Cryptocurrency

Former President Donald Trump urged the Senate to pass the Clarity Act for cryptocurrency legislation, honoring the late Senator Lindsey Graham. Trump stressed its importance in preventing China from dominating digital assets and AI. While supported by crypto firms, the bill faces hurdles, including ethical concerns and banking industry reservations. Graham was not a primary driver of this specific bill, which was led by Senators Scott and Lummis.

Kraken is relaunching its mobile app with agentic trading, enabling AI to autonomously manage portfolios and execute trades based on user input. This signifies a shift towards AI-native financial products, aiming to democratize sophisticated trading capabilities for everyday users. The platform will offer personalized insights and recommendations, maintaining user control over all decisions. This move positions Kraken alongside competitors like Coinbase and Gemini in leveraging AI for enhanced user experience and engagement, particularly during market downturns.

Veteran investor Jeremy Grantham views Bitcoin as a “useless, speculative” mechanism that will gradually become obsolete. He argues it lacks intrinsic value, has not outperformed in bull markets, and has no practical utility beyond illicit transactions. Grantham contrasts Bitcoin’s volatility with gold’s consistent long-term returns, predicting Bitcoin’s value will dwindle slowly rather than collapse suddenly.

Bitcoin plunged to a year-low of $59,023.98 on Wednesday, intensifying the eight-month bear market. Macroeconomic pressures, inflation concerns, and a shift to AI stocks and IPOs are impacting its performance. Regulatory uncertainty surrounding the CLARITY Act adds further headwinds. Despite increased institutional participation stabilizing declines compared to past winters, Bitcoin ETFs are experiencing significant outflows, indicating institutional caution.

Sam Bankman-Fried, convicted founder of FTX, has formally petitioned former President Donald Trump for a pardon. The request, filed for consideration after his sentence completion, is documented on the U.S. Department of Justice’s Pardon Attorney website. Bankman-Fried is serving a 25-year sentence for defrauding FTX customers of billions. Trump previously stated he had no intention of pardoning Bankman-Fried. The White House and Justice Department have declined to comment.

Bitcoin dropped below $70,000 for the first time since April, influenced by MicroStrategy’s first Bitcoin sale since 2022 and subsequent long liquidations totaling $594 million. This triggered a broader crypto downturn, impacting Ether, MicroStrategy, Galaxy Digital, and Coinbase. Persistent outflows from Bitcoin ETFs and its correlation with tech stocks, rather than safe-haven appeal, are creating market uncertainty.

MicroStrategy has sold 32 Bitcoin for $2.5 million, marking its second divestment from the cryptocurrency amid geopolitical uncertainty impacting crypto prices. This move, alongside a stock sale, signals a shift from their previous “never sell” doctrine towards active balance sheet management and enhancing Bitcoin-per-share value. The company also launched STRC, a yield-bearing security collateralized by its Bitcoin holdings.

The cryptocurrency industry is shifting from speculative frenzy to sustainable revenue. Lower crypto prices and economic uncertainty have reduced trading volumes and retail participation. Companies like Coinbase and Robinhood are diversifying into broader financial services. Gemini and Bullish are also expanding beyond crypto exchanges. Even stablecoin issuers like Circle are focusing on new technologies. Crypto treasury firms like MicroStrategy are moving from a “never sell” Bitcoin strategy to active management to navigate market downturns.

Gemini, the crypto exchange founded by the Winklevoss brothers, experienced a significant stock surge after announcing a $100 million capital injection from Winklevoss Capital Fund, paid in bitcoin. Despite recent challenges including losses and a class-action lawsuit, Gemini’s first-quarter financials showed narrower losses and higher-than-expected revenue, driven by strong growth in credit card and services segments. The company is pivoting towards becoming a “markets company” to diversify revenue beyond crypto volatility.

Coinbase is reducing its workforce by approximately 14% due to market volatility and the impact of AI. CEO Brian Armstrong stated the move is necessary for the company’s next growth phase, aiming for a leaner, faster, and AI-native operation. This strategic recalibration aligns with broader tech sector trends where AI’s influence is driving operational shifts and workforce adjustments.