Markets Rise on US-China Tariff Agreement
US President Trump’s announcement that a “complete reset” had been achieved following weekend talks with China has caused sharp increases in global stock markets. The talks, which took place in Switzerland, resulted in significant reductions in retaliatory tariffs that have been in place between the two countries since January. The US reduced tariffs from 145% to 30%, while China reduced its own from 125% to 10%.
Trump emphasized that some tariffs were not completely lifted but were only suspended for 90 days, and said that these rates could rise again if progress is not made. With the agreement, the S&P 500 rose 3.2%, the Nasdaq rose 4.3% and the Dow Jones gained 2.8%, recouping losses from the “Liberation Day” tariffs imposed in early April. China also stated that this agreement was an important step towards resolving differences and deepening cooperation. However, both investors and companies are wary that this development could only be a temporary relief.
Strategy Accelerates Bitcoin Purchases
Bitcoin-focused institutional investment giant Strategy (formerly MicroStrategy) purchased an additional 13,390 BTC between May 5-11, bringing its total holdings to 568,840 BTC. The purchase cost approximately $1.34 billion, with an average transaction price of $99,856 per BTC. With this latest purchase, the company’s total BTC stock reached $59 billion, with an average cost of $69,287. The purchases were funded by the sale of MSTR class A shares and STRK perpetual preferred shares. The company’s president, Michael Saylor, stated that 303,230 BTC were purchased in the last 6 months alone, reaching 2.7% of the total supply.
Strategy aims to continue its BTC purchases by raising a total of $84 billion in capital by 2027 with its new plan called “42/42.” The company’s market cap is currently at $113.7 billion, which means that its BTC holdings are trading at a premium of approximately 2x to its net asset value. Despite this premium valuation and dilution in the shares, investor interest remains strong. Analysts believe that Strategy can continue its aggressive BTC purchases due to its low debt level and the lack of payment pressure until 2028. As the number of companies participating in the institutional BTC strategy increases, the leadership of Strategy, the pioneer of this model, is strengthening.
Coinbase Enters the S&P 500 Index
Coinbase (COIN), the largest crypto asset trading platform in the USA, will be included in the S&P 500 index as of Monday, May 19. Following the news, COIN shares rose by 8% in after-hours trading to $ 225. Coinbase will replace Discover Financial Services in the S&P 500. This change is taking place simultaneously with Discover’s acquisition by Capital One.
The main factor that enabled Coinbase to enter the S&P 500 was the company’s profit announcement in the last four quarters, including the last quarter. Despite the company’s decreasing trading volume, its quarterly profit drew attention. Coinbase, which recently announced its $2.9 billion acquisition of Deribit, has an agreement with the U.S. Department of Justice to manage seized digital assets and provides custody services for BlackRock and Fidelity’s crypto ETFs.
Trump Family-Backed American Bitcoin Is Coming to Nasdaq Through Merger with Gryphon
Trump family-backed American Bitcoin will merge with Gryphon Digital Mining and go public on Nasdaq under the ticker symbol “ABTC.” American Bitcoin, which is 20% owned by Eric Trump and Donald Trump Jr. and 80% owned by crypto mining company Hut 8, is a U.S.-based bitcoin mining and investment company focused on low-cost, large-scale BTC accumulation. The new structure that will be formed after the merger will continue its operations with its current management and the transaction will be completed in the 3rd quarter of 2025.
Following the news of this strategic merger, Gryphon shares increased by more than 200% in pre-market transactions, while Hut 8 shares increased by 12%. 98% of the newly formed company will belong to existing American Bitcoin shareholders. In addition, Hut 8 will serve as both the majority shareholder and the long-term infrastructure and operations partner. The company’s IPO aims to provide direct access to independent growth capital.
New York Mayor Says We Will Make New York the Crypto Capital
New York Mayor Eric Adams reiterated his goal of making New York the “crypto capital of the world” in a statement he made before the first official “NYC Crypto Summit” to be held on May 20. Adams emphasized that blockchain initiatives are rapidly increasing in the city, which he positioned as a rival to Silicon Valley, and argued that these technologies will play a critical role in financial inclusion. The summit will encourage public-private collaboration and open the discussion of the balance of regulation and innovation.
Adams, reminding that he converted his 2022 salary to Bitcoin and Ethereum, said, “There were those who laughed then, who are laughing now?” Adams, who has been in close contact with Trump, is expected to enter the elections as an independent candidate after being acquitted of a federal corruption investigation. Adams, who winked at pro-crypto super PACs through the summit, stated that he focused on sustainable digital asset policies by staying away from New York’s memecoin frenzy.
$40 Billion Locked Value Exceeded in Aave
DeFi lending protocol Aave has exceeded a historical threshold in terms of Total Locked Value (TVL), reaching $40.3 billion. This level was recorded as the highest value recorded to date among decentralized finance protocols. The locked value in the most current version, Aave v3, is around $40 billion. According to the data, this success is driven by both the increase in Ethereum prices and the large inflows in user deposits.
TVL represents the total amount of assets locked in the protocol. Ethereum and staking derivatives make up about half of Aave’s TVL. This amount, which was approximately 6 million ETH in January, increased to 10 million ETH as of May 12. Aave’s native token AAVE has gained 25% in the last week. This increase is considered a reflection of the TVL increase and the positive mood in the market.
GD Culture Group’s $300 Million Bitcoin and TRUMP Coin Move
Nasdaq-listed GD Culture Group announced that it will sell up to $300 million in shares to purchase Bitcoin and TRUMP memecoin. The company announced that it has signed a share purchase agreement with an investor based in the British Virgin Islands. The strategy was described as part of the firm’s goal of holding digital assets as long-term treasury reserves and strengthening its balance sheet.
The company, which develops AI-based digital human technologies and live-streaming e-commerce solutions, reported a $14.1 million loss in 2024 and was recently warned that it did not meet Nasdaq listing criteria. GD Culture is positioning the crypto strategy in conjunction with President Trump’s call for a national crypto reserve. On the same day, MicroStrategy and Metaplanet also announced large Bitcoin purchases.
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BITCOIN (BTC)
BTC is trading at $102,630, down 0.15% as of morning hours. Bitcoin continued its uptrend that started at 91,648 and reached $109,575. However, with the sales from this level, the price fell to 102,680. Currently, the area marked with the red box below the price (99,000 – 100,000 band) stands out as a potential liquidity and demand area. In the event of a possible pullback to this area, buyers can be expected to step in again. In upward movements, the 109,575 resistance can be retargeted. In case of a breakout, new targets for all-time highs could technically come into play.
ETHEREUM(ETH)
ETH is priced at $ 2,455 as of the morning hours with a 1.59% loss in value. The Ethereum price has shown a sharp increase in recent days, rising from the $ 1,744 bottom to $ 2,497. With the rise above the $ 2,314 level, technical confirmation of the rise has been received. However, it is seen that the price encountered selling pressure with weak candles as it approaches the 2,608 resistance. Therefore, the possibility of a correction movement in the short term should be considered. While the 2.314 level may work as support in possible pullbacks, the 2.608 level must be exceeded for upward attacks to continue.
RIPPLE(XRP)
XRP is trading at $ 2.4785 as of the morning hours with a 2.56% loss in value. XRP carried the rise it started from the level of 2.11 to the level of 2.64 with strong momentum. The 2.48 region draws attention as an area that has worked as resistance in the past and is now standing above the price again. The pullback made by the price towards this level can be evaluated as a short-term retest process. If it persists above 2.48, the 2.64 resistance can be tested again. However, if the selling pressure continues, 2.36 and then 2.23 levels should be monitored as potential support areas.
AVALANCHE(AVAX)
AVAX is trading at $ 24.12 levels with a 2.94% loss as of the morning hours. The AVAX price broke out of the horizontal consolidation structure around $ 20 with a strong volume, exceeded the resistance zone at $ 23.03 and rose to $ 25.14. This rise technically shows that the short-term momentum has turned in favor of the bulls, with the upward dissolution of the area where liquidity was collected. However, recent candlestick patterns and price action suggest a short-term correction is taking place, with selling coming from the region above 25.00. The 23.03 level is now a strong support level and as long as it is maintained above this level, the potential for the price to head towards targets above 26.00 is preserved.
SOLANA(SOL)
SOL is trading at $170.08 as of the morning hours, gaining 2.40% in value. The SOL price gained strong momentum with the uptrend it started at 144.87 and reached 176.27. However, with the selling pressure coming from this resistance level, the price entered a short-term correction. Since this region is an area where liquidity is concentrated and works as a previous resistance, it is a technically expected scenario for the price to be rejected here. While the 176.27 level continues to be a strong resistance for SOL, which is currently priced at 169.93, the first support to be watched may be the 161.00 – 164.00 range if the downward movements continue. Below this zone, 144.87 stands out as the critical support point.
