Weekly Crypto Update: The crypto market saw significant developments this past week, ranging from major hacks to institutional adoption and regulatory updates. As the industry continues to mature, investors and participants must stay informed about the latest trends shaping the landscape.
FTX Repayments and Market Liquidity Boost
FTX announced the release of $16 billion in repayments to creditors, with $6.5–$7 billion being distributed in the first phase. Customers with account balances under 50K USDT began receiving funds, while those with higher balances will start receiving payments from May 30th. This significant liquidity injection could impact the market in the coming weeks.
Source | FTX
Ethereum and Altcoin Market Trends
Ethereum transaction fees dropped by 70%, reaching their lowest levels since 2020. This creates a favorable environment for developers and users. Additionally, citing CryptoQuant CEO, on-chain data suggests altcoin season has begun, with stablecoin holders aggressively moving into alternative assets. However, Bitcoin dominance is rebounding, indicating relative weakness among altcoins.
Source | CryptoQuant
Institutional Investments and ETF Updates
Franklin Templeton launched a new crypto ETF (EZPZ) holding both Bitcoin and Ethereum. Meanwhile, Bitcoin ETF fund flows turned negative, historically signaling a local market bottom. The SEC acknowledged multiple filings for a Spot XRP ETF from Bitwise, 21Shares, and Grayscale, fueling speculation about an XRP ETF launch this year.
Source | Glassnode
Security Breach at Bybit
Crypto exchange Bybit suffered a 1.4 billion USDT hack involving ETH and stETH. According to ZachXBT, the breach occurred during an attempted transfer from a cold to a hot wallet. CEO Ben Zhou stated that all signers saw a musked UI displaying the correct address, but the actual signing message modified the destination.
Regulatory Developments
The SEC halted its fraud lawsuit against Geosyn Mining after federal prosecutors filed similar charges against the company’s executives. In another move, the SEC launched the Cyber and Emerging Technologies Unit (CETU), replacing the Crypto Assets and Cyber Unit to combat fraud in AI, blockchain, and cybersecurity.
Meanwhile, Dubai regulators mandated that all meme coins issued in the emirate comply with Virtual Asset Regulatory Authority (VARA) guidelines. The European Securities and Markets Authority (ESMA) proposed new MiCA guidelines for assessing digital asset service providers’ knowledge and competency requirements.
Government and Institutional Adoption
US President Donald Trump signed executive orders to end what he called “Joe Biden’s war on Bitcoin and crypto.” He reiterated his commitment to making the U.S. the crypto capital. Separately, reports revealed that 12 U.S. states hold $330 million worth of Strategy’s stock in their pension and treasury funds.
Strategic Bitcoin Accumulation
VanEck research suggested that a U.S. strategic Bitcoin reserve of 1 million BTC by 2029 could help offset $21 trillion in national debt by 2049. Additionally, U.S. Senator Cynthia Lummis called for the U.S. Strategic Reserve to incorporate Bitcoin. JP Morgan and Cantor Fitzgerald increased their Strategy holdings, with Cantor Fitzgerald now holding over $1 billion worth, making it their largest portfolio position.
Source | Vaneck
Corporate and Banking Sector Expansion
Wintermute, a major crypto market maker, announced plans to expand into the U.S. and open a New York office, potentially impacting liquidity. In Brazil, Braza Bank launched a stablecoin pegged to the Brazilian Real on the XRP Ledger, signaling growing stablecoin adoption in emerging markets.
Partnerships and Innovations
MANTRA Chain partnered with Google Cloud to launch an RWA Accelerator supporting Web3 developers with financial and infrastructure resources. Separately, a joint venture between Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications will introduce a Hong Kong dollar-based stablecoin.
Tech and AI in Crypto
Elon Musk confirmed that xAI will establish an AI game studio, potentially boosting the AI+Game sector. Meanwhile, Binance’s ecosystem saw renewed interest after CZ teased a new video tutorial on AI agents for the BNB chain.
Market Speculation and Predictions
Whales are aggressively accumulating Ethereum, signaling potential upward price movement. Additionally, open interest in perpetual contracts for major assets like BTC, ETH, and SOL declined, suggesting reduced speculative activity and lower cash-and-carry yields.
Source | Glassnode
With these major developments, the crypto landscape continues to evolve rapidly. Remember, this article is for informational purposes only and should not be considered financial advice. Always conduct your own research (DYOR) before making investment decisions. You can find more insights at Millionero’s blog. When you’re ready, you can trade spot and perpetual contracts on Millionero.