Sentiment around Bitcoin’s near-term price direction has picked up as momentum builds behind the US CLARITY Act, which aims to provide the crypto industry with greater regulatory clarity, according to crypto sentiment platform Santiment.

“Bitcoin has seen a major spike of euphoria across social media following news that the Senate Banking Committee advanced the CLARITY Act in a 15–9 bipartisan vote,” Santiment said in an X post on Friday.

“This brings BTC and crypto one step closer to being ultimately passed,” Santiment said.

Crypto analysts are staying optimistic

Bitcoin often sees increased optimism around major industry and macro catalysts, and the US CLARITY Act has attracted significant speculation since its introduction in July 2025 about what its potential passage could mean for the broader crypto industry. 

In a Thursday session of the US Senate Banking Committee, all 13 Republican members and two Democrats voted to advance the Digital Asset Market Clarity Act (CLARITY), with nine Democrats also voting no on the bill.

Source: Cynthia Lummis

Meanwhile, Bitcoin (BTC) is trading at $79,084 at the time of publication, up 3.15% since May 1, according to CoinMarketCap.

Santiment reported that there are currently 1.55 bullish social media comments on Bitcoin for every bearish comment, suggesting this sentiment skew may be flashing warning signs. “We advise caution. Markets typically move opposite to the crowd’s expectations at all times,” Santiment said.

However, crypto analysts are staying optimistic that the trend will continue. MN Trading Capital founder Michael van de Poppe said in an X post on Friday that the legislation is “the biggest, and historical, bill for the entire industry and can be a strong trigger for the upcoming bull market.”

White House crypto chief warns it isn’t a done deal yet

White House crypto advisor Patrick Witt said in an X post on Friday that while the CLARITY Act vote was “a major step forward,” it is not yet finalized.

“As Senators on both sides of the dais noted, there’s more work to be done before this legislation is ready for prime time. We’ll keep working in good faith to build the support needed to pass the bill on the Senate floor,” Witt said.

Santiment said any movement towards the CLARITY Act’s passage “can and should be considered bullish for crypto (in the long run) because it could finally give the industry clearer rules in the United States.”

Related: Bitcoin Depot filing casts doubt on company’s future amid lawsuits

“If the CLARITY Act passes, more institutional money and powerful players would be expected to enter (or re-enter) the markets,” Santiment said.

However, the sentiment platform warned that the largest cryptocurrencies could be “baked in” before the CLARITY Act is officially passed.

Other metrics suggest market participants are becoming more cautious about the broader crypto market. The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted a “Fear” score of 31 on Saturday.

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

Shares in the US crypto exchange Bullish fell on Thursday after the company’s first-quarter earnings missed analysts’ top and bottom line expectations.

Bullish’s adjusted revenue for the quarter ended March 31 was $92.8 million, up from $62.4 million a year ago, but below Wall Street expectations of $95.4 million.

The company reported a net loss of $604.9 million, deeper than its $348.6 million loss in the prior-year period. Its adjusted earnings per share were 13 cents, below estimates of 17 cents.

Bullish is the latest crypto company to report an earnings miss after the wider crypto market fell from January to March, with Bitcoin falling 24% over the quarter, according to CoinGecko.

Shares of Bullish (BLSH) fell 5.6% during Thursday’s trading session to close at $39.46, then rose 1% in after-hours trading.

Shares in Bullish dropped on Thursday on the company’s first-quarter results. Source: Google Finance

Bullish’s stock has lost 43% since the company went public in August but is up 4.2% so far this year.

The company told investors its recent $4.2 billion acquisition of Equiniti would allow it to bring to market a “regulated transfer agent with end-to-end tokenization infrastructure” and claimed to be the second-place exchange for Bitcoin options, two areas that are currently seeing a surge of interest.

Related: Strategy’s Bitcoin engine faces $28B STRC ceiling: Delphi Digital

“With the proposed acquisition of Equiniti, we will have all three elements required to become a powerhouse leading the blockchain era,” said Bullish CEO Tom Farley. “End-to-end tokenization services, a unified transfer agent ledger, and broad blue-chip issuer relationships.”

Bullish’s results came the same day rival exchange Gemini reported a mixed first quarter, with revenue of $50.3 million missing estimates while its net loss of $109 million exceeded expectations.

Coinbase also missed consensus after it reported its first-quarter earnings last week, with $1.41 billion in revenue missing expectations of $1.5 billion, while its $394.1 million net loss, its second consecutive quarterly loss, also fell short of forecasts.

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026

Bitcoin Depot, a U.S. operator of cryptocurrency ATMs, disclosed substantial doubt about its ability to continue as a going concern in its latest SEC filing. The company pointed to ongoing litigation and a tightening regulatory environment that has squeezed ATM volumes and pushed operating costs higher as key factors threatening liquidity.

In its Form 10-Q filed with the U.S. Securities and Exchange Commission, chief financial officer David Gray reported that Bitcoin Depot had accrued more than $20 million in legal judgments in the fourth quarter of 2025, alongside a slate of ongoing litigation matters. Management said the combination of litigation exposure and regulatory restrictions across states and municipalities had driven “substantial year-over-year declines in revenue,” contributing to the going-concern warning. SEC documentation quoted the management’s conclusion that the company’s ability to continue as a going concern was in substantial doubt.

The litigation footprint includes a $1.9 million settlement with Maine’s Consumer Credit Protection Bureau in January, with additional lawsuits pending from Massachusetts, Iowa and other state authorities. Local governments across North America have stepped up scrutiny of crypto kiosks and ATMs amid concerns about scams and consumer protections, adding a layer of uncertainty to near-term growth prospects for operators such as Bitcoin Depot.

Beyond the litigation risk, Bitcoin Depot’s own reporting paints a picture of shrinking demand. The company said the first quarter ended March 31 showed an $80.7 million drop in revenue relative to the same period a year earlier, attributing the decline primarily to lower transaction volumes driven by regulatory impacts and stricter compliance controls. The quarter also produced a net loss of $9.5 million.

The regulatory backdrop is heating up in North America. In March, Bitcoin Depot appointed a new chief executive officer, naming Alex Holmes—a former MoneyGram chief who led the payments group from 2016 to 2024—as CEO and executive chairman. The company cited Holmes’ track record in global regulatory compliance as a key asset as it navigates a landscape of state-level bans and licensing actions targeting crypto-ATM networks. Bitcoin Depot press release noted Holmes’ reputation for regulatory expertise. In the markets, Bitcoin Depot’s stock has been volatile, with its Nasdaq-listed shares (BTM) falling more than 40% over a five-day span, from about $5.01 to $2.93, as investors weighed the balance of higher compliance costs, ongoing lawsuits, and potential liquidity risk.

Canada mulls a nationwide crypto ATM ban amid scam and money-laundering concerns

Meanwhile, policymakers in Canada signaled a broader approach to crypto ATMs. In its Spring Economic Update for 2026, the federal government proposed banning crypto ATMs, arguing the machines have been exploited by scammers and for money-laundering activities. The plan would still allow purchases of digital assets through brick-and-mortar money services businesses, but crypto kiosks would be restricted or banned under the proposal. Bitcoin Depot has reportedly deployed around 220 machines in Canada at the time of publication, a footprint that would be directly impacted if the plan moves forward.

These developments come against a backdrop of heightened attention on the crypto ATM sector. Industry observers have noted a rise in losses and enforcement actions across the ecosystem, underscoring the fragility of a segment that had once promised rapid expansion as a conduit for onramps to digital assets. A recent industry briefing highlighted concerns about fraud and mis-selling, reinforcing calls for tighter controls and consumer protections as regulators step in. Cointelegraph coverage on ATM losses and rising fraud cites CertiK’s findings on a surge in related risks through 2025.

What investors should watch next

Bitcoin Depot’s latest disclosures outline a bifurcated landscape: a company striving to scale a hardware-led network in a tighter regulatory regime, while facing mounting legal costs and revenue headwinds. The appointment of Holmes signals a strategic emphasis on regulatory compliance and cross-border oversight as a core competency, but the immediate cash and liquidity question remains unresolved until the company reports further results and the outcomes of ongoing litigation become clearer.

Going forward, investors and industry watchers will be watching several developments: the trajectory of quarterly revenue and cash burn, the progression and resolution of major lawsuits, and any regulatory actions in major markets—including potential impact from Canadian policy changes. The degree to which Bitcoin Depot can stabilize its balance sheet, manage compliance costs, and sustain transaction volumes will shape whether the company can weather the current risk environment or if additional strategic steps—such as asset sales or restructuring—becomes necessary.

Readers should stay attentive to the next quarterly update for clarity on liquidity runway and any material changes to the going-concern assessment as regulatory actions and the legal landscape continue to evolve.

Key Highlights

• SEDG shares climbed approximately 19% as market participants accelerated commercial solar purchases ahead of the July 4 deadline linked to the One Big Beautiful Bill Act’s 30% tax incentive.
• The company’s shares reached a fresh 52-week peak at $54.17, pushing year-to-date returns to 74% and twelve-month gains to 141%.
• First quarter 2026 revenues totaled $310 million, representing a 46% year-over-year increase and exceeding consensus projections of $307.3 million.
• Per-share earnings fell short of analyst forecasts, registering -$0.43 compared to the anticipated -$0.28 — representing a 53.57% miss.
• Jefferies trimmed its price objective to $45 from $49 while maintaining a Hold stance, citing a $14 million bad-debt write-off linked to a domestic client.

SolarEdge Technologies (SEDG) shares skyrocketed approximately 19% during Thursday’s trading session, climbing to a fresh 52-week peak of $54.17 as market participants rushed to capitalize on an impending federal tax incentive deadline.

SolarEdge Technologies, Inc., SEDG

The upward momentum stemmed largely from anticipation of a surge in commercial solar system orders prior to the July 4 safe-harboring cutoff established under the One Big Beautiful Bill Act. This legislation enables projects to secure a 30% federal investment tax credit by stockpiling equipment before the specified date.

Wider regulatory tailwinds across the renewable energy landscape also boosted solar equities throughout the trading day, amplifying SEDG’s upward trajectory.

The company’s shares have now appreciated 74% since the beginning of the year, while delivering a remarkable 141% return over the trailing twelve-month period.

First Quarter 2026 Financial Performance

SolarEdge delivered Q1 2026 revenues totaling $310 million, marking a 46% expansion compared to the corresponding quarter in the prior year. This figure surpassed Street expectations of $307.3 million.

The per-share earnings metric, conversely, disappointed investors. SEDG recorded an EPS of -$0.43 versus the consensus estimate of -$0.28, representing a negative variance of 53.57%.

Management also provided forward guidance indicating breakeven operating profitability for Q2 2026 — a significant inflection point that market observers view as credible.

These strengthening business fundamentals are triggering upward revisions to SolarEdge’s earnings outlook. According to InvestingPro data, thirteen analysts have recently elevated their estimates for the forthcoming quarter.

Wall Street Perspective

Not all analysts share the market’s enthusiasm. Jefferies recently reduced its price target on SEDG to $45 from $49 while reaffirming a Hold recommendation.

The adjustment followed SolarEdge’s disclosure of an incremental $14 million bad-debt provision associated with a domestic customer — a development that prompted Jefferies to exercise caution despite improving operational trends.

InvestingPro’s valuation framework suggests the stock currently trades above its calculated fair value at prevailing price levels.

The renewable energy sector experienced widespread strength this week following Nextpower’s fourth quarter fiscal 2026 results, which exceeded analyst projections. The firm reported adjusted diluted EPS of $1.05, surpassing the Wall Street consensus of $0.93.

That robust Nextpower performance elevated investor sentiment throughout the sector, providing tailwinds for companies including Enphase Energy and First Solar in addition to SEDG.

SolarEdge’s current market capitalization stands at approximately $3.06 billion. Technical analysis indicators currently assign the stock a Hold rating.

Strategy’s perpetual preferred stock, STRC, the company’s primary vehicle for funding its Bitcoin purchases in 2026, hit a new daily trading volume record of $1.5 billion on Thursday.

“All-time high volume. $1.53B of liquidity,” chairman Michael Saylor said, referring to Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock. 

Stretch offers investors an 11.5% dividend without requiring the company to dilute common shares. 

Source: Michael Saylor

According to the STRC.live tracker, the company could, in theory, raise an estimated $735.4 million from Thursday’s performance to purchase 9,066 Bitcoin (BTC). 

However, there’s no guarantee that Strategy will make a Bitcoin purchase based on the funds raised by Stretch. 

Strategy has now purchased 56,770 Bitcoin since April and 101,147 Bitcoin since March, accelerating its pace after a slower-than-usual February.

Estimated amount of Bitcoin that Strategy could accumulate from capital raised through STRC on Thursday. Source: STRC.Live

Perpetual preferred stocks have become a popular tool for Bitcoin treasuries to purchase more Bitcoin, particularly during the current bear market, when raising capital via senior convertible notes and at-the-market equity offerings has become more difficult. 

During Strategy’s Q1 earnings call on May 5, Saylor said the company is aiming to build Stretch into the “biggest credit instrument in the world,” while other Bitcoin treasuries have adopted similar strategies.

One of those companies is Strive, which announced on Thursday that investors of its Variable Rate Series A Perpetual Preferred Stock (SATA) would earn daily dividends from June 16, a more frequent payout schedule than the monthly distributions offered by Strategy’s Stretch. 

In recent months, the Tokyo-based Metaplanet has also raised capital to fund Bitcoin purchases through perpetual preferred stocks, such as MARS and MERCURY.

Related: Bitcoin trades at a ‘discount’ on Coinbase: Is a $76K retest next? 

Nearly 200 public companies still hold Bitcoin on their balance sheets.

Strategy remains by far the largest corporate Bitcoin treasury, holding 818,869 Bitcoin worth $66.5 billion at current market prices.

Bitcoin’s recent rally to $81,000 has also pushed above Strategy’s average purchase price of $75,543, putting its Bitcoin holdings up 7.2%. 

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

Crypto exchange Kraken announced Thursday that it had changed its cross-chain provider from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol, joining a number of protocols that have made the move following the Kelp DAO exploit in April.

Kraken said it is deprecating its existing cross-chain provider and migrating to Chainlink CCIP as its exclusive cross-chain infrastructure to secure Kraken Wrapped Bitcoin (kBTC) and all future wrapped tokens.

The company added that it chose Chainlink CCIP because it “offers enterprise-grade infrastructure with strict security and risk management requirements.” These include certifications, secure-by-default design, 16 independent nodes and native rate limits.

LayerZero has been under scrutiny since the Kelp DAO exploit in April, in which about $292 million in liquid restaking tokens were stolen by actors suspected to be linked to North Korea’s Lazarus Group.

LayerZero issued an “overdue apology” on May 9, saying that it had done a “terrible job on comms over the past three weeks.”

It admitted that its internal RPCs (remote procedure calls) were attacked and had their “source of truth poisoned” while its external RPC providers were simultaneously hit with a denial of service attack, but blamed Kelp’s configuration as a direct consequence of their single-DVN (Decentralized Verifier Network) setup.

LayerZero confirmed that no other application had been affected, and more than $9 billion in bridged assets have been moved using the protocol since April 19.

Other protocols migrate away from LayerZero

Kraken is not alone in making the switch. Kelp DAO stated that it is also in the process of migrating to Chainlink’s CCIP, and that it had burned the hacker’s 117,132 rsETH as part of the recovery process this week. 

Related: Kelp DAO eyes reopening withdrawals after rsETH burn

Solv Protocol announced on May 7 that it was migrating from LayerZero to CCIP as its official cross-chain infrastructure for $700 million in tokenized Bitcoin.

Meanwhile, onchain reinsurance protocol Re announced on May 8 that it was migrating its $475 million in total value locked from LayerZero to the Chainlink protocol. 

More than $3 billion in TVL has been migrated to CCIP since the Kelp hack, while numerous protocols have suspended bridging using LayerZero, according to MEXC.

The world’s largest Ethereum liquid staking protocol, Lido, also uses CCIP. “Chainlink’s defense-in-depth model acts as the definitive standard for cross-chain interoperability,” it explained in a blog post on Thursday. 

CCIP and LayerZero comparison. Source: Lido 

No reaction in token prices

There was no reaction in prices for Chainlink’s native token, LINK, which remains at a bear market low of around $10, down 80% from its 2021 peak. 

However, LayerZero’s native token ZRO has declined over 30% since the April hack and is down more than 80% from its 2024 all-time high, according to CoinGecko. 

Cointelegraph reached out to LayerZero for comment but did not receive an immediate response. 

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

Lombard has joined a wave of protocols switching to Chainlink CCIP as LayerZero migrations top $4 billion.

LayerZero exploit sparks industry-wide migration

The shift accelerated after a $292 million exploit drained 116,500 rsETH from Kelp DAO’s LayerZero-powered bridge in April 2026. LayerZero later said it “made a mistake” by allowing its own verifier network to secure high-value assets in the configuration used.

Kraken announced that it was replacing LayerZero with Chainlink CCIP as the exclusive cross-chain infrastructure for kBTC and all future Kraken wrapped assets. The exchange cited enterprise-grade security, ISO 27001 compliance and SOC 2 Type 2 certification as the reasons for the switch.

Kelp DAO moved rsETH to Chainlink CCIP in early May while its dispute with LayerZero over responsibility for the exploit continued to deepen. LayerZero denied that the single-verifier configuration had been approved by its staff.

Solv Protocol shifted $700 million in tokenised Bitcoin, including SolvBTC and xSolvBTC, from LayerZero to CCIP on May 7. Re.xyz followed with $475 million in TVL, citing CCIP’s 16 independent validator nodes and built-in rate limits as the deciding factors.

Chainlink CCIP has supported over $28 trillion in cumulative on-chain transaction value and averages approximately $90 million in weekly token transfers. The protocol is the only oracle platform to hold both ISO 27001 and SOC 2 Type 2 certification.

LayerZero has since removed support for 1-of-1 DVN configurations and announced plans to move most routes toward stricter 5-of-5 verifier setups. Despite the migrations, the protocol said more than $9 billion in bridged assets moved through its infrastructure since April 19.

CME Group and ICE urged US regulators to scrutinize Hyperliquid for manipulation and sanctions risks on May 15.

CME and ICE warned that Hyperliquid’s anonymous, round-the-clock perpetual futures trading could distort global commodity benchmarks, particularly in oil markets. The exchanges also flagged risks of insider coordination and sanctions evasion by state-linked participants exploiting the platform’s permissionless structure.

Hyperliquid holds a market capitalisation of approximately $10.3 billion, making HYPE the 13th-largest crypto asset globally. At its April 2025 peak, the platform accounted for roughly 70% of the on-chain perpetual futures market.

HYPE falls as Wall Street targets DeFi perp venue

The pressure campaign comes as Hyperliquid has expanded into synthetic markets for stocks and commodities, placing it in direct competition with CME and ICE. Both exchanges operate under strict regulatory oversight that Hyperliquid currently does not face.

The Hyperliquid Policy Center argued the platform provides markets that are “more beneficial and present fewer risks than traditional centralised exchanges” and expects the CFTC to develop a tailored regulatory framework for on-chain derivatives platforms.

Hyperliquid launched the Policy Center in Washington in February 2026, selecting veteran crypto policy lawyer Jake Chervinsky to lead the organisation. The group has held direct meetings with the CFTC aimed at establishing a legal path for US retail participation.

The platform had positioned itself as a beneficiary of rising oil perps activity in early 2026, with open interest in oil-linked perpetual contracts surging as the Iran conflict disrupted global energy markets.

The Hyper Foundation addressed community concerns over validator configuration earlier this year, framing transparency and decentralisation as central to Hyperliquid’s competitive proposition against regulated venues. No formal regulatory action has been announced.

TLDR

• Nvidia’s quarterly results arrive next week amid sky-high expectations for AI chip sales
• Treasury yields are climbing as inflation persistence worries mount, weighing on tech valuations
• Crude oil rallies on Middle East tensions, compounding inflation headaches
• Retail giants Walmart, Home Depot, and Target deliver earnings that will reveal consumer strength
• Pershing Square’s Bill Ackman reveals a substantial new Microsoft stake, praising its attractive pricing

A pivotal week lies ahead for market participants as multiple crucial narratives intersect. AI investment momentum, persistent inflation, commodity volatility, consumer spending trends, and high-profile portfolio moves are all commanding attention simultaneously. Here’s your essential briefing.

Nvidia: Moment of Truth for the AI Revolution

The spotlight this week centers squarely on Nvidia’s quarterly financial disclosure. This semiconductor powerhouse has emerged as arguably the most consequential stock in the entire S&P 500 index, propelled by extraordinary appetite for its datacenter processors that power artificial intelligence platforms.

Anticipation is running exceptionally high. The company’s shares have ranked among the market’s elite performers throughout the past twelve months. Consequently, the threshold for triggering a favorable market response has been pushed considerably higher.

Should Nvidia post impressive figures and elevate its forward outlook, the entire AI investment thesis could receive renewed validation and energy. Conversely, underwhelming results risk triggering a widespread selloff across semiconductor manufacturers, technology behemoths, and AI infrastructure plays.

Investors will scrutinize this release as a tangible gauge of whether enterprise capital allocation toward artificial intelligence capabilities continues to expand at an accelerating pace.

Inflation Anxieties and Bond Market Turbulence Create Headwinds

Beyond the Nvidia narrative, inflation has reemerged as a primary market preoccupation. U.S. Treasury yields have climbed toward levels not witnessed in approximately twelve months, reflecting a fundamental reassessment of Federal Reserve rate reduction prospects.

Elevated bond yields pose a significant challenge for growth-oriented equities. As fixed-income instruments deliver improved returns, market participants demonstrate reduced willingness to accept premium valuations for enterprises with earnings projections extending far into the future. This dynamic directly impacts artificial intelligence, technology, and software-focused companies.

Energy markets have amplified these concerns. Brent crude prices advanced as geopolitical instability across the Middle East sustained market nervousness. Escalating petroleum costs can accelerate general price increases, elevate corporate expense structures, and diminish household purchasing capacity.

The combination of ascending yields alongside rising energy prices creates a challenging environment for the high-growth, richly-valued stocks that have powered recent market gains.

Retail Earnings Will Gauge Consumer Resilience

The week’s other centerpiece involves a concentrated cluster of retail sector reports. Walmart, Home Depot, Target, and TJX all release results in the coming days.

Walmart commands particular scrutiny. As a dominant purveyor of food staples, household necessities, and everyday merchandise, it functions as an unfiltered barometer of lower- and middle-class American spending behavior.

Home Depot’s performance will illuminate conditions throughout the residential construction and renovation sectors. Target and TJX will indicate whether consumers continue allocating dollars toward clothing and non-essential purchases amid tightening household budgets.

Collectively, these financial snapshots will determine whether the American consumer maintains momentum or shows signs of retrenchment.

Ackman Places His Chips on Microsoft

Prominent hedge fund investor Bill Ackman announced that Pershing Square has been accumulating shares in Microsoft beginning in February. He characterized the company’s current valuation as attractive.

Ackman commands substantial influence among Wall Street observers, ensuring his disclosure generated considerable interest. Microsoft’s equity story intertwines deeply with artificial intelligence and cloud infrastructure through its Azure platform, Microsoft 365 Copilot applications, and strategic alliance with OpenAI.

This investment appears synchronized with Ackman divesting his Alphabet holdings, establishing a clear comparison between divergent AI implementation approaches. Microsoft emphasizes corporate software solutions and cloud services. Alphabet’s foundation rests on internet search, digital advertising, and proprietary AI systems.

Ackman’s selection demonstrates conviction in Microsoft’s capacity to convert AI expenditures into immediate revenue streams through its established software ecosystem.

Looking Forward

The upcoming trading sessions will substantially influence prevailing market psychology. Nvidia’s disclosure will either validate or undermine the AI investment surge. Retail company results will deliver current intelligence on household financial health. Meanwhile, inflation indicators, energy market dynamics, and Treasury yields will continue governing valuation frameworks throughout the equity universe.

While AI innovation retains broad market appeal, capital allocators are exercising heightened discrimination regarding which specific enterprises and industries merit their backing.