Market Overview (May 20 – May 26): ETF Approvals, Inflation Trends, and Market Forecast

Key Points

• The SEC has approved EHER SPOT ETF, showing a growing acceptance of cryptos into mainstream finance.
• U.S. inflation seems to be inching toward the targeted 2%, and this can, in part, be attributed to the Federal Reserve’s interest rate hikes.
• The crypto market supports Bitcoin and Ethereum, indicating a possible positive move for altcoins.

Explore the latest crypto news, including ETF approvals, legislative changes, and predictions for the crypto market.

Last week’s highlights big news (May 20 – May 26)

It was reported by Bloomberg that the Securities and Exchange Commission had approved the EHER SPOT ETF. This move is the latest indication of the top crypto asset’s increasing adoption into mainstream financial systems.

The former President of the United States, Donald Trump, has begun accepting crypto contributions towards his political campaigns. That move signals how much cryptocurrencies have come from being on the brink of being made illegal by governments worldwide to officially being recognized as a medium to collect political funds.

On the regulatory front, Hong Kong‘s privacy watchdog ordered Worldcoin to stop activities collecting eye data, citing potential infringements of privacy regulations.OKX, on the other hand, announced its move to retract the VASP registration and will withdraw Crypto services to clients in Hong Kong before the end of May.

Standard Chartered Bank speculated that ETFs such as SOL and XRP might be approved by 2025. The sanction of the EHER ETF has great implications, suggesting that ETH and similar Cryptocurrencies will not be classified as securities.

LayerZero implemented a policy requiring Sybil hunters to stake ETH before reporting, hence beefing up their operations’ security and commitment. In addition, Binance Megadrop launched the second project, Lista, LISTA, to show its commitment to new and innovative projects in its ecosystem.

Furthermore, the US House of Representatives approved the Crypto FIT21 support bill. This marks a further development in cryptocurrency legislation and acceptance within political circles.

Lastly, the Paraguayan government supports the bill to implement up to 10 years of prison for illegal Bitcoin mining. This news means there are still raging battles at the regulatory level and challenges regarding cryptocurrency and its use.

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Macroeconomics (May 20 – May 26)

In recent macroeconomic developments, Christopher Waller, a governor at the Federal Reserve, announced this morning that U.S. inflation is tapering off towards the desired 2% mark. He attributed this trend in part to the sequence of interest rate augmentations enforced by the Fed and shared his standpoint that there’s no requirement for further escalation in interest rates.

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Prediction Market Crypto (May 20 – May 26)

The crypto market is consistently developing, displaying solid support levels for Bitcoin ($BTC) and Ethereum ($ETH). Although Bitcoin’s trendline has been broken, the declining volume and the price’s lateral trajectory could indicate a positive shift for altcoins.

The green light for the Ethereum Exchange Traded Fund (ETF) was huge in the sense that it cemented the fact that Ethereum, along with its sibling digital currencies, is not a security. That means by 2025, other crypto tokens such as XRP and SOL will potentially have their respective ETFs set up—a forecast for a possible period of turmoil in the market.

The AI landscape has been a key segment in the crypto domain. It has captured the attention of entities such as DWF Lab. The RWA and LSD are above the average market performance. Within the LSD space, $LDO is leading, while within RWA, $ONDO is leading and making waves with its tremendous growth.

The Securities and Exchange Commission’s approval of the Bitcoin ETF and the recent Blackrock ETH ETF make traditional funds want to be part of the crypto market. Blackrock’s entry into the space made the RWA’s TVL climb steeply; this is promising for its future.

Blackrock’s announcement of a brand new tokenized fund called BUIDL, issued on the Ethereum chain, further cemented their belief in this blockchain. More specifically, many of the RWA tokens, including $AVAX, $ONDO, $OM, $CFG, $CPOOL, $GFI, $TRADE, and $CTC, are the ones that people have been eyeing.