Crypto and Market Highlights: Kiyosaki Warning, Ethereum R&D Restructuring, Institutional BTC Demand, M2 Record

Crypto

Kiyosaki’s Warning of a Summer Crash

Robert Kiyosaki warned that a market crash is imminent this summer—equities, bonds, and real estate are all at risk of collapsing. He advises that, in such a scenario, capital will flow into gold, silver, and Bitcoin. According to Kiyosaki, the combination of Federal Reserve policy, geopolitical tensions, and inflated asset prices will trigger a synchronized downturn, making precious metals and digital gold the safest havens.

Ethereum Foundation’s R&D Restructuring

The Ethereum Foundation announced a restructuring of its research and development department, resulting in staff reductions. The remaining resources will focus on three strategic priorities:

1. Layer-1 Scaling: Implementing protocol optimizations, client enhancements, and sharding research to boost throughput and lower gas fees.

2. Blobspace Expansion: Developing blobspace functionality to improve data availability for layer-2 rollups, allowing more efficient off-chain data storage.

3. User Experience Improvements: Building new developer tools, software development kits, and user-friendly wallets to simplify on-chain interactions.

This restructuring aims to allocate resources more efficiently toward core protocol development while trimming less critical internal initiatives.

Institutional vs. Retail Bitcoin Flows

Data show that institutional investors purchased 417,000 BTC in 2025, while retail investors sold 158,000 BTC during the same period. This divergence highlights an ongoing institutional accumulation trend that underpins price support, even as some retail participants reduce exposure to volatile crypto assets. Institutional demand has been driven by hedge funds, family offices, and corporate treasury allocations seeking uncorrelated returns and inflation hedges.

Strategy’s STRD Stock Offering

Strategy announced the issuance of 2.5 million preferred STRD shares. Proceeds from this offering will be used to fund the purchase and ongoing management of a Bitcoin reserve. By raising capital through equity rather than solely relying on existing balance sheet funds, Strategy aims to accelerate its accumulation of BTC and expand its institutional business lines without diluting existing Bitcoin holdings.

Aptos Labs Congressional Testimony

Avery Ching, head of Aptos Labs, is scheduled to testify before the U.S. Congress on June 4, 2025. His testimony will address the future of blockchain infrastructure and digital asset regulation. Key topics expected include:

• Aptos’s high-performance blockchain architecture and its suitability for financial and enterprise use cases.

• The role of layer-1 throughput and developer toolchains in scaling blockchain adoption.

• Proposed regulatory frameworks that foster innovation while protecting consumers and financial stability.

Classover’s $500 Million Solana Funding

Classover secured $500 million from Solana Growth Ventures, including an initial $11 million tranche earmarked for acquiring SOL tokens and bolstering its treasury. This funding will enable Classover to amplify its Solana-based staking and yield-generation strategies. By investing heavily into SOL, Classover is betting on Solana’s growing ecosystem and its competitive network performance advantages over rival layer-1 chains.

Malicious npm Package Campaign

Security researchers at Socket identified a campaign distributing four malicious npm packages. These packages contained obfuscated JavaScript code designed to steal up to 85 percent of a user’s assets if connected to BNB Smart Chain or Ethereum wallets. Once installed, the malicious code intercepted private keys and redirected funds to attacker-controlled addresses. This incident underscores persistent supply-chain risks in Web3 and highlights the importance of auditing and verifying dependencies.

Top 10 AI & Big Data Crypto Projects

Santiment ranked the top ten crypto projects in AI and Big Data based on recent developer activity:

1. ICP (Internet Computer Protocol): A decentralized compute platform supporting scalable applications.

2. Filecoin: A decentralized storage network enabling users to rent out spare disk space.

3. NEAR Protocol: A sharded blockchain with a user-friendly developer experience.

4. Livepeer: A protocol for decentralized video transcoding and streaming services.

5. Injective Protocol: A layer-one DEX and derivatives platform with cross-chain connectivity.

6. Oasis Protocol: A privacy-focused DeFi platform offering confidential computation.

7. The Graph: A decentralized indexing protocol for blockchain data.

8. iExec (iEx.ec): A distributed cloud computing network catering to AI workloads.

9. Bittensor: A decentralized machine learning network incentivizing model contributions.

10. Qubic: A next-generation oracle and staking network for off-chain data.

These projects represent a confluence of AI, data processing, and on-chain utility, reflecting a broader trend toward Web3 machine-learning integration.

Coinbase Data Breach and Layoffs

Coinbase learned in January 2025 of a significant data breach that exposed sensitive customer information, but it only publicly acknowledged the incident in May after hackers demanded a ransom. The company subsequently laid off hundreds of employees involved in security lapses and reviewed its internal protocols. The stolen data included personal identifiers and wallet addresses, raising concerns over user privacy. This breach serves as a stark reminder that even major exchanges must continuously fortify their security posture.

Tether and Bitfinex Invest in Twenty One Capital

Tether invested 14,000 BTC and Bitfinex invested 7,000 BTC into Twenty One Capital, adding to their prior injection of 4,812 BTC for the initial private funding round. These contributions bolster Twenty One Capital’s strategic Bitcoin reserve initiative, targeting long-term value preservation. By aligning with Tether and Bitfinex, Twenty One Capital gains both credibility and substantial assets under management to support its yield strategies.

SEC’s Bank Crypto Services Clarification

The U.S. Securities and Exchange Commission (SEC) confirmed that any bank or financial institution can now legally offer custodial or transactional services involving Bitcoin. This means regulated banks may open Bitcoin wallets for clients, facilitate deposits and withdrawals, and serve as custodians. This policy clarification removes regulatory uncertainty, enabling traditional financial firms to integrate crypto services without fear of enforcement actions.

Worldcoin on Time Cover

Worldcoin, the privacy-focused digital ID project, was featured on the cover of Time magazine. Worldcoin’s model involves users verifying their unique human identity through iris scans to receive WLD tokens. While the project has drawn criticism over biometric data privacy concerns, its inclusion in Time highlights the mainstream interest in novel crypto identity solutions.

Macro

M2 Money Supply at Record High

In May 2025, the U.S. M2 money supply reached an all-time high of $21.86 trillion. This record level stems from ongoing Federal Reserve asset purchases and quantitative easing programs, which have flooded the financial system with liquidity. While high M2 supports credit extension and economic activity, it also raises inflationary concerns as a larger money supply can erode purchasing power over time.

Trump Administration’s Tariff Deadline

The Trump administration urged trading partners to submit their best offers for trade negotiations by Wednesday, June 4, 2025, aiming to finalize agreements ahead of a July 8 deadline when temporary tariff pauses expire. If no satisfactory deals materialize by that date, tariffs on Chinese and European imports may resume or intensify, potentially reigniting trade tensions and disrupting global supply chains.

S&P 500 vs. MSCI ex-US Performance

The S&P 500 has risen only 0.5 percent year-to-date in 2025—its third worst performance over the first five months since 2010—while the MSCI ex-US index is up 11.5 percent, marking the largest outperformance by non-U.S. equities since 1993. Underlying factors include slower corporate earnings growth in the U.S., a stronger dollar weighing on multinational revenues, and relatively healthier economic recovery abroad.

U.S. Dollar Trading Near 40-Year High

The U.S. dollar is trading close to a 40-year high, surpassing its long-term average by 15 percent, yet it has declined 9 percent since January 2025, marking its fifth consecutive monthly drop—the longest losing streak in nearly five years. Despite elevated interest rates that nominally boost the dollar’s value, diminished risk-off demand and broad global monetary easing have put downward pressure on USD exchange rates.