Crypto Rally Running Out of Fuel?

DAILY MARKET OVERVIEW

Momentum Is Fading Fast

👋 Hey, Crypto Enthusiasts! BTC has dropped below $80k, let’s explore what happened.

🔻 The latest selloff came after President Donald Trump warned of possible military action against Iran if peace negotiations fail, sending oil prices higher and reigniting fears that inflation could stay elevated for longer.

⚠️ And there are further growing concerns in crypto as well:

• Bitcoin ETFs saw close to $1 billion in net outflows last week

• Coinbase Premium Index is deeply in the red again, confirming lower interest from US investors

• Michael Saylor bought $2bil in BTC yet price declined

• Recent reports showed entities like Harvard University continued reducing crypto exposure, cutting IBIT holdings by 43% while fully selling its $87 million Ethereum ETF position

• Growing concerns surrounding the upcoming SpaceX IPO in June potentially draining even more liquidity from crypto markets

• The US dollar looks ready for another breakout higher, something that historically pressures risk assets

📈 Bitcoin had a very strong April and beginning of May, however it is entirely possible that move was simply a relief rally rather than the start of a sustainable new bull market.

And now, heading into the summer season, conditions could become even more difficult.

• Summer periods are often associated with lower liquidity and weaker trading activity, which tends to negatively impact speculative assets the most.

So the risk of a broader bear market continuation is clearly rising.

🐻 For the moment, we remain bearish on crypto.

THIS NEWSLETTER IS BROUGHT TO YOU BY:
OPENWALLET

Next-level security for your digital assets

Experience top security with Open Wallet. Your wallet blends user-friendliness with strong security.

SOCIAL SENTIMENT

The Last Coin Standing 🟢 

Hyperliquid has been one of the strongest performers in the market, even through the recent broader decline.

It has maintained a steady uptrend since January, which is notable given current market conditions.

But why ⁉️ 

💪 There are a few key drivers behind this strength:

• A real product with sustained demand and consistent development

• Growing ecosystem integrations, including links with Circle and Coinbase

• HYPE ETFs launched

• Rising interest in on chain RWA trading

• Increasing interest in pre-IPO style markets such as SpaceX

• And most recently, the founder’s push toward regulated U.S. market access

Hyperliquid founder Jeff Yan met U.S. policymakers to push for regulated onchain derivatives access during progress on the Clarity Act, aiming to bring the platform into compliance for U.S. users.

Although traders may see regulation for a DEX as negative other argue that regulation may reduce some retail usage but unlock far larger institutional demand from hedge funds and asset managers, potentially boosting liquidity, volume, and revenue significantly.

That’s why HYPE is one of the most watched projects right now, showing strong momentum and real strength even in tough market conditions.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Verus Bridge Exploit Drains Over $11 Million
The Verus-Ethereum bridge suffered a major exploit after attackers drained millions in ETH, tBTC, and USDC before converting funds through Tornado Cash-linked wallets.

Japan’s Biggest Brokers Prepare Crypto Investment Trusts
SBI and Rakuten are building in-house Bitcoin and Ethereum investment products as Japan moves closer toward approving crypto ETFs and trusts.

OpenSea Sees Pokémon Cards and Rolexes Driving NFT Revival
OpenSea says the next NFT wave will focus on tokenized collectibles, tickets, gaming assets, and AI-powered digital ownership instead of speculation.

21Shares Hyperliquid ETF Hits Record Trading Day
21Shares’ Hyperliquid ETF posted its strongest inflows yet after Coinbase became Hyperliquid’s official USDC treasury deployer.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Bitcoin: Psychology of a Bear Market (18.05.2026 Summary)

Benjamin Cowen says Bitcoin’s recent rally still looks like a normal bear market bounce, not the start of a new bull run.

Key Points

• Cowen says bear markets often trap both bulls and bears because prices can rise for months before falling again

• He compares the current market to 2014, 2018, 2019, and 2022, where Bitcoin had strong rallies before making new lows

• Bitcoin is again struggling near the 200-day moving average, a level that stopped rallies in past bear markets

• He says previous bear market rallies often reached the 0.382 Fibonacci retracement level before reversing lower

• June has historically been a major turning point for Bitcoin, either marking a temporary top or bottom

• Cowen expects Bitcoin could still decline into Q4 2026, similar to past midterm-year cycles

• He believes another stock market correction later this year could push Bitcoin into a second major selloff

• Cowen also notes Bitcoin has underperformed gold, stocks, and energy markets this year despite recent rebounds

Final Takeaway
Cowen believes the current rally may simply be another convincing bear market bounce before Bitcoin eventually moves lower later in the year.

CoinBureau – Europe’s Plan to Crush Tether (18.05.2026 Summary)

Coin Bureau says Europe is trying to reduce the power of Tether because dollar stablecoins strengthen US financial dominance.

Key Points

• Every time people buy USDT, Tether buys more US Treasuries, increasing global demand for the US dollar

• Tether reportedly holds around $141 billion in US government debt, making it one of the world’s biggest Treasury holders

• Europe fears people and businesses could increasingly use dollar stablecoins instead of euros, weakening Europe’s monetary control

• The EU’s MiCA rules were designed to limit non-euro stablecoins like USDT through reserve requirements and transaction caps

• Under MiCA, large dollar stablecoins can be forced to stop issuing tokens inside Europe if activity becomes too high

• Exchanges like Coinbase, Binance, and Kraken already reduced or removed USDT access for European users

• Europe’s bigger goal is building a digital euro system controlled by the European Central Bank instead of private stablecoins

• At the same time, the US is supporting stablecoins because they increase demand for US debt and strengthen dollar dominance

• Circle and USDC are benefiting because they follow regulations, while Tether remains the main target due to its offshore structure and independence

Final Takeaway
Coin Bureau believes stablecoins are becoming part of a global financial power struggle, with Europe trying to slow dollar dominance while the US pushes it further through crypto.

CRYPTO MEMES

HELP US IMPROVE

WE ALSO READ