FameEX Weekly Market Trend | May 5, 2025
2025-05-05 10:35:43
1. Key Insights on Crypto Market Trends
From April 28 to May 4, the BTC spot price swung from $92,785.32 to $97,895.76, a 5.51% range. In the past seven days, there has been only one statement from a European Central Bank (ECB) official:
On April 29, ECB Executive Board Member Cipollone said that U.S. trade measures could weigh on eurozone inflation in the short term, as they may hinder global economic expansion.
CZ (Changpeng Zhao), Binance Co-founder, stated at Token2049 Dubai that there is currently an overflow of AI + crypto token projects, but “99.99% of the tokens are useless.” He emphasized that AI will reshape the crypto user experience and naturally fit cryptocurrency payments. He urged developers and investors to focus on AI projects that solve real problems and have clear application value — particularly in areas like user experience, customer support, and risk control — to promote healthy industry growth.
Regarding the “global crypto reserve strategy”, CZ mentioned, “We are advising several countries outside of Europe on how to build cryptocurrency reserves similar to what the U.S. is doing.” He also explained why he invested in the X platform: “What interests me most is free capital. But to have that, you need freedom of speech — it’s fundamental.”
Recently, CZ also posted on social media: “Use a dedicated computer for your own wallet and avoid installing software or granting permissions. It may be inconvenient, but it protects you from costly hacks — which happen more often than you hear about.”
Eric Trump, Vice President of the Trump Organization and Donald Trump’s second son, said at a Dubai crypto event:
“The modern financial system has collapsed — it’s slow and expensive. Blockchain can do everything better than today’s financial institutions. SWIFT is a disaster. Our banking system favors the ultra-wealthy. What truly brought me into the crypto space was realizing that our banking system is being used against the vast majority of people in our country. That pushed me into the crypto world. I’ll tell you this — if banks don’t pay attention to the coming changes, they will be extinct within ten years.” He also praised decentralized finance as a way to bypass the high costs and lack of privacy in traditional banking.
Hsiao-Wei Wang and Tomasz Stańczak, newly appointed Co-Executive Directors of the Ethereum Foundation, released a joint statement outlining the Foundation’s development priorities for the coming year. They stated that the Foundation will focus on three key areas: mainnet scaling, blob expansion, and improving user experience — including interoperability of Layer 2 networks and the application layer. The Foundation remains committed to four core values: censorship resistance, open-source innovation, privacy protection, and security.
Key remarks from Warren Buffett at the Berkshire Hathaway Shareholders Meeting:
1) The U.S. should pursue trade with the rest of the world, and trade should not be used as a weapon.
2) Berkshire Hathaway will not sell Japanese stocks within the next decade.
3) The company is indeed holding a significant amount of cash. It is actively looking for investment opportunities and hopes to reduce cash holdings.
4) Berkshire’s massive size has become an obstacle to its performance.
5) The company won’t make AI the center of all investment decisions.
6) The U.S. fiscal situation is frightening. The short-term weakness of the U.S. dollar is not a concern.
2. CMC 7D Statistics Indicators
Overall market cap and volume, source: https://coinmarketcap.com/charts/
Altcoin Season Index: https://coinmarketcap.com/charts/
Crypto ETFs Net Flow: https://coinmarketcap.com/charts/
CoinMarketCap 100 Index: https://coinmarketcap.com/charts/cmc100/
(Used to measure the overall performance of the top 100 cryptocurrency projects by market capitalization on CoinMarketCap)
Fear & Greed Index, source: https://coinmarketcap.com/charts/
Over the past seven days, there has been little change in the total cryptocurrency market capitalization, trading volume, and market activity. Altcoin prices have generally been on the decline. ETF funds continue to see net inflows, while the spot prices of major cryptocurrencies and large-cap altcoins have also remained relatively stable. The current Fear & Greed Index stands at 49, placing it in the mid-range of recent values.
3. Perpetual Futures
The 7-day cumulative funding rates for BTC and ETH on the top 9 exchanges are 0.8302% and -0.4244%, respectively, indicating strong bullish sentiment across the market as of May 5, with expectations of a continued bull market.
Exchange BTC Contract Open Interest:
Exchange ETH Contract Open Interest:
Over the past seven days, the contract open interest for BTC and ETH has remained relatively unchanged, indicating that short-term market participants with a high-risk appetite have started to adopt a wait-and-see approach.
4. Global Economic and Crypto Sector Developments
Macroeconomy
1) On April 28, the U.S. reported negative GDP growth for Q1 2025. The Core PCE Price Index YoY for March came in at 2.6%, in line with expectations of 2.60%, while the previous value was revised from 2.80% to 3%.
2) On April 29, Nikkei News reported that Japan had strongly opposed the tariff framework proposed by the U.S. trade negotiator.
3) On April 30, U.S. April ADP employment increased by 62,000, below the expected 115,000 and the previous 155,000.
4) On May 1, the Bank of Japan (BoJ) kept its target interest rate unchanged at 0.50% for the second consecutive meeting, in line with market expectations.
5) On May 1, the U.S. April ISM Manufacturing PMI recorded 48.7, higher than the expected 48. Initial jobless claims for the week ending April 26 were 241,000, the highest since the week of February 22, 2025.
6) On May 2, the U.S. Senate narrowly voted down a bipartisan resolution to block Trump-era tariffs.
7) On May 2, U.S. President Trump said he is working hard to craft a “beautiful bill”, aiming to achieve GDP growth of 3.3% to 3.8% in the short term. If the bill does not pass, taxes will increase by 68%.
8) On May 3, Trump stated that he was not worried about a recession during his term and would take full responsibility if tariffs negatively impacted the economy.
9) On May 3, U.S. stocks extended their longest winning streak since 2004, fully recovering losses incurred since the “reciprocal tariffs”.
10) On May 4, it was announced that next Monday will see the release of the U.S. April S&P Global Services PMI final reading and the ISM Non-Manufacturing PMI, while next Tuesday will bring the U.S. March trade balance and the April Global Supply Chain Pressure Index.
11) On May 4, it was announced that next Thursday will see the release of U.S. initial jobless claims, March wholesale sales month-over-month, April New York Fed 1-year inflation expectations, the Fed’s interest rate decision, as well as the Bank of England’s rate decision, meeting minutes, and monetary policy report.
12) On May 4, it was announced that next Friday will see the release of China’s April M2 money supply year-over-year and April trade balance, while multiple Fed officials are also scheduled to deliver public speeches on the same day.
Cryptocurrency Industry Updates:
1) On April 28, statistics showed that in the 100 days since Trump’s inauguration, the crypto market had lost $537 billion in market value.
2) On April 28, nine of the world’s top ten hedge funds were reported to hold Bitcoin, including institutional investors like Emory University and the Texas Teachers Retirement System. Major asset managers like BlackRock had also entered the crypto market.
3) On April 28, Bunq, the second-largest digital bank in Europe, announced a partnership with Kraken to launch cryptocurrency services.
4) On April 29, the Trump Organization will invest $1 billion in Dubai to build a Trump-branded hotel and residences, accepting cryptocurrency payments. A Trump advisor said countries are engaged in a “space race”-like accumulation of Bitcoin.
5) On April 29, the president of Coinbase Asset Management stated that a revaluation of gold by the U.S. could prompt the Treasury to preemptively acquire Bitcoin.
6) On April 29, Bitrace released its annual crypto crime report, revealing a sharp increase in crypto fraud and on-chain stablecoin freezing activity in 2024.
7) On April 30, it was reported that Mastercard would partner with Nuvei, Circle, and Paxos to create a seamless payment ecosystem.
8) On April 30, the founder of crypto fintech company Bankera was accused of misappropriating ICO funds to buy luxury property.
9) On April 30, Bridge launched local on-ramp and off-ramp services in Mexico, supporting conversions between USD, pesos, and stablecoins.
10) On May 1, a16z warned that attackers may use social engineering or direct threats to obtain private keys, urging equal attention to physical and digital security.
11) On May 1, the Executive Director of Trump’s Digital Asset Advisory Committee stated that crypto legislation is likely to be completed soon. Analysis shows that crypto assets account for about 37% of Trump’s total assets.
12) On May 1, Solana and other institutions submitted proposals to the U.S. SEC to bring U.S. equities on-chain in a push for financial innovation.
13) On May 2, Eric Trump, son of Donald Trump, stated that the WLFI stablecoin USD1 would be used by MGX to complete its investment in Binance.
14) On May 2, Coingecko’s latest report “Dead Coins: Over 50% of Cryptocurrencies Have Failed” revealed that of nearly 7 million cryptocurrencies listed on GeckoTerminal since 2021, 3.7 million have ceased trading.
15) On May 2, JPMorgan’s blockchain division expanded into the Middle East and North Africa. Visa partnered with stablecoin platform Bridge to launch a stablecoin Visa card product in Latin America.
16) On May 3, Circle stated that it was considering registering a federal or state-level trust charter or obtaining other non-bank licenses.
17) On May 3, Apple’s U.S. App Store relaxed in-app purchase rules, allowing NFT and crypto apps to bypass the 30% commission.
18) On May 3, the Washington Post reported that young Americans are flocking to the memecoin market in search of financial freedom and alternative investment opportunities.
19) On May 4, ahead of South Korea’s June 3 presidential election, crypto investors—who account for 36% of the electorate—emerged as a key voter group for all candidates.
20) On May 4, the Financial Times reported that Trump’s crypto-friendly stance is attracting global companies to the U.S.
21) On May 4, Vitalik published a proposal to simplify Ethereum Layer 1, aiming to bring its protocol complexity closer to Bitcoin’s within five years.
22) On May 4, Mathew McDermott, Head of Digital Assets at Goldman Sachs, announced at the TOKEN2049 conference in Dubai that the bank is planning to launch 24/7 trading for tokenized U.S. Treasuries and money market fund shares.
Regulation & Crypto Policy:
1) On April 28, Beijing released a blockchain action plan, aiming to achieve over 10 breakthrough outcomes by 2027.
2) On April 28, the U.S. Treasury’s Financial Crimes Enforcement Network proposed banning Cambodia’s Huione Group from accessing the U.S. financial system, citing alleged money laundering and ties to North Korean hacker groups.
3) On April 28, the U.S. Secretary of Commerce stated that the country is fully committed to supporting the growth of the domestic Bitcoin mining industry.
4) On April 29, Australia’s financial regulator announced a crackdown on inactive crypto exchanges.
5) On April 29, the U.K. released a draft regulation on crypto assets, bringing crypto exchanges and others into the regulatory framework.
6) On April 29, ESMA finalized guidelines to help EU regulators detect and prevent crypto market abuse.
7) On April 30, the U.K. Treasury announced plans to cooperate with the U.S. to promote innovation in the crypto industry.
8) On April 30, South Korea proposed seven crypto policies and plans to allow spot BTC ETF trading within the year.
9) On April 30, the U.S. House of Representatives announced it would release a draft crypto regulatory bill ahead of a scheduled May 6 hearing, while the North Carolina House passed a state-level crypto investment bill.
10) On May 1, Russia’s anti-money laundering agency proposed classifying illegal crypto mining as a criminal offense.
11) On May 1, Kuwait intensified its crackdown on illegal crypto mining to protect the national power grid.
12) On May 1, Nigeria passed a new bill officially classifying Bitcoin and other digital assets as securities.
13) On May 2, South Korea’s ruling party pledged to promote spot crypto ETF trading and expand banking access.
14) On May 2, the U.S. SEC delayed decisions on Bitwise’s Dogecoin ETF and Franklin’s XRP fund listing applications.
15) On May 2, Reuters reported that Abu Dhabi’s sovereign wealth fund plans to launch a dirham stablecoin in collaboration with multiple entities.
16) On May 3, the U.K.’s Financial Conduct Authority proposed banning the purchase of crypto assets via credit.
17) On May 3, the EU announced it will fully ban anonymous crypto accounts and privacy coin transactions starting in 2027.
18) On May 3, South Korea’s 4th Virtual Asset Committee issued new rules effective June 1, including oversight on nonprofit and exchange token sales, targeting non-transparent listings, enforcing circulation limits, and tightening anti-money laundering controls.
19) On May 4, the Blockchain Association urged the U.S. SEC to adopt a flexible and gradual approach to crypto regulation under new leadership.
20) On May 4, the majority leader of the New Hampshire House predicted that the state could become the first in the U.S. to establish a Bitcoin strategic reserve.
Other News:
1) On April 28, OpenAI officially announced multiple upgrades to the ChatGPT search functionality, including improvements in shopping experience, WhatsApp search, citation enhancements, trends, and autocomplete features. It also revealed its expansion into the e-commerce field, with a new AI-powered search query shopping button to be launched soon.
2) On April 29, Microsoft prepared to host the AI model Grok, owned by Elon Musk.
3) On April 30, China officially released a new mobile internet model for minors, allowing parents to activate a “minor mode” on all apps with one click.
4) On May 1, the Pakistani Ambassador to Russia stated that if war broke out with India, Pakistan would use nuclear weapons.
5) On May 2, U.S. Vice President Kamala Harris suggested that the Russia-Ukraine conflict would not end “anytime soon”. Meanwhile, Europe is reportedly planning to hand over billions in frozen Russian assets to Western investors.
6) On May 3, Elon Musk won a vote, and his SpaceX headquarters, Starbase, will become a new city in Texas.
7) On May 4, Warren Buffett announced at the Berkshire Hathaway annual shareholder meeting that he plans to retire by the end of the year and will recommend Greg Abel, Vice Chairman of Non-Insurance Operations, to take over as CEO by year-end.
5. Market Outlook
From May 7 to May 13, the medium-term trading strategy will still be applied: for the BTC spot, maintain the sell order at $169,400 and the buy orders at $73,970, $59,935, and $45,900, respectively. It is recommended to place a sell order for the ETH spot at $5,125 and set buy orders for bottom-fishing at $1,240.
According to Cointelegraph, the ETH/BTC exchange rate is approaching a key level of 0.016—this level previously triggered a 450% surge in ETH/BTC in September 2019. The current ETH/BTC rate (around 0.019 BTC) has a technical structure very similar to that of 2019. The Relative Strength Index (RSI) is in the oversold region, and the exchange rate remains below critical moving averages. Ethereum dropped 90% prior to 2019 due to the collapse of the ICO bubble, while it has currently fallen 80% from its 2021 peak. Chart analyst Jimie points out that ETH/BTC is attempting to break through the “bearish parabolic” resistance that formed in December 2021. If the breakout fails, the exchange rate could decline to 0.016 BTC (the bottom of 2019). If successful, it could initiate a new upward cycle.
Early Bitcoin developer Adam Back criticized Ethereum’s account system, claiming it has fundamental design flaws, and argued that the PoS transition has led to power concentrating in the hands of large holders. He bluntly stated, “It’s better to sell ETH before it goes to zero and buy Bitcoin instead.”
The recent decline in Ethereum’s value is primarily due to market doubts regarding Ethereum's shift to Proof of Stake (PoS), the rise of competing blockchains, and the increasing dominance of Bitcoin as an institutional asset. To address these challenges, Ethereum co-founder Vitalik Buterin has recently proposed a new architecture protocol, with plans to achieve Bitcoin-level simplicity and maintainability for Ethereum within five years. Analysts believe this proposal could be a significant positive catalyst for ETH.
Risk Reminder: The cryptocurrency market is highly volatile, and investors are advised to control their positions and implement stop-loss strategies. The above content is for reference only and does not constitute specific investment advice from this exchange.
Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.