Macro, Markets & Momentum
Major Liquidations & New FED Chair
Bitcoin just reminded everyone why this market is not for the weak hands.
In one of the most violent moves of the month, roughly $400M+ in BTC long positions were wiped out in under ten minutes yesterday as leverage got completely flushed across the market. The move came amid rising bond yields, sticky inflation fears and renewed uncertainty around the Fed path heading into summer. Broader crypto liquidations this week pushed beyond $580M, with the overwhelming majority coming from longs. (Coinstack)
Despite the volatility, the bigger picture remains constructive.
Institutional infrastructure continues to accelerate.
Regulatory clarity is slowly progressing.
And Washington is becoming increasingly pro-crypto.
The CLARITY Act Continues To Advance
The biggest regulatory development this week was further progress on the Digital Asset Market CLARITY Act.
The Senate Banking Committee advanced the bill in a 15-9 vote, marking one of the most significant crypto regulatory milestones ever seen in the United States. (Coinstack)
The legislation aims to:
Define whether digital assets fall under SEC or CFTC jurisdiction
Create clearer frameworks for token issuance
Establish stablecoin standards
Give institutions greater regulatory certainty
Markets initially rallied on the news before macro conditions overwhelmed sentiment later in the week.
Still, this is exactly the direction crypto investors have been waiting years for.
Regulatory uncertainty has been one of the largest barriers preventing institutional capital from fully entering the space.
That wall is slowly beginning to crack
.
Kevin Warsh Is Officially The New Fed Chair
One of the most important macro developments this year is now official:
Kevin Warsh has been sworn in as the new Federal Reserve Chair. (tradingkey.com)
Warsh is viewed by markets as significantly more market-friendly and innovation-focused than many expected.
His background includes:
Former Federal Reserve Governor during the 2008 crisis
Former Morgan Stanley banker
Deep ties to Silicon Valley and technology investing
Publicly supportive stance toward financial innovation
Reports circulating across financial media and crypto markets also indicate Warsh personally holds exposure to Bitcoin and major tech equities within his own investment portfolio. (Crypto Briefing)
That matters.
For the first time, the Fed is being led by someone who appears to genuinely understand:
technological disruption
digital assets
innovation cycles
capital markets
Markets are now watching closely for Warsh’s first major policy comments as Chair.
If liquidity conditions improve later this year, crypto could become one of the largest beneficiaries.
Institutions Keep Building
While retail focuses on price candles, institutions continue laying the rails underneath the system.
This week alone:
Charles Schwab began rolling out spot BTC and ETH trading
Bitcoin ETF infrastructure continued expanding
Major brokerages increased crypto accessibility
Stablecoin legislation continued progressing
Wall Street distribution channels kept growing (Coinstack)
This is the important part most people miss:
The infrastructure is accelerating regardless of short-term volatility.
That is historically what happens before major adoption waves.
Final Thoughts
Crypto remains in one of the most fascinating macro environments ever seen.
You now have:
increasing institutional adoption
expanding regulatory clarity
sovereign level Bitcoin discussions
a pro-innovation Fed Chair
growing TradFi integration
improving market infrastructure
At the same time:
macro volatility remains elevated,
liquidity remains fragile,
and leverage continues getting punished aggressively.
Expect volatility.
Expect shakeouts.
But zoom out.
The long-term trend continues pointing in one direction.
And the market structure underneath crypto has arguably never looked stronger.
That’s it from us this week. For the latest updates & market moving news, follow us over on X & we’ll see you soon!