Highlights

• Bitcoin surged to $97,500, liquidating $55M in shorts and pushing market dominance above 65% as traders positioned ahead of the Fed's interest rate decision; ETH/BTC ratio hit a five-year low.1
• Ethereum ’s Pectra upgrade went live, doubling blob capacity and reducing L2 transaction costs by 50%, with major exchanges supporting the upgrade and 87.7% of liquidations being shorts.2
• Japanese firm Metaplanet bought 555 BTC ($53.4M) using $25M in 0% bonds, raising its holdings to 5,555 BTC and signaling continued corporate treasury adoption.3
• Tether expanded USDT to KaiaChain with LINE NEXT, Kraken listed omnichain USDT0, and Chainalysis compliance tools were integrated for institutional oversight; BitGo Europe emphasized regulated custody services.4
• HTX listed the Trump-backed USD1 stablecoin (BNB Chain), offering zero trading/withdrawal fees and launching a WLFI airdrop; USD1 is now integrated with Lista DAO’s vaults.5
• SUI token maintained price above $3, ranking #13 by market cap, with bullish sentiment and growing DeFi/memecoin activity post-Basecamp event.6
• China’s PBOC cut the reserve requirement ratio by 0.5% and policy rates by 10bps, injecting ¥1 trillion liquidity to support credit and property markets amid trade tensions.7
• U.S. and China scheduled high-level trade talks in Switzerland (May 9–12), prompting a 1% rally in S&P futures and a 3% rise in Brent crude on hopes of de-escalation.89
• Argentina informally legalized dollar use up to $100,000, fostering dollarization and potentially impacting local crypto adoption.11
• EU is preparing €100B in retaliatory tariffs on Boeing jets if trade talks with the U.S. fail, escalating transatlantic trade risks.14
• North Korea quadrupled artillery shell production and expanded missile capabilities, with exports reportedly supporting Russia’s war in Ukraine.17
• OpenAI will reduce Microsoft ’s revenue share to 10% by 2030, projecting “hundreds of billions” in revenue, signaling ongoing AI sector restructuring.13

Commentary

Crypto markets are riding a wave of macro and sector-specific catalysts. Bitcoin 's sharp rally to $97,500, driven by short liquidations and anticipation of the Fed’s rate decision, has pushed its dominance to multi-year highs, squeezing altcoins—most notably Ethereum , whose ETH/BTC ratio hit a five-year low.1 However, the successful Ethereum Pectra upgrade, which slashes L2 costs and improves scalability, could mark a turning point for ETH and the broader DeFi ecosystem, particularly as Layer 2s become more cost-competitive and user-friendly.2

Stablecoin infrastructure continues to evolve rapidly. Tether ’s expansion to KaiaChain and Kraken’s listing of omnichain USDT0 highlight ongoing innovation in cross-chain liquidity and compliance, while the listing of the Trump-backed USD1 stablecoin on HTX and its integration with Lista DAO point to the growing intersection of politics, stablecoins, and DeFi.45 These moves could further entrench stablecoins as the backbone of on-chain liquidity, especially in Asia and emerging markets.

Macro policy shifts are a key backdrop. China’s liquidity injection and rate cuts, coupled with upcoming U.S.-China trade talks, have buoyed risk assets globally, as evidenced by equity and oil rallies.789 These developments could support risk-on sentiment in crypto, especially if trade tensions ease. Meanwhile, Argentina’s informal dollarization and Japan’s Metaplanet doubling down on BTC reserves underscore the global search for alternatives to local fiat and the growing institutionalization of crypto treasuries.311

For traders, the immediate focus should be on the Fed’s policy signals and the outcome of U.S.-China trade talks, both of which could trigger volatility across digital assets.18 Watch for a potential rotation into altcoins if Bitcoin dominance peaks and ETH’s network upgrades drive renewed interest.2 Stablecoin flows, particularly into Asia and DeFi, remain a bellwether for broader adoption trends.45 Geopolitical risks, from EU-U.S. trade friction to military escalations, could inject headline-driven volatility, but for now, crypto markets appear to be tracking global risk sentiment higher.1417 Stay nimble, monitor cross-asset correlations, and be alert for sector rotation opportunities as macro and on-chain narratives converge.