NEAR Protocol surged about 50% this week to roughly $2.34, outpacing most large cap tokens as traders rotated into Arthur Hayes’s “holy trinity” of NEAR, HYPE and ZEC.

Kenya’s Finance Bill 2026 has proposed new reporting obligations for crypto platforms and fresh taxes on digital payments as authorities move to expand tax collection powers across the financial sector.

According to an analysis published by KPMG Kenya, the bill introduces measures requiring Virtual Asset Service Providers to file annual returns with the Kenya Revenue Authority containing details on reportable users and controlling persons.

The proposal would also allow Kenya to exchange virtual asset transaction information with foreign tax authorities under international reporting frameworks.

At the same time, the bill expands oversight of digital financial activity through new taxes targeting card transactions and some fintech services. Analysts reviewing the proposal said the changes could raise operating costs for payment firms, crypto platforms, and businesses that rely heavily on digital transactions.

Meanwhile, the Finance Bill also gives the Kenya Revenue Authority broader enforcement authority during tax disputes. Under the proposed framework, banks, SACCOs, and mobile money providers could receive agency notices even after taxpayers have formally objected to assessments, allowing funds to be frozen or redirected while disputes remain unresolved.

What crypto-related changes are included in the bill?

KPMG Kenya’s analysis stated that the Finance Bill expands the definition of reportable financial activity to include virtual asset transactions handled by VASPs. Crypto firms would therefore be required to maintain additional compliance systems and provide annual disclosures tied to customer activity.

Alongside the reporting obligations, the proposal introduces new taxes on digital payment infrastructure. Local card transactions would face a 5% withholding tax under the bill, while some non-resident card transactions could attract a 20% withholding tax. Certain financial technology services would also become subject to a 16% VAT charge.

According to tax advisory firm Cliffe Dekker Hofmeyr, the measures form part of Kenya’s attempt to strengthen tax enforcement and improve information sharing with foreign jurisdictions. The firm noted that virtual asset reporting standards are increasingly being adopted globally as regulators seek tighter monitoring of digital asset flows.

Elsewhere in Africa, regulators are also moving toward stricter crypto oversight. In South Africa, the National Treasury’s Draft Capital Flow Management Regulations for 2026 proposed classifying crypto assets as “capital” under foreign exchange laws for the first time.

A joint statement from South Africa’s National Treasury and Reserve Bank said the draft rules are intended to close gaps involving cross-border crypto transactions and illicit financial flows. According to the proposal, certain crypto transfers may require declarations or approvals depending on thresholds set by authorities.

Why are businesses concerned about the proposals?

Financial analysts cited in local coverage said the Finance Bill could increase compliance costs for fintech companies, payment processors, and crypto-related businesses operating in Kenya. Companies that rely on mobile payments, debit cards, and international transaction infrastructure may need to adjust pricing or reporting systems if the measures are approved.

The bill also shortens tax filing timelines and introduces additional disclosure requirements for businesses. Ordinary tax returns would be due before April 30 instead of June 30, while VAT invoicing obligations would extend beyond registered VAT businesses to entities making taxable supplies.

Further changes would alter dividend withholding rules within the East African Community and revise interest deduction treatment for lenders and leasing firms. According to KPMG Kenya, the proposals are part of a wider restructuring of the country’s tax administration framework as authorities look for additional revenue sources during a period of economic pressure.

Bitcoin’s implied volatility has sunk to 36%, its lowest in eight months, signaling that professional traders expect the next move to be less dramatic and that price action may trend within a tighter range. As volatility cools, market participants are weighing what a muted near-term backdrop means for risk appetite, funding dynamics, and the potential for a surprise breakout as macro conditions oscillate between risk-on and risk-off sentiment.

Analysts caution that a buildup of bearish conviction could paradoxically sow the seeds for a sharp upside squeeze. If traders who are positioned for a deeper decline start to unwind, a rapid move above $82,000 could unleash a liquidity-driven rally. Meanwhile, the evolution of Bitcoin’s market structure—driven by institutional demand and a broadened toolbox of derivatives—continues to shape how traders price and manage risk in a market that remains far from fully mature.

Key takeaways

• Bitcoin’s implied volatility has fallen to 36%, the lowest in eight months, suggesting a quieter price environment ahead.
• Despite a subdued volatility regime, persistent bearish positioning could trigger a forced-covering rally if market dynamics flip above roughly $82,000.
• Liquidity supports, including collateralized lending used by large holders, may dampen forced sales and reduce downside pressure.
• The options market shows a tilt in risk pricing with put options trading at a premium to calls, signaling hedging demand and potential downside protection among investors.
• Short-term momentum remains sensitive to liquidity events and macro triggers, with a potential retest near $72,000 already partly priced in by traders.

Volatility at a crossroads: what the current read says

Trader appetite for risk has cooled as Bitcoin’s volatility backdrop eases from the spikes seen earlier in the year. Data tracking Bitcoin’s implied volatility reveal a market where the probability of outsized daily moves has receded. As price breach likelihood narrows, traders price in consolidation rather than a rapid acceleration, a pattern that aligns with broader market patience while macro headlines remain in flux.

Historical context matters: after a sharp January-to-February slide, volatility spiked briefly before easing again as Bitcoin traded within a defined corridor, roughly $63,000 to $71,000 in March. This period of relative calm coincided with a growing sense that the price floor around $60,000 could be a durable anchor, bolstered by increased participation from institutions and a broader suite of derivative instruments. Data visualizations comparing Bitcoin’s price with Deribit’s volatility index illustrate how sentiment has shifted from fear-driven swings to a more muted regime, even as outsized moves remain possible on triggered liquidations or macro surprises. TradingView data have helped traders gauge the relative decoupling between spot moves and volatility expectations.

That said, volatility itself is not a directional signal. It is a gauge of how aggressively traders expect prices to swing. The current trough argues for cautious risk management, but it does not guarantee a downside bias or a rapid upside breakout. The ongoing question is how much the next leg will be driven by external catalysts—economics, policy, or liquidity-driven leverage unwinds—and how much market structure will shape the pace of any move.

Liquidity cushions and market structure

One of the more interesting shifts observed in recent months is how large holders are managing risk in the face of potential volatility. Tyler Evans, chief investment officer at UTXO Management, indicated that digital credit facilities and collateralized loans have provided a buffer against forced selling. Rather than having to dump Bitcoin in a downturn, some institutions and miners have turned to secured financing to meet liquidity needs or to maintain reserve strategies. This trend reduces acute selling pressure during volatility spikes and can contribute to a more gradual price response to negative headlines or macro shocks. Hut 8’s recent credit facility from FalconX serves as a concrete example of such risk-management tools gaining traction among industry players.

From a broader market perspective, the presence of collateralized lending and other liquidity backstops helps to reframe risk from a binary, stop-the-bleed event into a more nuanced funding picture. If large participants can access capital tied to their Bitcoin holdings, the incentive to exit en masse during stress periods can diminish. This dynamic contributes to the sense that the market has matured somewhat, even as a significant portion of capital remains exposed to sharp drawdowns if conditions deteriorate again.

Options positioning and what it signals

Beyond realized price movements, options markets paint a picture of how investors are hedging and positioning for different outcomes. A widely cited measure is the delta skew of 30-day Bitcoin options, which tracks the relative pricing of puts versus calls. The latest readings show put options trading at a noticeable premium relative to calls, with about a 14% premium. In normal conditions, the put-call delta skew tends to oscillate within a narrow range, roughly between -6% and +6%. The persistence of a premium on puts over the past several months suggests that market participants are prioritizing downside protection and hedging during a period of uncertain or uneven risk appetite. This setup is important because it implies that the market is ready to absorb or withstand negative catalysts while still retaining a readiness to capitalize on favorable moves if liquidity conditions align for a bullish breakout. Glassnode data underpin these observations.

Industry chatter points to a potential constructive scenario for bulls: a sustained price move above $82,000 could trigger a cascade of leverage unwinds and liquidity-driven squeezes as shorts cover and speculative bets react to the breakout. Conversely, a retest of the $72,000 neighborhood might already be priced in by traders given the current risk tolerances and hedging posture. These dynamics illustrate a market where volatility can remain subdued most days, yet the probability of sharp moves persists due to the unbalanced mix of hedges, liquidations, and large holders managing balance sheets.

What to watch next for Bitcoin traders

As the market digests this evolving landscape, several anchors will likely shape the near-term path. One is the ongoing interaction between macro conditions and crypto-specific liquidity. If broader risk assets assume a more constructive posture, Bitcoin could see its volatility metrics compress further as hedges and collateralized facilities continue to stabilize the pace of selling. If sentiment deteriorates or a liquidity event occurs, the market could flip quickly, and the confluence of a higher realized volatility regime with liquidations could push prices toward the upper end of the current range or beyond.

Market observers will also be watching how derivatives markets respond to any new price regime. The current tilt toward hedging in puts indicates defensive positioning, but it does not preclude a bullish impulse if market breadth improves and on-chain signals align with price action. The connection between option pricing, spot performance, and funding dynamics suggests that traditional risk indicators may have limited predictive power in isolation; a holistic view that weighs liquidity, hedging, and macro cues will be essential for interpreting the next leg in Bitcoin’s journey.

Additionally, investors may want to monitor how institutional products evolve—ranging from exchange-traded awareness to structured credit facilities and bespoke financing arrangements—as these can dampen or amplify volatility depending on how widely they are adopted. The broader takeaway is that Bitcoin remains in a transition phase where risk management tools, market structure, and macro factors converge to shape both volatility and direction.

For readers tracking the potential path of Bitcoin prices, a focal point remains the possibility of a bullish breakout above $82,000, which many market participants associate with a liquidity-driven squeeze. On the other hand, if momentum wobbles and risk-off sentiment returns, a retest near $72,000 could re-emerge as traders reassess hedges and funding costs. The next move will likely hinge less on a single catalyst and more on how the ecosystem of lenders, funds, and derivative traders collaborates to manage risk in a shifting macro landscape.

What remains uncertain is how quickly new market participants and institutions will expand their use of Bitcoin-backed credit facilities and other liquidity tools. If adoption accelerates, the market could tolerate greater drawdown without triggering a cascade of forced sales. If not, the next leg may come with amplified volatility as leveraged positions unwind in a less-cooperative liquidity environment.

Readers should keep an eye on liquidity metrics, option skew shifts, and the evolving mix of institutional activity as essential indicators of how Bitcoin will navigate the coming months. The balance between hedges, collateralized funding, and price momentum will likely define both the depth and duration of the next move in this still-maturing asset class. And as ever, the market’s response to external shocks—policy changes, macro surprises, or risk-off episodes—will determine whether volatility remains a tail risk or a present driver of price action.

In the meantime, commentators continue to point to occasional signals that a sharper move could occur if bears become overconfident or if a liquidity trigger pushes leveraged traders to adjust positions aggressively. As one observation linked to recent market data noted, a bullish breakout above the $82,000 zone would likely intensify squeezes in leveraged bets, while a retest of the lower end around $72,000 remains a plausible scenario to watch. For now, Bitcoin’s volatility regime suggests a period of patient trading, with a careful eye on funding markets and hedging activity shaping the next chapter of this ongoing market narrative.

Crypto market leadership remained concentrated rather than broad based.

Crypto markets on May 25 showed a clear divergence between sectors, with infrastructure projects, privacy focused assets and exchange related tokens attracting capital while several previously popular altcoins lagged behind.

How did HYPE, TIA and XMR dominate May 25 market attention

The clearest theme on May 25 across platforms such as CoinMarketCap and TradingView was a split between projects tied to trading infrastructure, modular chains and privacy on one side, and a set of lagging altcoins on the other.

Hyperliquid’s native token HYPE remained the focal point after climbing to a fresh record above $63 over the weekend, according to a report from Yellow.

Yellow wrote that “Hyperliquid (HYPE) climbed to a fresh all time high above $63 on Saturday, extending a multi week rally that has made it the standout performer across major digital assets,” and noted that the token had already hit $62.24 on May 21 before breaking higher.

Alongside HYPE, modular infrastructure projects such as Celestia gained renewed attention.

Celestia’s TIA token is currently priced around $0.43 with roughly $26 million in 24 hour volume and a circulating supply of about 921.6 million tokens, according to data compiled by CryptoRank, which describes Celestia as “a modular data availability network enabling easy blockchain launches.”

The token rallied by more than 20% and managed to close above a key resistance zone in recent sessions, suggesting that traders are once again leaning into the modular blockchain thesis that separates data availability from execution.

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Privacy assets also featured in the day’s sector map, with Monero drawing renewed interest as investors revisited privacy related narratives that had already powered earlier gains in coins like Zcash.

In previous privacy rotation coverage, crypto dot news highlighted how investors used privacy names as a tactical trade when broader market direction looked uncertain, a pattern that appears to be resurfacing in XMR flows.

Momentum driven trading continued in Sei, which remains on the radar of public trackers after a strong rally earlier in the month kept volatility high and drew speculative interest around whether recent gains could hold.

Why are SUI and Aethir falling behind despite sector inflows

The same public dashboards that showed inflows into HYPE, TIA and XMR also highlighted obvious laggards.

Sui appeared among notable daily losers on TradingView, which listed SUI with a price near $1.02, a one day decline of 4.24 percent and a market cap of about $4.09 billion, placing it in the mid twenties by size.

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Aethir’s ATH token likewise featured on the same losers page, trading around $0.0061 with a daily drop of 4.30 percent and a market capitalization just above $123 million.

TradingView’s overview of top crypto losers described the list as “top market cap coins with the biggest price drops,” meaning that SUI and Aethir’s weakness is not just a function of their smaller scale but of clear underperformance within their respective categories.

That divergence fits with earlier token performance trends analysis on crypto dot news, which has noted that investors are concentrating capital in specific narratives rather than lifting the entire altcoin complex.

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Separate coverage on institutional crypto adoption has also emphasized that larger players increasingly favor projects with visible usage metrics and clear demand for block space, a filter that tends to punish assets where fundamentals are still opaque.

For now, the May 25 snapshot from public market trackers suggests that traders are willing to pay up for access to decentralized derivatives, modular infrastructure and privacy applications while taking risk off the table in certain layer one and infrastructure names that lack a clear near term catalyst.

Ethereum Layer 2 co-founder Tom Lehman has renewed efforts to include EIP-8182 in Ethereum’s planned Hegota upgrade, proposing a protocol-level privacy system for private ETH and ERC-20 transfers.

According to a proposal Lehman highlighted on Friday, EIP-8182 would introduce a shared shielded pool managed directly by the Ethereum protocol instead of relying on separate privacy applications with fragmented user bases.

ESPORTS lost more than 90% of its market value in under two hours after wallets tied to the project unloaded roughly 178 million tokens into thin liquidity, with part of the flow routed through Kraken addresses associated with DWF Labs.

The ESPORTS token suffered a violent flash crash as its fully diluted valuation collapsed by more than 90 percent in less than two hours, dropping to roughly $33 million after aggressive on chain selling by wallets associated with the project hit both centralized and BNB Chain venues.

According to on chain data compiled by independent analysts, addresses tied to ESPORTS market participants offloaded about 178 million ESPORTS on BNB Chain, receiving approximately 19,049 BNB in return, worth close to $12.76 million at execution prices before slippage accelerated the downside move.

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The forced selling effectively carpet bombed order books across decentralized exchanges and liquidity pools, triggering cascading liquidations and a feedback loop that crushed spot prices on centralized platforms such as Kraken where ESPORTS was listed for trading in late 2025.

On chain analyst accounts that track large flows into exchange hot wallets have tied a significant portion of the ESPORTS token outflow to specific Kraken deposit addresses previously associated with DWF Labs, suggesting that DWF or at least a DWF adjacent market making stack was providing liquidity for the token when insiders rushed for the exits.

Five days before the crash, one monitored address sent 19.9 million ESPORTS, then worth roughly $13.9 million, into a Kraken wallet linked by attribution tooling to DWF Labs, and that same cluster of addresses has since been repeatedly selling into the market in smaller chunks as liquidity thinned out.

In a previous investigation into DWF activity across other tokens, ChainCatcher reported that Binance surveillance staff had internally concluded DWF manipulated the prices of YGG and at least six additional assets, conducting more than $300 million in wash trades in 2023 before a later review walked back the findings.

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That report cited former company insiders who said the actions violated Binance terms of use, while DWF responded on social media that “many of the allegations reported by the media recently are unfounded and distort the facts” and insisted it adheres to “the highest standards of integrity, transparency, and ethics.”

The ESPORTS event will now be folded into that broader pattern and is likely to reignite the argument over whether aggressive market makers in thin narrative driven markets effectively serve as covert exit liquidity for insiders rather than stabilizing forces.

Does the ESPORTS crash change the risk calculus for gaming tokens?

Tokens with similar structures and concentrated holdings have already come under pressure after earlier DWF controversies around YGG, DODO and C98, where post funding price spikes gave way to sharp reversals once promotional flows subsided and alleged market making activities tapered off.

The dynamic echoes past episodes where concentrated players dominated circulation, such as in the SIREN token case where on chain analysis suggested a single controller may have held close to 88.5 percent of supply while profiting through derivatives, again with DWF named as a likely nexus.

More broadly, scrutiny of DWF has become a recurring theme in coverage of market structure, with outlets tracking how DWF has combined venture funding and liquidity provision across hundreds of projects while public rivals like GSR and Wintermute have openly questioned its practices.

For exchange listed gaming names, the ESPORTS dump is likely to feed directly into risk models and listing committees, especially at platforms that have already seen reputational damage from prior flash crashes, and it may tighten the pipeline for new esports oriented assets over the coming quarters.

Previous episodes around Bitcoin liquidations and flash events have demonstrated how quickly trust evaporates once order book integrity is questioned, and ESPORTS now joins that catalogue of cautionary tales even if the absolute dollar amounts are smaller.

Within the sector, the ESPORTS crash will likely be referenced alongside other collapses covered by crypto.news and in future analysis of market maker behavior, concentration of token supply, and the thin margin between narrative driven rallies and structurally fragile order books.

As for DWF, the firm continues to deny any wrongdoing and to present itself as a partner providing “efficient and sustainable liquidity” to over seven hundred projects, but every incident like ESPORTS adds to the pile of data that regulators, exchanges, and sophisticated traders now mine for patterns.

Esports as an industry is gaining massive popularity, today even hosting a world cup with thousands of players from all over the world.

Key takeaways:

• Bitcoin’s implied volatility plunged to a multi-month low, signaling that traders expect further price consolidation.
• Excessive confidence among Bitcoin bears could catalyze a liquidation-driven bull run above $82,000.

Bitcoin (BTC) implied volatility dropped to 36%, its lowest level in eight months, signaling that professional traders are pricing in lower odds of wide price swings. While declining volatility is not inherently bullish or bearish, Bitcoin derivatives data suggest that overconfidence among bears could catalyze a bullish breakout.

Bitcoin/USD (blue) vs. Deribit Bitcoin volatility index (orange). Source: TradingView

A sharp price decline between January and February caused an initial spike in volatility, especially due to the lack of a clear rationale for the move. Even as Bitcoin traded in a relatively narrow range between $63,000 and $71,000 in March, implied volatility held above 50%.

Traders became increasingly confident in the support level near $60,000, leading to a lower risk perception and a subsequent reduction in volatility. Some analysts claim the Bitcoin price has been tamed due to growing institutional participation and the expansion of derivatives products, including Strategy’s perpetual stocks.

Source: X/Nakamoto

Tyler Evans, chief investment officer of UTXO Management, reportedly said that digital credit products created a buffer against Bitcoin’s volatility. Rather than being forced to sell their holdings, large investors—including miners and companies focused on building Bitcoin reserves—have increasingly resorted to collateralized loans.

Is Bitcoin volatility bound to go up?

Bitcoin’s volatility may return to levels above 42%, as the asset is far from mature in terms of adoption and potential use cases. Bitcoin’s volatility has never held below 35%, but in theory, it could go lower. Historically, major price swings occur after a period of consolidation, which results in lower volatility.

Regardless of whether it is driven by external factors such as trade wars, economic stimulus measures, or excessive stock market valuations, Bitcoin’s price moves are often accelerated by liquidations of leveraged positions.

Estimated Bitcoin liquidation heatmap, USD. Source: CoinGlass

Bitcoin liquidation heatmap estimates show a high concentration of shorts (sell positions) between $78,000 and $83,000. Bears might have become overconfident after nearly four months of the Bitcoin price holding below $90,000. The Bitcoin options skew can be helpful to assess how whales and market makers are positioned.

Related: Coinbase premium hits monthly low as institutional selling pressure mounts

Bitcoin 30-day options delta skew (put-call). Source: Glassnode

Professional traders currently fear a Bitcoin price decline as put (sell) options trade at a 14% premium relative to call (buy) instruments. Under neutral market conditions, this indicator should range between -6% and +6%, but this has not been the case over the past four months.

Volatility should not be used to predict market direction. However, given the weak sentiment in Bitcoin options markets, odds are that a bullish breakout above $82,000 would trigger a stronger squeeze in leveraged positions, while a retest of $72,000 seems somewhat priced in.

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