First Major Test of the Crypto Rally
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Macroeconomics
Last week brought clear signs of easing geopolitical tensions. The announcement of new trade negotiations between the U.S. and China, along with the India-Pakistan ceasefire, boosted investor confidence and momentarily pushed Bitcoin to nearly $105,000 – its highest level since January.
Macroeconomic conditions continue to support the rise of risky asset classes like cryptocurrencies. China's central bank unexpectedly cut its reverse repo rate and reserve requirement ratio, releasing over one trillion yuan in liquidity into the system. These measures, combined with a weakening dollar, form a powerful stimulus package whose effects are also reflected in crypto markets.
The U.S. Federal Reserve did not change its monetary policy but emphasized uncertainty regarding new tariff decisions and potential impacts on employment and inflation. The service sector showed signs of recovery, while manufacturing outlooks remained muted. The overall picture suggests continued disinflation and moderate growth.
Bitcoin remains the market's leading indicator and has quickly priced out earlier concerns about trade-related risks. Investors appear to have shifted toward a more risk-seeking posture, which could accelerate the next rally phase.
Crypto News
Coinbase Acquires Deribit
Coinbase has completed a $2.9 billion acquisition of crypto derivatives exchange Deribit. The purchase price consists of $700 million in cash and 11 million Coinbase shares. The acquisition strengthens Coinbase's derivatives offering and its position in global crypto markets.
Strategy Buys 1,895 Bitcoin
Formerly known as MicroStrategy, the company now called Strategy added 1,895 Bitcoin to its holdings worth approximately $180 million. The company's total balance rose to about 555,500 Bitcoin, valued at over $52 billion. Strategy has announced plans to raise up to $21 billion more through equity and debt offerings to further expand its Bitcoin holdings.
OKX Expands to the United States
Crypto exchange OKX has officially launched operations in the United States, appointing Roshan Robert as the company's local CEO. The company now operates in 46 states plus Washington D.C. and focuses on compliant growth, risk management, and affordable payment solutions.
Stripe Launches Stablecoin Accounts
Payment company Stripe has launched a new product – stablecoin-based accounts – allowing businesses in over 100 countries to hold balances in stablecoins and receive payments through fiat and crypto channels. The service initially supports USDC and USDB and will expand further.
U.S. Stablecoin Legislation Hits Delays
The GENIUS Act, which aims to regulate stablecoins in the United States, has hit political obstacles. Concerns about conflicts of interest related to the president's crypto investments have particularly slowed progress. The bill's fate remains uncertain, but negotiations continue.
Institutions
Visa Invests in Stablecoin Network
Visa has made a strategic investment in BVNK, a company developing stablecoin infrastructure. The company's goal is to build a real-time, 24/7 payment system that leverages blockchain technology for business payments.
U.S. Banks Can Now Manage Crypto Assets
U.S. regulators have updated their guidance, and national banks can now buy, sell, and hold crypto assets on behalf of their customers. Outsourcing services is permitted, and regulation is based on earlier crypto custody guidance.
New Hampshire and Arizona Pass Bitcoin Reserve Laws
New Hampshire and Arizona are the first states to pass laws establishing Bitcoin reserves. In Arizona, the law enables a virtual currency reserve fund that can be used for legislatively approved purposes. New Hampshire's law allows the state to invest part of its funds in digital assets.
Securitize Gains New Institutional Investor
Jump Crypto has invested in Securitize, which specializes in tokenization. The goal is to improve institutional access to tokenized assets and develop collateral management solutions. Securitize already manages approximately $4 billion worth of tokenized assets.
Market Analysis
Stablecoin Payment Volumes Hit New Records
The volume of transactions made with stablecoins reached $1.82 trillion in April, a new record. The growth reflects the rapid adoption of stablecoins, especially in international payments.
Bitcoin Mining Costs Rising
The average cost for publicly listed miners to produce one Bitcoin rose to $82,162 in the last quarter. Rising costs may affect supply and market price in the short term.
Weekly Highlights
Bitcoin Above $105,000
Bitcoin momentarily rose to nearly $105,000 – its highest since January. The rally came as geopolitical tensions eased.
China's Central Bank Stimulus Measures
The People's Bank of China unexpectedly cut its reverse repo rate and reserve requirement ratio, releasing over one trillion yuan in liquidity into the system.
Coinbase's Major Acquisition
Coinbase's $2.9 billion acquisition of Deribit signals strengthening and consolidation in crypto markets.
Strategy Targets $21 Billion Additional Funding
Strategy has announced plans to raise up to $21 billion more through equity and debt offerings to further expand its Bitcoin holdings.
Stripe and Visa Advance Stablecoin Adoption
Both Stripe and Visa are making significant moves to develop stablecoin infrastructure, which may accelerate the mainstreaming of crypto payments.
Related Guides
What is Bitcoin?
Comprehensive guide to Bitcoin, its technology, use cases and economic significance.
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