Market highlights
- Bitcoin whales are selling their bitcoin and accumulating at slower rates.
- More than US$1.3 billion worth of BlackRock IBIT ETF shares sold in dark pool transaction.
- The U.S. CFTC approved the first regulated bitcoin perpetual futures contract on Kalshi.
- Ethereum treasury firm, SharpLink Gaming, will join the Russell 2000 and 3000 indexes.
- Sui network suffered a two-day outage due to a software bug.
- Crypto market maker Wintermute has expanded into liquidity for prediction markets.
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Macro market overview
Despite continued macroeconomic and geopolitical uncertainty, the S&P 500, Nasdaq and Dow Jones finished the week at record highs. The gains were presumably due to renewed artificial intelligence (AI) optimism and strong earnings growth, even with oil prices fluctuating continuously since late February. Over the weekend, the U.S. and Iran reportedly agreed to a 60-day memorandum of understanding to maintain a ceasefire. The particulars of the agreement are presumably still being negotiated as attacks continue across the Middle East. Oil prices declined to a low of US$86 on Sunday, May 31 but have since increased on the uncertainty.
In economic data, U.S. preliminary gross domestic product for the quarter ending March 31, 2026 came in under forecast at 1.6%. The core personal consumption expenditures index also came in below forecast at 0.2%. In contrast, the U.S. ISM manufacturing purchasing managers index (PMI) came in above forecast at 54. These figures point to potential economic slowdown, though underlying manufacturing demand remains stable.
U.S. Treasury yields continued to decline this week. The 30-year yield is just under 5%, while the ten-year yield and two-year yield are trading around 4.5% and 4%, respectively. CME's Fed Watch tool puts the likelihood of rates staying on hold at the U.S. Federal Reserve's June 17 meeting at 99.4%.
This week, market participants will presumably monitor developments in the Middle East, the ISM services PMI on Wednesday, June 3, and the U.S. non-farm employment change for May on Friday, June 5.
Weekly performance: S&P 500 +1.4%, Dow Jones +0.9%, Nasdaq +2.4%.
Looking ahead:
- U.S. ISM services PMI - Wednesday, June 3
- U.S. non-farm employment change - Friday, June 5
Crypto Market Performance
Market Cap: $2.43T (-2.56%)
Sector performance continued from last week's trend, where AI and financials saw growth, while other sectors declined. Risk-off sentiment throughout the week was presumably due to uncertainty over U.S.-Iran tensions, particularly as the U.S. launched further strikes on Iran, despite reports of a 60-day memorandum of understanding to maintain a ceasefire. Crypto exchange-traded fund (ETF) outflows are adding to the sell pressure, with liquidations nearing US$1 billion in one day on Wednesday, May 27. The crypto fear and greed index has returned to fear territory at 31.
Bitcoin (BTC)
- Opened the week at US$76,975 and declined to a weekly low of US$72,364 on Friday, May 29 on geopolitical tensions and continued ETF outflows. Bitcoin has since declined further and is now trading around US$71,280 (-7.7% 7D).
- BTC dominance ranged between 59.6% and 60.6% this week.
- Bitcoin investment products saw outflows of US$1.4 billion.
Bitcoin whales are selling their bitcoin and accumulating at slower rates. On-chain data shows behaviour similar to patterns seen during the 2022 bear market, with the one-year change in whale balances being negative. Analysts say declining whale participation may signal growing caution, suggesting reduced conviction that could contribute to weaker market momentum.
More than US$8 million worth of bitcoin was permanently destroyed after five addresses sent 107 BTC to a well-known burn address. Analysts believe the burn was intentional, potentially linked to privacy concerns, protest activity, or an attempt to erase access to funds. The incident highlights bitcoin's unforgiving design: transactions are irreversible, and coins sent to inaccessible addresses are removed from circulation forever.
The U.S. Commodity Futures Trading Commission approved the first regulated bitcoin perpetual futures contract, allowing prediction market platform Kalshi to list its BTCPERP product. The decision brings a popular crypto derivative previously dominated by offshore venues into the U.S. regulatory framework. Kalshi has also filed to launch perpetuals for several altcoins, including Ethereum, Solana and Dogecoin.
In bitcoin buying (and selling) news:
- Strategy sold 32 BTC (US$2.5 million), bringing its total holdings to 843,706 BTC at an average purchase price of US$75,699. It's the first time the company has sold its BTC holdings since 2022, sparking sell pressure for bitcoin due to the concern that further sales will occur to fund its ongoing dividend obligations. This week, the company reduced its cash reserves by 61% to repurchase US$1.5 billion of outstanding debt.
Past performance is not a reliable indicator of future results.
Ethereum (ETH)
- Opened the week at US$2,097 and declined to a weekly low of US$1,963 on Thursday, May 28 on U.S.-Iran tensions. Ethereum is now trading around US$2,000 (-4.9% 7D).
- Ethereum dominance ranged between 9.8% and 10% this week.
- Ethereum-focused funds saw outflows of US$257 million.
Ethereum treasury firm, SharpLink Gaming, will join the Russell 2000 and 3000 indexes from June 29. The company holds 874,351 ETH, worth around US$1.8 billion. The development follows the announcement that BitMine will join the Russell 1000 index from June 26.
In Ethereum buying news:
- BitMine bought 112,000 ETH (US$237 million), its biggest ETH buy yet, followed by a further 26,497 ETH on Monday, June 1. The company now holds over 5.4 million ETH, worth US$10.9 billion and equating to almost 4.5% of supply.
Past performance is not a reliable indicator of future results.
Altcoins
The altcoin season index is currently 39, which is bitcoin season.
Stellar performance
- Stellar gained 64.2%. The network saw gains due to U.S. clearing giant, DTCC, announcing that Stellar will be the first public blockchain to connect to the firm's upcoming tokenised securities settlement platform. The platform is expected to launch in H1 2027.
Keep rockin' in the AI world
- Worldcoin gained 30.9%. The gains came due to the company announcing that World ID users will be able to access 2-for-1 tickets to Thirty Seconds to Mars' 2027 tour.
- Artificial Superintelligence Alliance (FET) gained 18.6%. The decentralised AI network saw gains due to a rotation into AI-focused networks, its updated alliance roadmap with concrete shipments, and market participants front-running the next stage of the alliance's rebrand from FET to ASI.
Fruitful DeFi gains
- Injective gained 23.8%. The DeFi layer-1 network saw gains on Binance adding weekly staking for U.S. users and Pineapple Financial's launch of its intended US$100 million Injective Digital Asset Treasury.
- Hyperliquid gained 21.2%, rallying to a fresh all-time high of US$73.50 on Monday, June 1. The decentralised exchange saw gains on continued institutional buying, the CFTC's approval of regulated perpetuals on Kalshi, strong ETF inflows and the network's tokenomics, where 99% of trading fees are used to buyback HYPE tokens.
Sui stalls
- Sui declined by 15.4%. The losses are presumably due to the two-day network outage caused by a software bug that brought transaction processing to a halt while raising fresh reliability concerns. The cryptocurrency is down 83% from its January 2025 all-time high of US$5.35.
Crypto ETF News
Digital asset investment products saw outflows of almost US$1.7 billion, marking a third consecutive week of outflows as U.S.-Iran tensions drive caution amongst investors.
In altcoins, XRP, Hyperliquid and Near saw inflows of US$20.3 million, US$10.8 million and US$7.6 million, respectively.
More than US$1.3 billion worth of shares in BlackRock's spot bitcoin ETF, iShares Bitcoin Trust (IBIT), changed hands in a large dark pool transaction on Tuesday, May 26. Dark pool transactions typically occur so large institutional holders can sell without causing significant price fluctuations.
Other crypto news
- US Treasury Secretary Scott Bessent said the U.S. has seized roughly US$1 billion in cryptocurrency linked to Iran as part of its "Operation Economic Fury" sanctions campaign. Bessent claimed authorities have directly taken control of Iranian crypto wallets and said the broader effort is aimed at cutting off Tehran's access to overseas revenue, banking networks and digital assets.
- Blockchain infrastructure firm Paxos secured U.S. Securities and Exchange Commission registration as a clearing agency, allowing it to settle securities transactions using blockchain technology. The approval marks a significant regulatory milestone for tokenised finance, enabling Paxos to expand its post-trade settlement services.
- Crypto market maker Wintermute expanded into prediction markets, becoming a liquidity provider for platforms including Kalshi and Polymarket. The move aims to improve market efficiency and trading depth as prediction markets gain mainstream attention. Wintermute argued these markets are evolving into valuable forecasting tools, while growing institutional participation signals increasing confidence in the sector's long-term potential.
- Mastercard secured a New York BitLicense, enabling it to expand its digital asset offerings, including stablecoin and tokenised deposit initiatives. The approval strengthens Mastercard's position in blockchain-based payments and settlement infrastructure, allowing the payments giant to work more directly with regulated crypto products.
- Digital banking firm SoFi Technologies launched its SoFiUSD stablecoin on the Ethereum and Solana blockchains, marking its return to crypto after scaling back digital asset services in 2023. The dollar-pegged token is designed to support payments, transfers and future blockchain-based financial products.
- Cash App added support for stablecoins, marking a notable shift for a platform closely associated with bitcoin advocate Jack Dorsey. The move sparked debate among bitcoin maximalists, some of whom criticised stablecoins as unnecessary intermediaries. Supporters argued the addition improves payment flexibility and broadens access to digital dollars.
from Caleb & Brown Cryptocurrency Brokerage.
