Key Takeaways

• Bank of America’s Justin Post predicts Google will reveal an advanced Gemini LLM at its May 19 I/O conference
• The upgraded Gemini version may feature enhanced reasoning capabilities, improved coding functions, multimodal processing, and extended context windows
• Agentic AI functionality is anticipated as the central focus, featuring enhanced integration throughout Chrome, Gmail, Maps, and Android platforms
• BofA reaffirms its Buy recommendation with a price objective of $430, suggesting approximately 8% potential gains
• Elevated market expectations present downside risk if product reveals fail to impress investors

Alphabet’s marquee Google I/O developer event is set to launch on May 19, and financial analysts are positioning for what’s expected to be a significant showcase.

Justin Post, an analyst at Bank of America, outlined his projections in a Friday research note, indicating he foresees a comprehensive suite of artificial intelligence reveals focused on Gemini technology and autonomous agent functionality.

Alphabet Inc., GOOGL

GOOGL shares declined 0.96% on Friday in anticipation of the upcoming conference.

Bank of America projects Google will introduce a cutting-edge iteration of its Gemini large language model—possibly designated as version 4 or a substantial 3.X enhancement. This forthcoming model is anticipated to deliver advances in logical reasoning, programming capabilities, multimodal functionality, and extended context processing.

Additionally, more efficient and cost-effective Flash versions are expected, alongside enhanced models designed for video creation, image synthesis, and audio generation.

Autonomous AI Agents Expected to Dominate Conference

Agentic AI is projected to serve as the primary focus of the developer conference. Industry reports indicate Google is developing autonomous task execution features spanning Chrome, Gmail, Maps, Calendar, Search, and Android operating systems.

This evolution means Gemini could handle restaurant bookings, calendar modifications, form completion, and e-commerce workflows—all with minimal user intervention.

Chrome browser functionality is particularly highlighted. AI-enhanced browsing may enable Gemini to directly engage with web platforms and execute complex multi-step processes, though transaction approval would still require user authorization.

Google might also enhance its AI assistant with persistent memory features, real-time camera interaction capabilities, and proactive contextual assistance.

Search Evolution and Wearable Technology Updates Expected

Regarding search functionality, Post anticipates improvements to AI Mode features, framing it as a complimentary AI assistant offering superior personalization and cross-application integration.

Smart glasses capabilities are also projected to receive significant coverage, with Post observing that developments in this category could generate interest ahead of a possible second-half product launch.

Post indicates that ongoing Gemini advancements would bolster Google Cloud platform adoption and consumer interaction—two metrics under close market scrutiny.

However, he acknowledges that widespread implementation of autonomous agent systems will likely require years rather than months. Users will continue prioritizing efficiency and affordability from specialized applications.

“We would expect Booking and Expedia to be key partners in any agentic announcements around travel, while we would not expect Amazon to be an early partner for eCommerce,” Post said.

With Google shares trading around 27x projected 2027 earnings, Post suggests “AI surprises” will probably be necessary to drive valuation multiples higher.

Post identifies one notable risk: investor expectations entering I/O are considerably elevated. Should the product announcements disappoint, the stock could experience short-term selling pressure.

Bank of America upheld its Buy rating alongside a $430 price objective. This target represents approximately 8% appreciation potential from present trading levels.

Wall Street’s consensus price target stands at $426.44, similarly indicating roughly 7% upside potential. Among 33 analysts tracking the stock, 28 assign it a Buy rating while 5 recommend Hold. The overall consensus ranks as Strong Buy.

Cryptocurrency ATM company Bitcoin Depot reported “substantial doubts” about the company’s ability to continue operating amid ongoing litigation and a challenging regulatory environment.

In a Form 10-Q filing with the US Securities and Exchange Commission (SEC) on Tuesday, Bitcoin Depot chief financial officer David Gray reported that the company had accrued more than $20 million in legal judgments in the fourth quarter of 2025 and “ongoing litigation matters.” The company also reported “substantial year-over-year declines in revenue” amid US states and municipalities passing laws and regulations banning or restricting crypto ATMs.

“As a result of these factors, management has concluded that substantial doubt exists about the Company’s ability to continue as a going concern,” said the report.

Source: SEC

The litigation affecting Bitcoin Depot included $1.9 million paid to Maine’s Consumer Credit Protection Bureau in January, with the company facing additional lawsuits from Massachusetts, Iowa and other state-level authorities. Individual municipalities have also been passing ordinances or laws restricting crypto kiosks and ATMs amid concerns that residents may be victims of scams.

Related: Crypto ATM losses surge 33% in 2025 as AI superpowers scams: CertiK

According to its SEC filing, Bitcoin Depot reported that its revenue decreased by $80.7 million for the three months ending March 31 compared to that in the first quarter of 2025, “primarily due to a decrease in transaction volume driven by a combination of regulatory impacts and enhanced compliance controls.” The company also reported a net loss of $9.5 million over the same period.

In March, Bitcoin Depot appointed Alex Holmes as CEO, replacing Scott Buchanan, who served in the position for three months. Holmes was the CEO of MoneyGram from 2016 until 2024, where, according to Bitcoin Depot, he had a reputation for “global regulatory compliance.”

Shares of Bitcoin Depot on the Nasdaq under the ticker BTM declined by more than 40% in the previous five days, from $5.01 to $2.93.

Canada weighing countrywide crypto ATM ban

In April, the Canadian government released its Spring Economic Update for 2026, which said policymakers “propose to ban crypto ATMs” in response to scammers and criminals using the machines for money laundering. Under the proposal, Canadians would still be allowed to buy digital assets from brick-and-mortar money services businesses.

Bitcoin Depot reported to have about 220 machines deployed across Canada at the time of publication.

Magazine: ETH stalls at $2.4K five times, SOL to rally to $120: Market Moves

The Republican chair and Democratic ranking member of the US House of Representatives Committee on Agriculture have called on President Donald Trump to fully staff the leadership at a key financial regulator, citing the potential impact of a crypto market structure bill.

In a Friday letter to Trump, House Agriculture Committee Chair Glenn Thompson and ranking member Angie Craig asked the president to “nominate a full panel” of bipartisan leaders for the US Commodity Futures Trading Commission (CFTC). The representatives cited “urgent regulatory issues” facing the US regulator in addition to a “significant rulemaking process” required if the Digital Asset Market Clarity Act (CLARITY) becomes law.

“Ensuring the Commission is well-equipped as the leading derivatives markets regulator in the world is a bipartisan priority for the members of our Committee,” said Thompson and Craig. “A complete commission will allow the agency to best fulfill its mandate of promoting integrity, resilience, and vibrancy of US derivatives markets and will advance US leadership.”

Source: US House Agriculture Committee

Michael Selig is currently the sole commissioner at the CFTC, taking over after the resignation of acting chair Caroline Pham in December 2025. Under Selig, the commission has taken many positions aligning with the administration’s policies, including claiming “exclusive jurisdiction” over prediction markets.

Related: CFTC no-action letter eases event contract reporting rules

In an April hearing with the House Agriculture Committee, Selig said he had no intention of “slow[ing] down” on rulemaking, despite the lack of four other commissioners. The CFTC chair signed a memorandum of understanding with the US Securities and Exchange Commission in March to coordinate oversight of markets, including digital assets.

The CFTC under the CLARITY Act

On Thursday, lawmakers in the Senate Banking Committee voted to advance the CLARITY Act, setting the bill up for a potential floor vote in the chamber. The bill, expected to give the CFTC more authority in overseeing and regulating digital asset markets, would have significant implications for crypto users and companies.

Although the Senate had not scheduled a vote for the bill as of Friday, the dearth of leadership at the CFTC hasn’t gone unnoticed by lawmakers considering crypto market structure. Democratic Senator Amy Klobuchar, who sits on the Senate Agriculture Committee, proposed an amendment to the bill in January requiring that it not take effect “until at least four [CFTC] commissioners” were nominated and confirmed.

As of Friday, Trump had not publicly announced any picks for CFTC commissioners. Any nominations would likely need weeks or months to move through the Senate for consideration and potential votes.

Magazine: ETH stalls at $2.4K five times, SOL to rally to $120: Market Moves

THORChain suspended trading operations after attackers drained over $10 million across several blockchain networks. The exploit affected Bitcoin, Ethereum, BNB Smart Chain, and Base-linked assets through unauthorised withdrawals. Meanwhile, RUNE dropped sharply as trading activity surged across spot and derivatives markets.

THORChain Activates Emergency Halt After Exploit

THORChain paused all swaps and trading operations after security researchers detected suspicious outflows from protocol-linked wallets. The decentralised liquidity protocol triggered its emergency mechanism to reduce further losses and protect liquidity providers. As a result, network validators halted key services across affected chains.

Blockchain investigator ZachXBT reported losses exceeding $10 million on May 15 through multiple compromised wallets. The exploit targeted THORChain router contracts connected to Bitcoin, Ethereum, BNB Smart Chain, and Base infrastructure. Furthermore, researchers traced stolen assets across several token holdings and blockchain addresses.

Security firms identified wallets containing large amounts of Bitcoin, Ethereum, BNB, USDT, USDC, and wrapped Bitcoin assets. Analytics platforms also linked the wallets to rapid fund movements after the exploit occurred. Consequently, THORChain developers and node operators moved quickly to contain broader liquidity risks.

Multi-Chain Exploits Renew Concerns Around DeFi Infrastructure

The latest exploit renewed concerns surrounding decentralised finance interoperability and cross-chain liquidity protocols. THORChain supports swaps between independent blockchains without centralised exchanges or custodians. However, the architecture increases operational complexity and expands possible attack surfaces.

Cross-chain protocols continue attracting hackers because they manage large liquidity pools across multiple blockchain ecosystems. Attackers often target bridge contracts, router systems, and liquidity mechanisms handling cross-chain asset transfers. Therefore, several protocols increased monitoring systems and emergency controls during the past year.

THORChain already faced security challenges in previous years involving smart contract vulnerabilities and operational disruptions. The latest exploit marked another major setback for the protocol during ongoing market volatility. Meanwhile, developers continued assessing the exact technical cause behind the incident.

The attack also followed another major decentralised finance exploit involving KelpDAO earlier this year. KelpDAO reportedly suffered losses exceeding $290 million through a LayerZero-powered bridge vulnerability. That incident also raised concerns about possible contagion risks affecting connected DeFi protocols.

Protocols linked to cross-chain infrastructure remain vulnerable because attackers exploit communication layers between independent blockchain networks. Additionally, rapid transaction execution often complicates response efforts during active exploits. As a result, several platforms introduced automatic shutdown systems and enhanced wallet monitoring tools.

RUNE Drops Sharply While Derivatives Activity Increases

RUNE recorded steep losses after news of the exploit spread across cryptocurrency trading platforms and blockchain communities. The token dropped nearly 12% within hours and reached an intraday low near $0.502. However, trading activity increased sharply as market participants reacted to the security breach.

At the time of reporting, RUNE traded around $0.520 after fluctuating between $0.502 and $0.597 during the session. Trading volume also surged nearly 140% within 24 hours across major exchanges. Consequently, the token ranked among the session’s most active digital assets.

Derivatives activity increased despite falling prices, according to data from CoinGlass. THORChain futures’ open interest climbed above $24.8 million within a short period after the exploit emerged. Binance and Bybit also recorded strong increases in RUNE-linked futures positions.

The sharp rise in futures activity reflected heightened speculative trading following the protocol’s operational halt and security concerns. Traders increased leveraged positions as volatility expanded across cryptocurrency markets during the session. Meanwhile, THORChain teams continued investigating the exploit and monitoring suspicious wallet movements.

The incident added further pressure on decentralised finance platforms already facing regulatory scrutiny and persistent security threats. Cross-chain systems remain important for blockchain interoperability and decentralised asset transfers across networks. However, recurring exploits continue testing confidence in the sector’s long-term operational security.

Key takeaways

• Sui is down 10% on Friday, extending its decline for the fifth consecutive day.
• The technical outlook for SUI is bearish, with a risk of a steeper decline toward $1.00.

Sui (SUI) is down roughly 10% on Friday, continuing a five-day decline this week as retail interest in the token wanes. 

The broader market is shifting focus away from underperforming layer-1 assets, and technical indicators suggest a potential double-digit drop toward $1.00.

Weakness in derivatives signals sell-side dominance

SUI is also losing traction in the derivatives market. According to CoinGlass, SUI futures Open Interest (OI) fell 10.5% over the past 24 hours to $727.97 million, reflecting a reduced notional value of outstanding contracts. 

In the same period, $7.2 million in positions were liquidated, with $7. million coming from long positions—indicating strong sell-side pressure.

Technical outlook: Will SUI drop below $1?

The SUI/USD 4H chart is bearish and efficient as Sui is down by 10% in the last 24 hours. At press time, SUI is trading below the 50-period Exponential Moving Average (EMA) at $1.1558 and the lower Bollinger Band at $1.1442, showing short-term bearish bias. 

The token remains above the 200-period EMA at $1.0270, suggesting that the broader recovery structure is still intact despite waning momentum.

Momentum indicators indicate that the bears are still in play. The Relative Strength Index (RSI) has slipped to 46, below the midline, while the MACD histogram remains in negative territory, implying that rebounds may face persistent selling pressure.

If the bearish trend persists, the bulls would encounter the first support at the 200-day EMA at $1.0270 and the 78.6% Fibonacci retracement at $0.9972.

A daily close below this level could see SUI approach the prior cycle low near $0.8815.

However, if the bulls regain control, SUI could rally towards the first resistance level at $1.2171. An extended rally could see SUI hit the upper Bollinger Band near $1.2900, and the 23.6% Fibonacci retracement at $1.2947.

SUI’s technical structure shows deteriorating momentum, and traders should monitor both spot and derivatives markets for signs of further downside or potential relief rallies.

Regulators are being drawn into a dispute between traditional energy markets and Hyperliquid, the DeFi exchange behind the HIP-3 platform. Intercontinental Exchange (ICE) and the Chicago Mercantile Exchange (CME) have urged U.S. authorities to rein in Hyperliquid’s expansion into commodity markets. Bloomberg, citing unnamed sources familiar with regulatory discussions, reported that executives from ICE and CME view Hyperliquid’s energy-linked on-chain derivatives as exposing energy markets to insider trading, price manipulation, and other risks.

The concerns highlighted by ICE and CME center on the platform’s anonymous and unregulated structure, which Bloomberg describes as a potential vector for sanctions evasion in critical markets such as oil and gas. The report underscores a broader tension: as traditional markets increasingly flirt with on-chain infrastructure, regulators are weighing how to preserve market integrity while not stifling innovation.

Key takeaways

• ICE and CME are pressing regulators to curb Hyperliquid’s foray into energy-linked on-chain derivatives, citing insider trading and price manipulation risks.
• Hyperliquid’s HIP-3, launched in January 2025, enables builder-deployed perpetual futures for any electronically traded asset class by staking 500,000 HYPE tokens.
• Open interest in HIP-3 markets surpassed $2.5 billion by May, signaling growing participation in on-chain commodity instruments.
• The HYPE token has seen notable momentum, rising from roughly $20 to around $44 at the time of publication, with notable short-term upside touted by market observers.

HIP-3 and the floodgates of on-chain commodities

Hyperliquid introduced HIP-3—referred to as “Builder-Deployed Perpetuals”—in January 2025. The model lets any user who stakes 500,000 HYPE, the platform’s native token, construct perpetual futures markets for virtually any electronically traded asset class. In practice, this framework accelerates the migration of traditional market mechanics onto the blockchain, extending the reach of on-chain derivatives into energy-linked products that previously existed only in centralized venues.

The move aligns with a broader industry trend: significant portions of traditional finance are exploring or migrating to on-chain infrastructure, challenging the clear boundary between centralized exchanges and decentralized platforms. HIP-3 markets have drawn substantial attention from traders and liquidity providers, as evidenced by rising open interest and sustained activity, with DeFi data aggregators noting growth through May. The upshot for the market is twofold: expanded access to on-chain derivatives for energy-related assets, and heightened scrutiny from regulators wary of opacity and cross-border implications.

Market response and investor sentiment

Investor reaction to HIP-3 has been pronounced. After HIP-3’s launch, the HYPE token posted significant appreciation. The token surged by more than 58% within three days of the market’s expansion, moving from a roughly $20 threshold to around $38, and was trading near $44 when this report was prepared. Market observers have pointed to the token’s structure, including a 97% allocation of trading fee revenue back into HYPE buybacks, as a driver of demand and price strength over time.

In March, well-known market commentator and investor Arthur Hayes forecast that HYPE could reach as high as $150 per token by August, driven by sustained demand for commodities-linked, on-chain derivatives and the potential to siphon volumes from centralized exchanges. While such forecasts reflect a particular bears-and-bulls perspective, they underscore the degree to which HIP-3 and the broader Hyperliquid ecosystem have captured attention from traders seeking exposure to energy-market dynamics via decentralized channels.

Open interest for HIP-3 markets has continued to climb since inception, with figures showing more than $2.5 billion at the height of May activity, according to DeFiLlama data. This level of liquidity suggests growing confidence among participants in the viability of builder-deployed perpetuals as a mechanism to access energy and other commodity exposures on-chain, even as regulators deliberate how such platforms should be overseen within the broader financial system.

What this means for the crypto and energy markets

The clash between Hyperliquid’s expansion and the concerns voiced by ICE and CME highlights a decisive moment for the intersection of crypto, DeFi, and traditional energy markets. On one hand, HIP-3 represents a deliberate attempt to democratize the creation of perpetual futures, enabling market participants—from retail traders to sophisticated institutions—to design and access new liquidity pools for asset classes previously confined to fiat-native markets. On the other hand, the reliance on a decentralized, semi-anonymous framework raises legitimate questions about market integrity, price discovery, and sanction risk in essential sectors such as oil and gas.

Regulators, for their part, appear poised to weigh potential safeguards or restrictions as Hyperliquid continues to grow. The Bloomberg report suggests that conversations are ongoing, with no immediate regulatory consensus in sight. For investors and builders, the key questions are how HIP-3 markets will be regulated going forward, what risk controls, disclosure standards, or licensing requirements might emerge, and how these dynamics could affect liquidity, funding rates, and on-chain hedging capabilities in energy markets.

Meanwhile, the broader market will be watching how Hyperliquid balances growth with compliance, and whether other traditional financial players will follow the same path toward on-chain commodity exposure. The next developments—regulatory guidance, potential policy shifts, and updates from Hyperliquid about risk controls—will likely shape the pace and shape of continued innovation in on-chain derivatives.

As Hyperliquid’s HIP-3 experiment unfolds, readers should monitor regulatory updates and platform-rules disclosures, as well as metrics on open interest, trading volumes, and the health of the buyback program. The outcome will influence not only the viability of builder-deployed perpetuals but also the broader narrative around the integration of real-world assets with decentralized finance.