Encryption Market May Report: Policy Factors Intensify Impact, Buying Power Gathers to Find Breakthrough Point In May, BTC opened at $60,621.20 and closed at $67,472.41, a monthly increase of $6,850.31 or 11.3%, with a volatility of 25.54%. It failed to recover as strongly as the Nasdaq's decline in April, and BTC's performance in May was relatively weak. After a large-scale volatility, the trading volume did not increase significantly, leaving long upper and lower shadows in the trend. The biggest achievement was the effective recovery after falling out of the top box at the beginning of the month, returning to the range of $58,500 to $69,500 for volatility. Although the on-chain fundamentals continue to deteriorate, the price has effectively rebounded. In addition, the support from macro finance, industry, and funds has temporarily shelved concerns about the end of the bull market. In this cycle, the upward momentum of BTC has gone through three stages: replenishing inventory, speculation on the approval of BTC ETF, and the influx of funds after the operation of BTC ETF. As of the end of May, except for the ETF channel, the inflow of on-chain funds has significantly slowed down. EMC Labs believes that in May, the rebound in BTC prices was mainly driven by the linkage effect brought about by the strong rise of ETH. There are signs of on-exchange industrial capital flowing from BTC to ETH, as evidenced by the amplified volume of the ETH/BTC trading pair after May 15. The reverse flow of industrial capital indicates that the future price discovery of BTC will mainly depend on the inflow of funds from BTC ETF channels and whether on-exchange funds are being sold. During the bull market, long-term holders will gradually sell their BTC holdings in batches, while short-term traders who aim to outperform the market in the short term continue to increase their positions. Since December, the "long-to-short" trend has been continuing until a reversal occurred in May. This month, the overall long position group shifted from selling to accumulating, increasing by 93,400 BTC, while the short position group started to reduce position and sold 38,200 BTC. In the first month after the halving, the mining community saw a decline in block rewards and transaction revenue, with a significant reduction in income to $963 million (according to The Block). EMC Labs found that under the pressure of sharp income decline, miners were forced to take two actions this month. One is to sell the accumulated 6,000 BTC in inventory to the market, and the other is to reduce computing power supply. With the price decline, the Bitcoin network has lost up to 28% of its computing power since reaching its peak on April 23. Currently, the miner community holds 1.8 million BTC and has not conducted large-scale selling since the bull market began. If the market starts to decline, the miner community may sell to maintain mining farm operations, potentially pushing the market further into a weak downward trend. Since this cycle, stablecoins have achieved a net inflow since October 2023, driving the market upwards. The inflow scale in March and April this year set a new high, marking the highest level in this cycle. It has become an important force to absorb the liquidity shock caused by the realization of large-scale BTC profits (another force is fiat funds through the BTC ETF channel). By May, with massive chip exchanges and violent market fluctuations, coupled with the delay in interest rate cuts, the inflow of funds into the stablecoin channel has dropped significantly. According to EMC Labs, the inflow of stablecoin funds in May was only $341 million, far below the $8.9 billion and $7 billion in March and April. Compared to the two major stablecoins, USDT saw an inflow of 1.394 billion this month, while USDC recorded its first outflow of 973 million in 5 months, indicating a more sensitive trend in the fund flow of stablecoins in the US region compared to the Asian region. In the April report, we judged that the market has entered a Bull Market Relay state, and the first wave of large-scale chip exchange (March~April) has already occurred. In the whole month of May, both long and short lot trading fell sharply, the market supply resumed "from short to long", and the stock of BTC on the exchanges returned to the outflow state, marking that the BTC market has entered a weak equilibrium state after the catharsis of passion. We maintain our judgment that there is a trend of capital migration from BTC to ETH in the market, and the "Ethereum time" will continue. The future trend of BTC depends on US macroeconomic data and the Fed's market voice. BTC, which is in a weak balance state, does not actually require a lot of funds to push upwards. Possible buying power comes from the spillover effect of the approval of ETH ETF, as well as fiat funds from the BTC ETF channel. With the continuous growth of its scale and the rhythm synchronized with the Nasdaq, the fiat funds in the BTC ETF channel may become an independent force that affects the price of BTC. (Data Source: EMCLabs)

PANews reported on May 23 that according to Degen's official Twitter, 3.6 million $DEGEN has been refunded to users who lost funds on the Reservoir Relay bridge due to the failure of the Degen chain. Degen said it will continue to support all users affected by this outage. Degen also said adding liquidity to Aerodrome's centralized liquidity pool this week will yield extremely high APR yields, which is worth watching.

The recent trend of oil prices is confusing, and we are waiting for key data to clarify the direction. Is this round of consolidation preparing for an upward momentum? Or is it a relay for a new decline?

CoW Protocol announced the launch of programmatic orders, which allow multiple orders to be created using a single signature. The orders will be executed when the pre-set on-chain conditions are met. These original orders support the TWAP function of CoW Swap, enabling complex trading strategies to be automated and executed indefinitely. CoW Protocol also released a Programmatic Order Framework, which is a framework for automatically setting orders. It includes the "WatchTower" relay, which can automatically execute orders based on predefined conditions.

On May 8, the CICC research report said that in addition to the Benchmark situation, maintain the view in the previous report that whether the gold price can maintain a high level above $2,000 per ounce may require fair value to provide a more stable support. CICC believes or at least needs to correspond to the further downward trend of the potential economic growth rate of the United States, that is, if the "hard landing" scenario of the US economy materializes and suppresses the long-term economic rise expectations, CICC believes that the trend of "water pump ship high" may support be expected to relay the expected trade, in this case, we judge that the gold price may be able to obtain a long-term stable support above $2,000 per ounce.

Golden Finance reported that 23,000 BTC Options are about to expire, with a Put Call Ratio of 0.49, a maximum pain point of $61,000, and a nominal value of $1.4 billion. 330,000 ETH Options are about to expire, with a Put Call Ratio of 0.36, a maximum pain point of $3,000, and a notional value of $1 billion. Adam, a macro researcher at GreeksLive, said that the encryption market continued to fall this week, and BTC broke through the $60,000 integer mark, hitting a new low since March. Hong Kong's ETF listing failed to bring too long increment, and the U.S. stock market BTC ETF continued to flow out, the weakness of the market led to the weakening of market confidence, and the main maturities of IV also continued to decline, the current IV level is the average watermark of the winter Bull Market, with a certain support, and the current cost performance for buying is good. At present, it is unlikely that the point will continue to Sideways, and if it is not Rebound, it is bound to fall Relay, Whale lack of confidence in the market outlook, Block Trading it is worth paying more attention to.

Odaily Planet Daily News Greeks.live researcher Adam released Options Delivery data on the X platform on May 3: 23,000 BTC Options are expiring soon, with a Put Call Ratio of 0.49, a maximum pain point of $61,000, and a notional value of $1.4 billion. 330,000 ETH Options are about to expire, the Put Call Ratio is 0.36, the biggest pain point is $3,000, and the notional value is $1 billion. The encryption market continued to fall this week, with BTC breaking through the $60,000 integer mark, hitting a new low since March. Hong Kong's ETF listings failed to bring too much long growth, U.S. stocks continued to BTC ETF outflows, the weakness of the market led to a weakening of market confidence, and the major maturities of IV also continued to decline, and the current IV level is the average watermark of the winter Bull Market, with a certain support. At present, it is unlikely that the point will continue to Sideways, and if it is not Rebound, it is bound to fall Relay, Whale lack of confidence in the market outlook, Block Trading it is worth paying more attention to.

According to official sources, Nostr long-form article client Yakihonne published an article "Availability and Reliability Optimization of Nostr Relay Network" through the Dora Research blog. This paper analyzes the decentralization status of the Nostr Relay Relay network and proposes how Relay can achieve a long-term sustainable incentive model. The article is divided into four chapters: "Nostr is Decentralization", "Usability Analysis of Relay", "Possible Economic Incentive Model of Relay Network", and "Proof of Relay Content", which discusses the development of Nostr Relay Network.

ATOR Protocol announced that it has received an investment from JDI, the exact amount of which was not disclosed, according to Golden Finance. ATOR Protocol plans to recognize the significant contribution of Relay operators to the Decentralization Network by distributing ATOR Tokens. Operators of supported protocol, such as Tor, can continue to operate as Relay using their ETH Address registration Relay. Relay operators will be able to see their actual contributions to the network, which will be posted to Arweave as decentralization metrics and rewarded accordingly with ATOR recognition.

The US Department of Justice on Friday rejected Roman Storm's motion to dismiss criminal charges against Tornado Cash developer Roman Storm, stating that the defense document raised disputed facts that should be weighed by a jury rather than argued in a motion at an early stage. The US Department of Justice previously accused Storm and his accomplice Roman Semenov of conspiring to launder money, operate an unlicensed money transmission business, and violate sanctions laws through the creation and operation of Tornado Cash, an encrypted mixing service designed for anonymous transactions. The US Department of Justice also accused Lazarus Group from North Korea and other criminal entities of money laundering through Tornado Cash. According to reports, lawyer Roman Storm filed a motion to dismiss the complaint at the end of March, arguing that Tornado Cash is not a custodial mixing service and does not meet the definition of "financial institution". Roman Storm cannot control or prevent the use of this service by organizations such as Lazarus. In the documents filed on Friday, the U.S. Department of Justice questioned the defense's description of Tornado Cash, stating that it was announced as a mixer in 2019, and the entire service includes a website, user interface, a set of smart contracts, and a "relay network".

Odaily Dmail Network Token currently supports the purchase of Dmail's NFT domain name, which can get 3 times the credit income after locking, and will support Restaking, DAO governance, relay nodes, gas fee payment, DaaS services (DID-based services), IMO services (fundraising by mail), etc. in the future. The Dmail team posted the details on Gitbook.

Sector view: Strong bullish sentiment has cooled and the next wave of gains is likely before the end of the week Greeks.live researcher Adam posted on social media that the strong bullish sentiment of Bitcoin breaking through $70,000 has cooled, BTC Dvol has dropped from nearly 90% to 78%, which is at the recent average, and all major term option IV has also decreased significantly in the past 3 days. Looking at the bull market that tends to relay rallies when sentiment cools, and looking at the bulk and options data, it is likely that there will be the next wave of gains before the end of the week, and the current short-term IV has fallen significantly, which is a good time to buy short-term options.