Dear reader,
Spirit Blockchain Capital to Present at the Blockchain and Digital Assets Virtual Investor Conference June 5th: We invite individual and institutional investors, as well as advisors and analysts, to attend online at VirtualInvestorConferences.com
DATE: June 5th
TIME: 12:30 PM EST
Available for 1×1 meetings: June 5th, 6th, 9th and 10th (subject to availability and to be booked through VirtualInvestorConferences.com)
This Week: Gains Despite Policy Whiplash
US Equities Close May Strong
Markets ended the month on a high note, overcoming mid-May volatility driven by tariff policy reversals and central bank uncertainty.
• The S&P 500 rose over 6% in May
• Nasdaq Composite surged nearly 10%, driven by tech
• Dow Jones delivered steady gains, fueled by low-volatility and defensive plays
The primary catalyst: a tech-led rally powered by Nvidia’s blowout earnings and an AI rebound, with Alphabet and others injecting fresh momentum into market sentiment.
Tariff Turmoil Returns
The macro narrative was temporarily shaken this week by a federal court ruling that deemed most Trump-era tariffs unconstitutional. Markets rallied in response—only to reverse course a day later when an appeals court froze the decision. The result:
• A volatile mid-week with the Dow swinging 245+ points intraday
• Utilities and defensives outperformed as traders sought safety
Fed Watch and Inflation Pressure
All attention turned to the core PCE inflation print—the Fed’s preferred inflation gauge. While a soft read would have fueled optimism for a rate cut, any upside surprise risked dashing those hopes. The Fed’s direction remains the macro wildcard, with equities and crypto alike watching closely.
Crypto Markets: Mixed Signals, Long-Term Optimism
Volatility in Sync with TradFi
Crypto markets tracked equity volatility closely. Bitcoin slipped ~0.3% intraday on May 29 but held above key technical support near $107,700.
• Overall market cap declined 4.5%, dropping from $3.55T to $3.45T
• Trading volume rose to $130B as traders repositioned ahead of macro data
Despite profit-taking and ETF outflows, sentiment remains constructive.
Bullish Signals: Regulatory and Institutional Tailwinds
SEC Eases Off
A pair of notable developments shifted sentiment positively:
• SEC pares back its Binance lawsuit, reducing fear of a wider crackdown
• Reports emerged suggesting staking transactions will not be treated as a security, offering clarity to PoS protocols and staking service providers
Institutional Moves
• Santander eyes crypto products for retail clients—an encouraging signal for mainstream adoption
• Panama proposed allowing Bitcoin-denominated canal transit fees, a novel example of crypto’s growing relevance in global trade
Bearish Pressure: Tariffs and ETF Outflows
• The tariff back-and-forth reignited risk-off sentiment mid-week
• Bitcoin ETFs saw their first net outflows in two weeks—$347M total, though BlackRock’s IBIT saw $125M in net inflows
• Over 12,500 BTC moved onto exchanges, pointing to short-term selling pressure
• A $11.5B Bitcoin options expiry on May 30 added to volatility
Market Leaders and Sector Trends
Bitcoin (BTC):
• Price range: $105,816–$106,217
• Drivers: ETF outflows, macro jitters, options expiry
• Outlook: Consolidation with long-term accumulation—66,000 BTC moved off exchanges in May
Ethereum (ETH):
• Price: $2,623–$2,639
• On-chain activity fell 8%, daily addresses dipped
• Still under pressure from reduced ETF flows
Solana (SOL):
• Price: $165.81, down 3.7%
• Strong NFT and DeFi traction, but still subject to macro risk
Avalanche (AVAX):
• Benefiting from strategic partnerships and developer momentum
Chainlink (LINK):
• Renewed interest amid rising demand for oracles in tokenization
Memecoins: Mania and Momentum
Dogecoin (DOGE):
• Down 8.7% to $0.2052—the week’s worst performer among top tokens
• Reflects speculative exhaustion and profit-taking
Pepe (PEPE):
• Outpaced DOGE and SHIB in both price performance and social traction
• Continues to dominate memecoin conversations
Other Memecoins:
• Solana- and Ethereum-based memecoins remained highly active, with presales and new launches drawing retail volume
Outlook: Fed Data in Focus
As May closes, investors face a pivotal June:
• The core PCE inflation reading will guide the Fed’s next steps
• ETF flows and on-chain activity are key crypto health indicators
• Despite near-term selling, long-term accumulation suggests institutional conviction remains intact
Markets ended May stronger than expected, shrugging off tariff reversals and inflation worries. For crypto, regulatory clarity and institutional momentum provided a bullish counterweight to macro headwinds. Volatility persists, but so does conviction.
This Week’s Headlines
SEC says proof-of-stake staking activities do not constitute securities transactions:The U.S. SEC’s Division of Corporation Finance said staking activities on proof-of-stake networks do not constitute securities transactions.
SEC drops lawsuit against crypto giant Binance: The SEC and Binance have filed a joint motion to end a nearly two-year legal battle in the agency’s latest backdown from its prior crypto enforcement actions.
GameStop officially confirms first Bitcoin purchase of 4,710 BTC: GameStop’s 4,710 Bitcoin purchase is the company’s first since it disclosed plans in March to move into alternative investments.
Panama City mayor says canal should give Bitcoin-paying ships faster access: Panama should allow ships wanting to transit the Panama Canal to skip the line if they pay in Bitcoin, says Panama City Mayor Mayer Mizrachi.
SOL Strategies Files $1 Billion Prospectus to Capitalize on Solana Ecosystem: SOL Strategies, a Canadian company focused on the Solana blockchain, has filed a $1 billion preliminary short-form base shelf prospectus to increase financial flexibility for investments in the Solana ecosystem. The filing allows for potential capital raises without delays from regulatory approvals.
U.S. courts blocked — then reinstated — Trump’s tariffs: A day after a court blocked U.S. President Donald Trump’s tariffs on the country’s trading partners, the U.S. Court of Appeals for the Federal Circuit has stayed the court order.
BlackRock’s IBIT dominates 10-day US Bitcoin ETF inflow streak totaling $4.2 billion
Vice President JD Vance praised the cryptocurrency industry Wednesday and urged it to remain active in U.S. politics and policymaking, highlighting the Trump administration’s close ties to a deep-pocketed industry that’s become a powerful force in Washington.
The Trump administration on Wednesday rescinded Biden-era guidance urging employers to be cautious before adding cryptocurrency and related digital assets like bitcoin, NFTs and meme coins to 401(k) plans.
Notable Deals and Fundraising
Donut Labs raises $7M to launch first ‘agentic’ crypto browser: Donut’s AI agents understand page intent and autonomously execute blockchain transactions for token swaps, yield farming or portfolio optimization.
Metaplanet issues $21M in bonds to buy Bitcoin, a day after $50M raise: The Japanese firm has raised $135.2 million in 2025 to fund Bitcoin purchases, aiming to hit 10,000 BTC by the end of the year.
Naoris Protocol Raises $3M in Strategic Round Led by Mason Labs: Naoris Protocol, the first quantum-resistant blockchain and cybersecurity mesh architecture, has raised $3 million in a strategic funding round led by Mason Labs, which includes Frekaz Group, Level One Robotics, and Tradecraft Capital, following a six-month technical due diligence process.
Norway-based K33 raises $6.2 million to buy Bitcoin, unveils treasury strategy:The European crypto firm launched its Bitcoin treasury strategy to expand product offerings.
Horizon3.ai, a cybersecurity startup that provides tools like autonomous penetration testing, is seeking to raise $100 million in a new funding round and has locked down at least $73 million, the company revealed in an SEC filing this week.
Buildots raises $45M to help companies track construction progress.
Have a great week!
The SPIRIT Blockchain Team
