This week saw significant developments in the cryptocurrency market with Bitcoin price surging and crossing major milestones. Bitcoin hit an all-time high of nearly $98,000, amidst hacking incidents and regulatory movements from companies like Circle and MetaMask. Despite some setbacks in DeFi, overall market optimism exists as the total cryptocurrency market capitalisation surpasses $3 trillion. Economic indicators showed mixed results, leading to speculations about future Federal Reserve actions.
As May kicked off, the cryptocurrency landscape was buzzing with developments, resulting in a net gain for digital assets. Bitcoin led the way, continuing its upward trajectory, while the overall market cap of cryptocurrencies crossed the significant $3 trillion mark for the first time since February. This marks a hopeful sign for investors as they navigate the volatile terrain of digital currencies.
On Monday, Bitcoin opened the week at a price of $93,636 but was overshadowed by news of a significant hacking incident. An individual, dubbed a “Bitcoin O.G.” due to their long-standing Bitcoin holdings, reportedly lost a staggering $330 million in what is now classified as one of the largest non-institutional crypto heists on record. Meanwhile, Coinbase introduced an innovative Bitcoin Yield Fund aimed at offering passive returns for institutional investors. The fund promises annual yields between 4% and 8%, depending on various factors, using basis trading as its strategy.
Tuesday saw Bitcoin notch an increase, reaching $94,470. Meanwhile, MetaMask made waves as it joined forces with Mastercard, CompoSecure, and Baanx to launch a crypto payment card. This new option allows users to spend digital currency directly from their wallets, avoiding tedious fiat conversions. Also that day, Circle announced it received preliminary approval from Abu Dhabi’s Financial Services Regulatory Authority, bringing it one step closer to regulatory compliance in the region and further legitimising stablecoin usage in the Middle East and Africa.
It wasn’t all good news, however, as our report on the Pi Network revealed a dramatic failure. Following its open mainnet launch, the network experienced a surge initially but rapidly fell due to massive token unlocks and subsequent liquidity crises.
On Wednesday, Bitcoin’s value climbed to $94,962 as the U.S. economy revealed unsettling news with a 0.3% contraction in Q1 GDP, sending ripples through financial markets. This marks the worst Q1 performance since 2022, igniting recession fears among investors. Meanwhile, North Carolina’s House passed a bill, HB92, permitting state treasury allocations of up to 5% in digital assets; that’s a step towards integrating cryptocurrencies into traditional pension schemes.
By Thursday, Bitcoin hit $96,392 amidst the gloomy economic forecasts. Despite recession fears, the digital asset was resilient, managing to surpass $95k milestone—its highest in weeks. Analysts have started to suggest Bitcoin might be taking on a role as an inflation hedge, thanks to growing institutional interest. Concurrently, the total cryptocurrency market cap exceeded $3 trillion for the first time in months.
However, it wasn’t all rosy; a report from Immunefi indicated that crypto projects casualties reached $92 million in April, over double March’s losses. Most incidents occurred in the Decentralised Finance (DeFi) sector, with Ethereum, BNB Chain, and Base facing the largest impacts, accounting for 60% of the total losses.
Finally, on Friday, Bitcoin closed the week at $97,881, buoyed by positive job growth data and steady unemployment rates in the U.S. The labour reports provided a glimmer of optimism regarding the economy. Meanwhile, President Trump reiterated calls for the Federal Reserve to consider a rate cut during the upcoming FOMC meeting on May 6-7. BlackRock made headlines again with its sizable accumulation of Bitcoin, snapping up 3,636 BTC on Friday alone, pushing its weekly total to over 19,000 BTC. In contrast, Ark/21Shares recorded notable losses, shedding 4,823 BTC during the same timeframe.
