found in the rotation toward AI-linked protocols like Near Protocol, which surged 19.4% despite the broader downturn. Investors must weigh the potential for a contrarian buy signal from ETF outflows against the immediate pressure from contracting spot demand.

1) Top 20 news headlines

• Bitcoin tanks to $74,300 as spot ETFs bleed $2.26 billion in two weeks; US listed spot bitcoin funds saw more than $2.26b in outflows over the past fortnight.
• Kevin Warsh sworn in as Fed chair, as traders forecast rate hikes in 2026; investors forecast no chance of a rate cut in 2026 following the swearing in ceremony.
• SEC approves Nasdaq to list Bitcoin index options on the exchange; the European style contracts will trade under the ticker QBTC but still require CFTC approval.
• ZachXBT flags $520K Polymarket exploit on Polygon, team says funds are safe; blockchain investigators identified a security breach involving a $520,000 drain on the Polygon network.
• OKX and ICE are bringing ‘never-expiring’ oil futures to 120 million crypto users; oil futures contracts that never expire reached over $1.6b in 24-hour trading volume.
• Cardano founder warns network could lose its scientists in Input Output’s 33M ADA funding vote fails; the development firm is seeking $46.8m to finance operations for the 2026 development cycle.
• US labor federation warns CLARITY Act could push crypto closer to workers’ retirement money; the Senate Banking Committee advanced H.R. 3633 in a 15-9 vote, prompting concerns over pension oversight.
• Near Protocol to automate its own growth and its token is skyrocketing; the network will introduce dynamic resharding in June to automatically add shards as demand grows.
• Mark Cuban’s Bitcoin sale tests the gap between a failed hedge and a surviving monetary bet; Cuban sold most of his holdings as Bitcoin traded 38% below its record high of $126,000.
• Binance denies new WSJ report alleging $850M in Iran-linked transactions; CEO Richard Teng denied reports of $850m in transactions flowing to the IRGC.
• ‘Not unlikely’ Strategy will sell Bitcoin in 2026: Michael Saylor; the chairman stated the goal is to maximise Bitcoin per share by 2033.
• Bank of England’s 24/7 settlement plan shows where tokenized finance can enter core markets; proposed changes to the RTGS system are not expected to take place before 2029.
• $1.26B Bitcoin ETF outflows spark ‘contrarian’ buy signal: Santiment; analysts noted that ongoing outflows historically correlate with conditions favourable for accumulation.
• Trump Media moved but ‘did not sell’ $205 million in bitcoin amid rising losses on crypto bets; the company is reportedly sitting on $455m in unrealised crypto losses.
• South Korea To Revisit Crypto Tax Plan After Repeal Petition Tops 50,000 Signatures; assets were set to be subject to a 22% income tax rate starting 1 January 2027.
• THORChain exploit tied to malicious node and GG20 flaw; a $10.7m exploit was caused by a vulnerability that allowed the reconstruction of a full private key.
• Bitcoin miner MARA spent $4.3M on CEO security in 2025 as crypto attacks rise; the company increased spending on security including vehicle armouring.
• IREN co-founder says AI’s biggest bottleneck is infrastructure, not chips; Dan Roberts outlined a strategy for vertically integrated AI platforms spanning power and data centres.
• XRP adds 4,300 new wallets in 24 hours, but why is price stuck?; activity surged with 4,300 new wallets created despite price resistance.
• Congress hits Polymarket and Kalshi with a massive insider trading probe; Rep. James Comer is demanding records to investigate if government employees made huge profits using classified info.

2) BTC and ETH ETF flows

3) X trending news

• US and Iran Ceasefire; mediators report both sides are closing in on a deal to extend the ceasefire by 60 days.
• Anthropic Funding Round; the AI firm may top $30b in funding at a valuation above $900b.
• Massive Long Liquidations; $400,000,000 worth of long positions were wiped from the crypto market in 10 minutes.
• Kevin Warsh Sworn In; pro-crypto Kevin Warsh has officially replaced Jerome Powell as Federal Reserve Chair.
• South Korea Tax Repeal; the government is considering abolishing the planned 22% crypto tax following a massive public petition.
• Consumer Sentiment Low; US consumer sentiment fell to its lowest level on record in data going back to 1952.
• US Spy Agency AI; the Trump administration is finalising a deal to allow US spy agencies to use Anthropic AI tools.
• Record US ETF Inflows; US ETFs have attracted $852b in inflows year-to-date, marking a record level for any year.
• Russia Gold Sales; the Bank of Russia reduced gold holdings by 900,000 ounces in the first 4 months of 2026.