Crypto Daybook Americas: Fintechs, Funds ‘Hoarding Bitcoin’ Even as Bulls Pause for Breath
Global crypto adoption continues despite recent market consolidation, with companies like Méliuz (Brazil) and A1 Abraaj Restaurants Group (Bahrain) increasing their Bitcoin holdings. Eric Trump highlighted widespread Bitcoin accumulation among various entities, from families to sovereign wealth funds. However, this positive narrative is tempered by concerning developments.
Coinbase faces an SEC investigation into potentially inflated 2021 user metrics, causing a 7% share drop. A data breach also resulted in a $20 million extortion attempt. The stalled bipartisan support for the GENUIS Act, aimed at regulating payment stablecoins, adds to regulatory uncertainty. Slowing inflows into U.S. spot Bitcoin ETFs and large sell orders around $105,000 suggest potential price volatility. FTX creditors are set to receive over $5 billion in distributions starting May 30.
Several upcoming events are noteworthy: Galaxy Digital’s Nasdaq listing (May 16), CME Group’s XRP futures launch (May 19), Coinbase’s S&P 500 inclusion (May 19), and the second round of FTX repayments (May 30). A gala dinner for top TRUMP token holders, hosted by the U.S. president, is also scheduled for May 22.
The Berachain token (BERA) experienced a 9% drop following a large token unlock, highlighting the risks associated with hype-driven projects. Solana and Ethereum, however, saw increased inflows. Funding rates in perpetual futures remain low, indicating bullish but not overcrowded positioning. Options market skews have turned bearish for Bitcoin and Ethereum.
Bitcoin’s price increase from $75,000 to $104,000 faces resistance at $105,000, where significant sell orders exist. Analysts predict continued upward momentum, potentially reaching $250,000 or more in 2025, influenced by gold’s market cap. A capture of 50% of gold’s market cap could push Bitcoin to $1 million by the end of the decade. Meanwhile, the untapped $3 trillion student loan market presents a significant opportunity for DeFi, with initiatives like Pencil Finance exploring crypto-native solutions. Central banks are exploring smart contracts for monetary policy implementation.
