May delivered a mix of events that energized the crypto market — and others that demand caution.
Bitcoin reclaimed the $103,000 level, Ethereum nearly doubled in value, and the total market capitalization surpassed $3.5 trillion — overtaking even Apple’s market value.
The bullish momentum was fueled by the U.S.–China tariff agreement, which significantly lowered trade barriers and reignited investor appetite for risk assets.
Adding to the optimism, JPMorgan completed its first transaction involving tokenized U.S. Treasury bonds on a public blockchain and Dubai officially approved the use of cryptocurrencies for public services.
However, not everything was positive: Coinbase suffered a data breach, and Bitcoin is still struggling to break through the $105,000 technical resistance zone.
In this article, we cover the key developments driving the crypto market this week.
U.S.–China Tariff Deal Sparks Market Rally
Source: Neptune Prime
On May 12, 2025, the U.S. and China announced a major breakthrough: both nations agreed to dramatically reduce tariffs on each other’s goods.
Under the deal, the U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will cut tariffs on U.S. goods from 125% to just 10%.
This unexpected détente eased years of economic tension and immediately sent shockwaves through global markets:
- S&P 500 futures jumped 2.8%
- The U.S. dollar rose by 0.7%
- Gold, a traditional safe haven, dropped by 2.3%
By opening trade channels and reducing protectionist barriers, the agreement has been perceived as a win for global risk assets — including cryptocurrencies like Bitcoin.
Bitcoin Surges Past $105K
Bitcoin performance since Trump’s “Liberation Day” tariff announcement. Source: Daan Crypto
Bitcoin (BTC) responded quickly to the news, climbing above $105,700 — its highest level in four months. The rally comes amid growing investor confidence, fueled by macroeconomic optimism and favorable technical indicators.
The trade deal between the U.S. and China is more than a political move — it’s a big economic signal. With gold prices falling and stock markets going up, investors are starting to look at Bitcoin again as a strong option for growth.
JPMorgan Completes First Transaction with Tokenized U.S. Treasuries on a Public Blockchain
Source: Shutterstock
On May 14, 2025, JPMorgan used its own blockchain-based infrastructure, Kinexys, to carry out a transaction involving tokenized U.S. Treasury securities.
The operation was conducted with digital securities from Ondo Finance and supported by Chainlink, which bridged private and public networks.
According to Ondo CEO Nathan Allman, this move shows that traditional finance and the crypto world are becoming increasingly connected.
JPMorgan has been investing in blockchain technology since 2019, when it launched JPM Coin, now known as Kinexys.
The platform currently handles around $2 billion in daily transactions and has already recorded over $1.5 trillion in derivatives-related assets.
The tokenization of real-world assets (RWAs) is growing rapidly. Platforms that enable assets like real estate, stocks, or government bonds to be converted into digital tokens have already surpassed $12 billion in total value locked, according to data from DeFi Llama.
This first transaction involving tokenized Treasurys on a public blockchain shows that the financial industry is adapting.
Major banks like JPMorgan are finding ways to combine security, innovation, and efficiency.
The trend is clear: more and more real-world assets will be tokenized, bringing increased liquidity, accessibility, and transparency to the financial system.
Data Breach at Coinbase: Hacker Stole Customer Information, but Company Downplays Impact
Source: CNET
Coinbase, the largest cryptocurrency exchange in the United States, has confirmed a data breach following a cyberattack, according to CEO, Brian Armstrong.
In a statement released on May 15, 2025, Coinbase revealed that criminals bribed third-party contractors working in its overseas customer support team.
They offered money to persuade a small group of staff members to copy data from customer support tools affecting less than 1% of users who make monthly transactions.
The attackers aimed to compile a list of customers they could contact while impersonating Coinbase — tricking victims into handing over their crypto.
The compromised data included:
- Full name
- Address and phone number
- Email address
- Last four digits of Social Security Number
- Partial bank account information
- Images of identity documents
- Transaction history and account balances
Coinbase emphasized that no passwords, private keys, or customer funds were compromised.
After the attack, the hackers demanded a $20 million ransom in Bitcoin to avoid leaking the stolen data.
Coinbase refused to pay and instead offered the same amount — $20 million — as a reward for information leading to the identification and arrest of those responsible.
In response, Coinbase has taken the following actions:
- Fired the involved third-party employees
- Cooperated with authorities to investigate the case
- Reimbursed customers who were tricked into transferring funds
- Strengthened its cybersecurity protocols
Coinbase estimates that the cost of refunds and corrective actions will range between $180 million and $400 million.
Additionally, the company’s stock dropped about 6% following the disclosure of the incident, amid expectations of its inclusion in the S&P 500 index.
Security Lessons for the Crypto Market
This incident serves as a warning about the digital security risks facing cryptocurrency exchanges. Even large, regulated platforms like Coinbase are vulnerable to human error and cyberattacks.
Key recommendations for users:
- Never share sensitive information
- Use two-factor authentication (2FA)
- Prioritize self-custody whenever possible
Dubai Allows Public Service Payments with Cryptocurrency Through Partnership with Crypto.com
Source: Coindoo
Dubai has taken another step toward fully digitizing its economy.
On May 12, 2025, during the Dubai Fintech Summit, the government announced a partnership with Crypto.com to enable citizens and businesses to pay for public services using cryptocurrencies.
The agreement between Crypto.com and Dubai’s Department of Finance (DOF) allows government fees and services to be paid via digital wallets.
The crypto assets will be automatically converted into dirhams—the local currency—and deposited directly into government accounts.
This integration simplifies the everyday use of digital assets and may attract even more crypto enthusiasts and blockchain-focused businesses to the city.
While an official list has not been released, officials indicated that stablecoins will play a key role in the initial phase.
This suggests that assets like USDT, USDC, and DAI will be accepted for securely settling government fees with lower volatility.
Goal: 90% of All Transactions to Be Digital by 2026
Dubai is already a global leader in financial innovation.
In 2023, 97% of all public payments were made digitally. Now, the city aims even higher: to make 90% of all public and private sector transactions fully digital by 2026.
This transformation is expected to add more than 8 billion dirhams (~$2.1 billion) to the local economy, strengthening Dubai’s fintech ecosystem and attracting international investment.
The initiative aligns with the government’s strategy to prioritize stable, efficient, and secure payment solutions for its citizens.
In recent years, Dubai has positioned itself as one of the world’s most crypto-friendly hubs. The city already hosts major international events like TOKEN2049 Dubai and offers a clear, innovation-focused regulatory environment for blockchain and digital assets.
Ethereum Surges: What’s Behind the Rally?
Source: Coinmarketcap
Ethereum (ETH) surprised the crypto market in May 2025 with a nearly 100% surge from its April lows.
On May 13, ETH climbed past $2,750, signaling a strong and sustained recovery. But what’s driving this impressive growth?
Several recent factors help explain the rally
1. Ethereum Leads in Stablecoins and Tokenization
Ethereum holds 51% of all stablecoins in circulation in 2025, making it the preferred network for major players like USDC and USDT. The rising trend of real-world asset (RWA) tokenization further strengthens Ethereum as the core infrastructure — with companies like Stripe and Meta investing heavily in this space.
2. Institutional Adoption of Layer 2 Solutions
Ethereum’s Layer 2 networks — such as Base (from Coinbase) and Robinhood’s new L2 — are gaining traction among major institutions. These solutions lower costs, increase speed, and drive demand for ETH, since the token is used for fees and settlement.
3. Pectra Upgrade
The recent Pectra upgrade, activated on May 7, 2025, significantly improved Ethereum’s data processing efficiency and scalability. This upgrade played a major role in ETH’s price surge, which nearly doubled since April and pushed the asset above $2,700.
The Pectra activation coincided with a 45% increase in ETH’s price in May, outperforming Bitcoin and other major cryptocurrencies.
4. Short Position Reversals
Hedge funds that had previously shorted Ethereum as part of delta-neutral strategies began to unwind their positions and buy back ETH. This shift in market sentiment further fueled the asset’s upward momentum.
Judge Rejects Settlement Between SEC and Ripple: $1.3 Billion Lawsuit Still Ongoing
Source: TechStory
On May 15, 2025, U.S. District Judge Analisa Torres rejected a proposed settlement between Ripple and the SEC (U.S. Securities and Exchange Commission).
The deal aimed to end the legal battle that began in 2020 over the allegedly unregistered sale of XRP, but the judge ruled it “procedurally improper.”
The case between Ripple Labs and the SEC has been ongoing since December 2020, when the Commission accused the company of raising $1.3 billion through the unregistered sale of securities via its XRP token.
After years of litigation, in August 2024, the court found that 1,278 transactions violated securities laws, resulting in a $125 million fine against Ripple.
In April 2025, both parties attempted to settle the case by proposing to:
- Reduce the fine from $125 million to $50 million
- Lift the injunction preventing Ripple from selling XRP to institutional investors
The request was submitted based on an “indicative ruling” — a procedural step intended to signal that the court might approve a future settlement.
However, Judge Torres ruled that the filing was procedurally incorrect. She noted that it failed to reference
Rule 60 of the Federal Rules of Civil Procedure, which governs changes to final judgments in exceptional circumstances.
According to the judge:
“The parties have not demonstrated exceptional circumstances nor followed the proper path to seek review of the judgment.”
As a result, the request was denied, and the case remains under appeal in the Second Circuit, where both the SEC and Ripple have filed separate motions.
The U.S. court’s refusal to accept the Ripple-SEC settlement adds yet another hurdle for crypto companies operating in the United States.
XRP Drops After Court Ruling
Following the court decision, XRP fell to $2.35, continuing a downward correction from $2.60 earlier this week — a drop of nearly 10% from its recent peak.
From a technical standpoint, XRP is testing a critical trendline.
Data from Coinglass shows that open interest in XRP dropped 6%, down to $5.08 billion. In the past 24 hours, over $22.8 million in positions were liquidated — the majority of them long positions.
Bitcoin ETFs See $96 Million Outflow After Record-Breaking Inflows
Source: Coindoo
On Tuesday, May 13, 2025, spot Bitcoin ETFs listed in the United States recorded a net outflow of $96.1 million.
The negative flow came just one day after a historic peak in inflows, during which the funds saw strong capital injections. The data raised concerns among investors, but the market rebounded quickly the following day.
The biggest impact was seen in Fidelity’s FBTC, which experienced a $91.39 million outflow. Hashdex’s DEFI ETF also posted a smaller withdrawal of $4.75 million.
Despite the significant pullback, analysts say this movement reflects a brief correction after several consecutive days of inflows — not a reversal in trend.
On May 14, just 24 hours after the negative flow, Bitcoin ETFs saw a strong net inflow of $319.5 million, led by BlackRock’s IBIT, which alone attracted $232.9 million.
This swift rebound highlights ongoing institutional interest and growing trust in ETFs as a gateway to the crypto market.
Although the $96 million outflow caught attention, the quick recovery suggests that demand for BTC exposure remains strong.
BlackRock, Fidelity, and Hashdex continue to lead ETF flows, showing that institutional appetite for crypto assets is far from fading.
For market watchers, these ETFs have become a confidence barometer — and long-term inflows remain firmly positive.
Bitcoin Reclaims $103K Amid Economic Optimism
Source: Crypto News
The cryptocurrency market kicked off Friday, May 16, 2025, with strong gains.
Bitcoin rose to $103,800, up 2% over the past 24 hours. The asset is showing renewed strength, now holding 61.9% market dominance.
The Fear & Greed Index climbed to 69, signaling a predominantly optimistic sentiment in the market.
Fear and Greed Index Chart. Fonte: Coinmarketcap
U.S. Macroeconomic Indicators Boost Market Sentiment
The rally in Bitcoin and altcoins was fueled by favorable economic data from the United States:
- Retail sales grew 0.1% in April
- March’s reading was revised up from 1.4% to 1.7%
- The Producer Price Index (PPI) fell 0.5% in April — a sign of easing inflation
These developments increase expectations of interest rate cuts, which tend to benefit risk assets like cryptocurrencies.
Total Crypto Market Capitalization
- The total crypto market cap rose 1.9%, reaching $3.33 trillion
- Bitcoin ETFs recorded $114.96 million in net inflows
- Futures market volume spiked to $312.6 billion, up 19.4%
These figures point to growing institutional strength and liquidity in the market.
With Bitcoin trading above $103K, altcoins rallying, and supportive macro indicators, the crypto market is entering a more optimistic phase, attracting renewed investor interest.
The combination of technical momentum and macroeconomic tailwinds could signal the beginning of a new growth cycle for digital assets.
Why Bitcoin Price Is Struggling to Break Above $105K in May 2025
BTC/USD weekly chart. Source: Cointelegraph/TradingView
Since the beginning of May, Bitcoin’s price has been “stuck” between $101,500 and $105,000.
Even with positive economic news and growing interest from large investors, BTC has struggled to break above the $105K level — which has become a tough resistance point.
5 Reasons Behind the Struggle
1. $105K Became a Strong Barrier
Bitcoin has tested this level multiple times but failed to break through. This makes traders more cautious about buying. Only a solid close above $105K could trigger a new upward trend.
2. No Major News to Drive the Price
There hasn’t been a big catalyst — such as a new regulation, crisis, or major announcement — to spark a breakout. Without impactful news, Bitcoin remains range-bound.
3. Retail Investors Are Nervous
Smaller investors are showing signs of fear. While this kind of sentiment often appears before major rallies, for now, it reflects market uncertainty.
4. Heavy Selling Between $105K and $110K
Exchange data shows a large number of sell orders in this price range. That excess supply is putting a lid on price action.
5. Key Support Near $100K
Despite resistance above, Bitcoin has strong support near $100,000. If it drops below $98K, a deeper correction could follow. Holding this level is critical for stability.
What Could Push Bitcoin Higher?
For BTC to break out again, several factors could help:
- Positive economic news from the U.S. (e.g., falling inflation or interest rates)
- Increased buying from institutional investors (like funds and ETFs)
- Rising demand in Asia following new trade deals
- Large sellers removing resistance between $105K and $110K
Until then, Bitcoin remains in a tight range — waiting for a new spark.
