TL;DR

Bitcoin rebounds after $600M liquidations; BlackRock shifts ETF flows; stablecoins hit $250B market cap.

Highlights

• • Bitcoin dipped below $104,000 amid $600M liquidations and U.S.-China trade tensions; rebounded above $105,000. Ethereum fell to $2,577 1.
• BlackRock saw its largest BTC ETF outflow (4,100 BTC), but bought 27,700 ETH; May BTC ETF net inflows hit $5.25B, outpacing gold ETFs 2.
• Strategy (MicroStrategy) now holds 580,000 BTC ($60B); Trump Media and GameStop announced large BTC purchases; Tether aims to become largest BTC miner 34.
• Pakistan to establish a strategic Bitcoin reserve and 2,000MW mining operation, despite IMF objections; Tether expands mining and holds 100,000+ BTC 4.
• Stablecoin market cap reached $250B (all-time high); Tether at $153.7B, USDT added $5B in May, FDUSD up 16% 6.
• BNB Chain led May DEX volume at $178B, driving a $474B industry total; DEX/CEX spot volume ratio at ATH 7.
• Hyperliquid approaches $1B TVL, launches fiat-backed stablecoin, and leads DeFi perpetuals with 71% market share 8.
• Ethereum Layer 1 to scale 10x in throughput within a year, per Vitalik Buterin 17.
• Sui community approved $162M in token recovery after Cetus hack; May saw $244M in hack losses, but 71% recovery rate 512.
• Yuga Labs sold Moonbirds NFT IP to Orange Cap Games; Moonbirds floor up 36% 9.
• Crypto gaming studios face shutdowns amid funding pressures; sector pivots to AI and alternative models 12.
• Public companies bought 95,000 BTC in Q1; Bitcoin exchange reserves hit new lows as whales accumulate 1819.

Commentary

Markets opened June with elevated volatility as Bitcoin briefly fell below $104,000, triggering over $600 million in liquidations, largely attributed to renewed U.S.-China trade tensions 1. Despite the drawdown, Bitcoin quickly rebounded above $105,000, with data showing increased accumulation by large holders 118. Ethereum also posted a weekly decline but remains in focus after Vitalik Buterin announced plans for a 10x Layer 1 throughput upgrade within a year, which could improve network competitiveness and impact DeFi and NFT activity 117.

Institutional flows remain robust: BlackRock’s IBIT ETF recorded its largest single-day outflow, ending a long inflow streak, but net Bitcoin ETF inflows for May totaled $5.25 billion—outpacing gold ETFs 2. The shift was partially offset by BlackRock’s significant Ethereum purchases and speculation around ETH staking ETFs 2. Corporate adoption continues, with Strategy (MicroStrategy ) holding 580,000 BTC and new allocations announced by Trump Media, GameStop, and Tether, the latter also ramping up mining operations 34. Pakistan’s move to establish a national Bitcoin reserve and mining program, despite IMF pushback, underscores growing sovereign interest 4.

On-chain activity is strong. BNB Chain led decentralized exchange (DEX) volumes in May, contributing to a $474 billion industry total 7, while Hyperliquid’s TVL nears $1 billion and its new fiat-backed stablecoin aims to capture idle liquidity 8. Stablecoins reached a $250 billion market cap, with Tether dominating issuance and Solana seeing $250 million minted daily 6. Security remains a concern—May saw $244 million in hack losses—but with improved recovery rates, as seen in the Sui/Cetus incident 512.

NFT and gaming sectors are mixed. Yuga Labs’ sale of Moonbirds IP and the resulting price surge contrast with widespread crypto gaming studio shutdowns, as teams pivot to AI or hybrid models amid funding constraints 912. Public companies’ continued Bitcoin accumulation and record-low exchange reserves signal persistent long-term demand, even as some large-cap tech firms (Meta, Microsoft) reject Bitcoin treasury proposals 141819.

Traders should monitor Bitcoin ’s support above $104,000, ETF inflow/outflow trends, Ethereum ’s scaling roadmap, and sector-specific flows in DeFi, stablecoins, and NFTs. Volatility remains high, with leverage and macro headlines driving short-term moves 111.