Crypto Market

BTC and ETH Market Insight

The current CPI and PPI data both support a Federal Reserve rate cut and may increase expectations for a rate cut in July. BTC’s rally appears robust, with neutral funding rates and modest long positions preventing leveraged excess and avoiding overcrowded trades. On May 30, FTX will distribute $5 billion to creditors. This liquidity might flow back into the crypto market in June, boosting momentum alongside Bitcoin ETF inflows and active stablecoin trading.

Upcoming Macro Calendar - Source: Trading Economics

Options Market

Risk-on momentum persisted early in the week, driving both BTC and ETH higher, though prices retraced slightly later in the week. ETH outperformed BTC, with the ETH/BTC ratio climbing above 0.026 before settling at 0.024. Implied volatility declined for both assets, aligning with lower realized volatility—BTC’s realized volatility remained subdued, while ETH’s cooled from recent highs. The front-end volatility spread widened to over 20 vols, signaling market expectations for ETH to maintain its higher-beta profile. BTC’s volatility carry stayed near neutral, while ETH’s turned negative. Call skew remained largely unchanged from the prior week.

Altcoins and Blockchain News

• According to SAF co-founder Dennis Porter, the Texas Strategic Bitcoin Reserve Bill (SB 21) will have its second reading in the House on May 20, which is a necessary step before the final vote. If the bill passes the full House vote before the Texas legislative session ends on June 2, it will be submitted to the governor for signing.
• According to data from Dune, the Solana meme coin launch platform Pump.fun has generated over $700 million in total protocol revenue. Over the past year, it has sold approximately 3.868 million SOL, equivalent to about $702 million, at an average price of $183.30 per SOL.
• Chainlink Labs announced a new startup support program called "Build on Solana", aimed at helping outstanding teams build, launch, and grow within the Solana ecosystem. Applications are now open.
• According to monitoring by Lookonchain, Abraxas Capital continues to accumulate large amounts of Ethereum. Since May 7, Abraxas Capital has withdrawn 278,639 ETH (approximately $655 million) from major exchanges, at an average purchase price of $2,350.
• BlackRock’s tokenized Treasury fund BUIDL, which manages nearly $3 billion in assets, announced its first direct DeFi protocol integration with the Euler protocol on Avalanche.
• U.S.-based AI video platform Hedra has completed a $32 million Series A funding round, led by a16z’s infrastructure fund, with participation from Index Ventures, Abstract, and others. The total funding raised now stands at $43 million.
• The Ethereum Foundation announced the launch of a "Trillion Dollar Security" initiative — a comprehensive ecosystem-wide effort aimed at enhancing Ethereum's security and advancing the world toward an on-chain future. The initiative includes three components: "Full-Stack Security Mapping," "Key Domain Focus," and "Security Awareness Enhancement."

Macro

The major indices continued the rally for a third consecutive week: the DJIA added +3.4%, the S&P 500 +5.3%, and the Nasdaq +7.3%. The Chinese stock market also climbed after the trade war tension seems to pacify: the Shanghai Composite Index added +0.76%, the CSI 300 +1.12% and the Hang Seng index +2.09%.