Key Takeaways

• Billionaire Mark Cuban liquidated approximately 80% of his Bitcoin position following disappointing performance
• During the US-Iran geopolitical tensions, gold reached $5,000 while Bitcoin declined in value
• Cuban maintains his Ethereum holdings, emphasizing its practical applications in DeFi and smart contracts
• The investor characterized the majority of alternative cryptocurrencies as worthless
• Bitcoin supporters counter that the asset has gained more than 16% since tensions escalated, depending on measurement period

Billionaire entrepreneur Mark Cuban, known for owning the Dallas Mavericks, has divested approximately 80% of his Bitcoin portfolio. In an interview on the Front Office Sports podcast “Portfolio Players,” Cuban revealed that Bitcoin’s performance during recent geopolitical instability contradicted his investment hypothesis.

JUST IN: Billionaire Mark Cuban says he sold “most” of his Bitcoin.

“Bitcoin has lost the plot.” pic.twitter.com/8xbRbcPBpC

— Watcher.Guru (@WatcherGuru) May 21, 2026

For years, Cuban championed Bitcoin as an improved alternative to gold. He frequently cited its capped supply and decentralized framework as advantages that positioned it as a superior wealth preservation tool. Just months ago, in January 2025, Cuban publicly stated his preference for Bitcoin over gold during economic downturns.

His perspective has undergone a dramatic shift.

The Reasoning Behind Cuban’s Bitcoin Exit

“When all this hit the fan with the Iran war, bitcoin was always the best alternative to fiat currency losing its value,” Cuban explained. “Gold just blew up and went to $5,000. Bitcoin dropped.”

Cuban’s rationale centered on a straightforward expectation: whenever the U.S. dollar weakened, he anticipated Bitcoin would appreciate. The reality proved different. While gold rallied amid geopolitical uncertainty, Bitcoin experienced a decline.

Prior to 2026, Cuban’s digital asset allocation consisted of approximately 60% Bitcoin, 30% Ethereum, and 10% various other tokens. He previously stated he had never liquidated his Bitcoin holdings. That longstanding commitment has now dramatically shifted.

“Not the hedge I expected it to be, and that was really disappointing,” he remarked.

Cuban labeled most alternative digital currencies as worthless while noting his continued confidence in Ethereum.

Ethereum Retains Cuban’s Support

Despite his Bitcoin exit, Cuban retains his Ethereum position. He has repeatedly highlighted its smart contract capabilities and its foundational role in powering decentralized finance platforms and non-fungible tokens.

Cuban draws a clear distinction between Bitcoin, which he primarily evaluated as a value storage mechanism, and Ethereum, which he considers to have more tangible practical applications.

His recent statements indicate this differentiation has become increasingly significant in his investment framework.

Bitcoin Advocates Challenge Cuban’s Assessment

Cuban’s interpretation of recent market behavior hasn’t gone unchallenged.

Cryptocurrency proponents highlight that from the initial escalation of US-Iran tensions in late February, Bitcoin has appreciated over 16% while gold has declined more than 15%. The comparative performance varies significantly based on the selected timeframe.

Bitcoin currently trades around $77,500, representing approximately a 38% decrease from its October 2025 peak of $126,080. Gold is valued near $4,500 per ounce, having retreated from its $5,000 high.

Cuban’s decision appears isolated from wider institutional trends. Bitcoin spot exchange-traded funds collectively manage over $100 billion in assets, demonstrating sustained institutional appetite for the cryptocurrency.

Cuban’s portfolio adjustment represents an individual investment choice rooted in his specific expectations about Bitcoin functioning as a macroeconomic hedge — expectations he now believes the asset has not fulfilled.

Fundamental Background

The RBA’s third consecutive interest rate increase to 4.35% reflects the regulator’s concern over rising inflation: the conflict in the Middle East is increasing energy costs and putting upward pressure on prices. Annual consumer inflation stood at 4.6% in March. Analysts at CBA believe this rate hike should be sufficient, with the base-case scenario pointing to rates remaining unchanged until the end of 2026, provided neither the federal budget nor second-quarter inflation data deliver major surprises.

At the same time, the Australian dollar failed to hold near its May highs, as rising demand for safe-haven assets amid global uncertainty weighed on risk-sensitive currencies.

AUD/USD Technical Picture

On the 4-hour AUD/USD chart, the upward movement from late March to early May is clearly visible, forming a pronounced trend with a characteristic wave structure. In mid-May, the trend was broken and the price declined towards the 0.7100 area, ultimately forming a green support level. The Point of Control (POC) zone is currently being tested from below, while the horizontal volume profile boundaries cover the 0.7120–0.7190 range — the corridor where the bulk of market activity is concentrated.

The 0.7190 level could act as resistance in the event of recovery attempts within the profile. The red resistance level at 0.7260 — the local May high — may remain an important reference point should the pair test the upper trend levels. The RSI + MAs indicator currently shows readings of 51 / 43 / 42, reflecting the market’s restrained and neutral character.

Key Takeaways

The key driver for the pair remains the balance between expectations for further RBA action and demand for safe-haven assets — for now, both forces continue to compete with one another. The RSI picture offers no clear advantage to either side, while price action remains close to the POC zone within a relatively narrow market profile.

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A fresh read on on-chain and derivatives signals suggests institutional appetite for crypto has cooled further, with the Coinbase premium slipping deeper into negative territory. The metric, which tracks the gap between Bitcoin prices on Coinbase (a venue favored by U.S. institutions) and Binance (more retail-oriented), slid to its lowest level this month at -0.0983% on May 21, underscoring renewed selling pressure from professional investors.

The premium has remained negative since late April, but the pace of decline picked up over the last week. CryptoQuant analyst Darkfost characterized the move as a heightening of selling pressure among institutional traders. “Institutional selling pressure has intensified recently,” Darkfost said. “This suggests that the population of institutional and professional investors trading on Coinbase Advanced is selling more aggressively than investors trading on Binance.”

Beyond the Coinbase premium, the broader macro backdrop appears to bolster a cautious stance among institutions. Gold—historically viewed as a hedge—has fallen about 5.8% over the past month, while equities across the S&P 500 and Dow Jones have shown gains since early April. That mix points to a risk-on tilt in traditional markets and a reallocation that may be weighing on crypto demand at the margin.

Key takeaways

• The Coinbase premium sits negative, with the May 21 reading at -0.0983%, signaling intensified institutional selling pressure on Coinbase Advanced relative to Binance.
• Analysts tie the shift to hedging behavior amid macro uncertainty, with institutions repositioning and possibly taking profits, which could dampen near-term crypto momentum.
• Bitcoin ETF outflows in the United States accumulate, totaling about $1.3 billion over four trading days since May 14, while derivatives demand shows signs of waning.
• Open interest in Bitcoin futures and perpetuals declined by roughly $1.5 billion in the week, suggesting a reset of leveraged bets and a potential reliance on actual spot demand for the next move.
• Bitcoin itself has fallen about 4.5% over the past week, trading near $77,600 after a monthly low just above $76,000, roughly 38% below its October peak.

Institutional positioning and the “premium” signal

The Coinbase premium has long been monitored as a proxy for the behavior of sophisticated buyers in the U.S. market. When the premium turns negative, it implies Coinbase’s price is softer than Binance’s, which can reflect a withdrawal of U.S. institutions from spot exposure or a shift toward hedging strategies. In this cycle, the trend toward negative readings has persisted for weeks, but the steep drop over the last seven days has heightened concerns about whether a larger cohort of funds is stepping back from fresh exposure to Bitcoin.

Nick Ruck, research director at LVRG, offered a cautionary angle: the drop in the premium could signal “the emergence of net selling pressure from larger holders,” potentially indicating profit-taking or portfolio rebalancing. He warned that such dynamics might weigh on near-term price momentum across major crypto assets, especially if spot demand remains lackluster as institutional selling persists.

By contrast, some market participants view the divergence between Coinbase and more retail-oriented venues as a gauge of sector rotation rather than a pure directional bet on price. Still, the current signal aligns with a broader pattern of institutions slowing or pausing fresh allocations while macro clarity remains elusive.

ETF outflows and dwindling derivatives activity

The latest data on U.S. spot Bitcoin ETFs adds another layer to the selling narrative. CoinGlass reports four consecutive trading days of outflows totaling roughly $1.3 billion since May 14. The pace of withdrawals suggests institutions are reallocating capital away from spot exposure or consolidating risk in other assets amid ongoing uncertainty.

Concurrently, operator activity in the derivatives market is cooling. Bitfinex noted that open interest—the aggregate value of outstanding Bitcoin futures and perpetual contracts—dropped by around $1.5 billion during the week. That retrenchment follows a period in which leveraged positioning had been building as Bitcoin moved toward the $82,000 region. The exchange framed the current environment as a transition: “With short-side fuel exhausted and long positioning reset lower, the next major move likely depends on spot demand.”

Bitcoin itself has retraced recently, posting a 4.5% decline over the past week and touching a monthly low just above $76,000 on Tuesday. At the time of writing, the asset hovered around $77,600, about 38% below its October peak. The combination of ETF withdrawals, falling open interest, and a still-fragile spot bid paints a picture of a market waiting for a catalyst—whether macro clarity, stronger institutional demand, or a sustained shift in risk sentiment.

Implications for traders and builders

These indicators point to a market environment where institutional demand remains tepid and price action is predominantly contingent on spot-buying vigor rather than leveraged bets. For traders, the deterioration in the Coinbase premium and the uptick in ETF outflows suggest a cautious stance: any upside move will likely require a tangible uptick in spot demand rather than relief rallies driven by derivatives leverage.

From an infrastructure and product perspective, the signals reinforce the importance of robust on-ramp options, transparent liquidity channels for institutions, and clarity on how macro shifts might influence hedging behavior. For developers and builders, evolving custody and settlement workflows, regulatory clarity, and improved access to compliant institutional products could help bridge the gap between retail enthusiasm and institutional participation.

Looking ahead, observers will be watching two intertwined threads: whether spot demand strengthens enough to absorb the existing overhang from hedgers and large holders, and how ETF and derivatives flows respond to fresh macro data and regulatory signals. If institutional selling persists and the premium remains negative, risk assets, including Bitcoin, could face the near-term pressure that many market participants already anticipate.

In the near term, investors should monitor whether spot demand improves or whether the current dynamics prolong the consolidation phase. The coming weeks will be telling for whether the dip in the Coinbase premium and ETF outflows translate into a broader regime shift or a temporary pause before renewed interest from institutional buyers returns.

What remains uncertain is how incoming macro developments—ranging from inflation data to regulatory updates and central-bank policy—will shape the risk appetite of large funds with crypto exposure. As ever, the market’s next move is likely to hinge on the delicate balance between hedging needs, liquidity availability, and the evolving appetite for risk across traditional and digital asset classes.

Polymarket, the world’s largest decentralized betting platform, has gone dark for users in India. The website says, “This site can’t be reached. Check if there is a typo in polymarket.com.”

Refreshing the page does not resolve the connection issue.

The outage follows an April 25 advisory from the Ministry of Electronics and Information Technology (MeitY) directed at VPN service providers. The advisory warned that local users were continuing to access “illegal and blocked prediction market and online betting platforms” despite “domestic prohibitions.”

According to the directive, internet service providers were required to terminate access to prediction markets, with Polymarket among the primary targets.

While Kalshi, a platform regulated by the U.S. Commodity Futures Trading Commission (CFTC), is currently still accessible, it may soon face a similar fate. Local media reports, citing an anonymous source within MeitY, claim the agency has “already issued a blocking order to Polymarket and are in the process of issuing an order to Kalshi as soon as Friday.”

CoinDesk reached out to Polymarket and Kalshi for a comment.

Prediction markets enable users to wager real money on the outcomes of binary events, such as referendums, financial asset price movements, and election results. These platforms saw a massive surge in global popularity during the 2024 U.S. presidential election, becoming a primary venue for investors to hedge or bet on political outcomes.

However, the Indian government classifies the activity on these platforms as online money gaming. As a result, they fall under a category that is completely prohibited under the Promotion and Regulation of Online Gaming Act 2025.

The Indian government has maintained a consistently “risk-averse” and prohibitive stance toward the cryptocurrency sector, prioritizing financial stability and capital control over industry growth. New Delhi has utilized a “shadow ban” strategy through punitive taxation, including a 30% flat tax on gains and a 1% tax deducted at source (TDS) on all transactions, which has effectively throttled domestic trading volumes.

The Ministry of Finance has focused on bringing the sector under strict Anti-Money Laundering (AML) and Counter-Strike Financing (CFT) oversight via the Financial Intelligence Unit (FIU). This regulatory environment has pushed many local crypto startups to relocate to more friendly jurisdictions like Dubai or Singapore, as the government and the Reserve Bank of India continue to signal that it views private cryptocurrencies more as speculative “money games” than legitimate financial innovation.

India’s Parliamentary Standing Committee on Finance met crypto exchanges Binance, WazirX and Zebpay in Delhi on May 20 to discuss regulations and taxation for what it calls a virtual digital assets (VDA) industry.

The committee expressed concerns over massive outflows from the country via the crypto channel.

Binance CEO Richard Teng has rejected a new Wall Street Journal report, saying it contains wrong claims about the exchange’s sanctions controls.

Teng said in a post on X that the WSJ report contains “fundamental inaccuracies” about Binance and its compliance program. He said Binance did not permit transactions with sanctioned individuals and that the transactions mentioned by the publication happened before the people involved were sanctioned.

The WSJ reported that Iranian-linked networks used Binance accounts to move large sums, including funds allegedly tied to sanctioned activity. The report said the activity involved accounts connected to financier Babak Zanjani and crypto firm Zedcex. Binance disputed the claims and said the information was inaccurate.

Teng says Binance reviewed the matter

Teng said Binance had already reviewed the issues before the WSJ contacted the company. He also said Binance gave those details to the publication, but they were not included in the report.

He added that Binance has “zero-tolerance for illicit activity” and will continue working with U.S. and global law-enforcement agencies to fight financial crime. The comment keeps Binance’s defense focused on timing, internal review, and cooperation with authorities.

Compliance record stays under review

The latest dispute follows earlier reports and government questions about Binance’s sanctions systems. In March, Binance formally denied allegations that it allowed transactions linked to Iran and said media reports cited in a U.S. Senate inquiry contained false claims about its compliance program.

Binance said at the time that it requires identity checks for every user and bars people located in Iran from using the exchange. The company also said it uses more than 25 monitoring tools to screen users and review transactions.

Past settlement shapes the debate

The issue remains sensitive because Binance pleaded guilty in 2023 to U.S. anti-money-laundering and sanctions violations. The Justice Department said Binance agreed to pay more than $4.3 billion and retain an independent compliance monitor as part of that resolution.

U.S. officials said the case included failures that allowed transactions between U.S. users and users in sanctioned jurisdictions, including Iran, between 2018 and 2022. Binance has since said it rebuilt parts of its compliance system and improved its monitoring.

Binance points to stronger controls

Binance has repeatedly pointed to recent metrics as proof of progress. Earlier reports said the exchange claimed sanctions-related exposure fell 96.8% between January 2024 and July 2025, from 0.284% of total exchange volume to 0.009%.

The company also said more than 1,500 workers now support compliance, sanctions screening, investigations, and risk functions. Binance said it processed more than 71,000 law-enforcement requests in 2025 and helped authorities recover funds linked to illicit activity.

U.S. Securities and Exchange Commission Commissioner Hester Peirce has pushed back against expectations that the agency could soon open the door to unrestricted tokenized stock trading through a proposed “innovation exemption.”

According to comments Peirce posted on X on Thursday, any exemption under consideration would apply only to on-chain versions of existing equity securities that already trade in public secondary markets.

She said she has always expected the proposal to remain “limited in scope,” adding that it would facilitate trading only for “digital representations of the same underlying equity security that an investor could purchase in the secondary market today.”

Her clarification arrived days after Bloomberg reported that the SEC was exploring a conditional exemption framework that could allow certain tokenized securities products to operate with modified regulatory requirements.

Fox Business journalist Eleanor Terrett described Peirce as “tempering expectations” around the proposal and narrowing its focus to “onchain equity products, not synthetic tokens that mimic stocks without giving investors the same shareholder rights.”

Peirce’s comments also appear to rule out synthetic stock-style tokens under the contemplated exemption. Such products typically track the price of equities without granting holders ownership rights tied to the underlying shares.

SEC discussions focus on shareholder rights

As previously reported crypto.news, SEC officials have discussed permitting tokenized equities only if the tokens preserve the same economic and governance rights attached to traditional shares, including voting rights and dividend access.

People familiar with the matter said the agency has gathered feedback from hundreds of market participants while shaping the proposal. The report added that discussions remain ongoing and the final terms could still change before any exemption is approved.

Concerns over synthetic stock products surfaced soon after the news surfaced. Brett Redfearn, president of tokenization firm Securitize, warned that allowing third parties to tokenize stocks without issuer involvement could create fragmentation problems across the market.

Other industry figures have also backed Peirce’s narrower interpretation.

Robert Leshner, CEO of tokenization platform Superstate, said on X that limiting tokenized trading to properly structured on-chain equities would allow decentralized finance and tokenization markets to grow “without compromising the standards that make the USA the center of capital markets.”

Meanwhile, Carlos Domingo, CEO of Securitize, has argued that restricting the exemption to genuine equity-linked assets would reduce risks tied to synthetic products.

“This is good, we want to do on-chain trading, but for the right assets, and not to help proliferate those derivatives that are fragmenting the market and introducing additional risks,” Domingo said.

Even with rising interest from crypto firms and financial institutions, tokenized equities remain a relatively small corner of the digital asset sector, though it is expected to grow. 

Data from RWA.xyz shows that tokenized stocks currently account for roughly $1.48 billion in on-chain assets. Existing offerings include tokenized exposure tied to companies such as Circle, Strategy, and Google.

Total RWA market value. Source: RWA.xyz

Previously, it was also reported that some SEC officials remain hesitant about allowing tokenized stock trading at all, despite ongoing discussions around a possible exemption.

Bitcoin (BTC) has dropped nearly 7% from its local peak of $82,800, as several groups of wallet holders switched from accumulation to distribution. Data suggests that this distribution, combined with increasing realized losses, points to a potential shift in momentum.

Key takeaways:

• Whale absorption of newly mined BTC supply drops to all-time lows below -150%.
• Bitcoin holders shift from accumulation to distribution after BTC price drop
• Bitcoin realized losses surged above $600 million in a single day as BTC price fell to $76,000.

Bitcoin whales absorbing at all-time lows

The yearly absorption rate measures the amount of new BTC issued that has been absorbed by the market over the past year. Currently, the absorption rate by exchanges is improving while whales are losing coins at a historic pace.

Notably, Bitcoin’s yearly absorption rate by exchanges has improved to -75 % from below -100% in April as inflows continue.

Bitcoin yearly absorption rates. Source: Glassnode

The chart above shows that a similar jump in the exchange absorption rate in January preceded a 38% BTC price decline to $60,000 from $98,000. 

While large holders (100–1,000+ BTC) are scooping up more than 150% the new issuance, the rate has dropped sharply since mid-April and is significantly below the record levels seen in November 2025.

Meanwhile, the rate of accumulation among whales (entities holding more than 1,000 BTC) has dropped to -151%, its lowest in Bitcoin’s history.

Bitcoin yearly absorption rates by whales and sharks. Source: Glassnode

This marks a shift in institutional sentiment, particularly with heavy outflows from spot Bitcoin’s exchange-traded funds, reflecting a reduction in long-term conviction among large holders.

All Bitcoin holder cohorts are “taking profits”

Bitcoin investors went risk-off, distributing their BTC as the price dropped to $76,000.

Glassnode’s Accumulation Trend Score (ATS) is near zero (light yellow), indicating that whales are selling BTC or not accumulating. 

Related: Bitcoin retakes $71K as US sends Iran 15-point ceasefire plan

The drop in the trend score indicates a transition from accumulation to distribution across almost all cohorts. This shift mirrors a similar pattern observed in mid-January 2025, which aligned with Bitcoin’s drop to $60,000 in February. 

Bitcoin accumulation trend score. Source: Glassnode

Additional data from Glassnode reveals a shift toward distribution or inactivity across all investor cohorts, as seen in the chart below.

Bitcoin accumulation trend score by cohort. Source: X/Glassnode

This is in contrast to Q4 2024, where broad cohort accumulation preceded a sustained rally that saw BTC/USD trade above $100,000 for the first time in history, fueled by the 2024 US Presidential elections.

CryptoQuant analyst Woominkyu highlighted “continued selling pressure” from whales who sent more than 8,000 BTC to exchanges on Monday. 

“As Bitcoin rallied to a peak of $82,196, whales began sending coins back to exchanges,” the analyst said in a QuickTake note on Thursday, adding:

“This is a classic sign of smart money selling into strength — taking profits while retail FOMO was building.”

Bitcoin whale activity. Source: CryptoQuant

Bitcoin’s realized losses jump to $600 million

Bitcoin’s latest correction triggered a sharp spike in realized losses. The losses by long-term holders (LTHs) reached $513.6 million on Tuesday, while losses by short-term holders (STHs) reached $101.8 million.

The aggregate realized losses across all holders reached $616 million after Bitcoin dropped to $76,000 on Monday. 

This marked the highest single-day loss realization since March and an over 1,500% jump in less than two days, compared with $41.5 million on Sunday.

Bitcoin realized losses by LTHs and STHs. Source: Glassnode

LTHs account for the bulk of the losses, while STH losses stay comparatively contained, indicating that the stress is largely on older buyers.

As Cointelegraph reported, Bitcoin investors who have held their coins for over six months could sell near their entry price after extended drawdowns, creating strong overhead pressure that may stall Bitcoin’s recovery.