Market Commentary

May marked Bitcoin’s strongest monthly performance of the year, gaining 14% and reaffirming its resilience amid global macroeconomic headwinds. The asset dipped as low as $74,000, a level last seen in November 2024, amid escalating trade tensions and tariff-related uncertainties. However, sentiment quickly reversed as investors sought refuge from volatility in traditional markets, pushing Bitcoin to close the month at $94,000. In contrast, Ethereum record edits fifth consecutive month of negative returns, underlining its relative underperformance and ongoing structural challenges.

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Bitcoin’s behavior diverged meaningfully from U.S. equity indices, showing signs of decoupling and reduced correlation, a dynamic increasingly observed as institutional narratives shift toward Bitcoin as a macro-hedge. Institutional flows reflect this transition, with global crypto investment products attracting $3.4 billion in net inflows for the month. Notably, Sui’s ecosystem outperformed the broader altcoin market, driven by increased developer activity and user adoption. Meanwhile, Grayscale renewed its push for Ethereum staking ETF approval, as the SEC deliberates on frameworks for staking-based products, and Morgan Stanley confirmed plans to offer crypto trading via E*Trade, marking another step in Wall Street’s progressive integration of digital assets.

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Market Outlook

All eyes turn to the May 7 FOMC meeting, where markets await clearer signals on U.S. monetary policy. While no rate change is expected, forward guidance may prove pivotal for risk sentiment across asset classes. For Ethereum, attention centers around the PECTRA upgrade, with key scalability and privacy improvements under discussion. Vitalik Buterin’s proposals, including a potential migration from EVM to RISC-V architecture, suggest Ethereum is entering a decisive phase in its roadmap toward greater efficiency and throughput.

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Regulatory clarity is also gaining momentum. With Mark Uyeda formally assuming his role as SEC Chair, the tone in Washington appears to be shifting. Uyeda has proposed recognizing state-chartered trusts as qualified custodians for crypto, a move that could significantly broaden access for investment advisers. Stablecoin legislation is also expected to take shape in the coming weeks, while additional spot ETF applications for altcoins may gain traction under the new SEC leadership.

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Disclaimer: This content is for educational and informational purposes only and does not constitute trading, legal, or investment advice. It is directed at our followers in Switzerland and may not represent the views of FiCAS. The author may hold assets mentioned in this article and assumes no obligation or responsibility for any actions taken based on the information provided.

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