Bitcoin dipped below $73,000 amid escalating conflict in the Middle East
๐ฅ On May 28, BTC fell to $72,804 โ the lowest level since mid-April. Market pressure intensified following reports of new U.S. strikes on military targets in Iran.
Later, the price partially recovered: ๐ฅ BTC โ around $73,000 โจ ETH โ ~$1984 (-4.7% in 24 hours)
๐ In the last 24 hours: ๐ต the crypto market lost about $80 billion in market cap ๐ต liquidations exceeded $932 million ๐ต the fear and greed index dropped to 22 โ the extreme fear zone
๐ Mott Capital founder Michael Kramer suggested BTC could further drop to $70,000.
๐ According to him, additional pressure will come from liquidity extraction from the U.S. financial system. In the coming days, the U.S. Treasury will conduct settlements on debt obligations of about $150 billion, which may reduce the amount of capital available for risk markets.
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Crypto funds are ramping up their influence on US politics ahead of the elections
โ๏ธ The crypto industry is actively pumping money into American politics ahead of the 2026 Congressional elections.
๐ According to CoinDesk, crypto-related funds and companies have already funneled over $320 million to support loyal candidates. The political focus of the industry is increasingly shifting towards the Republicans.
1๏ธโฃ The key player is the Fairshake committee.
๐ The organization is actively participating in primaries and financing candidates who support the crypto industry. In Texas alone, Fairshake invested $6.5 million in the campaign of Christian Menefee, who defeated well-known crypto critic Al Green.
๐ Special attention has been drawn to the Fellowship fund, linked with Tether and Cantor Fitzgerald. It allocated $500,000 to back Ken Paxton in his run for a US Senate seat.
๐ค Analysts estimate that the reserves of crypto-political committees already exceed $245 million.
โก๏ธ The crypto industry is increasingly transforming into a full-fledged political force in the US, and the influence of major crypto companies on elections is becoming comparable to traditional lobbying groups.
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๐ The total asset value is estimated at $12.3 billion.
๐ BitMine's chairman, Tom Lee, stated that the drop of ETH below $2200 presented a solid opportunity to pump up their position. He continues to anticipate a 'supercycle' for the crypto market and Ethereum.
โ Key drivers include: ๐ต tokenization of Wall Street assets ๐ต development of AI agents ๐ต growth of Ethereum's infrastructure
โ๏ธ The company isn't just HODLing ETH; they're actively sending coins to staking.
๐ช Currently, about 4.71 million ETH is staked. According to BitMine, this could generate up to $276 million in annual revenue at current yields.
โ๏ธ The firm also confirmed its goal to increase its Ethereum holdings to 5% of the total coin supply.
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Co-founder of Bankless sold part of his ETH and questioned Ethereum's future growth
๐น Co-founder of Bankless David Hoffman trimmed his position in ETH and stated he no longer expects a global revaluation of Ethereum. In his view, the market has already given ETH the price it deserves.
โ๏ธ However, Hoffman emphasized that his outlook on Ethereum itself remains bullish. The issue, in his opinion, is different: the ecosystem is growing, but the main value is shifting away from ETH and towards applications, L2, and third-party projects.
Main points:
๐ต Ethereum is creating infrastructure ๐ต Ethereum is providing security ๐ต Ethereum is developing DeFi
๐ But most of the profits and market cap growth are distributed throughout the ecosystem, rather than being concentrated within ETH itself.
โ Hoffman referred to Ethereum as a "giving, not taking" asset.
โ๏ธ He also noted the dominance of stablecoins:
๐ The volume of stablecoins on the Ethereum network has grown from ~$3 billion in 2020 to over $160 billion now.
๐ However, according to him, this primarily strengthens the dollar's position rather than ETH as a monetary asset.
๐ In his view, the crypto market has failed to maintain a positive public image after the 2021 cycle, and the industry continues to be associated with speculation, hacks, and high volatility among the general public.
โก๏ธ Despite selling part of his ETH, Hoffman stated he remains optimistic about the Ethereum ecosystem and is simply reallocating capital to other market opportunities.
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The market cap of stablecoins has surpassed the reserves of 95 countries
๐ The total market cap of stablecoins has hit a historic high, reaching $323 billion.
๐ผ For comparison โ this is more than the currency reserves of 95 nations, including: ๐ต the UK ๐ต Canada ๐ต the UAE ๐ต Poland ๐ต Thailand ๐ต Mexico
๐ณ Currently, only 14 countries have reserves exceeding the stablecoin market. Among them:
๐ The growth has been ongoing for several months: ๐ต March โ $312 billion ๐ต April โ $317 billion ๐ต May โ $323 billion
โก๏ธ Meanwhile, about 99% of the entire market is occupied by dollar-pegged stablecoins โ USDT and USDC. The share of euro-pegged stablecoins remains minimal โ just 0.3%.
๐ฆ The BIS (Bank for International Settlements) noted that stablecoins are increasingly being used not only in crypto but also for international transfers โ especially in countries with high inflation and unstable currencies.
โ๏ธ However, regulators are already seeing risks: rapid capital outflows through blockchain could increase pressure on the economies of developing nations and provoke weakening of national currencies.
๐ In fact, the stablecoin market is gradually turning into a separate financial system with volumes on par with the largest countries.
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Could Ethereum drop to $1000? Analysts Warn of Risks
๐น Ethereum continues to face pressure following Vitalik Buterin's statements about a shift in the Ethereum Foundation's strategy.
โ๏ธ What's happening?
๐ The Ethereum Foundation plans to reduce its influence within the ecosystem and focus solely on key development areas of the network. According to Buterin, the foundation holds only ~0.16% of the ETH supply and should become a "more compact structure." Meanwhile, Vitalik himself continues to hold about 90% of his capital in Ethereum.
๐ What does the market say?
๐ Analyst Ali Martinez notes that ETH has been stuck in a prolonged sideways range since 2021, and a recent attempt to break above the 200-week moving average has failed. The key support level is currently around ~$1850.
โก๏ธ Possible scenario: ๐ต Losing the $1850 level could accelerate the decline ๐ต The nearest target is ~$1560 ๐ต The main bearish target is around ~$1070
๐ฏ Despite this, the analyst does not consider opening shorts. Instead, he plans to use any potential drop to gradually build a position using a DCA strategy.
๐ What does ETH need for a comeback?
For Ethereum to restore its bullish structure, it needs to: ๐ต Reclaim the ~$2500 level ๐ต Establish above resistance at ~$3100
๐ Until that happens, the market maintains a cautiously bearish sentiment.
Built-in private transactions may be coming to Ethereum
๐น Ethereum developers have proposed to implement EIP-8182 in the upcoming Hegota update, expected in the second half of 2026. This new mechanism will allow for private transfers of ETH and ERC-20 directly at the base layer of the network. A secure pool is planned to be created using Groth16 zk-proofs.
โก๏ธ Key points: ๐ต private transfers without third-party mixers ๐ต support for regular addresses and ENS ๐ต no admin keys or ability to halt contracts ๐ต a unified privacy system for wallets and applications
๐ According to developers, current mixers suffer from low liquidity and fragmentation, which keeps the level of anonymity weak. The new standard aims to tackle this issue through a shared user pool.
๐ฏ The Hegota update also aims to include: ๐ต EIP-8141 ๐ต EIP-8250
โ๏ธ These are related to improving the mechanics of fee payments when withdrawing funds.
๐ Ethereum is increasingly betting on privacy. Vitalik Buterin has previously referred to confidentiality as "the foundation of freedom," and the Ethereum Foundation assembled a dedicated team of 47 specialists back in 2025 to develop privacy solutions within the network.
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Quantum companies are skyrocketing after the US support announcement
โ Stocks from the quantum computing sector have surged after the US Department of Commerce announced a $2 billion allocation under the CHIPS R&D program.
๐ฏ The main beneficiary could be IBM โ the company expects to secure up to $1 billion for the development of quantum manufacturing in New York. An additional $1 billion is planned to be invested by IBM itself.
๐ The list of potential funding recipients also includes: ๐ต GlobalFoundries ๐ต PsiQuantum ๐ต Quantinuum ๐ต Atom Computing ๐ต D-Wave ๐ต Rigetti ๐ต Diraq
๐ญ Notably, Google, Microsoft, and IonQ did not make it into this funding round.
โก๏ธ US authorities stated that the program is aimed at bolstering the country's leadership in quantum technologies and enhancing national security.
โ๏ธ The market continues to pump the theme of quantum computing โ especially in light of discussions about the future of AI and potential threats to modern cryptography.
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