Crypto Weekly, May 18–25: Bitcoin Drifted While HYPE And AI Tokens Took Over

Another week in crypto, another round of contradictory signals. Between May 18 and May 25, Bitcoin briefly tanked to $74,300 before floating back near $77,400 like nothing happened. As per the charts, he king coin got rejected around $80,000 and has since been tightening into a sleepy range near $77,000, with RSI flatlining and traders collectively holding their breath.

Source: TradingView

Let’s unpack what actually moved the needle.

Bitcoin: Stuck in a holding pattern

For most of the week, BTC traded sideways between $76,000 and $78,000 — until news broke that spot Bitcoin ETFs bled $2.26 billion in outflows over two weeks. That sent Bitcoin down to $74,300 on May 23. Painful? Sure. But open interest stayed steady and funding remained subdued. HashKey Research called it “de-risking, not capitulation.” In plain English: traders are leaning back, not running for the exits.

The weird part is that Implied volatility dropped to a seven-month low despite all this. One options trader described a “long-stable strategy” environment — basically, no one’s betting on fireworks anytime soon. 

Mark Cuban ‘Sold’ Most Of His Bitcoin And Now Calls Memecoins ‘Garbage’ — What Changed The Billionaire’s Mind On Crypto?

Meanwhile, Mark Cuban announced he sold most of his Bitcoin because it “failed as a hedge.” Fair take. But long-term holder supply is approaching record highs at 16.3 million BTC, so the diamond-hand crowd clearly disagrees.

Source: Checkonchain

AI tokens and HYPE steal the spotlight

While Bitcoin snoozed, altcoins threw their own party. Hyperliquid (HYPE) was the undisputed star, rising 16.5% in a single day to fresh record highs. 

One analyst called it “one of crypto’s most undervalued assets,” arguing the market misprices Hyperliquid as just another DEX when it’s really a global trading powerhouse. 

Source: Robinhood

A Hyperliquid ETF also launched, with 21Shares saying the strong early flows prove investors crave 24/7 market access.

Source: TradingView

AI-focused tokens caught serious momentum too. NEAR surged nearly 20% in one CoinDesk 20 update, helped by news that Near Protocol will introduce dynamic resharding in June — auto-scaling without human intervention. That’s the kind of fundamental nerdery that actually moves markets. Internet Computer (ICP) and Bittensor (TAO) joined the rally as well.

Prediction markets under the microscope

Polymarket and Kalshi had a rough week on the regulatory front. Congress launched a massive insider trading probe, demanding internal records over fears that government employees might be using classified information to place bets. On top of that, Polymarket went dark in India, and blockchain investigator ZachXBT flagged a $520,000 exploit on Polygon (though the team says user funds are safe).

Source: Unknown

On the flip side, the CFTC struck a safeguard deal with the NHL, and Polymarket is already eyeing a Japan entry by 2030. The SEC also wants public input on prediction market ETFs. Regulators are circling, but that usually means they smell money — and where attention goes, capital often follows.

Traditional finance as weather report

Here’s one for the TradFi watchers: Coinbase says it doesn’t fear Wall Street competition, but Robinhood Crypto’s COO left amid a revenue slowdown. 

A new report suggests bitcoin-backed lending could hit $1 trillion within a decade. JPMorgan notes that stablecoins still hold the edge over tokenized money market funds — yield isn’t everything, apparently. And the Fed finally proposed those “limited master accounts” that crypto firms have wanted forever.

Oh, and Blockchain.com filed for a U.S. IPO while Copper is looking to sell itself for $500 million. M&A season is quietly warming up.

So, to sum up: Keep an eye on May 29: $6 billion in BTC options expire, with max pain at $75,000 and heavy call positioning at $80,000. Something’s going to break eventually.

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