A key tailwind that supposedly powered bitcoin’s recent rise above $80,000 appears to be fading.

The 11 U.S.-listed spot bitcoin exchange-traded funds (ETFs), which pulled in $3.29 billion in investor money through March and April, are now leaking funds. And sizeable ones at that.

On Wednesday, investors yanked $635 million from these funds, the highest single-day net outflow since Jan. 29, according to data source SoSoValue. It wasn’t an isolated event either. Over the past five trading days, the ETFs have bled a total of $1.26 billion, pulling total net inflows since debut in January 2024 down to $58.5 billion from $59.76 billion a week ago.

Bitcoin has stopped rallying. Since last Wednesday, the upswing that carried prices from $65,000 to above $80,000 has stalled, with momentum running out of steam near the 200-day simple moving average positioned just above $82,000. In the past 24 hours, bitcoin has dropped over 2% to $79,400, with analysts attributing the loss to the resurgent inflation fears in the U.S., even though these macro developments have been largely shrugged off by Wall Street’s Nasdaq and S&P 500 equity index. Both these indices hit new highs on Wednesday.

The $635 million outflow is not a number that bulls can easily dismiss, particularly since the strong inflows through March and April were widely hailed as bullish catalysts, and the macro picture is worsening due to rising inflation in the U.S.

“A persistently hot CPI, an incoming Fed under Warsh that markets read as more hawkish, or another oil shock can compress bitcoin even with positive net flows. From our perspective, the more useful question is not whether the markup leg continues, but whether macro conditions stay loose enough for the flows to do their work,” Adam Haeems, head of asset management at Tesseract Group, said. Tesseract has over $500 in assets under management.

Still, it’s worth noting that the relationship between ETF flows and bitcoin is not as straightforward as it once was. A correlation study offers a more data-driven lens on that.

The 90-day rolling Pearson coefficient between bitcoin’s daily percentage return and the daily percentage change in cumulative net ETF inflows currently stands at just 0.16, statistically indistinguishable from zero and down from the peak of 0.68 in February.

In plain terms, knowing the direction in which ETF flows moved on any given day may not offer any cues about BTC’s price action. That said, large redemptions like the one seen on Wednesday still matter.

The Commodity Futures Trading Commission’s staff issued no-action relief for fully collateralized event contracts. 

The move covers certain swap data reporting and recordkeeping duties tied to contracts listed by designated contract markets and cleared by derivatives clearing organizations.

The relief means staff will not recommend enforcement against DCMs, DCOs or participants for failing to meet selected swap reporting rules, as long as they follow the terms in the staff letter. The CFTC said the approach responds to many requests from firms listing and clearing event contracts.

Moreover, the new letter also creates a cleaner path for future applicants. Entities that want to list or clear similar contracts can seek the same no-action position, and the CFTC can add them to an appendix rather than issue another full letter each time.

Staff said the position also covers earlier beneficiaries of similar no-action letters. The letter says this approach should give similar treatment to current and future market participants while the agency considers broader rulemaking for event contract reporting.

Prediction market oversight remains contested

The relief comes as prediction markets face state-level legal fights. Earlier coverage from crypto.news reported that the CFTC backed Kalshi in an Ohio appeal, arguing that state officials treated federally regulated event contracts too narrowly as sports gambling.

In addition, CFTC has also challenged state actions in Arizona, Connecticut, Illinois, New York and Wisconsin. Court protection in Arizona supported federal oversight of CFTC-regulated prediction markets while cases continue.

Market growth adds pressure for clear rules

The timing matters because prediction markets are growing quickly. Separate market coverage reported that Kalshi reached a $22 billion valuation after a $1 billion Series F round, while annualized trading volume on the platform rose from $52 billion to $178 billion in six months.

Kalshi CEO Tarek Mansour said “event contracts could become a trillion-dollar market.” That claim remains forward-looking, but it shows why regulators, exchanges and state officials are paying closer attention to reporting, supervision and legal boundaries.

The CFTC’s latest step does not decide every dispute over event contracts. It focuses on how certain fully collateralized contracts are reported and recorded. Still, it gives DCMs, DCOs and participants a more uniform process as the agency works on broader rules.

For crypto-linked prediction markets, the letter adds another federal signal. Platforms such as Kalshi, Polymarket, Coinbase and Crypto.com remain part of a wider debate over whether these products are financial contracts, betting products, or both under different legal frameworks.

Key Takeaways

• Increasing worries about blockchain transparency and Know Your Customer (KYC) requirements are driving renewed interest in privacy-focused cryptocurrencies
• Monero enforces complete transaction anonymity by default, establishing it as the leading privacy cryptocurrency while attracting the most regulatory scrutiny
• Zcash surged past $585 in 2026 following Multicoin Capital’s disclosure of a significant investment on May 6
• Dash functions primarily as a payment-focused cryptocurrency with optional privacy capabilities rather than a dedicated privacy solution
• Regulatory challenges pose the greatest threat to all three cryptocurrencies, with multiple jurisdictions already implementing delisting measures

Privacy-oriented cryptocurrencies are experiencing a resurgence in investor attention throughout May. Escalating anxieties surrounding financial monitoring, increasingly stringent exchange regulations, and sophisticated blockchain analysis tools are driving crypto enthusiasts toward digital assets offering enhanced transactional confidentiality.

Contrasting with Bitcoin or Ethereum, where every transaction remains permanently visible on public ledgers, privacy coins employ specialized cryptographic techniques to obscure transaction information. These technologies can mask the sending party, receiving party, and transferred amounts.

This cryptocurrency category remains divisive. Financial regulators and trading platforms have approached privacy coins cautiously, contending that they complicate compliance obligations. Advocates counter with a fundamental question: if physical currency transactions enjoy privacy, shouldn’t digital alternatives offer the same?

Three cryptocurrencies deserve particular attention this month: Monero, Zcash, and Dash. Each implements distinct privacy methodologies and presents unique risk considerations.

Monero: Mandatory Anonymity with Maximum Regulatory Exposure

Monero stands as the most recognized privacy cryptocurrency. Anonymity functions as a fundamental network characteristic — every transaction maintains privacy automatically, with no mechanism for public visibility.

The protocol employs ring signatures, stealth addresses, and confidential transaction technology to conceal senders, recipients, and transaction values. This architecture represents the most comprehensive implementation of compulsory transaction privacy in cryptocurrency.

Monero doesn’t attempt to compete as a smart contract platform or comprehensive payment network. Its purpose remains straightforward: functioning as untraceable digital currency.

This singular focus has cultivated one of cryptocurrency’s most dedicated communities. User demand for private transactions may intensify as surveillance concerns escalate.

The primary vulnerability involves regulatory intervention. Nations including Japan, South Korea, India, and various European jurisdictions have already imposed restrictions on privacy coins through regulated exchanges. Monero consistently faces the earliest regulatory action.

Zcash: Zero-Knowledge Technology with Growing Institutional Backing

Zcash implements an alternative methodology. The protocol permits both public and private transactions, offering user choice rather than mandating universal privacy.

Its privacy infrastructure relies on zero-knowledge proof cryptography, enabling transaction verification without exposing underlying transaction details.

Throughout 2026, Zcash has emerged as a closely monitored privacy asset following Multicoin Capital’s announcement of a substantial holding on May 6. The cryptocurrency reached a 2026 peak exceeding $585 immediately afterward.

This development carries significance because privacy cryptocurrencies have traditionally attracted primarily retail investment. Institutional participation transforms the market narrative and indicates some professional investors view privacy as a broader digital rights or infrastructure investment theme.

Zcash may also attract investors seeking privacy sector exposure while preferring an asset with optional transparency features, facilitating discussions in regulated environments.

The principal concern involves actual usage patterns. If most participants continue using transparent transactions, the practical privacy advantage diminishes considerably.

Dash: Payment Functionality with Secondary Privacy Features

Dash originated as a privacy-centered Bitcoin derivative but subsequently pivoted toward rapid digital payment processing. Its PrivateSend functionality employs CoinJoin-style transaction mixing, which provides limited privacy but differs fundamentally from Monero’s comprehensive default model or Zcash’s zero-knowledge proof architecture.

This characterization positions Dash less as a dedicated privacy cryptocurrency and more as a payment-focused asset with supplementary privacy capabilities.

This strategic positioning can prove advantageous in certain markets. Its payment-centric identity resonates more clearly with investors, and it has historically attracted users prioritizing transaction speed and reduced fees.

Dash appeared among the sector’s strongest performers when privacy tokens outpaced the broader market earlier this year, according to CoinDesk.

The vulnerability lies in Dash’s ambiguous positioning. It may lack sufficient privacy features for strict anonymity advocates, yet its privacy associations can still trigger challenges on regulated trading platforms.

Concluding Analysis

Monero represents the most uncompromising privacy implementation. Zcash delivers advanced zero-knowledge proof technology alongside increasing institutional validation. Dash provides payment utility with moderate privacy functionality.

The opportunity remains consistent across all three: if concerns regarding surveillance and exchange restrictions intensify, privacy-focused cryptocurrencies could experience renewed demand.

The risk appears equally apparent: regulatory intervention. Exchange availability for privacy coins can shift rapidly, and this sector remains among cryptocurrency’s most politically sensitive categories.

A New York federal judge has postponed a decision on Aave’s request to release $71 million in frozen Ethereum tied to the Kelp DAO exploit, ordering both sides to submit additional legal arguments before a June hearing.

According to filings submitted Wednesday in the Southern District of New York, Judge Margaret M. Garnett said Aave LLC had not sufficiently explained how “compounding losses” to users would occur if the restraining notice on the funds remained active. The judge scheduled another hearing for June 5 and directed both parties to file supplemental briefs by May 22.

At the center of the dispute is 30,765 ETH that Arbitrum’s Security Council froze on April 21 after tracing the assets to the April 18 Kelp DAO exploit. 

The attack targeted Kelp’s LayerZero-powered bridge and allowed hackers to mint unbacked rsETH, which was later used as collateral on Aave v3 to borrow an estimated $230 million in wrapped ETH. Earlier reports tied the exploit to roughly $190 million in bad debt across DeFi lending markets.

Earlier this month, Gerstein Harrow LLP secured court approval to serve a restraining notice on Arbitrum DAO. The law firm represents families holding about $877 million in unpaid terrorism judgments against North Korea and argued the frozen ETH should be treated as DPRK-linked property because blockchain analytics firms associated the exploit with the Lazarus Group. No court has formally determined that North Korea or Lazarus carried out the attack.

Aave pushed back against that argument in an emergency filing on May 4. Its lawyers argued that stolen crypto does not become the legal property of a thief simply because it passed through attacker-controlled wallets. The company also warned that extended restrictions on the ETH could hurt affected users and interfere with recovery efforts tied to rsETH.

Court asks for clarification on ownership and creditor claims

In her latest order, Judge Garnett acknowledged the risks facing Aave users but said the legal questions raised by the dispute require deeper examination. The court asked both sides to address six specific issues, including whether New York’s shelter principle applies to the hacking transactions, how theft differs from fraud under the relevant law, and whether the hackers ever gained a recognizable ownership interest in the stolen assets.

Additional questions focused on creditor priority rights over the frozen ETH and whether a constructive trust could be used to return funds proportionally to affected users. Judge Garnett also asked whether Aave or Arbitrum can identify individual victims well enough to support a pro rata distribution plan.

Days before the latest order, Judge Garnett modified an earlier freeze to allow an Arbitrum governance proposal tied to the recovery effort to continue moving through on-chain voting. The proposal, introduced on May 12, would transfer the 30,765 ETH from Arbitrum’s Security Council wallet to an address controlled by Aave LLC.

While the judge permitted governance participants to proceed without personal liability under the restraining notice, the court preserved the plaintiffs’ legal claim over the ETH. Aave, therefore, cannot freely use the assets until the dispute is resolved.

Elsewhere in the recovery effort, Aave and Kelp DAO said Tuesday they had taken steps to restore rsETH backing. The attacker’s rsETH on Arbitrum has already been burned, while nearly $278 million worth of replacement assets is expected to be restored over the next two weeks through funds managed by the Aave Recovery Guardian multisignature wallet.

Bitcoin company Nakamoto saw a 500% quarter-on-quarter increase in Q1 revenue after completing two key strategic acquisitions in February aimed at expanding its footprint across the Bitcoin ecosystem. 

Despite recording a $238.8 million net loss, Nakamoto CEO David Bailey said Wednesday that Q1 “marked a transformational period” for the company as it closed the acquisitions of Bitcoin-focused news outlet BTC Inc. and Bitcoin-focused investment platform UTXO Management.

More than $1.1 million of Nakamoto’s revenue came from its new Bitcoin treasury and derivatives strategy, $800,000 from its media business, $500,000 from healthcare operations and $200,000 from asset management services. 

Source: Nakamoto

Nakamoto attributed the bulk of its Q1 net loss to a $107.7 million non-cash reduction linked to a pre-acquisition option and a $102.5 million mark-to-market loss on its 5,058 Bitcoin (BTC) treasury as the cryptocurrency fell 23% during the quarter. 

The Bitcoin treasury industry has faced pressure over the past year, with Bitcoin down 37% from its all-time high, causing some analysts to cast doubt on the sustainability of buy-and-hold strategies.

Most Bitcoin treasuries outside of Strategy and Metaplanet have slowed Bitcoin buying over the last 12 months, while others have eaten into their Bitcoin treasury to pay off debt.
Nakamoto has been one of the hardest-hit Bitcoin treasuries during this downturn, with company shares down over 99.2% from its all-time high.

The company didn’t buy any Bitcoin during the quarter, but sold 284 Bitcoin on March 31 to cover operational expenses.

Related: Bitcoin traders expect ‘fast move’ to $90K following CLARITY Act vote 

Nakamoto (NAKA) rose 2.7% to $0.18 in after-hours trading after Nakamoto posted its results.

Nakamoto expands from Bitcoin treasury company

Nakamoto said BTC Inc. and UTXO Management would be two of the “foundational businesses” setting the company up for long-term growth in the Bitcoin ecosystem.

The Bitcoin company said that its sixfold revenue increase came despite only a partial quarter of contribution from these businesses, as deals were finalized on Feb. 20.

Looking forward, Bailey said Nakamoto’s “focus for the remainder of 2026 is execution — scaling our operating businesses, expanding revenue opportunities, and continuing to build durable shareholder value through disciplined capital allocation and long-term conviction in Bitcoin.” 

One of those strategies involves using the company’s Bitcoin holdings as collateral to run yield-generating derivatives strategies.

Nakamoto also plans to fully wind down its healthcare business by the end of Q2, placing more focus on Bitcoin-related activities. 

Nakamoto changed its name from KindlyMD in January after forming a merger with the Utah-based healthcare provider in August.

Magazine: eToro founder timed Bitcoin top perfectly due to belief in 4-year cycles

Forward Industries, the self-described world’s largest Solana treasury company, reported a net loss of $585.6 million for the fiscal quarter ended Dec. 31, 2025. 

The loss was driven mainly by a $560.2 million loss on digital assets and a $33.0 million impairment linked to its SOL holdings.

The company still reported higher revenue. First-quarter revenue rose more than fourfold to $21.4 million from $4.6 million a year earlier, mainly due to staking revenue from its Solana treasury strategy.

Treasury sits below cost basis

Forward said it held 6,962,501 SOL on Dec. 31, 2025. It also said 6,834,505.96 SOL had been bought at a net cost of $232.08 per token, for a total cost of about $1.59 billion.

A later treasury update showed holdings had risen to 6,979,967.46 SOL by Jan. 15, 2026. With SOL recently trading near $91.24, the full position would be worth about $636.9 million, leaving a paper gap of about $983.1 million against the reported cost level.

Meanwhile, Forward said nearly all its SOL was staked. Its validator setup generated a 6.73% gross annual percentage yield before fees as of Jan. 15, while the company reported more than 112,171 SOL in staking rewards as of Dec. 31.

The staking income gives Forward recurring crypto revenue, but the price drop still shaped the quarter. Management said the accounting loss reflected the change in fair value of the company’s SOL holdings under U.S. GAAP.

Solana treasury model faces market test

Forward launched its Solana treasury strategy after a $1.65 billion PIPE backed by Galaxy Digital, Jump Crypto and Multicoin Capital. Earlier reports noted that the company moved quickly, buying 6.82 million SOL in its first week and staking the tokens.

The company has also tried to make its treasury more active. It launched fwdSOL, a liquid staking token, and began testing an automated market maker developed with Galaxy and infrastructure input from Jump Crypto.

Chairman Kyle Samani said the quarter marked the company’s first full reporting period as the largest Solana treasury firm. He said Forward was “actively executing” its strategy while building the base to compound SOL per share over time.

Forward also scheduled its fiscal second-quarter 2026 conference call for May 14. That makes the next update important for traders tracking staking rewards, SOL per share, liquidity and any shift in treasury use.

Key Highlights

• Cardano has posted an 11% gain throughout May 2026, hovering near $0.27–$0.28 with key resistance at $0.30–$0.32
• Founder Charles Hoskinson confirmed the updated CLARITY Act no longer treats ADA as a security
• Major holders controlling 1M+ ADA tokens now possess 67.47% of total circulating supply
• Derivative open interest climbed from $69M in February to $122M currently
• Technical analysts suggest a sustained move past $0.28 could target $0.34

Cardano has delivered an 11% rally since May 2026 began, propelled by two critical catalysts: favorable developments surrounding the U.S. CLARITY Act and sustained buying from institutional-sized wallets. While the upward momentum is notable, ADA continues trading within a defined range on shorter timeframes without a decisive breakout confirmation.

The digital asset currently trades between $0.27 and $0.28. Last week saw price rebound sharply from a demand area spanning $0.24 to $0.25, creating the most substantial weekly candle observed since mid-March. Immediate resistance appears at $0.28, while more formidable supply clusters exist between $0.317 and $0.329.

Downside protection remains intact within the $0.254–$0.266 band, which corresponds with the 50%–61.8% Fibonacci retracement levels. Should this critical zone fail, the next major support structure lies near $0.227–$0.233.

Cardano’s creator Charles Hoskinson recently voiced approval for the revised CLARITY Act via social media platform X, praising Senator Tim Scott for demonstrating “strong leadership” in refining the legislation. Hoskinson clarified that the updated draft explicitly recognizes ADA as a non-security, crediting Cardano’s decentralized governance framework.

Hoskinson had earlier expressed concern about the CLARITY Act’s initial language, cautioning it might categorize certain digital assets as securities. The revised legislation now accommodates decentralized networks more favorably, which directly benefits Cardano’s operational model.

Large Holders Continue Expanding Positions

Data from Santiment reveals that major ADA holders have maintained consistent accumulation patterns since December 2023. Addresses containing a minimum of 1 million ADA tokens collectively hold 25.09 billion units — representing 67.47% of available supply. This buying trend has persisted despite ADA experiencing a 71% market capitalization decline over the preceding nine months.

Technical momentum metrics suggest cautious optimism. The Relative Strength Index registers 60.28, positioned above the neutral midpoint of 50. The MACD indicator shows 0.00673 versus a signal line at 0.00444, producing a positive histogram value of 0.00229, which indicates strengthening buyer momentum.

Futures Market Shows Growing Interest

Open interest across ADA derivative contracts has expanded from $69 million in February to $122 million presently, based on Coinglass metrics. Binance exchange data reveals a long/short ratio of 2.30, indicating bullish positions outnumber bearish ones by more than two-to-one.

Nevertheless, the CLARITY Act continues facing headwinds. Banking institutions have submitted 8,000 written objections to the Senate regarding stablecoin yield components. Polymarket prediction markets currently assess the bill’s passage likelihood at 60%, representing a decline from the previous 74% probability.

Technical analyst More Crypto Online identifies near-term resistance at $0.299, with a significant extension target at $0.349. A confirmed breakout requires ADA to decisively reclaim the $0.30–$0.32 zone supported by substantial trading volume.

The elevated long/short ratio of 2.30 on Binance introduces potential downside risk — any price stagnation could trigger rapid liquidations among overleveraged long positions, potentially sparking a sharp correction.

Nakamoto reported $2.7 million in first-quarter operating revenue after completing its acquisitions of BTC Inc. and UTXO Management on Feb. 20. 

The company said the deals added media, asset management and advisory businesses to its Bitcoin-focused model.

Revenue included $1.1 million from Bitcoin treasury and derivatives activity, $0.8 million from media and information services, $0.2 million from asset management, and $0.5 million from healthcare operations. Nakamoto said the acquired businesses contributed for only part of the quarter.

Net loss reaches $238.8 million

The company posted a net loss of $238.8 million for Q1, compared with a $1.0 million loss a year earlier. Nakamoto said the result was mainly tied to non-cash and transaction-related items.

Those items included a $102.5 million mark-to-market loss from the fall in Bitcoin’s price during the quarter and a $107.7 million non-cash reduction tied to a pre-acquisition call option. The company also reported about $8.0 million in transaction and integration costs.

In addition, Nakamoto held more than 5,000 Bitcoin at the end of March, with an aggregate fair value of about $345 million. The company said Bitcoin fell from $87,519 at the end of 2025 to $68,220 on March 31, which weighed on quarterly results.

Nakamoto also sold about 284 BTC during the quarter to support working capital. Its derivatives strategy generated about 43 BTC in premium income, after which the company sold about 40 BTC.

CEO David Bailey said “the first quarter marked a transformational period” as Nakamoto shifted into a Bitcoin operating company. He added that management is focused on scaling operating businesses, expanding revenue lines and using disciplined capital allocation.

Treasury strategy faces market test

Crypto.news reported in February that Nakamoto’s all-stock BTC Inc. and UTXO Management deal was valued at more than $107 million. That report said the acquisitions were meant to add recurring revenue beyond capital markets activity.

Earlier crypto.news coverage also showed the pressure around Nakamoto’s stock. The report said NAKA had fallen about 95% from its all-time high by September 2025, after PIPE share unlocks and concern around Bitcoin treasury firms weighed on sentiment.

Nakamoto is now moving further away from its legacy healthcare business. The company said healthcare operations are being wound down and are expected to be mostly completed by the end of the second quarter.