Cointelegraph

The US CLARITY Act, which aims to provide the US crypto industry with greater regulatory clarity, is set to be voted on by the Senate Banking Committee on Thursday.

On Friday, Senate Banking Committee chair Tim Scott confirmed the legislation will go to a vote on Thursday, triggering a strong reaction across the crypto industry, which has been waiting months for a new markup date.

The bill, introduced in July 2025, was expected to progress earlier this year, but stalled in January after Coinbase withdrew its support for the legislation, citing several concerns, including a lack of legal protections for open source software developers, a prohibition on stablecoin yield, and decentralized finance (DeFi) regulations. 

CLARITY Act is “on like Donkey Kong”: Coinbase exec

“It’s on like Donkey Kong,” Coinbase chief legal officer Paul Grewel said in an X post on Friday, following the announcement. Meanwhile, Coinbase chief policy officer Faryar Shirzad said in an X post that it was a “big step forward” and the legislation is essential “for protecting consumers, supporting innovation, and ensuring this technology develops in the United States rather than offshore.”

Source: Faryar Shirzad

Uncertainty around crypto regulation during the Joe Biden administration, with crypto skeptic Gary Gensler leading the US Securities and Exchange Commission (SEC), was linked to reports of crypto firms relocating offshore to more crypto-friendly jurisdictions. Industry participants argued it was harming innovation in the US.

US Senator and pro-crypto advocate Cynthia Lummis said in an X post, “Let's pass the Clarity Act out of the Banking Committee on Thursday!”

Industry execs had predicted the markup would take place

It comes just days after Kara Calvert, the vice president of US policy at crypto exchange Coinbase, told attendees at the Consensus 2026 conference that she expected “a markup next week.”

Calvert said that the bill needs at least 60 votes to pass in the Senate and that the CLARITY bill needs bipartisan support to become law.

Magazine: XRP ‘probably going to $12,’ Bitcoin ETFs add $1B: Market Moves

Key takeaways:

A weakening US dollar and higher government debt favor scarce assets, even as spot Bitcoin ETF outflows and low retail demand spark some concern.

Traders expect Kevin Warsh to become Fed Chair, which could benefit Bitcoin.

Bitcoin (BTC) stagnated near $80,000 on Friday following a rejection at $82,500. Traders grew anxious after US-listed spot Bitcoin exchange-traded funds (ETFs) posted $268 million in net outflows on Thursday. 

Meanwhile, $270 million in leveraged bullish Bitcoin futures positions were liquidated within 24 hours, forcing investors to evaluate whether a sustained bear market is finally taking hold.

Bitcoin US-listed spot ETFs daily net flows, USD. Source: SoSoValue

The reversal in Bitcoin spot ETF flows on Thursday broke a four-day positive streak. This shift is particularly notable because the S&P 500 Index surged to an all-time high on Friday. There is no evidence of a broad derisking trend across traditional markets, as the US small-cap Russell 2000 Index remains within 2% of its own record peak.

Are Bitcoin retail traders jumping ship?

Underwhelming earnings reports from Coinbase and Robinhood indicated a sharp drop in retail engagement, sparking concerns about Bitcoin’s bull run sustainability. Coinbase recorded a 31% revenue decline compared to the first quarter of 2025, while crypto-related revenue on Robinhood plummeted by 47% over the same period. 

Exchanges’ top traders Bitcoin long-to-short ratio. Source: CoinGlass

Top traders at Binance have slashed their Bitcoin longs to the lowest levels in over four weeks. In contrast, whales and market makers at OKX added bullish exposure as the Bitcoin price broke above $80,000 on Tuesday, but they subsequently reduced those positions on Friday.

Overall, the 0.27 long-to-short ratio among top traders at OKX remains a far cry from the 1.20 mark seen just ten days prior.

Weaker US dollar and odds of Strategic Bitcoin Reserves

While Bitcoin derivatives show moderate bearishness, two distinct factors support a sustained bull run. The US dollar has weakened against other major fiat currencies over the past two months. Whether intended by the US administration or not, this move reduces incentives to hold US Treasuries, especially given the current high oil prices.

Brent crude oil, USD (left) vs. US dollar strength index (right). Source: TradingView

The growing US government debt creates an environment favoring scarce assets. Even if the stock market and gold remain the primary options for most investors, Bitcoin tends to benefit from a weaker US dollar.

Regardless of the macroeconomic environment, expectations are rising that the US Strategic Bitcoin Reserve could start adding BTC, and Kevin Warsh is expected to replace Fed Chair Jerome Powell in the near term. Warsh recently reported significant holdings in cryptocurrency assets and companies and has previously expressed pro-Bitcoin views.

Odds of the US adding any amount of Bitcoin to its reserves by 2027. Source: Polymarket

While still considered a long shot, the path to budget-neutral strategies for acquiring Bitcoin has been cited by US Treasury Secretary Scott Bessent in the past. Consequently, potential outflows from fixed-income investments due to a weaker US dollar and higher inflation increase the odds of sustained bullish momentum in Bitcoin.

The recent outflows from spot Bitcoin ETFs do not necessarily indicate that a bear market is underway, even if top traders’ current positioning signals a lack of confidence in a short-term rally.

Earlier in 2026, as a digital asset market structure bill was under consideration in the US Senate, cryptocurrency exchanges Coinbase, Kraken and Gemini reportedly pressed to remove language in the legislation that could have affected their token listings.

According to a Friday Politico report, the three exchanges asked US lawmakers to scrap a provision in the market structure bill that would have required platforms to only offer trading on digital assets “not readily susceptible to manipulation.” The companies reportedly pressed senators to remove the language as it could have made it difficult for exchanges to list smaller tokens.

The edit, which the news outlet reported occurred after the US Senate Agriculture Committee voted to advance its version of the bill in January, signaled the influence crypto companies in communication with the Trump administration and lawmakers could have in legislation affecting the industry. The US Senate Banking Committee postponed its markup on the bill hours after Coinbase CEO Brian Armstrong said that the exchange could not support the legislation “as written,” citing concerns with tokenized equities.

Under the market structure bill, called the CLARITY Act when it passed the US House of Representatives in July 2025, the Commodity Futures Trading Commission (CFTC) would be given more authority in overseeing and regulating digital assets. Both US financial regulators, the CFTC and Securities and Exchange Commission (SEC), announced their intention to coordinate oversight of the crypto industry in March, even in the absence of action from Congress.

Coinbase chief policy officer Faryar Shirzad responded to the report on social media, calling it “old news” and an issue that was included in the markup by the Senate Agriculture Committee.

Source: Faryar Shirzad

Industry leaders, lawmakers speculate on timeline for market structure bill

Last week, two US senators announced a compromise deal on stablecoin yield between representatives of the crypto and banking industries that could allow the CLARITY Act to advance in the banking committee. Although some lawmakers said they intended to push for ethics language on potential conflicts of interest to be included in the bill, many are speculating that passage could be in a matter of weeks.

Coinbase‘s US policy vice president, Kara Calvert, said on Thursday that the exchange expected a markup in the banking committee by next week. Other lawmakers predicted that the bill would become law before the Senate broke for August recess, while White House crypto adviser Patrick Witt said that the administration was aiming for a July 4 deadline for the bill to pass the House after a June Senate vote.

Magazine: XRP ‘probably going to $12,’ Bitcoin ETFs add $1B: Market Moves

Estonia's Financial Supervision and Resolution Authority (FSA), the country’s financial regulator, issued an investor warning for BB Trade Estonia OÜ, the company that operates the Zondacrypto digital asset exchange.

The FSA said the company did not have a white paper listed on its website for the “TeamPL” crypto token listed on the crypto exchange, a violation of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. According to the FSA: 

“This action violates Article 9, Section 1 of [MiCA], according to which crypto-asset white papers shall remain available on the website of the offerors or persons seeking admission trading for as long as the crypto-assets are held by the public.”

The investor warning for Zondacrypto and its parent company. Source: Estonia FSA

Cointelegraph reached out to Zondacrypto but did not receive a response by the time of publication.

The investor warning follows news of withdrawal issues at the Zondacrypto exchange and an investigation into the company by Polish law enforcement officials.

Zondacrypto faces investigation following withdrawal and access issues

In April, Zonda CEO Przemysław Kral said the exchange did not have access to a cold wallet containing about 4,500 Bitcoin (BTC), valued at about $360 million at the time of writing.

Kral claimed that the wallet’s private keys were never handed over by Sylwester Suszek, the founder and former CEO of Zondacrypto, who has been missing since 2022. He also denied rumors that the exchange is insolvent, adding that it would meet all customer obligations. 

Kral's last post on the X social media platform was published on April 16, 2026. Source: Przemysław Kral

Polish investigators initiated a probe into the company in April, following reports from users of withdrawal issues and the inability to access funds.

Since that time, Kral has gone silent on social media, with no new posts since April 16. Local media outlets reported that he flew to Israel, where he is a citizen, amid the probe by Polish law enforcement.

In February, he told Cointelegraph that the company is based outside of Poland because the country has not brought its crypto regulations in line with the EU’s MiCA framework.

“Although we are a company with Polish roots and the largest player in the crypto industry on the Polish market, we have been operating outside Poland for years,” he said.

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026

A campaign to require the Swiss National Bank to hold Bitcoin is set to lapse after failing to gather enough signatures to trigger a national referendum, Reuters reported.

The initiative sought to amend Switzerland’s constitution to require the central bank to hold Bitcoin (BTC) alongside gold and foreign currency assets, but organizers said they collected only about half of the 100,000 signatures required under Swiss law.

The Swiss National Bank (SNB) has repeatedly opposed adding cryptocurrencies to its holdings, saying digital assets do not meet its reserve management standards due to concerns about volatility and liquidity, Reuters reported.

Campaign founder Yves Bennaim told Reuters the effort was always considered unlikely to succeed, but said the initiative helped advance debate around Bitcoin’s role in global finance.

Supporters of the campaign said Bitcoin could help diversify Switzerland’s reserves away from dollar- and euro-denominated assets, which Reuters said account for roughly three-quarters of the SNB’s foreign currency holdings.

Countries experiment cautiously with sovereign Bitcoin reserves

While 2025 saw a wave of publicly traded companies adopt Bitcoin treasury strategies, sovereign adoption of Bitcoin as a reserve asset has remained limited.

El Salvador was the first country to formally adopt Bitcoin as part of a sovereign reserve strategy after President Nayib Bukele began government BTC purchases in 2021 alongside the country’s move to make Bitcoin legal tender. The country currently holds 7,645 BTC, according to data from BitcoinTreasuries.com.

Source: Nayib Bukele

Bhutan, also one of the world’s largest sovereign holders of Bitcoin, built much of its treasury through state-backed mining operations powered by surplus hydroelectric energy as part of a broader strategy to turn renewable energy into a digital export and expand the country’s role in crypto finance.

However, data from Arkham Intelligence shows Bhutan-linked wallets have sharply reduced their holdings in recent months, with reserves falling from around 13,000 BTC at the end of 2024 to roughly 3,654 BTC by April 2026 following a series of large transfers and apparent sales.

Unlike El Salvador and Bhutan, which actively accumulated Bitcoin through purchases or mining, the three largest sovereign Bitcoin holders — United States, China and the United Kingdom — primarily acquired their holdings through criminal seizures and forfeiture proceedings.

Top 5 countries holding Bitcoin. Source: BitcoinTreasuries.net

On March 6, 2025, US President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve capitalized with government-held Bitcoin, stating that BTC held by the reserve “shall not be sold” and would be maintained as reserve assets of the United States.

While the executive order allows Treasury and Commerce officials to explore budget-neutral strategies for acquiring additional Bitcoin, the reserve is initially backed by BTC already held by the government through forfeiture proceedings.

Magazine: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1M

Payward, the parent company of cryptocurrency exchange Kraken, announced that it had filed an application with the US Office of the Comptroller of the Currency (OCC) for a national trust company charter, following other digital asset companies.

In a Friday notice, Payward said that the OCC application, if approved, would result in the establishment of Payward National Trust Company, allowing it to "provide fiduciary custody and other services primarily for digital assets." The application would make the Kraken parent one of a handful of crypto companies moving closer toward banking, following OCC approvals for Coinbase and others.

“A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” said Kraken co-CEO Arjun Sethi. “This is not about being first; it is about getting the framework right so markets can scale with clarity, interoperability, and long-term vision for what clients will demand as these systems mature.”

The OCC, headed by US President Donald Trump’s nominee Jonathan Gould, approved similar charter applications for Ripple Labs, BitGo, Circle, Fidelity Digital Assets and Paxos in December. The agency has come under scrutiny for such approvals as it considers an application from World Liberty Financial, the crypto company co-founded by Trump and his sons. 

According to Payward, the OCC application would build on its Special Purpose Depository Institution established in Wyoming through Kraken Financial. The company also holds a Federal Reserve master account, giving it access to the US payment services system.

Kraken still eyeing public offering after confidential filing

While the crypto exchange’s parent company has closed acquisition deals with Bitnominal and announced an agreement to buy Reap, Kraken could still be planning an initial public offering (IPO) in the US. Sethi said in May that the company was “about 80% ready” to go public by 2027 as the exchange announced a partnership with MoneyGram.

Magazine: XRP ‘probably going to $12,’ Bitcoin ETFs add $1B: Market Moves

Key points:

Bitcoin needs to hold above $78,000 to avoid a trend reversal and return to $80,000 as resistance.

Altcoin buyers have left the scene, keeping in step with Bitcoin's slight correction.

Bitcoin (BTC) pulled back near $79,000 on Friday, but buying at lower levels pushed the price toward $80,000. The next big question on traders’ minds is whether BTC will resume its uptrend or higher levels will again attract aggressive selling from bears. 

CryptoQuant analyst IT Tech said in a Thursday QuickTake note that BTC needs to rally and maintain above $88,880 for a bottom to be confirmed. Until then, the $85,000 to $88,000 range is likely to see selling by buyers who want to “get out flat.”

However, Bollinger Bands creator John Bollinger has a different view. In an X post on Thursday, Bollinger said that their trend model had turned positive for BTC a day earlier and they had taken a position accordingly.

Crypto market data daily view. Source: TradingView

Among all the positives, a minor negative for the bulls is that BTC exchange-traded funds recorded $277.5 million in outflows on Thursday. That was the first net outflow in May, according to SoSoValue data. That suggests select investors have turned cautious and are booking profits near overhead resistance levels.

Could BTC and the major altcoins bounce off their support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC pulled back from $82,850 on Wednesday, signaling that the bears are fiercely defending the $84,000 overhead resistance. 

BTC/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day exponential moving average ($77,929) is the critical support to watch out for on the downside. If the BTC price rebounds off the 20-day EMA with strength, it signals that the bulls are buying on every minor dip. That improves the prospects of a break above the $84,000 level. If that happens, the BTC/USDT pair may skyrocket to $92,000, then to $97,924.

Sellers are likely to have other plans. They will strive to defend the $84,000 level and yank the price below $74,937. If they manage to do that, the pair may tumble to the 50-day simple moving average ($73,448) and then to the support line.

Ether price prediction

Ether (ETH) closed below the 20-day EMA ($2,304) on Wednesday, indicating that the bulls are booking profits.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

The next stop on the downside is the 50-day SMA ($2,225), followed by the support line. A solid rebound off the support line suggests the ETH/USDT pair may remain within the channel for a few more days.

The first sign of strength will be a break and close above $2,465. The pair may then rise to the resistance line, where the bears are expected to step in. However, if the bulls prevail, the ETH price may soar to $3,050.

BNB price prediction

BNB (BNB) has pulled back toward the moving averages, suggesting bears are selling on minor rallies. 

BNB/USDT daily chart. Source: Cointelegraph/TradingView

If the BNB price bounces off the moving averages with force, it increases the likelihood of a rally to the $687 level. Sellers will attempt to keep the price within the $ 570 to $ 687 range by defending the overhead resistance.

On the other hand, a break and close above the $687 signals that the bulls are back in the driver’s seat. The BNB/USDT pair may rise to $730 and then to $790. Sellers are expected to pose a strong challenge at the $790 level.

XRP price prediction

XRP (XRP) continues to trade near the moving averages, indicating a state of equilibrium between the buyers and sellers.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

The flattish moving averages and the RSI just below the midpoint do not give either bulls or bears a clear advantage. If the price turns down and breaks below the $1.27 level, the XRP/USDT pair may remain inside the descending channel pattern for a few more days.

On the upside, the bulls are expected to encounter stiff resistance at the downtrend line and then at the $1.61 level. Buyers will have to overcome the $1.61 barrier to signal a potential trend change. The XRP price may then rally to $2.

Solana price prediction

Solana (SOL) is facing selling pressure at the $90.73 level, but a positive for the bulls is that they have not ceded much ground to the bears.

SOL/USDT daily chart. Source: Cointelegraph/TradingView

The bulls will again attempt to push the SOL price above $90.73. If they succeed, the SOL/USDT pair may surge to $98. Sellers are expected to vigorously defend the $98 level, as a close above it may catapult the pair to $117.

Contrary to this assumption, if the price turns down and breaks below the moving averages, it suggests that the pair may remain inside the tight range for a while longer. A break below the $82.65 level opens the doors for a fall to $76.

Dogecoin price prediction

Dogecoin (DOGE) declined sharply from the $0.12 resistance level on Wednesday, indicating profit-taking by short-term traders.

DOGE/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day EMA ($0.10) is the critical support level to watch in the near term. If the DOGE price turns up sharply from the 20-day EMA, the bulls will again attempt to pierce the $0.12 resistance. If they manage to do that, the DOGE/USDT pair may rally to $0.14, then to $0.16.

Conversely, a break and close below the 20-day EMA suggest that the pair may remain within the $0.09 to $0.12 range for a few more days.

Hyperliquid price prediction

Hyperliquid (HYPE) turned down from the $43.76 to $45.77 zone on Wednesday, indicating aggressive selling by the bears.

HYPE/USDT daily chart. Source: Cointelegraph/TradingView

The HYPE price pulled back to the 20-day EMA ($41.69), an important level to watch. If the price turns up sharply from the 20-day EMA, the bulls will again endeavor to clear the overhead hurdle. If they manage to do that, the HYPE/USDT pair may surge to $50.

This bullish view will be invalidated in the near term if the price continues lower and breaks below the 50-day SMA ($40.29). The pair may then descend to $34.45.

Cardano price prediction

Cardano (ADA) continues to oscillate within the broad range of $0.22 to $0.31, indicating a balance between supply and demand.

ADA/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day EMA ($0.25) has begun to turn up gradually, and the RSI is in positive territory, indicating a slight edge for the bulls. If the price turns up above the moving averages, the bulls will attempt to drive the ADA/USDT pair to $0.30 and, later, to the stiff overhead resistance at $0.31.

Contrarily, a break below the moving averages suggests that the bulls are losing their grip. The bears will then strive to pull the ADA price to the $0.22 support.

Zcash price prediction

Zcash (ZEC) broke above the $560 resistance on Wednesday, but the bears stalled the rally at $607.

ZEC/USDT daily chart. Source: Cointelegraph/TradingView

The shallow pullback is a positive sign, as it indicates the bulls are not rushing to close their positions. That improves the prospects of the continuation of the uptrend. If the ZEC/USDT pair breaks above $607, the next target is likely $750.

On the downside, support lies at the 38.2% Fibonacci retracement level at $496, then at the 50% retracement level at $462. Sellers will be back in the driver’s seat on a close below the 61.8% retracement level of $428.

Bitcoin Cash price prediction

Bitcoin Cash (BCH) turned down sharply from $486 on Wednesday, suggesting bears are aggressively defending the level.

BCH/USDT daily chart. Source: Cointelegraph/TradingView

The flattish 20-day EMA ($450) and the RSI near the midpoint suggest that the BCH/USDT pair may remain inside the $419 to $486 range for some more time.

The next trending move is expected to begin on a close above $486 or below $419. If buyers secure a close above $486, the BCH price may start an up move to $520. Alternatively, a close below the $419 support signals the resumption of the next leg of the downtrend toward $375.

Crypto wallet provider Exodus has launched XO Cash, a Solana-based stablecoin and software toolkit designed to let AI agents make payments and access services without directly controlling private keys.

According to Friday's announcement, the system, developed with MoonPay, allows developers to create agent-linked wallets, assign spending limits and issue virtual debit cards tied to Visa payment rails.

XO Cash integrates with Exodus Pay and includes a software development kit that allows users to fund AI agent wallets using their Exodus Pay balances while maintaining custody of their private keys. Users can set transaction caps, merchant restrictions and daily spending limits for each agent wallet.

Exodus said AI agents using XO Cash can transact with Visa merchants through infrastructure provided by Monavate and MoonPay, with payments automatically converted into stablecoins such as USD Coin (USDC) and Tether (USDT) at checkout.

The company added that XO Cash transactions are fee-free and designed for high-frequency automated payments. The stablecoin and developer documentation went live through XOCash.com on Thursday.

Crypto and payment companies prepare for AI-driven commerce

Infrastructure for autonomous AI agents to transact with stablecoins has become one of crypto’s biggest narratives in recent months.

In March, Anchorage Bank launched an “agentic banking” service designed to give AI agents access to traditional financial and crypto payment rails under preset spending and compliance controls.

Visa’s crypto division also introduced Visa CLI, a command-line tool designed to let AI agents make same-day payments without exposing API keys, while Stripe-backed Tempo launched a blockchain-based payments protocol for automated onchain transactions.

On Thursday, Amazon Web Services integrated Coinbase’s x402 payments protocol into Amazon Bedrock AgentCore, enabling AI agents to settle USDC payments on Base and Solana without directly handling private keys.

The shift toward AI-driven operations has coincided with layoffs and restructuring across parts of the crypto and payments sectors.

Coinbase announced it would cut about 14% of its workforce this week as it reorganizes around smaller AI-focused teams and increased automation, while payments company Block said in February it would reduce staff by roughly 40% as the company expanded its use of AI tools.

Source: Brian Armstrong

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Massachusetts Senator Elizabeth Warren called on Meta CEO Mark Zuckerberg to answer questions about the company’s stablecoin integration in 2026, signaling concerns about guardrails.

In a Wednesday letter to Zuckerberg, Warren said Meta’s lack of transparency regarding its stablecoin was “deeply troubling,” given the company’s previous plans to roll out Libra, a global stablecoin proposed in 2019 that was later rebranded to Diem.

The senator said Meta’s plans were necessary for Congress to understand, given the US government’s efforts to pass a digital asset market structure bill with implications for stablecoin issuers.

“It is critical that Meta be transparent with Congress and the public regarding its stablecoin-related plans,” said Warren. “Beyond the failure of its previous attempt to issue its own global private currency, the company has struggled to safely offer its existing products and services [...] Any new products, especially related to payments and financial services, should be treated with skepticism.”

Source: US Senate Banking Committee

The senator asked the Meta CEO to provide details by May 20 on its “small and focused trial” for a stablecoin integration to the platform, including any planned launch date, third-party stablecoins that may be a part of the program and privacy guardrails it may have in place. Meta already rolled out stablecoin payouts in USDC (USDC) for select creators in the Philippines and Colombia in April.

Warren sits on the Senate Banking Committee as ranking member, where she helps oversee financial agencies like the US Securities and Exchange Commission (SEC). The body is currently considering legislation to establish a comprehensive framework for digital assets in the US called the CLARITY Act, which has been stalled in the chamber for months.

Stablecoin yield compromise to advance market structure bill?

Last week, lawmakers in the Senate announced a deal between crypto and banking industry representatives that could allow the CLARITY Act to advance to a markup in the banking committee, and potentially a floor vote in the full chamber.

Although the compromise on stablecoin yield represented progress in advancing the legislation, some crypto advocates urged caution as lawmakers continue to debate other issues in the bill, including ethics and potential conflicts of interest.

Magazine: XRP ‘probably going to $12,’ Bitcoin ETFs add $1B: Market Moves

Bitcoin profit-taking could accelerate as BTC prices climb to three-month highs and investors begin locking in gains, according to Julio Moreno, head of research at onchain analytics platform CryptoQuant.

Holders realized 14,600 BTC in profits on Monday, or $1.1 billion, following Bitcoin's April rally, Moreno said, adding that this is the “highest” single day of profit-taking since Dec. 10, when BTC was trading above $90,000.

Bitcoin holders' realized profits spike after the April rally. Source: CryptoQuant

The Short-Term Holder Spent Output Profit Ratio (STH-SOPR), an onchain metric that gauges profit-taking by wallets that have held BTC for less than 155 days, also rose above 1, a level that indicates “clear profit-taking territory,” he added. He said:

“Bitcoin holders are realizing more than 20,000 BTC in net profits on a 30-day rolling basis, the first positive reading since December 22, 2025, following a period of heavy net losses in February and March that reached as deep as 398,000 BTC.”

Spikes in realized profit levels during crypto bear markets typically signal local price tops or sideways price action, Moreno said, adding that despite the rise in realized profits, demand has not caught up, and BTC remains in a bear market.

The Bitcoin Short-Term Holder Spent Output Profit Ratio signals that short-term holders are realizing profits. Source: CryptoQuant

Bitcoin ETF inflows remain strong, while analysts are divided on market health

Inflows into Bitcoin exchange-traded funds (ETFs) remain strong, with four days of positive inflows this week, according to Farside data.

ETF inflows for the week surged past $1 billion, before an outflow of $268.5 million on Friday, Farside’s data shows.

Analysts remain divided about whether BTC has bottomed out or whether the ongoing bear market will deepen. 

Michael Terpin, an early Bitcoin investor, told Cointelegraph that BTC could bottom out at $57,000 in October 2026. The forecast is based on “historic” price patterns in which BTC hits its cycle low about one year after the cycle top, Terpin said.

There is a “chance” that Bitcoin might reclaim the $100,000 price level in 2026, but the odds are “unlikely,” Terpin told Cointelegraph.

Magazine: Bitcoin will not hit $1M by 2030, says veteran trader Peter Brandt

Institutional capital is flowing back into digital assets, but this cycle looks very different from the last one.

Prediction markets are beginning to attract serious attention from Wall Street, Bitcoin exchange-traded funds (ETFs) are once again seeing large inflows and venture giant a16z is loading up another multibillion-dollar crypto war chest. Meanwhile, traditional banks are quietly accelerating their push into tokenized finance infrastructure.

Taken together, this week’s Crypto Biz points to a broader shift underway across the industry. Crypto companies are no longer just chasing retail traders — they’re increasingly building products for asset managers, banks, hedge funds and institutional investors looking for regulated ways to access digital assets.

Prediction markets court institutional capital

Prediction markets are beginning to attract institutional interest after Kalshi executed what analysts at Bernstein described as the sector’s first bespoke institutional block trade. The transaction involved a custom contract tied to California carbon allowance auctions and was facilitated with liquidity support from Jump Trading.

In a recent note to clients, Bernstein analysts said the trade marks an important step in the evolution of prediction markets from primarily retail-driven speculation into a more mature financial product category. Institutional investors are increasingly exploring event contracts tied to macroeconomic policy, elections and geopolitical developments as hedging tools.

The report also highlighted how regulated infrastructure is becoming a bigger focus for the sector. Kalshi operates under regulatory oversight in the United States, while decentralized rivals have largely grown through crypto-native platforms outside traditional financial rails. Bernstein believes broader institutional participation could eventually push prediction market volumes into the trillions of dollars.

Kalshi’s largest active event contracts. Source: Bernstein

Bitcoin ETFs see $1 billion in inflows as BTC retakes $80,000

US spot Bitcoin ETFs recorded nearly $1 billion in inflows as BTC climbed back above the $80,000 mark, highlighting renewed institutional demand for crypto exposure. 

The inflows marked one of the strongest single-day performances for the ETF sector in recent months and coincided with broader strength across digital asset markets, according to SoSoValue data. 

Analysts believe the ETF demand reflects improving investor sentiment and continued accumulation from institutional buyers using regulated investment products to gain Bitcoin exposure. The latest inflows build on an impressive April, when Bitcoin ETFs pulled in $1.97 billion.

Bitcoin ETF inflows accelerated after BTC reached $80,000. Source: SoSoValue

A16z crypto raises $2 billion for next wave of crypto funding

Andreessen Horowitz’s crypto venture arm, a16z crypto, has raised $2 billion for a new crypto-focused investment fund, marking one of the largest venture capital commitments to the sector in years. 

The fund will target crypto startups spanning blockchain infrastructure, Web3 applications and decentralized finance. It comes as venture activity begins showing signs of recovery after a prolonged slowdown across digital asset markets. While crypto funding remains well below 2021 levels, venture capital continues to invest in early-stage companies building core industry infrastructure.

A16z has remained one of crypto’s most influential venture investors through the market downturn, backing projects across gaming, stablecoins, developer tooling and decentralized networks. 

Source: a16z crypto

Tennessee bankers select Stablecore for digital asset services

The Tennessee Bankers Association has selected Stablecore as its preferred digital asset infrastructure provider, opening the door for roughly 175 member banks to access crypto-related banking services. 

The partnership is focused on helping financial institutions integrate stablecoins, tokenized deposits and other blockchain-based payment tools into their operations.

Stablecore provides backend infrastructure that allows banks to offer digital asset services without building their own crypto technology stack. The company said its platform supports tokenized assets, stablecoin functionality and compliance integrations for regulated financial institutions.

The agreement reflects growing interest among regional and community banks in digital asset infrastructure as traditional finance moves deeper into blockchain payments and tokenization. 

Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Strategy's MSTR stock may rally by over 80% in the coming months despite suffering a $12.54 billion net loss in Q1 2026.

Key takeaways:

Strategy’s MSTR is forming an ascending triangle pattern, pointing to a potential move toward the $350 level.

Canaccord raised its MSTR price target to $224 from $185, citing Bitcoin’s rebound and Strategy’s financing structure.

MSTR's textbook bullish reversal setup targets $350

As of Friday, MSTR was trading inside what appeared to be an ascending triangle, a technical pattern formed when the price prints higher lows beneath a flat resistance zone.

Those higher lows are a sign that buyers are getting more confident. Each time MSTR pulls back, it stops falling sooner than before, showing that buyers are stepping in earlier without waiting for a deeper drop.

MSTR weekly chart. Source: TradingView

Ascending triangles typically resolve when the price breaks above the upper trend line and rises by as much as the structure's maximum height.

Applying this technical rule to MSTR's chart brings its upside target to around $350 in 2026. The upside target, up about 80% from the current price level, aligns with the 0.236 Fibonacci retracement line.

Analyst Kevin Fx said that MSTR may rally to the $250–$300 range, citing an inverse-head-and-shoulders (IH&S) pattern.

MSTR weekly chart. Source: TradingView/Kevin Fx

Conversely, a pullback from the ascending triangle's upper trendline may push MSTR into a multi-week downtrend toward its lower trend line at around $150. A breakdown below $150 risks invalidating the bullish setups altogether.

Canaccord raises its MSTR price target to $224

Earlier this week, Canaccord, a Canada-based investment banking giant, also raised its MSTR price target to $224 from $185, reiterating its Buy rating.

The investment bank pointed to MSTR’s 80% rebound since February, saying the company had weathered another storm as Bitcoin recovered above $80,000 from near $60,000 lows over the same period.

Source: X

Canaccord also highlighted Strategy’s preferred-share financing model, such as STRC, as an important part of that resilience. The product allows the company to raise fresh capital for Bitcoin purchases without relying as heavily on new common-stock issuance.

Issuing more common MSTR shares can dilute existing shareholders. On the other hand, preferred stock gives Strategy another way to fund its Bitcoin accumulation strategy with less pressure on its core equity.

Meanwhile, Strategy has increased its Bitcoin exposure for each shareholder. Despite posting a $12.54 billion Q1 loss, it bought 89,599 BTC in the first three months of 2026, bringing its total holdings to 818,334 BTC at an average cost of $75,537.

Source: X

Its BTC-per-share metric also rose 18% year-over-year, showing the company is adding value to each MSTR share in addition to growing its BTC balance sheet.

Bitcoin (BTC) struggled with an $80,000 reclaim at Friday’s Wall Street open as strong US jobs data added to headwinds.

Key points:

Bitcoin crisscrosses $80,000 as US jobs data notionally reduces the odds of US interest-rate cuts.

US jobs vastly outpace expectations, adding almost twice the anticipated number of jobs in April.

Traders avoid giving up on the local uptrend, seeing a "healthy" support retest.

Bitcoin stays undecided on fate of $80,000

Data from TradingView showed ongoing BTC price volatility as buyers and sellers sparked gyrations around the key $80,000 mark.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

US nonfarm payrolls revealed that the economy added far more jobs than expected in April, despite ongoing inflation pressure thanks to the Iran war.

The Bureau of Labor Statistics reported 115,000 jobs — far beyond the expected 65,000.

“The change in total nonfarm payroll employment for February was revised down by 23,000, from -133,000 to -156,000, and the change for March was revised up by 7,000, from +178,000 to +185,000,” an accompanying news release stated.

“With these revisions, employment in February and March combined is 16,000 lower than previously reported.”

US civilian unemployment rate. Source: BLS

The unemployment rate remained unchanged at 4.3%.

Bitcoin initially fell on the numbers, as outperformance implied less need for the Federal Reserve to relax financial policy.

As Cointelegraph reported, the Fed made it clear at its latest meeting on interest rates that conditions were conducive to tightening, and that rate cuts were unlikely.

The latest data from CME Group’s FedWatch Tool reflected market expectations of a potential rate hike at the Fed’s next meeting on June 17.

Fed target rate probabilities for June 17 FOMC meeting (screenshot). Source: CME Group

BTC price sees "healthy bullish backtest"

Among traders, the mood was one of cautious optimism with acceptance that recent gains may not hold for long.

“Retesting the highs from the previous consolidation,” Daan Crypto Trades summarized in his latest X analysis. 

“Good bounce so far but this is a key level for the bulls to hold.”

BTC/USDT perpetual contract 12-hour chart. Source: Daan Crypto Trades/X

Trading account Cryptic Trades saw Bitcoin retesting its bull market support band, an area formed by two daily moving averages.

“For now, this looks like a healthy bullish backtest before a continuation higher,” it wrote on the day.

BTC/USD one-day chart. Source: Cryptic Trades/X

Earlier, Cointelegraph noted signs that a local top could be in for BTC/USD, notably an “overbought” warning on the relative strength index indicator.

Alex Mashinsky will be representing himself as Celsius executive prepares for sentencing

On Wednesday, lawyers representing Alex Mashinsky moved to withdraw as attorneys in the case, saying that the former Celsius CEO would be “proceeding pro se” — representing himself in court. Mashinsky was sentenced to 12 years in prison for his role in fraud and price manipulation at the crypto lending platform.

Source: PACER

Roni Cohen-Pavon, Celsius’ former chief revenue officer, is scheduled to be sentenced on May 13 after pleading guilty in September 2023. On May 4, US prosecutors recommended that the judge consider Cohen-Pavon’s “substantial assistance” to the government at sentencing, signaling leniency.

Celsius, along with cryptocurrency exchange FTX, filed for bankruptcy in 2022 amid a crypto market downturn that saw the collapse of many companies.

Washington city passes ban on crypto kiosks, Iowa restricts activities

On Tuesday, the city council of Spokane Valley in Washington voted unanimously to approve an ordinance prohibiting virtual currency kiosks and ATMs. The ban, proposed in response to many residents being the victims of crypto-related scams, followed many other jurisdictions passing similar measures.

The ordinance imposes a $250 civil penalty for anyone in noncompliance, and gives officials the authority to revoke the business license of any operator found to be in violation. Entities hosting the kiosks and ATMs have 30 days to be in compliance.

Spokane Valley’s actions preceded Iowa Attorney General Brenna Bird announcing on Wednesday that the state would “establish rigorous oversight for crypto ATMs” in an effort to protect residents from scammers. The law, SF2296, adds crypto kiosks to Iowa’s financial regulatory framework, giving state authorities the ability to impose civil penalties and injunctions on operators.

US authorities request forfeiture of $10 million connected to former FTX CEO

In a Thursday filing in the US District Court for the Southern District of New York, prosecutors overseeing the criminal case against Sam “SBF” Bankman-Fried requested that $10 million in assets recently located be used toward the former FTX CEO‘s forfeiture.

SDNY US Attorney Jay Clayton filed a motion of forfeiture after authorities located $10 million in cash tied to SBF held in an account at Fiduciary Trust Company. According to Clayton, the funds represented “the return of the investment made by [Bankman-Fried] in Semafor.”

Following his conviction and sentence to 25 years in prison, Bankman-Fried was ordered to pay more than $11 billion in forfeiture as part of his role in defrauding FTX users and investors. Clayton said that the judgment “remains unpaid” amid SBF awaiting the result of an appeal.

Bitcoin (BTC) traders expect a short-term correction as a key BTC price strength metric rises to its highest levels in almost fifteen weeks.

Key takeaways:

Bitcoin’s “overbought” RSI historically precedes significant corrections.

Bitcoin could see a short-term price drop if the price breaks below the $78,000 support.

Bitcoin metrics suggest BTC price is “overheated”

Bitcoin’s 36% rally to $82,800 on Wednesday from its macro low of $60,000 has significantly impacted its daily RSI.

On the daily chart, the RSI rose to 70 on Wednesday from local lows of 39 in March. 

“$BTC's daily RSI went overbought right as we tagged the 200-day EMA,” trader Jelle said in a Friday post on X, adding:

“It makes sense to find resistance here.”

BTC/USD weekly chart. Source: Cointelegraph/TradingView

RSI measures trend strength and contains three key levels for observers: the 30 oversold boundary, the 50 midpoint and the 70 overbought threshold.

When the price crosses these levels, depending on the direction, traders can infer about the future of the current trend. After rallies, BTC usually corrects once the RSI enters the overbought territory.

Analyst Crypto Tice said this is a “rare” signal that has occurred only four times over the last year, with every occurrence leading to a “short-term pullback,” adding:

“Overbought conditions on the daily don't resolve sideways. They resolve with a flush.”

Fellow analyst Rekt Fencer pointed out that the “last 2 times this happened, it dumped” 35%-38%, as shown in the chart above.

Meanwhile, Bitcoin’s market value to realized value (MVRV) ratio, which measures whether the asset is overvalued, recently entered the “overheated” zone.

“Bitcoin breaks above the overheated level on the short-term holder Bollinger Bands for the first time since November 2024,” analyst FrankAFetter said in a recent post on X.

The last time it was at similar levels was in November 2024 before a 15% BTC price drop.

Bitcoin  STH MVRV Bollinger Bands. Source: CheckOnChain

Bitcoin support at $78,000 becomes key for BTC price

Bitcoin traders agree that $78,000 has now become an important area of support for BTC/USD.

The 200-day exponential moving average at $83,000 is acting as resistance, while the “first main area of interest sits at $78,000,” analyst Jelle said in an X post on Friday, adding: 

“Turn that into support and we can have another go at the MAs.”

BTC/USD daily chart. Source: X/Jelle

Fellow analyst Tradermayne said holding the support at $78,000-$80,000 on low time frames would give “bulls a very easy bias level.”

BTC/USD weekly chart. Source: Trader Mayne

Orders are sitting on both sides of the spot price, with analyst Master of Crypto seeing the likelihood of these liquidity clusters being taken out.

“$BTC is holding around the $78.5K–$79.1K support zone,” the analyst said in a Friday post on X, adding:

“If buyers defend this area, the next move could be toward $82K–$83K where a lot of liquidity is sitting. But if this support breaks, Bitcoin could quickly drop to $75K–$76K.”

Bitcoin liquidation heatmap. Source: CoinGlass

The Bitcoin liquidity map shows that a correction below $78,000 would trigger over $3.1 billion worth of leveraged long liquidations across all exchanges.

Bitcoin exchange liquidation map. Source: CoinGlass

Decentralized finance protocols are reevaluating their blockchain oracle providers’ security after the fallout from the $293 million Kelp DAO exploit last month. Several protocols have announced migrations to Chainlink infrastructure in recent days, citing security concerns around third-party oracle and bridge providers.

On Thursday, Bitcoin DeFi platform Solv Protocol announced it would migrate to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and replace LayerZero bridges, citing an “extensive security review” concluding that CCIP provided the “strongest security assurances.” 

A day earlier, liquidity protocol Tydro also said it was moving to Chainlink after its previous oracle provider, Chaos Labs, suffered an incident that prompted Tydro to pause markets over concerns about inaccurate price feeds.

The migrations come after an April 18 exploit in which attackers drained 116,500 Kelp DAO restaked ETH (rsETH) tokens worth between $290 million and $293 million. Following the exploit, Kelp DAO also migrated its rsETH token to Chainlink, moving away from its previous LayerZero-powered bridge after attributing the incident to weaknesses in its cross-chain setup.

Source: Solv Protocol

LayerZero, however, said on April 20 that the exploit resulted from a single point of failure in Kelp DAO’s implementation, which relied on a single LayerZero DVN as the only verified path despite prior warnings against that configuration.

DeFi protocols review oracle security after Kelp exploit

The Kelp DAO exploit triggered a “wake-up call” for DeFi providers, according to Zach Rynes, strategic initiatives lead at Chainlink Labs.

Rynes told Cointelegraph that DeFi teams conducting security reviews are increasingly deciding to replace older oracle and bridge systems with Chainlink infrastructure to strengthen baseline security protections, and multiple other DeFi protocols are discussing potential migrations to Chainlink following the exploit.

Oracle providers with long operating histories and strong reliability are becoming increasingly important as hacks continue across the sector, Marcin Kazmierczak, co-founder of RedStone, the fourth-largest blockchain oracle provider, told Cointelegraph, adding that RedStone has also kept a “fully reliable track record.”

Redstone was also contacted by Tydro as an emergency measure after the Chaos Labs oracle attack and provided support to help restore oracle feeds for the protocol.

Source: Redstone

Oracle consolidation raises new questions for DeFi

Following the Kelp DAO exploit, only a smaller group of specialized providers may be able to meet the “demand and reliability requirements” created by growing institutional participation in DeFi, Kazmierczak said.

“A smaller set of trusted oracles is forming in the market,” he said, adding that as capital concentrates around providers with proven track records, the risk of oracle-related exploits could decline.

When asked about the risks of multiple DeFi protocols depending on fewer providers, Rynes said Chainlink’s infrastructure was designed to withstand extreme market conditions.

He pointed to periods including the 2020 Covid market crash, the 2022 FTX collapse and major volatility events in 2025, saying Chainlink continued operating throughout those disruptions.

Nik Kunkel, founder of Chronicle, the second-largest oracle provider, said that an overreliance on a single infrastructure provider will always present additional risks.

“There are risks anytime a large portion of an ecosystem depends on a single piece of infrastructure,” Kunkel told Cointelegraph, adding that reducing those risks also requires data infrastructure to remain independently transparent and verifiable.

Top Oracle providers by market share. Source: DefiLlama.com

Chainlink remains the largest oracle provider with a 58% market share and more than $32 billion in value secured, according to DefiLlama. Chronicle ranks second with $7.6 billion in total value secured, while RedStone holds fourth place with $3.7 billion, representing a 6.7% market share.

Magazine: 53 DeFi projects infiltrated, 50M NEO tokens could be ‘given back’: Asia Express

Estimated losses from global crypto wrench attacks reached $101 million in the first four months of 2026, with most attacks occurring in Europe, according to Web3 security company CertiK.

With just 34 documented crypto wrench attacks, the losses have nearly doubled those of 2025, which came in at $52.2 million. Europe accounted for 82% of incidents, according to CertiK.

“Our 2025 report documented a gradual tilt from Asia and North America toward Europe, and these first four months of 2026 mark a European hyper-concentration.”

The frequency of wrench attacks has increased since 2025. They involve physical force to gain access to a victim’s crypto holdings and have taken the form of home invasions, kidnappings and other extortion attempts. CertiK said there have been 34 attacks since the start of the year.

If the trend continues, CertiK predicts that by year-end the number of incidents could hit 130, and losses could reach “several hundred million dollars.”

There have been 34 verified wrench attacks worldwide since the start of the year. Source: CertiK 

France is an epicenter of wrench attacks

Of the attacks, 24 crypto wrench attacks occurred in France this year, said CertiK. France’s National Prosecutor's Office for Organized Crime has reported a higher figure of 47 incidents in 2026.

CertiK said France has likely emerged as a hot spot for these kinds of criminals because of the presence of crypto executives from major crypto companies such as Ledger, Paymium and Binance.

Crypto holders in France are being targeted more than anywhere else in the world. Source: CertiK 

It also pointed to numerous data leaks, such as the January breach at crypto accounting firm Waltio and tax official Ghalia C, who is accused of selling crypto asset holder data to criminal networks, and “a culture of flexing and voluntary doxxing that remains deeply embedded in the community.”

“Early 2026 marks the shift to a data-driven targeting model in which prior physical surveillance becomes unnecessary once attackers have the victim's full name, home address, financial profile, and so on.”

“The structural takeaway is clear: as the security of protocols and wallets tends to improve, the threat migrates toward the human link. As long as crypto-asset holdings remain associated with identifiable financial data, physical coercion will remain the economically most rational attack path,” CertiK added.

Blockchain intelligence company TRM Labs reported in May last year that wrench attacks have been on the rise because of the perceived pseudonymity of crypto transactions, the public visibility of wealth, and the ease with which bad actors can gather personal data online.

The criminal teams are often “complete amateurs”

Across recorded wrench attacks, CertiK said the orchestrators are often located outside the target country. The criminal teams on the ground usually consist of three to five people, and they frequently pose as delivery drivers or police officers, or lure victims into an ambush with a ruse such as a fictitious business meeting.

“Most of the time, they are recruited via messaging apps such as Telegram or Snapchat for a few thousand dollars. They don't know each other and are complete amateurs,” CertiK added.

Meanwhile, Casa chief security officer Jameson Lopp has recorded 31 crypto wrench attacks so far this year and reported in March that four cases he was tracking for his list turned out to be mistaken identity, with the thieves attacking the wrong targets. 

Source: Jameson Lopp

In April, at least 88 people, including 10 minors, were indicted in connection with alleged wrench attacks on crypto owners in France.

“The growing proportion of minors signals an increasing externalization of criminal liability toward profiles less exposed to mandatory minimum sentences,” CertiK added.

Magazine: DeFi’s billion-dollar secret: The insiders responsible for hacks 

Cybercrime detectives in Australia seized 52 Bitcoin valued at 5.7 million Australian dollars ($4.1 million) in what they said is one of Australia's largest crackdowns on an illegal darknet marketplace using cryptocurrency. 

Strike Force Andalusia, a division of the State Crime Command’s Cyber Crime Squad, said they seized $4.1 million worth of cryptocurrency and arrested two suspects related to a darknet marketplace operating from Ingleburn in Sydney following a 15-month investigation, the New South Wales Police Force said Wednesday.

Police said two men, aged 41 and 39, allegedly had access to the cryptocurrency wallet. The 41-year-old is scheduled to appear in Campbelltown Local Court on May 13, while the 39-year-old is due in Batemans Bay Local Court on June 15.

Detectives executed a search warrant at a home in Ingleburn on May 4, where they seized electronic devices and allegedly uncovered 52.3 Bitcoin that police will allege are proceeds of illegal darknet activity.

The operation marks one of the largest reported darknet-related cryptocurrency seizures in Australia. It comes five years after Victoria Police seized cryptocurrency worth $6.2 million from an illegal darknet operation in August 2021, reported local news outlet 9News.

“This is one of the biggest cryptocurrency seizures in the nation’s history and a clear reminder that criminal activity on the darknet is not anonymous,” said Detective Superintendent Matt Craft, adding that dark net marketplaces remain “a key enabler of serious criminal activity.”

Cointelegraph approached NSW Police to ask whether investigators had obtained access to seed phrases or otherwise recovered control of the seized Bitcoin.

Cybercrime squad detectives seize crypto wallets belonging to alleged darknet marketplace operators. Source: NSW Police

Australia steps up AML supervision for crypto platforms

The seizure comes as Australia’s financial intelligence and Anti-Money Laundering regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has stepped up the supervision of the country’s digital asset sector.

On Friday, AUSTRAC said it launched two campaigns focused on virtual asset service providers (VASPs) offering over-the-counter crypto-to-cash services and local exchanges operating in the country.

As part of the reform, Australia also adopted the internationally used VASP term, replacing the previous narrower definition of digital currency exchanges (DCE).

The campaigns seek to assess and improve AML risk management within Australia’s virtual asset sector. It involves AUSTRAC engaging with 36 crypto businesses and 27 local crypto exchanges to revise and improve business models and the management of AML risks.

“AUSTRAC is checking how well crypto businesses in Australia are managing money-laundering risks, ahead of major new laws coming into force,” said AUSTRAC’s CEO, Brendan Thomas.

Australia has also passed the Corporations Amendment (Digital Assets Framework) Act 2026, which received Royal Assent on April 8 and will bring digital asset platforms and tokenized custody platforms into the financial services licensing regime from April 9, 2027.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Coinbase became the latest crypto company to cut its workforce on Tuesday, as a wave of layoffs sweeps through an industry navigating a down market and the pressure to embrace AI.

CEO Brian Armstrong said the company is using AI to flatten its organizational structure, with managers expected to act more like "player-coaches."

"AI is bringing a profound shift in how companies operate, and we're reshaping Coinbase to lead in this new era. This is a new way of working, and we need to leverage AI across every facet of our jobs," Armstrong said in an email to employees, also shared on X on Tuesday.

Armstrong's memo outlined three sweeping changes to how Coinbase will operate. Source: Brian Armstrong

Block and Crypto.com have made similar moves in recent months, citing AI-driven efficiency gains that allow leaner teams to handle what once required larger headcounts.

Coinbase and Crypto.com cut about 700 and 180 employees respectively. Jack Dorsey’s Block handed out 4,000 pink slips in February to reduce the company to under 6,000 employees.

Crypto has weathered several bear markets before, and layoffs have always followed. But this time, the companies doing the cutting are using the downturn to rebuild with AI at the center.

Coinbase misses Q1 expectation

Coinbase’s Tuesday filing with the Securities and Exchange Commission detailed that the exchange expects its restructuring plan to cost up to $60 million in expenses tied to severance and termination benefits.

Clear Street analyst Owen Lau told CNBC that Coinbase wants to “tell investors that management is actively managing the cost base to deliver positive adjusted EBITDA through the cycle.”

“The first quarter results are expected to be weak because of the crypto bear market,” added Lau.

On Thursday, Coinbase reported a weaker-than-expected first-quarter loss as falling crypto prices dragged down spot trading revenue. The exchange posted a net loss of $1.49 per share on $1.41 billion in revenue, missing analyst expectations while transaction revenue fell short amid weaker trading activity.

The underperformance isn't specific to Coinbase, as Bitcoin lost 21% of its value in Q1. Across the tech industry, headcounts that ballooned during the bull run are now coming back down, with executives increasingly pointing to AI as the catalyst.

Bitcoin has been in the red for two consecutive quarters but showed signs of recovery in April. Source: Coinglass

Whether AI is the real driver or a convenient explanation depends on who you ask. Speaking at the recent Semafor World Economy conference, Scale AI CEO Jason Droege pushed back on the idea of AI presenting a “white-collar apocalypse,” arguing that many companies are using the technology as cover.

“A lot of the layoffs that are happening right now because of AI, if you really dig in, it’s sort of like washing the layoffs,” Droege said. “A lot of these companies are saying it’s because of AI, but a lot of it is just like rightsizing and they need an excuse.”

AI leads job cut reasoning for second consecutive month

According to jobs tracker Layoffs.fyi, the global tech industry in 2026 Q1 had the most layoffs since 2023 Q1, with more than 81,747 people losing their jobs. March was hit the hardest, with 45,800 layoffs in the month.

Tech layoffs surged in early 2026, marking the industry’s highest quarterly job cuts since 2023. Source: Layoffs.fyi

The slowdown has continued into the first month of this quarter. According to a Thursday report from outplacement firm Challenger, Gray & Christmas, US employers announced 83,387 job cuts in April, up 30% from the 60,620 cuts recorded in March. 

AI led all reasons for job cuts in April for the second consecutive month, though it is not the leading cause for the year so far. Market conditions led with 53,058 cuts, followed by closings at 52,187.

"Technology companies continue to announce large-scale cuts and are leading all industries in layoff announcements. They are also often citing AI spend and innovation. Regardless of whether individual jobs are being replaced by AI, the money for those roles is," said Andy Challenger, chief revenue officer at Challenger, Gray & Christmas.

Crypto has always been cyclical, but the framing around this wave of cuts looks different from the last major downturn. During the 2022–2023 crypto crash, companies were largely reacting to collapsing token prices, the fallout from FTX and balance sheets strained by aggressive bull-market hiring.

This time, executives are increasingly presenting layoffs as proactive restructuring tied to AI adoption and operational efficiency. 

Both Dorsey and Armstrong signalled that their companies remain well-capitalized, framing the cuts as deliberate attempts to flatten corporate structures rather than emergency survival measures.

Same playbook, new reason

Crypto recoveries have come fast, and when they do, businesses often enter hiring sprees to expand during the bull market. Coinbase has been here before. It cut 18% in 2022, then hired aggressively when prices rebounded.

This time, Armstrong is betting the AI-native model means he won't have to.

Kraken was making the same argument in October 2024, when it slashed 15% of its workforce.

In a blog post, co-CEOs Arjun Sethi and Dave Ripley said the exchange had "fallen into the trap of building organizational layers" and needed to become "leaner and faster" by giving power back to individual contributors over managers.

The language is similar to Armstrong's and Dorsey's memos. The difference is, Kraken didn't mention AI.

Leaner teams, flatter structures, faster decisions. Crypto has been here before, but AI is the latest reason why.

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026

European Central Bank (ECB) President Christine Lagarde said stablecoins are not an efficient way to strengthen the euro’s international role, pushing back against calls for Europe to respond to US dollar-backed stablecoins with euro-denominated tokens.

Speaking Friday at the Banco de España LatAm Economic Forum in Roda de Bará, Spain, Lagarde made several comments on the role of stablecoins in the European economy. “It is no longer about whether stablecoins should exist, but whether jurisdictions can afford to be without them,” she said, arguing that the case for promoting euro stablecoins becomes less clear once their two core functions are separated.

“The benefits attributed to them [stablecoins] rest on two distinct functions — a monetary function and a technological function — that are systematically conflated in the current debate,” Lagarde said.

The speech lays out one of Lagarde’s clearest arguments yet against treating euro stablecoins as Europe’s answer to US dollar-backed stablecoins, which currently dominate the market with a roughly 98% share. The US has been promoting dollar stablecoins as a way to support the US dollar as a global reserve currency. Instead, she said Europe should build tokenized financial infrastructure anchored by central bank money, including the Eurosystem’s Pontes project for wholesale settlement and the Appia roadmap for an interoperable European tokenized finance ecosystem.

Monetary function: Possible upside, but clear trade-offs

However, Lagarde said that euro-denominated stablecoins operating under the European Union’s Markets in Crypto-Assets Regulation (MiCA) “could generate additional global demand for euro-area safe assets.”

She stressed that this comes with significant trade-offs, including financial stability risks such as fund runs and reserve fragility, and weaker monetary policy transmission if deposits move out of banks.

Source: Christine Lagarde

Lagarde pointed to the 2023 collapse of Silicon Valley Bank, when Circle’s USDC stablecoin briefly fell below its peg after revealing exposure to the bank, as an example of how quickly confidence can weaken.

She said such episodes show how redemption pressures can spill into underlying asset markets and, as stablecoin use grows, create feedback loops between redemptions and prices, particularly where issuers are not banks.

Technology function: Stablecoins are not the only solution

On the technology side, Lagarde acknowledged the role of stablecoins in cross-jurisdictional financial market infrastructure that is accessible “without relying on a maze of legacy intermediaries.”

However, she said that this technological function is not unique to stablecoins. Other forms of tokenized money, including commercial bank deposits or central bank money, could perform the same role within distributed ledger systems, Lagarde said.

“The answer [...] does not lie in rejecting technology or discouraging stablecoins altogether. Instead, we must build the public infrastructure that will enable alternative instruments, such as stablecoins and other forms of tokenised money, to operate within a framework anchored by central bank money.”

Lagarde said the EU response is to facilitate wholesale settlement in central bank money through its Pontes project, which links distributed ledger platforms to the Eurosystem’s existing settlement infrastructure, allowing DLT-based transactions to be settled directly in central bank money.

She added that the Appia roadmap, published in March, goes further and outlines a plan for a fully interoperable European tokenized financial ecosystem by 2028.

“Europe knows which port it is sailing to,” she said, adding: “Our task is not to replicate instruments developed elsewhere, but to build the foundations and the infrastructure that serve our own objectives, so that we can harness the benefits of innovation without importing the fragilities.”

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026