Kelvin Daminabo
Last week in the crypto space, Notcoin (NOT) experienced a sharp 50% drop following its airdrop launch. Meanwhile, spot Bitcoin (BTC) exchange-traded funds (ETFs) recovered from April’s losses with notable inflows as the market bounced back. Regulatory actions increased, underscoring the tightening scrutiny from authorities. Despite these challenges, the market displayed resilience, hinting at potential recovery across various assets. It’s crucial to remain updated on market trends, regulatory changes, and emerging opportunities in the dynamic crypto environment.
Binance Executive Denied Bail in Nigeria
In Nigeria, a court refused bail to Tigran Gambaryan, a Binance executive accused of money laundering and tax violations amounting to $35 million. Gambaryan, who serves as the head of financial crime compliance at Binance, faces these charges and is currently in custody since late February. His trial began on May 17, 2024, with the Economic and Financial Crimes Commission and the Federal Inland Revenue Service leading the prosecution. This case highlights the enhanced scrutiny on cryptocurrency firms and their executives globally.
Notcoin Debut Marred by Steep 50% Price Drop
- Notcoin’s launch coincided with halting direct exchange deposits on May 14, with plans to resume after the May 16 listing. Despite debuting on major exchanges like Binance, ByBit, and OKX, Notcoin plummeted by 55% as miners sold their allocations, resulting in 1 billion NOT tokens sent to Telegram founder Pavel Durov.
- Following an 80.2 billion NOT token airdrop to TON community miners on May 16 by the play-to-earn blockchain project Notcoin, recipients expressed excitement and gratitude. They sent 1 billion NOT tokens to Pavel Durov in appreciation, showcasing the project’s community-driven nature.
- Shortly after airdropping 80.2 billion NOT tokens to TON community miners, Notcoin got listed on major exchanges but faced a 55% price crash due to rapid allocation selling by miners, indicating market volatility and sell pressure.
- Over 500,000 Notcoin miners and airdrop recipients collectively sent 1 billion NOT tokens ($6.8 million) to Pavel Durov, acknowledging his support and contribution, underscoring the community’s role in driving initiatives in the crypto sector.
Bitcoin ETFs Rebound, Recoup April Losses
- Spot Bitcoin ETFs saw a strong start with $66 million in net inflows on May 13, notably driven by Fidelity’s Wise Origin Bitcoin Fund (FBTC). The ETF market observed consistent inflows totaling $948.3 million for the week, with ARKB leading with $133.1 million inflow.
- Wisconsin Investment Board invested $162.4 million in spot Bitcoin ETFs, split between the Grayscale Bitcoin Trust (GBTC) and BlackRock iShares Bitcoin Trust (IBIT), showcasing institutional investor interest in Bitcoin and the industry’s growing mainstream acceptance.
- Inflows into the spot ETF sector spiked with $100 million on the second day of the week. Despite GBTC experiencing outflows, ARKB’s robust $133.1 million inflow indicated changing investor sentiments and a rising demand for Bitcoin ETF exposure.
- On May 16, spot ETFs witnessed a notable surge in net inflows totaling $303 million, the highest since May 3. This trend persisted through the week, with five consecutive days of inflows summing up to $948.3 million, reflecting a strong investor appetite for Bitcoin ETF exposure.
- With $1.3 billion in inflows over two weeks, Bloomberg’s Eric Balchunas noted a complete offset of April’s losses in the ETF market. This positive momentum signifies growing investor confidence, hinting at potential growth in the ETF arena.
ETF Market Rebounds with $1.3B Inflows
- Bloomberg’s Eric Balchunas speculated on the SEC’s potential reluctance to approve a spot Ethereum ETF, given uncertainties around Ethereum’s classification as a commodity or security. This ambiguity may delay regulatory decisions, hampering investor access to a spot Ethereum ETF.
- Reports indicated substantial institutional interest in spot Bitcoin ETFs, with 937 institutions investing $11 billion by March 31 according to K33 Research analyst Vetle Lunde. This keen interest signals growing mainstream acceptance and trust in Bitcoin, setting the stage for future spot ETF growth.
Bitcoin Hits $67,000+ in Market Recovery
- Despite a turbulent week start, the market rebounded, with Galaxy Digital CEO Mike Novogratz expressing bullish sentiments, foreseeing a potential $75,000 Bitcoin price during consolidation. Novogratz’s optimism underlines the short-term challenges as Bitcoin’s long-term growth outlook remains robust.
- Following the May 15 US CPI data release, Bitcoin and the overall crypto market rebounded, with the global market cap surpassing $2.5 trillion on May 16, driven by Bitcoin crossing $66,000.
- Although Bitcoin surged past $66,000 triggered by reports of CME’s Bitcoin trading launch, short-term holders didn’t leverage substantial gains. Nonetheless, the recovery hinted at a positive market shift, fostering further growth and mainstream adoption with institutional players like CME stepping into the crypto domain.
- Bitcoin broke $67,000 on May 17, marking the month’s first peak, while Chainlink (LINK) stole the spotlight with a 20% surge, outperforming BTC. LINK’s partnership with DTCC sparked the rally, showcasing the rising significance of decentralized data solutions in finance.
International Crackdown on Crypto Activities
- Chinese authorities apprehended six individuals in connection with a $300 million illegal crypto trading operation, reflecting intensified regulatory efforts to combat crypto fraud. This emphasizes the global drive to regulate and oversee the crypto sector for investor protection and to curb illicit practices.
- A US court sanctioned the seizure of up to 279 cryptocurrency accounts linked to North Korea, suspected of engaging in crypto-related thefts. These accounts will be seized and transferred to US authorities, marking a pivotal move in the global fight against crypto crime and illicit state activities.