TL;DR

Fed eases crypto curbs; Bitcoin tops $108K; U.S. plans direct Bitcoin accumulation.

Highlights

• Fed Chair Powell signaled rollback of 2022 crypto restrictions, opening U.S. banks to crypto services; stablecoins described as “mainstream.”117
• Bitcoin rallied above $108,000, hitting a one-week high; market dominance rose to 61.7%; exchange balances at record lows.211
• White House official disclosed U.S. government plans to accumulate Bitcoin , a first for direct sovereign holdings.20
• Crypto funds saw 10th consecutive week of inflows; Bitcoin ETFs gained $589M in a day, Ethereum funds also strong.18
• Ether whales accumulated ~$800M post-dip; SharpLink Gaming became the largest public ETH holder with 188,478 ETH.1214
• Invesco and Galaxy filed for a spot Solana ETF, marking the ninth such application to the SEC.7
• Guotai Junan won Hong Kong’s first full-scope crypto license for a mainland-backed broker, driving up crypto-related stocks.3
• South Korea’s top banks formed a consortium to issue a won-backed stablecoin, aligning with central bank digital currency goals.5
• Mastercard and Chainlink partnered to enable on-chain crypto purchases for over three billion cardholders; LINK token jumped.9
• Coinbase plans to launch perpetual futures for U.S. customers, expanding its derivatives offering.8
• U.S. Secret Service, aided by Coinbase , seized a record $225M in stolen USDT tied to a 2023 scam.4
• Venture capital surged into prediction markets: Kalshi raised $185M, Polymarket set for $200M+ round.1516
• Russian rouble-pegged stablecoin A7A5 moved $9.3B since February, facilitating cross-border payments outside Western oversight.10
• Kaspersky identified “SparkKitty” malware targeting crypto wallet seed phrases in Apple and Google app stores.19

Commentary

U.S. regulatory sentiment toward crypto is shifting, with Fed Chair Powell’s comments signaling a softening stance and potential for banks to re-enter crypto services, especially around stablecoins117. The White House’s disclosure of a Bitcoin accumulation plan, though lacking specifics, adds to the narrative of growing official acceptance20. These developments may encourage further institutional participation and could support continued inflows into regulated crypto products.

Bitcoin ’s rally above $108,000 and rising dominance reflect both renewed institutional demand and tightening market structure, as exchange balances—especially on Binance—hit new lows211. The 10th consecutive week of crypto fund inflows, and robust ETF activity for both Bitcoin and Ethereum , confirm sustained appetite from both retail and institutional investors18. Meanwhile, Ether is seeing significant spot and OTC accumulation, with public companies like SharpLink Gaming expanding their treasuries and whales deploying capital after recent volatility1214.

Layer 1 interest is broadening: Invesco and Galaxy’s spot Solana ETF filing, record SOL deposits on Hyperliquid, and continued stablecoin issuance on Solana and Tron highlight growing institutional and retail activity outside Bitcoin and Ethereum 76. The expansion of stablecoins also has a geopolitical angle, with South Korea’s bank-led won tokenization and Russia’s rouble-pegged A7A5 facilitating cross-border transactions beyond Western controls510.

TradFi-crypto integration is accelerating as Mastercard and Chainlink roll out on-chain crypto purchases for billions of cardholders, and Coinbase prepares to launch perpetual futures in the U.S.98. Venture capital is also flowing into DeFi infrastructure, with nearly $400M raised by prediction market operators Kalshi and Polymarket1516. Security remains a persistent concern, with the SparkKitty malware campaign underscoring ongoing risks for retail users19.

Traders should monitor policy updates, ETF flows, and institutional positioning, as well as the impact of new fiat onramps and derivatives offerings. Security diligence remains essential, especially as mainstream adoption increases.