Bitcoin Momentum Into Mid-May

DAILY MARKET OVERVIEW

Can BTC Continue to Rise?

👋 Hey, Crypto Enthusiasts! Whale activity rises while Saylor’s possible BTC sales divide the market. Let’s explore!

Bitcoin whales on Hyperliquid have pushed their net long positions to the highest level of 2026, showing growing confidence from large players despite ongoing uncertainty across global markets.

📈 BTC rallied close to $83K after comments from Trump suggested the U.S. may be getting closer to a deal with Iran.

• The news sent oil prices lower while risk assets like crypto moved higher.

• Still, traders remain cautious, with many not fully convinced that meaningful progress is actually happening.

On Polymarket, odds of a peace deal happening within the next week currently sit at just 16%, while the chances of a deal by the end of the month are around 30%. That suggests confidence in a real breakthrough is still relatively low.

Another major topic this week continues to be Strategy and the growing discussion around STRC.

• Michael Saylor recently said the company will “probably” sell some bitcoin in the future to help pay dividends tied to STRC.

• While Strategy still plans to increase its total bitcoin holdings over time, the comments marked a noticeable shift from Saylor’s previous stance that the company would never sell BTC.

That change has sparked debate across crypto communities. Some traders believe this is simply part of a smarter long-term capital strategy, while others worry it could weaken the narrative around Strategy being one of Bitcoin’s strongest holders that never sells.

Critics on X have even started calling STRC a potential ponzi scheme, though supporters argue the structure is sustainable as long as Bitcoin continues trending higher.

For now, attention is turning toward the next STRC dividend deadline on May 15. Due to that we expect continued buying pressure and strength in BTC heading into mid-month.

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SOCIAL SENTIMENT

AI Stocks the New Meme Coins?

While crypto is finally showing signs of life again, many traders are finding the biggest opportunities elsewhere:

AI 🤖 

Over the past few months, AI-related stocks have been moving with the same kind of momentum that meme coins used to have during peak crypto cycles.

Sandisk is one of the clearest examples, rallying more than 3,000% in a year as AI demand created a massive shortage in memory and storage infrastructure.

But it’s not just Sandisk.

Traders are also piling into names tied to AI compute, power, semiconductors, and infrastructure:

• AMD and Micron continue ripping after strong AI-driven earnings

• CoreWeave has become one of the hottest AI infrastructure trades

• Korean AI supply chain stocks like SK Hynix and Samsung are surging as memory demand explodes

• Even older names like Intel are catching momentum again because of growing demand tied to AI agents and data centers

Some traders are now comparing these moves to the meme coin environment from previous crypto cycles:

Fast narrative rotations, Parabolic price action, Retail momentum chasing headlines

📈 Stocks moving 20-30% in days

The difference is that many of these companies are actually reporting massive revenue growth and real demand, something meme coins rarely had.

At the same time, crypto traders are still watching Bitcoin closely. BTC remains strong, and selective altcoins like ZEC and Ton are starting to outperform again.

But for now, the market’s biggest momentum trade is increasingly AI, with traders treating AI infrastructure stocks the way they once treated high-beta crypto narratives.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

TrustedVolumes Hit by $5.9M Exploit
A liquidity provider tied to 1inch suffers a major attack, adding to growing concerns around DeFi infrastructure security.

White House Targets July 4 Crypto Bill
The U.S. administration pushes for landmark crypto legislation as debates over ethics and stablecoin rules intensify.

Aave Completes Kelp Exploit Liquidation
Aave finalizes liquidation of attacker positions in a coordinated DeFi recovery effort involving hundreds of millions in support.

Bitcoin Core Quietly Fixed Major Bug
Developers patched Bitcoin’s first major memory safety vulnerability months ago, though many nodes may still remain exposed.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Bitcoin Bear Goggles (07.05.2026 Summary)

Benjamin Cowen says Bitcoin’s current rally still looks like a typical bear market bounce rather than the start of a new bull cycle.

Key Points

• Cowen believes Bitcoin entered a bear market after the Q4 2025 top

• Current price action still resembles past midterm-year cycles like 2014 and 2018

• Bitcoin formed a February low and a higher low in late March, similar to previous bear market patterns

• He says rallies above the bull market support band and toward the 200-day moving average are common during bear markets

• Bitcoin dominance continues rising, showing altcoins remain weak and retail interest is still low

• Cowen expects another move lower later this year, with October remaining his main target window

• He says long countertrend rallies are normal and do not automatically confirm a new bull market

Final Takeaway
Cowen remains cautious on Bitcoin despite the rally. His view is that the market still fits historical bear market behavior, and he expects another major test of lows before a true recovery begins.

CoinBureau – JPMorgan’s Desperate Move Exposed: Clarity Act Fallout (07.05.2026 Summary)

Coin Bureau says the latest CLARITY Act compromise could be a major turning point for stablecoins and DeFi in the US.

Key Points

• The new proposal bans passive “bank-style” stablecoin yield but still allows staking, liquidity, trading rewards, and cashback incentives

• Coinbase, Circle, and Ethena are seen as key winners under the updated rules

• Major banking groups are lobbying against the bill, warning stablecoins could pull money out of banks

• Coin Bureau argues banks are worried because tokenized finance is becoming real competition

• The bill also protects non-custodial DeFi developers from being treated as financial intermediaries for simply publishing code

• Supporters believe this could help bring crypto development back to the US

• May 21 is viewed as the critical deadline before the bill risks major delays

Final Takeaway
Coin Bureau believes the CLARITY Act is shaping up as a direct fight between banks and crypto. If passed, it could create the first real legal framework for stablecoins and DeFi growth in the US.

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