Trading Desk Insights
Bitcoin punches through a new all-time high of $112,000, extending its multi-week grind higher on the back of accelerating institutional inflows and a surge in corporate adoption. The macro backdrop has added fuel to the rally—easing U.S.-China trade tensions and Moody’s downgrade of U.S. sovereign credit have helped reframe BTC as a serious alternative to traditional stores of value. Historically correlated with risk assets, Bitcoin now appears to be charting its own course as equities wobble and capital searches for safe havens.
ETF flows continue to validate the trend. U.S.-listed Bitcoin ETFs have only seen two days of outflows in May, with $1.6 billion in net inflows over the past week alone, and $4.24 billion month-to-date. Since January, public company holdings of BTC have jumped 31% to an estimated $349 billion, now accounting for roughly 15% of total circulating supply. No surprise then that Bitcoin is up 18% year-to-date.
In the derivatives market, bullish positioning is running hot. Open interest is stacked at the $110K, $120K, and $130K strikes, with traders also taking moonshots at $300K calls, underscoring aggressive upside expectations and strong conviction across the curve.
Elsewhere in DeFi, Cetus Protocol—the flagship DEX on the Sui network—was exploited for $260 million. The attacker deployed spoofed tokens to manipulate pool pricing and drain reserves, forcing a halt in trading and wiping out liquidity. Another stark reminder of the risks tied to unvetted smart contracts.
On the macro front, Trump’s tax bill cleared the House, giving Republicans a critical win. The bill, which could add nearly $4 trillion to the deficit, now heads to the Senate. The move rattled bond markets, sending U.S. Treasury yields higher as fiscal concerns re-emerge following Moody’s downgrade of U.S. credit.
The News Room
GENIUS Act Advances in Senate; Blockchain Certainty Act Reintroduced
On May 21, the U.S. Senate approved a motion to proceed with the GENIUS Act, a bill aimed at regulating stablecoins by enforcing strict reserve requirements and compliance with anti-money laundering and know-your-customer protocols. The legislation also includes provisions to restrict large technology companies from issuing stablecoins. Despite earlier delays due to political concerns, the bill has gained bipartisan support and is now open for formal debate and amendments. Simultaneously, the House has reintroduced the Blockchain Regulatory Certainty Act, which seeks to provide legal clarity for blockchain developers and service providers.
Texas House Passes Strategic Bitcoin Reserve Bill
The Texas House of Representatives passed Senate Bill 21 on May 21 with a 101–42 vote, aiming to establish a state-level strategic Bitcoin reserve. The bill proposes creating a special fund to hold Bitcoin in cold storage for at least five years, positioning the cryptocurrency as a state asset to enhance economic resilience and diversify investment strategies. The legislation, co-authored by Sen. Charles Schwertner and Rep. Giovanni Capriglione, now awaits the governor's decision.
BPI Releases Policy Manifesto Advocating U.S. Leadership in Bitcoin Infrastructure
The Bitcoin Policy Institute (BPI) has published a policy manifesto urging the United States to take a leading role in Bitcoin infrastructure. The document outlines a three-pronged approach: integrating Bitcoin into the U.S. economic and geopolitical strategy, providing regulatory clarity for technology developers and businesses, and redefining Bitcoin mining within energy and infrastructure policies. BPI's framework aims to guide policymakers in understanding the legal, regulatory, and geopolitical aspects of Bitcoin.
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