Inflation Cools, Bitcoin Rallies To $105K, and Stablecoin Bill Negotiations Continue

Takeaways

• Bitcoin pushes to $105,000 before pulling back: The price of bitcoin increased to almost $105,000 on Tuesday afternoon, closing in on a previous all-time high of around $109,000 hit earlier this year, after the latest inflation data was roughly in line with the Federal Reserve’s annual 2% inflation target.
• Congress still working on stablecoin bill: Senators on both sides of the aisle have continued to iron out their remaining disagreements with the GENIUS Act, a bill that offers a regulatory framework for stablecoins. The hope is that they pass it before the Memorial Day recess.
• Twenty One Capital kicks off expected bitcoin buying spree: Just weeks after launching with backing from Tether, Cantor Fitzgerald, and SoftBank, the bitcoin treasury company used Tether to acquire 4,812 bitcoin worth approximately $458.7 million this week.
• Coinbase added to S&P 500: The world’s largest crypto exchange by market cap joined the S&P 500 this week, a major development for a crypto industry that’s historically been spurned by traditional financial markets. Shares of Coinbase increased almost 24% on the first day of trading before leveling off.
• A16z backs tokenized ticketing platform: Venture capital firm a16z has led a $7 million seed round for KYD Labs, a Solana-based ticketing platform that allows users to bypass ticketing exchanges and artists to increase their distributions from sales.

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Bitcoin Climbs to Nearly $105,000 As Inflation Cools

The price of bitcoin pushed to almost $105,000 on Tuesday then retreated slightly as

The latest inflation data fell roughly in line with the Federal Reserve's 2% annual inflation target. And it did nothing to hurt the recent rally for bitcoin and the broader crypto markets. Bitcoin was less than 5% from its all-time high Tuesday before pulling back. Meanwhile, the price of ether has jumped 26% over the past seven days, a long-awaited rally that came on the heels of the network's PECTRA updgrade.

Over the past few weeks, the crypto market has benefited from easing trade tensions between the US and China, continued institutional inflows, and bitcoin’s emergence as a corporate treasury asset. It’s a startling turnaround from the lows of early April which had some investors positioned for a “risk-off” environment that contributed to a significant drawdown, with the bitcoin price slumping below $80,000. But the recent tailwinds have apparently flipped that narrative. The price of bitcoin had pushed back above $104,000 by Thursday afternoon.

“Currently, the market appears to be pausing for breath, yet the prevailing sentiment in recent headlines suggests this rally still has room to grow,” market strategist Joel Kruger told Coindesk this week.

Stablecoin Bill Still Has Legs Despite Setback

When the long-awaited GENIUS Act failed to move forward in the Senate last week, some worried that Congress would fail to pass long-awaited stablecoin legislation.

Senators Chuck Schumer (D-NY), Elizabeth Warren (D-MA) and other key Democrats pulled support from the bill last week at the 11th hour, in part because they argued it would make it easier for President Donald Trump’s family to profit from their own crypto venture. The bill subsequently failed to advance through a procedural discussion that would have put it to a vote in the Senate.

Senator Kirsten Gillibrand (D-NY) expressed optimism about the proposed changes during a Stand with Crypto event on Wednesday.

"I'm very optimistic we'll have a vote soon enough," Gillibrand said. "When this language comes out, people will see really good refinements — a lot of progress on things like consumer protection, bankruptcy protection, and ethics."

Twenty One Capital Acquires $458M BTC

The purchase marks the first of what’s expected to be a series of bitcoin buys from Twenty One Capital after it announced a complex SPAC merger last month with backing from Tether, Cantor Fitzgerald, and SoftBank.

Tether made the purchase on behalf of Twenty One Capital. The stablecoin giant sent it to an escrow wallet and will sell it to the public company once the merger is finalized. Cantor Equity Partners, which trades under the symbol “CEP,” already has $3.6 billion BTC on its balance sheet.

The purchase continues a recent wave of public companies that have turned to amassing bitcoin following the success of Michael Saylor’s Strategy, a software intelligence company that now has nearly 3% of the total bitcoin supply.

Coinbase Becomes Part of S&P 500

Coinbase originally went public via a direct listing in 2021. It has historically been a volatile stock but improving market conditions over the past few months have helped spur a rebound. Last week, Coinbase reported revenue north of $2 billion in Q1, up from $1.64 billion in the same period a year earlier. However, net income dropped to $65.6 million, down from $1.14 billion in Q1 2024.

Coinbase stock has been volatile so far this year, dipping to almost $150 per share in early April, before the latest rebound. Last week, the company agreed to acquire Deribit, a Dubai-based derivatives exchange, for $2.9 billion.

A16z backs blockchain-based ticketing platform

Founded by former Ticketmaster product manager Ahmed Nimale, KYD Labs has reportedly processed approximately $4 million in sales and $1 million in revenue over the past year. The company says it will expand to 100 US venues by 2026, with plans to continue to expand arenas around the globe.

The investment comes as ticketing giants including Ticketmaster have faced widespread criticism for high fees imposed on buyers and from taking a stake in artists’ revenue. Last year, the US Department of Justice sued Ticketmaster-Live Nation for allegedly monopolizing the live concert industry. In April, a court denied the company’s request to dismiss the lawsuit.

-Team Gemini