May Crypto Surge & Macro Warning: Bitcoin Wallet Growth, Ethereum Treasury Plan, Circle IPO, Fed Beige Book

Crypto Sector Highlights

Bitcoin Network Activity Reaches Multi‐Year Highs

On May 29, a total of 556,830 new Bitcoin wallets were created, marking the highest daily increase since December 2023. Such rapid wallet growth suggests renewed investor interest as Bitcoin traded around $105,000. Two days later, on June 2, a record 241,360 BTC moved on-chain, the largest single-day turnover since December 2024, indicating robust transaction volume amid high prices .

K Wave Media’s $500 Million Bitcoin Treasury Facility

K Wave Media, a South Korean media conglomerate, announced plans to secure $500 million in equity financing to support a Bitcoin treasury strategy. The deal will fund direct BTC purchases, effectively diversifying K Wave’s corporate balance sheet into digital assets .

Bitcoin’s Weekly Chart Bullish Structure

Analyst Gert van Lagen noted that Bitcoin’s one-week (1W) chart demonstrates a stair-step bullish formation targeting the HTF sell line near $320,000. This pattern suggests continued upward momentum in the medium term .

Ethereum Foundation Outlines $970 Million Treasury Policy

The Ethereum Foundation (EF) published its treasury policy for 2025–2026, earmarking $970 million in reserves to stabilize the ecosystem during downturns. Key points include:

• A cap on annual spending at 15% of the treasury, with a reduction to 5% over five years.

• A 2.5-year operational buffer to cover core costs.

• Quarterly and annual internal reporting to the EF Board and leadership.

• Allocation to DeFi yields, ETH staking, and real-world assets (RWA).

• A shift in mission language: removing “decentralization” and “permissionless” in favor of “open society in the digital age.”

• Leadership changes, appointing Wang and Stanczak to drive EF’s strategic goals.

These measures aim to counter criticism, streamline governance, and ensure long-term fiscal sustainability .

ConsenSys Acquires $320 Million in ETH from Galaxy Digital

ConsenSys purchased $320 million worth of ETH from Galaxy Digital, immediately staking $120 million via Liquid Collective. This strategic move bolsters ConsenSys’s liquidity and staking services, reflecting confidence in Ethereum’s mid-term trajectory .

Subunit Pro and Zentari Capital Tokenize $300 Million Fund

Subunit Pro reached an agreement with Zentari Capital to tokenize the $300 million Centaur I fund on Ethereum. The tokenization will allow fractional ownership and improve liquidity for institutional and qualified-investor participants in the underlying asset pool .

Sui Partners with VARA to Support Dubai Crypto Startups

Blockchain platform Sui announced a collaboration with the Virtual Assets Regulatory Authority (VARA) in Dubai to foster local crypto startup growth. Through grants and regulatory guidance, the partnership aims to spur innovation in the UAE’s virtual asset ecosystem .

Hyperliquid to Launch Post-HIP-3 Markets

Hyperliquid revealed plans to launch multiple new markets following its HIP-3 update. By offering a fair liquidity model and transparent on-chain pricing, Hyperliquid intends to provide an alternative to centralized exchange listings for emerging tokens .

Circle’s $1.1 Billion IPO Exceeds Targets

Circle, issuer of the USDC stablecoin, raised $1.1 billion in its IPO by selling 34 million shares at $31 each—a considerable overshoot of its $896 million target. The post-listing market cap could reach $6.9 billion, underscoring strong investor demand for stablecoin-backed digital asset infrastructure .

XION’s Dave Toolkit Simplifies Web3 Integration

XION launched Dave, a mobile developer toolkit enabling over 18 million developers to integrate blockchain features into apps without requiring crypto wallets. By abstracting private-key management, Dave aims to accelerate mainstream Web3 adoption in mobile and enterprise applications .

Macro Outlook

Federal Reserve’s Beige Book Signals Slowing Growth

The Fed’s May Beige Book reported slight declines in economic activity across most regions, stable employment, weakening labor demand, and moderate price increases. However, respondents noted expectations of rising price pressures later in the year, particularly in sectors facing supply constraints .

U.S. National Debt Projected to Hit $55 Trillion by 2034

Analysts project that if the “Beautiful Bill” becomes law, U.S. federal debt could climb to $55 trillion by 2034—nearly doubling from current levels. This trajectory outpaces GDP growth and raises questions about fiscal sustainability and debt servicing burdens over the next decade .

Jamie Dimon Warns on Dollar’s Reserve Status

JPMorgan CEO Jamie Dimon cautioned that America risks losing its reserve currency status due to ballooning debt (approaching 100% of GDP), a budget deficit near 7%, and poor fiscal management. Dimon’s remarks underscore vulnerabilities in U.S. economic leadership and global trust in the dollar .

Record Short Interest in S&P 500 Stocks

Short interest in the median S&P 500 stock recently surged to its highest level in seven years. Rising pessimism among institutional investors may presage market volatility if bullish sentiment returns or economic data surprises on the upside .

Yield Levels and Stock Market Resilience

Historical analysis shows that U.S. equities have continued to generate positive 12-month returns regardless of where 10-year Treasury yields stand—be it 5%, 6%, 7%, or 8%. Past performance indicates that even at elevated yields, stocks often rally, though heightened volatility can be expected .