This week’s highlights: Notcoin (NOT) drops 50% after its airdrop launch; spot Bitcoin (BTC) ETFs rebound, recovering April’s losses; the crypto industry sees a surge in regulatory actions.
Notcoin Drops 50% After Launch
The Notcoin project launched recently. Before this, the team announced a halt on direct exchange deposits starting May 14, planning to resume them after NOT’s listing on May 16.
The listing happened soon after, with support from major exchanges like Binance, ByBit, Gate.io, and OKX. However, NOT’s value plummeted by 55% as miners rushed to sell their shares.
Over 500,000 Notcoin miners and airdrop recipients sent 1 billion NOT tokens, worth $6.8 million, to a public address belonging to Telegram founder Pavel Durov as a thank-you gesture.
Spot Bitcoin ETFs Recover April’s Losses
The spot Bitcoin ETF market had a positive start last week, with $66 million in net inflows on May 13. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the way with $38.6 million in new investments.
A filing with the U.S. SEC revealed that the Wisconsin Investment Board holds a total of $162.4 million in the two largest spot Bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC) and the BlackRock iShares Bitcoin Trust (IBIT).
On the second day of the week, the spot ETF market saw another $100 million in inflows. GBTC experienced $50.9 million in outflows, while the ARK 21Shares Bitcoin ETF (ARKB) had the highest inflow at $133.1 million.
The market continued to see inflows, totaling $303 million on May 16, the highest since May 3. This trend lasted throughout the week, resulting in five consecutive days of inflows, adding up to $948.3 million.
Bloomberg ETF analyst Eric Balchunas reported that the ETF market saw $1.3 billion in inflows over two weeks, offsetting the previous month’s losses. He expects this positive trend to persist.
Uncertainty Over Ethereum ETF
Balchunas also suggested that the U.S. SEC might never approve a spot Ethereum ETF due to its unclear status as a commodity or security.
Meanwhile, there’s strong interest in spot Bitcoin ETFs. K33 Research analyst Vetle Lunde reported that 937 institutions had invested $11 billion in spot Bitcoin ETFs by March 31.
Bitcoin Reaches $67k Amid Market Rebound
The crypto market rebounded last week, though early-week prices were unfavorable. Galaxy Digital CEO Mike Novogratz predicted that Bitcoin could still hit $75,000 during this period of consolidation.
Following the release of U.S. CPI data on May 15, Bitcoin and the wider market bounced back. The global crypto market cap rose to $2.5 trillion on May 16.
Bitcoin climbed past $66,000 during the uptrend but didn’t provide significant gains for short-term holders. The rebound was also boosted by news of CME planning to launch Bitcoin trades.
BTC hit the $67,000 mark on May 17 for the first time this month. However, Chainlink (LINK) was the top performer that day, rallying 20% thanks to a partnership with DTCC.
As of May 19, Bitcoin is trading at $66,576.70.
Global Enforcement Actions
Last week saw significant enforcement actions. Chinese authorities arrested six people linked to an illegal crypto trading scheme worth $300 million.
A U.S. court ordered the seizure of 279 cryptocurrency accounts connected to North Korea, handing them over to U.S. authorities due to links to crypto theft.
In the Netherlands, three judges sentenced Tornado Cash developer Alexey Pertsev to 64 months in prison after finding him guilty. Pertsev is appealing the decision, with some industry commentators arguing it’s unfair to penalize someone for developing code.
The U.S. Department of Justice arrested two brothers, Anton and James Pepaire-Bueno, for stealing $25 million in crypto assets within 12 seconds using MEV bots on Ethereum.
On May 16, the U.S. Senate voted 60 to 38 to repeal the SEC’s Staff Accounting Bulletin (SAB) No. 121. The resolution, H.J. Res. 109, received bipartisan support, with 11 Democrats joining nearly all Republicans in rejecting the rule, despite opposition from Democratic leaders.
Summary Review: The past week has been eventful for the crypto market. Notcoin experienced a significant price drop following its airdrop, highlighting the volatility in new token launches. On a more positive note, spot Bitcoin ETFs saw substantial inflows, recovering from April’s losses and suggesting growing institutional interest in Bitcoin. However, the uncertainty around the approval of a spot Ethereum ETF by the U.S. SEC remains a concern. Bitcoin showed resilience, rebounding past $67,000 amid a broader market recovery, although short-term gains were limited. Chainlink also stood out with impressive gains due to strategic partnerships. Regulatory and enforcement actions were prominent, with significant developments in China, the U.S., and the Netherlands, indicating increased global scrutiny of the crypto industry. These actions underscore the ongoing challenges and regulatory pressures facing the market. As the crypto landscape continues to evolve, these events highlight both the opportunities and the regulatory hurdles that lie ahead for investors and stakeholders.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
