Category: Cryptocurrency

Federal Reserve Governor Christopher Waller has delivered a stark warning that persistently high inflation and surging energy costs now outweigh labor market concerns, putting interest rate hikes back on the table. In a speech that surprised many market participants, Waller noted that the April consumer price index rose 3.8% year-over-year, while energy prices surged 17.9% due to geopolitical tensions in the Middle East. He emphasized that core PCE inflation, the Fed’s preferred gauge, has climbed to 3.3%, its highest level in over two years, while the unemployment rate remains stable at 4.3% and GDP growth holds near 2%.

Waller argued that the balance of risks has shifted away from the labor market toward price stability, calling for the removal of the Fed’s easing bias from policy statements. While he did not advocate for immediate rate increases, he stressed that further hikes cannot be ruled out if inflation does not cool soon. This hawkish stance represents a major pivot from earlier expectations of rate cuts, triggering a sell-off in risk assets including stocks and cryptocurrencies.

For Bitcoin and the broader crypto market, Waller’s comments introduce heightened uncertainty. Earlier this year, Bitcoin rallied above $70,000 amid hopes of a ceasefire and potential policy easing. However, the renewed threat of rate hikes could pressure digital assets if the dollar strengthens and real yields rise. At the same time, persistent inflation reinforces Bitcoin’s narrative as a hedge against monetary policy missteps, potentially attracting investors seeking alternative stores of value. Near-term volatility is expected as traders reassess the path of interest rates through the end of the year, with algorithmic trading likely to amplify swings in crypto derivatives and spot markets.

Gold prices tumbled beneath the $4,500 mark on Friday, with both spot markets and New York futures declining by approximately 0.94%, extending a notable retreat from the year’s peak levels. The precious metal slipped during U.S. trading, breaking through a crucial psychological barrier as traders reacted to shifting macroeconomic signals.

According to market analyst OnChainHutan, gold traded in a range of roughly $4,497 to $4,536 per ounce, coinciding with the U.S. dollar reaching a six-week high and crude oil prices climbing above $97 per barrel. This combination exerted classic pressure on bullion: a stronger greenback makes gold costlier for foreign buyers, while rising energy costs stoke inflation worries, prompting investors to factor in the possibility of tighter monetary policy rather than anticipated rate cuts.

Futures markets now reflect a roughly 58% probability that the Federal Reserve may raise interest rates later this year, a significant shift that erodes the appeal of gold as a non-yielding asset. Earlier, gold had surged to record highs above $4,900 per ounce, driven by central bank purchases, geopolitical tensions, and expectations of aggressive Fed easing. However, the current pullback follows months of robust gains.

In April, analysts surveyed by Investing.com projected a median 2026 gold price of approximately $4,916 per ounce, highlighting how quickly sentiment has turned. Spot gold is now testing the lower boundary of a $4,300 to $4,700 trading range that had been established during prior rallies fueled by rate-cut expectations.

Reactions on social media underscored the emotional shift: one user remarked that “gold drops 1% and suddenly everyone becomes a long-term investor again,” while another noted that “a tiny red candle creates more panic than ten green ones create excitement.” OnChainHutan observed that gold’s decline alongside resilient risk assets suggests a unique market sentiment, where equities and high-beta plays remain buoyant despite renewed geopolitical risks, such as Iran-related tensions.

Earlier this month, gold briefly retreated toward $4,500 on heightened inflation fears after a 3% intraday drop erased two weeks of gains. Analysts caution that if the Fed maintains a hawkish stance through the summer, gold could linger below $4,500 for an extended period before any renewed push toward the $4,700 to $5,000 band previously identified by technical strategists.

For cryptocurrency traders, gold’s slide is significant because this year’s record-breaking gold rally coincided with a strong Bitcoin (BTC) advance, as both assets functioned as macro hedges against U.S. policy uncertainty and Middle East instability. If markets increasingly believe the Fed will hike rather than cut, that repricing could similarly pressure high-flying digital assets, just as it has begun to deflate gold’s record run—a dynamic previously highlighted in market outlooks whenever rate expectations flipped.

Kevin Warsh was officially inaugurated as the 17th chair of the Federal Reserve during a ceremony at the White House on Friday, coinciding with Bitcoin trading around $77,400. Supreme Court Justice Clarence Thomas administered the oath of office, marking the first time a Fed leader has been sworn in at the executive mansion since Alan Greenspan in 1987.

Warsh, aged 56, steps into the role previously held by Jerome Powell, who served as chair from 2018 and will continue as a Fed governor until 2028. The Senate confirmed Warsh on May 13 with a tight 54-45 vote, with only Democrat John Fetterman crossing party lines to support the nomination.

During his swearing-in address, Warsh emphasized the Fed’s dual mandate of price stability and maximum employment. He asserted that with wise and clear policy, inflation can be reduced, economic growth can strengthen, and real wages can increase. Warsh committed to leading a reform-focused Federal Reserve and vowed never to set interest rates at the behest of any elected official. President Trump, who had frequently criticized Powell’s rate decisions, expressed his desire for Warsh to operate with total independence.

Bitcoin remained steady near $77,400 on Friday, with market participants having largely anticipated the leadership change. All eyes are now on Warsh’s first Federal Open Market Committee meeting scheduled for June 17.

Warsh is recognized as the most crypto-savvy Fed chair to date. His financial disclosures previously indicated indirect holdings in DeFi lending, Layer 1 networks, and prediction markets, though he has since pledged to divest fully. However, his policy views could pose challenges for risk assets. Warsh has argued that the Fed’s balance sheet is excessively large and needs to be reduced, a move that might tighten liquidity conditions—historically a headwind for crypto rallies. Currently, markets assign near-zero probability to a rate cut in June, with some traders anticipating hikes in early 2027.

Warsh assumes leadership amid persistent inflation above the Fed’s 2% target, oil prices exceeding $100 per barrel, and consumer sentiment near historic lows. His initial policy decision will test whether the most crypto-friendly Fed chair can provide more than symbolic support in a macroeconomic environment that offers little room for monetary easing.

In May 2010, a seemingly ordinary pizza delivery turned into one of the most famous moments in cryptocurrency history. Jeremy Sturdivant, then a 19-year-old forum user known as “jercos,” agreed to purchase two large pizzas from Papa Johns for Laszlo Hanyecz. In exchange, Sturdivant received 10,000 Bitcoin—a sum valued at roughly $40 at the time. Neither party could have imagined that those same coins would eventually be worth hundreds of millions of dollars.

Unlike many early Bitcoin adopters who held onto their digital assets, Sturdivant took a different approach. He viewed the cryptocurrency as a “living currency” meant to be spent, not hoarded. Over the following years, he gradually used the 10,000 BTC on everyday expenses, including travel and various goods, as Bitcoin’s price inched up from fractions of a cent toward the $1 mark. By the time Bitcoin reached its all-time high near $69,000 in November 2021, the original 10,000 coins would have been worth a staggering $690 million. However, Sturdivant had long since spent them, leaving him without the massive fortune he could have had.

Sturdivant’s story serves as a cautionary tale for early adopters and a reminder of Bitcoin’s unpredictable journey. While Hanyecz continued to buy more pizzas with Bitcoin in subsequent months, Sturdivant faded from the spotlight, resurfacing only occasionally in retrospective articles about Bitcoin Pizza Day. Today, he remains a footnote in crypto history—a young man who once held a fortune but treated it as pocket money, embodying the experimental and carefree spirit of Bitcoin’s early days. His decision to spend rather than save underscores the tension between using Bitcoin as a functional currency versus treating it as a long-term investment, a debate that continues to resonate in the cryptocurrency community.

Cross-chain infrastructure provider Squid has secured $6 million in a strategic funding round, with Ripple among the key participants. This investment supports Squid’s mission to create user-friendly tools for moving digital assets across diverse blockchain networks. North Island Ventures led the round, with contributions from Dialectic, Borderless, Scenius Capital, Altos, and Arche Capital, alongside angel investors including Axelar co-founder Georgios Vlachos and Enso Finance founder Connor Howe.

Squid’s platform enables seamless asset transfers between blockchains such as Bitcoin, Ethereum, Solana, Cosmos, and the XRP Ledger in a single transaction. Since its launch in early 2023, the protocol has facilitated over $6 billion in volume through more than 4 million transactions, serving over one million users. Its innovative execution layer, Squid Intents, leverages market makers to fulfill cross-chain swaps and settles them via trusted execution environments, eliminating the need for smart contracts on every chain and supporting over 100 networks.

The new capital brings Squid’s total funding to $13.5 million, following previous seed and strategic rounds. The company plans to expand its consumer-facing product suite, aiming to simplify direct access to crypto services. As the official bridge partner for the XRP Ledger and an active validator on the network, Squid’s collaboration with Ripple is a natural progression. Ripple’s involvement aligns with its broader strategy to bolster the XRP Ledger ecosystem, which has seen recent tests involving tokenized Treasury settlements and the launch of yield products for XRP holders through the XRP Alliance.

Squid’s co-founder Fig emphasized the goal of making cross-chain interactions as straightforward as the swaps currently offered. With a team of around 20 members, Squid is preparing to reveal more details about its consumer roadmap in the coming months.

A federal appeals panel has turned down emergency motions from prediction market operators Kalshi and Polymarket, allowing state gambling lawsuits in Nevada and Washington to proceed. The Ninth Circuit’s May 22 ruling determined that arguments based on the Commodity Exchange Act do not automatically grant federal court jurisdiction. The panel emphasized that a CEA preemption defense is an affirmative claim and cannot, on its own, move a case from state to federal court.

The judges also dismissed Polymarket’s contention that its adherence to Commodity Futures Trading Commission oversight meant it was operating as a federal agent. The court noted that simply complying with federal law does not equate to acting under federal direction.

Nevada’s enforcement actions focus on both platforms operating without required state gaming licenses. Washington’s lawsuit specifically targets Kalshi for offering sports event contracts that state officials deem illegal gambling products.

This decision highlights a deepening legal divide among federal courts regarding prediction market regulation. The Third Circuit previously supported Kalshi by granting a preliminary injunction against New Jersey gaming authorities. That contradictory outcome raises the likelihood that the U.S. Supreme Court may eventually need to resolve the dispute.

The panel consisted of three judges appointed during President Trump’s first term: Ryan Nelson, Bridget Bade, and Kenneth Lee. On the same day as the ruling, Kalshi announced the formation of Americans for Fair Markets, a new advocacy group intended to push back against the gaming industry’s efforts to restrict prediction markets. Representatives from Kalshi, Polymarket, and the Washington attorney general’s office have not yet commented. Nevada’s gaming control board declined to discuss the case due to ongoing litigation.

Ethereum is experiencing a notable downturn in investor sentiment during May, as multiple factors converge to create selling pressure. According to Santiment, the market capitalization of ETH has dropped by 11.6% over a two-week period, bringing the asset dangerously close to the $2,000 threshold—a level not seen since late March. If the current bearish momentum persists, a breach below that mark could occur.

Santiment’s analysis reveals that Ethereum’s social dominance has increased even as its price falls. While this often signals heightened attention, the tone of conversations has shifted toward fear and frustration rather than optimism. In April, bullish commentary significantly outweighed bearish remarks, but by May the ratio has nearly balanced, indicating a sharp decline in trader confidence.

ETF outflows are a primary source of downward pressure. Santiment reports that several Ethereum ETFs, including those linked to BlackRock, have experienced sustained outflows throughout May. Notably, no single day has seen inflows exceeding $50 million in the past three weeks. JPMorgan has also highlighted weaker demand for Ether compared to Bitcoin, noting that Bitcoin ETFs have recovered roughly two-thirds of recent outflows, while Ether ETFs recovered only one-third. The bank suggests that without stronger decentralized finance activity and real-world applications, ETH and other altcoins may continue to underperform.

Personnel changes at the Ethereum Foundation have further eroded sentiment. Carl Beek and Julian Ma recently announced their departures, adding to broader organizational shifts. Santiment notes that such developments, even when lacking full context, quickly influence trader behavior. While Ethereum still leads in raw developer activity, retail traders are increasingly drawn to faster-moving rival ecosystems.

Network growth metrics have also cooled. Daily active addresses and new wallet creation have slowed compared to stronger periods in 2024 and 2025, suggesting waning demand for ETH. As of May 22, Ethereum was trading around $2,125 to $2,135, keeping it near the critical support zone that traders are monitoring closely. Santiment concludes that while extreme bearish sentiment could set the stage for a contrarian rebound, the immediate focus remains on whether Ethereum can restore demand and defend the $2,000 level.

Trump Media & Technology Group has moved an additional 2,650 Bitcoin, valued at approximately $205 million, to the Crypto.com exchange. This transaction, spotted by blockchain tracker Lookonchain, has intensified scrutiny of the company’s cryptocurrency strategy amid significant losses on its holdings.

The transfer originated from wallets associated with Trump Media, the parent company of Truth Social and predominantly owned by the Donald J. Trump Revocable Trust. While deposits to exchanges don’t guarantee an immediate sale, market participants typically view large inflows as a potential precursor to liquidation.

Earlier this year, the firm shifted 2,000 BTC (worth about $175 million) when Bitcoin was trading near $87,378. Since then, the market has worsened, with BTC hovering around $77,700 at the time of the latest transfer. Based on prior disclosures, Trump Media originally amassed 11,542 Bitcoin at an average cost of $118,522 per coin, spending nearly $1.37 billion. After the earlier transfer, its holdings dropped to 9,542 BTC; following the latest movement, the stash now appears to be roughly 6,889 BTC.

The company’s recent financial results already reflected the downturn. Trump Media reported a $405.9 million net loss for Q1 2026, with $368.7 million attributed to unrealized markdowns on digital assets and pledged crypto. As of March, the fair value of its Bitcoin holdings had fallen to about $647 million against a cost basis of $1.13 billion. The firm also disclosed ownership of roughly 756 million Cronos tokens linked to its Crypto.com partnership.

What does this mean for Bitcoin? Large exchange inflows can spark temporary fear among traders, as visible supply on order books may act as a resistance zone. However, the $205 million transfer is relatively small compared to Bitcoin’s multi-billion dollar daily trading volume. The market impact will depend on whether the coins are sold directly on the exchange or via over-the-counter channels. On-chain data shows that over 70% of Bitcoin’s circulating supply has remained unmoved for over a year, indicating strong long-term holder conviction despite corporate treasury weakness.

The perpetrator behind the exploit of the Verus Ethereum bridge has returned 4,052.4 ETH, approximately $8.5 million, to the project team following a negotiated settlement. This move leaves the attacker with 1,350 ETH, valued at around $2.86 million, as a bounty for returning the majority of the stolen funds.

Blockchain security firm PeckShield confirmed the transaction, noting that the returned assets constitute 75% of the total funds drained during the incident. The remaining 25% was intentionally left with the exploiter as a reward, per the terms proposed by the Verus community. On-chain data from Etherscan reveals that the return occurred on May 21, with the funds moving from a wallet labeled as Verus Exploiter 2 to a designated team address. Shortly after, the bounty amount was transferred to a separate wallet.

This outcome has sparked mixed reactions in the crypto community. Some observers, like Bee Swarm, view the 75% recovery as a positive precedent, suggesting that bounty-driven negotiations can be more effective than legal threats for retrieving stolen assets. Others, such as Zenthis, caution that partial recoveries do not address fundamental vulnerabilities in bridge security, arguing for more robust alternatives like atomic swaps to eliminate centralized custody risks.

The return follows a public offer from Verus, which outlined specific terms for the exploiter to follow. The community had agreed to a 1,350 ETH bounty in exchange for the safe return of the remaining funds. This approach contrasts with many past bridge attacks, where stolen assets are often laundered through mixers or remain under the attacker’s control indefinitely.

The Verus bridge exploit, which occurred on May 18, resulted in losses exceeding $11.5 million. Security researchers attributed the breach to a forged cross-chain transfer message that bypassed validation checks. The attacker initially drained 103.6 tBTC, 1,625 ETH, and nearly 147,000 USDC, later converting these assets into 5,402 ETH. Blockaid identified the root cause as missing source-amount validation within the bridge’s logic, ruling out other common attack vectors like ECDSA bypass or key compromise.

The incident adds to a growing list of cross-chain security failures. Recent attacks on the Butter Network bridge led to a 96% crash in MAPO tokens after attackers minted unauthorized tokens. Similarly, Echo Protocol faced a $76.7 million exploit involving fake eBTC collateral. These events highlight the persistent risks in bridge security, where weak validation can enable attackers to trigger unauthorized transfers or mint tokens before teams can intervene.

Bitcoin’s price slipped toward the $77,000 mark on Friday after it broke down from an ascending trendline that had been propping up its recovery since April. The digital asset struggled to hold above $82,000, a level reinforced by the 200-day moving average near $80,825, and the failure triggered fresh selling pressure.

Over the past week, leveraged long positions took a heavy hit, with liquidations ranging from $661 million to $850 million across exchanges as Bitcoin slid from its May peaks. The cascade of forced selling accelerated the downturn, pushing prices into thinner liquidity zones.

Institutional demand also softened, as U.S. spot Bitcoin ETFs recorded roughly $1.4 billion in net outflows over the last week. BlackRock’s IBIT saw one of its largest daily outflows during this period, and other major issuers faced consistent redemptions amid a broader reduction in risk appetite.

On-chain data added to the bearish narrative, with 9,664 BTC worth over $744 million moving to exchanges in the past five days, signaling potential selling pressure. Additionally, Trump Media & Technology Group transferred 2,650 BTC to Crypto.com, drawing attention to possible large-holder distribution.

The decline occurred during Bitcoin Pizza Day week, a time that usually boosts trading activity and highlights Bitcoin’s long-term gains. However, this year’s event was marred by rising volatility and worsening macro conditions.

Rising oil prices added to market stress, with WTI crude climbing above $98 per barrel amid geopolitical tensions involving Iran. Higher oil costs compounded inflation fears after recent U.S. CPI and PPI data exceeded expectations. Treasury yields rose as markets priced in fewer Fed rate cuts, and expectations of a hawkish Fed leadership shift further dampened sentiment.

Technically, Bitcoin’s breakdown below the ascending trendline and its failure to reclaim the 200-day moving average have weakened its daily structure. The price now sits below its 20-day moving average and is approaching the 50-day moving average near $76,427, a key support level. The MACD histogram has turned negative, erasing April’s bullish momentum.

Liquidation data from CoinGlass shows dense long liquidation clusters between $76,000 and $76,500, with another concentration near $74,000. This suggests Bitcoin may sweep lower before stabilizing. Trader Lennaert Snyder noted that Bitcoin’s daily candle closed weak after failing to reclaim $78,200, and he expects a sweep of sell-side liquidity at $76,400 before any recovery.

ZeroStack CEO Daniel Reis-Faria told crypto.news that Bitcoin’s rejection at the 200-day moving average reflects weak buying pressure. He said that unless buying picks up, Bitcoin will likely remain under pressure. Derivatives markets also show caution, with funding rates cooling and open interest declining alongside price.

For a bearish scenario to be invalidated, Bitcoin needs to recover above $79,000 and reclaim the 200-day moving average near $80,800. Progress in U.S.-Iran talks could lower oil prices and ease inflation concerns, while a reversal in ETF outflows would support prices. However, if Bitcoin fails to hold $76,000, it could slide toward $74,000 or even the 100-day moving average near $72,500.