Miami — Aave Labs is set to fundamentally reshape how it assesses and lists collateral assets on its protocol, following the largest DeFi exploit of 2026, and the overhaul could set a new standard across the entire industry.

Linda Jeng, chief legal and policy officer at Aave Labs, said at Consensus Miami 2026 that the protocol’s existing risk framework, while robust, had been too narrowly focused on financial risk and volatility.

Going forward, every asset seeking to be listed on Aave will face a broader assessment covering interoperability, cybersecurity vulnerabilities, and the underlying architecture of the asset. She cited rsETH, the restaking token issued by KelpDAO that sat at the center of April’s crisis, as the catalyst for the change.

Beyond the new assessment criteria, Jeng announced that Aave would publish a formal playbook for asset issuers — a set of minimum standards that projects must meet before they can list on the protocol. She also said Aave would begin examining systemic interconnections across protocols, moving away from analyzing pools in isolation to understanding how exposure in one corner of DeFi can ripple into another.

“Out of a crisis like this, it ups our standards,” she said.

The remarks came as Jeng reflected on a month she described as “two weeks of no sleep.” An attacker had exploited KelpDAO’s cross-chain bridge, minting 116,500 unbacked rsETH tokens worth roughly $293 million, then depositing them into Aave as collateral to borrow real wrapped ether — leaving the protocol holding hundreds of millions in impaired debt.

Jeng, who worked as a regulator during the 2008 financial crisis, said the episode triggered a strong sense of déjà vu. But the resolution, she argued, was markedly different. Rather than a government-led bailout, the industry mobilized itself. An initiative called “DeFi United,” which has drawn commitments from Lido, EtherFi, Ethena and others, was launched to cover the collateral shortfall and prevent systemic bad debt from spreading further across DeFi lending markets.

“In the financial crisis, we had to bail out the banks,” she said. “Here, we came together as an ecosystem to bail ourselves out.”

Bitcoin can be worth a lot more than today, according to a prominent crypto strategist at VanEck. Matthew Sigel, head of digital assets research, told CNBC that Bitcoin could hit seven figures within the next five years, with a longer-term model projecting as high as $2.9 million by 2050. The comments underscore a shifting narrative: while the asset remains volatile, a growing chorus of institutional researchers portrays Bitcoin as a mega-trend with a multi-decade adoption arc.

Sigel framed his outlook as the base case for Bitcoin, arguing that the asset’s trajectory will mirror its broader integration into financial and corporate strategy rather than a straight-line ascent. In a discussion on CNBC’s Halftime Report, he said: “Bitcoin going up for us is the base case. We think this asset is going to reach a million dollars over the next several years.” He later clarified that the milestone could arrive in “half a decade,” drawing a parallel to a gradual expansion of video game adoption across age groups—an analogy meant to capture mainstreaming rather than a sudden leap.

His time horizon aligns with VanEck’s base-case long-term model, which envisions Bitcoin scaling to as much as $2.9 million by 2050. The fund house frames this as a probabilistic outcome that reflects a deepening allocation by institutions and sovereign actors over time, even as shorter-term volatility remains a defining feature of the market.

Key takeaways

• VanEck’s base-case: Bitcoin could reach $1 million within five years, with a $2.9 million target in the longer term (2050).
• Long-horizon bull thesis sees Bitcoin as a megatrend increasingly influenced by formal reserve-style adoption, including a potential central-bank bid.
• Near term, Bitcoin remains highly cyclical and volatile, with price action likely to reflect macro cycles rather than a steady ascent.
• Current market positioning appears fragile, as Sigel notes that the rally has not shown froth in derivatives and seems driven by short covering rather than widespread enthusiasm.
• Broader consensus among prominent investors is mixed, with several high-profile forecasters crafting ambitious long-run targets while skeptics flag scalability and regulatory risks.

Bitcoin’s megatrend vs. the daily drumbeat of cycles

Sigel framed Bitcoin as a “very cyclical asset” that will not move in a straight line to a million dollars. The absence of a central authority to cushion downturns, he suggested, means that drawdowns and rallies will occur in waves. Yet, the argument for a longer-term transformation remains compelling to him, particularly if Bitcoin begins to enter mainstream financial systems as a reserve-like asset for some institutions or even official balance sheets.

Near-term positioning and macro drivers

Looking at the immediate backdrop, Sigel pointed to Bitcoin’s correlation with the Nasdaq as a sign that macroeconomic forces are currently shaping price action. The indicator, he noted, has risen to its highest level in about five years, suggesting the market’s trajectory is closely tied to broader risk-on or risk-off cycles rather than idiosyncratic crypto-driven moves alone.

Not everyone is convinced, however. Some prominent voices have urged caution on Bitcoin’s scalability and the risk that it may struggle to displace traditional safe-haven assets in the face of regulatory and sovereign currency risks. For instance, Ray Dalio has acknowledged Bitcoin as a possible store of value but has questioned its capacity to serve as a global reserve asset. Critics like Peter Schiff have argued that Bitcoin lacks intrinsic value and may not supplant gold as a hedge, tempering seven-figure forecasts with questions about real-world utility and governance.

What the wider market is watching

The debate over Bitcoin’s price trajectory reflects a broader tension in the crypto space: a mix of aggressive long-run forecasts anchored in growing institutional adoption and more cautious calls that emphasize regulatory risk, scalability concerns, and competition from alternative assets. In that context, the idea of Bitcoin entering a multi-decade growth phase—driven by reserve-like demand from institutions and possibly sovereign adopters—remains a compelling narrative for many investors, even if timing and pace remain uncertain.

Beyond price targets, analysts point to several milestones that could influence the trajectory in the coming years. These include clearer regulatory frameworks, improved on-chain scalability and infrastructure, the emergence of more asset-class-native products (such as regulated futures, ETFs, and custody solutions), and measurable increases in real-world usage—not merely speculative trading activity. Each development could alter the risk-reward calculus for institutions and retail participants alike.

For readers seeking additional context, the discussion around Bitcoin’s long-run potential is frequently linked to broader market commentary and independent research. Commentary from outlets like Cointelegraph, discussions around ARK Invest’s projections, and cross-industry observations help paint a fuller picture of where the crypto market may be headed as it negotiates regulatory, technological, and macroeconomic headwinds.

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In short, the near term may remain challenging, but the longer-term thesis remains intact for many observers who view Bitcoin as a structural shift in how value is stored and transferred globally. The coming years will reveal whether the secular trend converges with a more favorable macro environment and a steadier path to widespread institutional involvement.

Readers should watch for signals of genuine reserve-like demand entering official balance sheets, regulatory developments that clarify safe-harbor pathways for institutions, and real-world use-case expansion that moves beyond speculative trading to utility and liquidity provision in both traditional and digital financial ecosystems.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

South Korea’s Finance Ministry has confirmed that a long-delayed tax on crypto gains will take effect as scheduled in January 2027.

Moon Kyung-ho, director of the ministry’s income tax division, announced at an emergency parliamentary forum on virtual asset taxation held at the National Assembly Members’ Office Building in Seoul on Thursday, according to South Korea news outlet Edaily. The forum was hosted by Representative Park Soo-young of the People Power Party and the Korea Tax Policy Association.

“We will proceed with virtual asset taxation as scheduled in January next year,” Moon said in what appears to be the first public confirmation from the ministry that the crypto tax framework will move forward after multiple postponements.

Under the current Income Tax Act, profits generated through the transfer or lending of virtual assets will be categorized as “other income” beginning Jan. 1, 2027. Investors earning more than 2.5 million Korean won ($1,800) annually from crypto activities will face a 22% tax, including a 20% income tax and 2% local tax. The rule applies to an estimated 13.26 million investors.

Related: Bithumb wins temporary court stay on South Korea suspension: Report

South Korea prepares tax guidance

Moon said the National Tax Service is currently finalizing guidance on the new system and has held several working-level meetings with South Korea’s five major exchanges, including Dunamu (Upbit), Bithumb, Coinone, Korbit and Gopax, to prepare a draft notice.

He added that the notice would be published for legislative review during 2026. Speaking to reporters after the forum, Moon walked back his use of the word “soon,” clarifying that the notice would arrive sometime this year, not imminently.

Moon Kyung-ho at the National Assembly Members’ Office Building in Yeouido, Seoul. Source: Edaily.

South Korean regulators have delayed the crypto tax twice before, pushing the start date from 2025 to 2027 amid political disagreement and industry pushback over exchange readiness and the threshold level. More recently, the ruling People Power Party proposed a bill to scrap the tax altogether before its 2027 rollout.

Related: Samsung SDS wins deal to build South Korea’s blockchain securities system: Report

South Korea’s crypto industry pushes back on AML rules

As Cointelegraph reported, proposed changes to South Korea’s anti-money laundering (AML) rules have drawn sharp criticism from the country’s crypto industry. DAXA, an industry body representing 27 registered virtual asset service providers, warned that requiring exchanges to flag all overseas-linked transfers of 10 million won or more as suspicious would increase reported cases by 85 times, from around 63,000 last year to over 5.4 million, making compliance unworkable in practice.

The Financial Services Commission and Financial Intelligence Unit proposed the amendments on March 30, with a public comment period running through May 11 and final rules expected in July.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

The creator of the popular technical analysis indicator Bollinger Bands has taken a position in bitcoin, an asset his own indicator is currently flashing bullish on.

John Bollinger, who developed the indicator in the 1980s, said in an X post that one of his investment fund’s proprietary trading models had flipped positive on bitcoin and taken a position accordingly.

Bollinger bands are volatility bands that sit two standard deviations above and below the 20-day moving average of a token’s price. A wider gap between the two bands indicates volatile conditions, while a tighter band indicates calm.

A break above the upper band traditionally signals strong upward momentum, especially after a period of compression.

Bitcoin BTC$80,547.21 closed above its upper Bollinger Band on the daily chart on Wednesday, the second such close since mid-January, with the price sitting at $80,484 against an upper band reading of $81,549, per TradingView data. The breakout followed the asset’s tightest-ever band reading. These so-called squeezes often set the stage for big moves in either direction.

The chart shows bitcoin’s daily price swings in candlestick format with Bollinger bands.

The setup heading into the weekend is whether bitcoin establishes a foothold above the upper band. That would be a bullish technical signal, while a rejection here puts the price back in the chop zone.

Bitcoin traded above $80,000 at press time. The token is up roughly 9% over the past 30 days but remains 36% below its October 2025 all-time high of $126,000.

Changelly uncovers the main stablecoin trends for 2026, and hosts a podcast with Stablerail on stablecoin infrastructure every business must build on May 15, 2026.

May 6, 2026 — Changelly has published new findings on stablecoin usage trends, indicating a shift from trading-focused activity toward everyday payments, portfolio liquidity management, and consumer spending behavior.

The report combines Changelly platform data from 2025 with survey results conducted jointly by Changelly and Simple among more than 3,000 users. According to the findings, stablecoins are increasingly being used as active financial tools rather than solely as trading infrastructure.

To further explore these developments, Changelly will host a live discussion titled “The Rise of Stablecoins: Infrastructure Every Business Must Build” on May 15, 2026. The session will feature John Adam Khandjian, CGO at Changelly, and Alex Emelian, CEO and Co-Founder of Stablerail, discussing how stablecoin infrastructure is evolving for businesses involved in international transactions.

Stablecoin activity expands beyond trading

According to the report, stablecoin supply surpassed $300 billion in 2025, while annual on-chain transaction volume approached $46 trillion.

Changelly’s internal data showed that:

• 23.78% of completed transactions involved stablecoins
• Stablecoin transaction sizes were approximately five times larger than non-stablecoin transactions

The report also found that stablecoin swap participation increased 33% year-over-year, while flows between crypto assets and stablecoins remained relatively balanced, suggesting users increasingly treat stablecoins as an active liquidity layer rather than solely a defensive asset.

Everyday spending behavior becomes more visible

Survey data conducted by Changelly and Simple indicated broader stablecoin use in day-to-day spending activity:

• 60.6% of respondents reported spending through crypto-linked cards
• Average transaction sizes were approximately €40
• Most spending activity was concentrated in categories such as groceries and transportation

The findings suggest that stablecoin usage patterns are increasingly resembling traditional debit card behavior.

The report also identified education and user understanding as a more significant barrier than infrastructure. While 59% of crypto card users reported no technical issues, 58% of non-users cited lack of understanding as the primary obstacle to adoption.

Upcoming discussion on stablecoin infrastructure

The May 15 discussion will focus on the role of stablecoins in international payments and digital financial infrastructure.

Topics expected to be covered include:

• The role of stablecoins as an onboarding layer into crypto
• The shift from passive holding toward active spending and usage
• Why product design and user understanding are becoming increasingly important drivers of adoption

The session will include a 20-minute discussion followed by a live Q&A segment.

About Changelly

Changelly is an instant crypto exchange platform and a trusted crypto API provider serving over 600 companies and 12 million users worldwide. It offers secure crypto-to-crypto exchange, fiat on-ramp/off-ramp APIs, and crypto payment processing. Discover how businesses can enhance their crypto offerings with Changelly’s business products. Follow Changelly on LinkedIn for updates on new features and industry trends.

About Stablerail

Stablerail is the AI neobank for stablecoin-native companies moving 6–8 figures monthly. One self-custodial account to hold, swap, pay, invoice, get fiat IBANs, spend on cards, and earn yield. AI screens every payment for sanctions, taint, and policy match before anyone signs.

This publication is provided by the client. The text below is a paid press release that is not part of Cointelegraph.com independent editorial content. The text has undergone editorial review to ensure quality and relevance, it may not reflect the views and opinions of Cointelegraph.com. Readers are encouraged to conduct their own research before taking any actions related to the company. Disclosure.

Bitcoin’s (BTC) relief rally to $82,000 appears to be cooling off, and analysts say key levels must be reclaimed for BTC price to “confirm a durable continuation higher.”

Key takeaways:

• Bitcoin must break resistance at $85,000-$88,000 to confirm that the bottom is in.
• Profit-taking on rallies must cool down for a sustained breakout in BTC price. 

Bitcoin must reclaim $88,000 as support

Bitcoin’s 7% climb over the last week to $81,000 saw it reclaim key levels, including the true market mean at $78,200 and short-term holder (STH) cost basis at $79,100.

If the price sustains above these two levels, the 50% drawdown from the $126,000 all-time high to sub-$60,000 levels in February “would rank among the shortest episodes of its kind in Bitcoin market history,” Glassnode said in its latest Week Onchain newsletter, adding:

“Attention now shifts to the next major resistance at the Active Realized Price near $85.2K, which tracks the cost basis of all non-dormant supply and represents the next structural threshold the market must reckon with.”

Bitcoin risk indicator. Source: Glassnode

The last time Bitcoin reclaimed its active realized price, in October 2023, it was followed by a 170% rally to its previous all-time high of $74,000 reached in March 2024. These gains increased to 365% once the price hit its current record highs above $126,000.

Related: Bitcoin Bollinger Bands push key breakout as creator acts on ‘positive’ signal 

Bitcoin’s realized price by age cohorts reveals other major levels of resistance sitting higher up: the realized price of the three-to-six-month investor cohort at $88,880, the 12-month-18-month cost basis at $93,450 and the average purchase price of the six-to-12-month investor cohort at $111,850.

“For the bottom to be confirmed, price needs to clear $88.88K and hold – not wick through, not retest and fail,” CryptoQuant analyst IT Tech said in a Thursday Quicktake note, adding:

“Until then, every rally into $85K-$88K is walking straight into distribution from November 2025-Feb 2026, buyers desperate to get out flat.”

Bitcoin realized price – UTXO age bands. Source: CryptoQuant

A sustained move above that level could put recent buyers back in profit and reduce sell pressure, confirming a “durable continuation higher,” Glassnode added.

Analyst MikybullCrypto highlighted Bitcoin’s core levels of resistance before a “mega solid trend change,” including $88,000 and $92,000, based on Fibonacci level analysis. 

“Overcome these resistances, then $100K is guaranteed.”

BTC/USD daily chart. Source: MikybullCrypto

Profit-taking by long-term holders could delay BTC price recovery 

Bitcoin’s current pullback below $81,000 could be attributed to increased profit-taking by long-term holders.

Additionally, the 14-day simple moving average of profit realized by investors who have held BTC for more than one year has increased to about $180 million per day following the recent rally.

Should the current recovery continue, “this distribution pressure is likely to intensify,” Glassnode said, adding:

“The market’s ability to absorb this gradual increase in supply while sustaining the price above the True Market Mean will be the defining test of whether the current recovery has genuine structural legs.”

Bitcoin realized profit by age. Source: Glassnode

Meanwhile, realized losses remain elevated at $479 million per day, approximately 140% above the $200 million per day cycle baseline. 

A sustained compression of this indicator below $200 million per day would serve as a strong indicator that selling exhaustion is setting in and confirm a “more durable recovery regime,” Glassnode said, adding:

“Until that threshold is reached, the dual weight of long-term holder profit taking and top-buyer distribution at thin loss margins is likely to anchor the current rally.”

Bitcoin realized loss. Source: Glassnode

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.