Crypto Market Cap Falls to Multi-Week Low
The total market cap opened this week at $2.61 trillion and closed at $2.58 trillion, the latter the lowest value for total market capitalization since May 4. Analysts expect the market total to recover to $2.6 trillion next week, likely due to rapidly changing sentiment regarding regulations and institutional market activity. Targeting the macro outlook for the coming weeks, analysts expect a slow recovery across most tradable assets as trading behavior increasingly balances on these pivots.
Act Advances Through Senate Markup Vote
The Senate CLARITY Act markup vote took place on May 14, and the Act passed with 15 votes in favor and 9 against. The Act is set to undergo additional markup in June 2026. However, if the Act passes the markup next year, it is likely to be sent to the White House for Presidential approval.
Market prediction platform Polymarket currently has a bet at 67% probability for the Act to finally pass this year. Santiment has a final score in line with the Act and institutional capital crypto fund inflows activated, creating a positive catalyst for the crypto market.
Yesterday’s vote led to a positive crypto market response, including:
- BTC ETF inflows of $131 million, the largest since May 5
- An inflow into XRP of $18 million, recovering from zero inflows a day earlier
- Increase of BTC from $79,300 to $82,000
- Increase of XRP from $1.42 to $1.54
US Inflation Surges to 3.8%, Highest in Three Years
Inflation in the US for April has been released to the public at a disappointing 3.8% from a previously anticipated 3.7%, showing the highest level of inflation in the U.S. since May 2023.
Inflation has advanced from 2.4% to what it is today, partly due to the US-Iran conflict and other geopolitical issues.
There is uncertainty with risk assets because of the CME FedWatch Tool projecting a 49% chance of more interest rate hikes in 2026 and the Federal Reserve being criticized for inflation above its 2% target range.
Benchmarks Raise Price Target for Coinbase (COIN) to 270
Investment opportunities are expected to spike as the prices of virtually all cryptocurrencies skyrocket causing more analysts to take a bullish position and suggesting buying more.
As inflation pressure continues, Benchmark has raised its price target to $270 for Coinbase.
Profit-taking withdrawals caused COIN to drop from $222 on May 14 to $195 during a drastic price fall.
Despite a loss of $1.49 per share in Q1 2026, analysts are bullish on the long-term growth momentum of COIN due to a substantial increase of trading volume.
Michael Saylor’s Strategy has resumed its Bitcoin purchases.
After temporarily halting accumulation, they transferred 535 BTC for a value of $43 million at an average cost of $80,340 on May 11.
Strategy now has a total of 818,869 BTC, making it the largest corporate bitcoin holder in the world behind Satoshi Nakamoto.
Strategy continues to accumulate bitcoin due to its STRC financing, which has seen 5 million trading volume, one of the highest levels ever recorded.
There is more uncertainty with Federal Reserve policies due to Jerome Powell’s term as Chair of the Federal Reserve ending May 15.
He has been succeeded by Kevin Warsh, confirmed by a Senate vote of 54 in favor.
Warsh has much market experience. The change in leadership provides a slight possibility for a different direction, but the markets show that there is over 90% probability that rates will remain above 3.50%–3.75% in 2026. You could say that Warsh’s interest in investments in Blockchain, which have been around Solana, Compound, and Polymarket, suggests they believe that his leadership will last until the year 2030, and Digital Assets will flourish.
Optimism in Crypto is Back.
We are finally starting to see the market intertwining the effects of delayed macroeconomic outcomes and optimism with the legislation. It is a volatile balance to maintain, but with the effects of the CLARITY Act and the recent accumulation of Bitcoin investment from institutions, we should anticipate a positive market shift in the upcoming weeks.
