Crypto Assets Market Dynamics: Bitcoin Short-term Pullback but Long-term Outlook is Optimistic, Institutional Investors Become Major Buying Force

Market Observation

Recently, the U.S. stock market has shown strong performance, despite facing potential trade frictions. The Nasdaq Index and the S&P 500 Index rose by 9.9% and 6.2% respectively this month, marking the best monthly performance in nearly a year and a half.

Bitcoin dropped below $105,000 this morning, with $359 million flowing out of Bitcoin spot ETFs, indicating a cooling of short-term market sentiment. However, the long-term bullish sentiment remains strong, with some analysts predicting that Bitcoin's price could exceed $170,000 by the end of 2026. Michael Saylor, the founder of a certain company, also holds an optimistic view, believing that companies incorporating Bitcoin into their balance sheets have a 90% success probability within five years.

Regarding Ethereum, although the recent price has pulled back after reaching $2788, some analysts expect it could touch historical highs of $4000 to $5000 within this year. Other predictions suggest that the price will reach $4000 by 2025 and rise to $7500 by 2029. Currently, Ethereum needs to increase by 85% to break through the historical high of $4878 from 2021.

Institutional investors are becoming an important force in the Bitcoin market. A certain asset management giant has called for allocating 2% of investment portfolios to Bitcoin, triggering a new round of institutional allocation frenzy. Analysts believe that as institutional funds flow in, Bitcoin is becoming an important asset in the global capital market. Some companies started their Bitcoin investment strategies as early as 2020, and their holdings have now reached 580,000 coins, with stock prices increasing 12 times over four years. In the Asian market, a well-known company in Hong Kong has accumulated 1,110 Bitcoins and 14,855 Ethereums, with holding profits exceeding $48 million, and stock prices have risen by 449% this year.

The altcoin market has recently shown new hotspots and pullbacks. A certain plush toy has gone viral in the international market, driving the market value of related tokens to surpass 60 million USD, with an increase of nearly double within 24 hours. In addition, a certain information tokenization protocol project has seen a surge in popularity, with its upcoming Initial Attention Offering becoming the focus of market attention.

It is worth noting that a certain bankrupt exchange is expected to initiate the debt repayment process around May 30, which may release about $5 billion in stablecoin liquidity back into the market, potentially resonating with Bitcoin ETF funds and bringing new liquidity support to the market.

Key Data

• Bitcoin: $106,130 (Year-to-date +18.39%), Daily spot trading volume $36.871 billion
• Ethereum: $2,635.64 (Year-to-date -21.17%), daily spot trading volume is $21.445 billion
• Fear and Greed Index: 76 (Greed)
• Market Share: BTC 63%, ETH 9.5%
• 24-hour BTC long-short ratio: 0.9531
• 24-hour liquidation data: A total of 190,866 people were liquidated globally, with a total liquidation amount of 656 million USD.

ETF Flows

• Bitcoin ETF: -$359 million (10-day net inflow ends)
• Ethereum ETF: +$91,929,900 (net inflow for 9 consecutive days)

Today's Outlook

• A certain platform will launch a new project Assisterr AI (ASRR)
• Reminder: A certain bankrupt exchange will distribute over $5 billion in stablecoins to creditors on May 30.
• Treasure Chain will officially shut down on May 30th. Users need to migrate their assets as soon as possible.
• Multiple projects will unlock tokens in the near future, including Renzo, Kamino, Optimism, Sui, ZetaChain, and dydx.

Hot News

• A well-known investor's Bitcoin long position worth $100 million has been liquidated.
• The CEO of a stablecoin issuer revealed that the company holds over 100,000 Bitcoins and 50 tons of gold.
• The U.S. SEC released a policy statement regarding staking activities on PoS networks, clarifying that three types of staking activities do not constitute securities issuance.
• A certain NFT trading platform officially launched the fully upgraded OS2 platform, which will airdrop SEA coins.
• SOL Strategies invested 4.7 million dollars to purchase 26,478 SOL, and has now liquidated all Bitcoin holdings.