What has happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events, as well as appealing background reports, are presented in a pointed and compact manner in the weekly review.
Selected articles of the week:
Before diving into Bitcoin, Strategy (formerly MicroStrategy) was primarily a business intelligence and analytics software company, offering tools for data-driven decision-making and corporate reporting. However, since 2020, Strategy has been aggressively raising external capital to acquire Bitcoin. The company has transformed into a quasi-Bitcoin hedge fund and now holds $50 billion in cryptocurrency – around 2.5% of the total supply. With this bold strategy, Michael Saylor’s company catapulted its valuation into the top 100 US stocks. Now, three heavyweights – Cantor Fitzgerald, Tether, and SoftBank – are aiming to replicate this success with their own joint venture. The consortium is contributing $3 billion in Bitcoin and plans to implement a similar acquisition strategy. If the plan goes through, the buying pressure on the Bitcoin price can be expected to increase significantly.
Cantor Fitzgerald, Tether Holdings, and the SoftBank Group are in talks to form a company to acquire billions in Bitcoin.
Operation Choke Point 2.0 finally over
“Operation Choke Point 2.0” refers to the documented efforts by US regulators from 2022 to 2024 to stifle the crypto industry under orders from the Biden administration. Leading the charge, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve (Fed), and the Office of the Comptroller of the Currency (OCC) threatened banks with consequences if they engaged in activities related to cryptocurrencies. There was no legal basis for this de facto ban on crypto activities for banks. Under Trump’s orders, this coordinated campaign finally comes to an end. The Federal Reserve, as the last of the three banking regulators, announced the lifting of its questionable policies.
US Federal Reserve lifts crypto restrictions for banks – the definitive end to the “Operation Choke Point 2.0”.
XRP derivatives at CME
With an average daily trading volume in the hundreds of billions, CME is the world’s leading derivatives platform. For several years, the company has offered popular futures contracts and options on Bitcoin (BTC) and Ethereum (ETH). These products handle a daily volume of over $11 billion. In March, futures on Solana (SOL) followed. Now, CME plans contracts on XRP, the fourth-largest cryptocurrency by market capitalization. This move serves as evidence of growing demand for altcoin products. The announcement may also indicate an impending approval of Solana and XRP ETFs. In the legal case of Grayscale vs. the SEC, CME’s futures contracts played a central role in pressuring the agency to approve the first Bitcoin ETFs.
The CME Group is introducing futures contracts on the cryptocurrency XRP on May 19, thereby expanding its crypto offering.
Bitcoin payments at Spar in Zug
The SPAR supermarket at the Zug train station has allowed its customers to pay for their purchases with Bitcoin since this week. Through a partnership with the financial service provider DFX Swiss, payments can also be processed via the Bitcoin Lightning Network – a Layer-2 solution for cheaper transactions. Behind the scenes, the Bitcoin is automatically sold for Swiss francs. If the system proves successful, there is potential for expansion to other branches. However, it must be candidly acknowledged that the acceptance of Bitcoin payments has often ended as an eternal pilot project. Bitcoin’s most popular use case as a store of value and investment vehicle is largely incompatible with its use as a currency for everyday transactions. Similar initiatives – such as crypto tax payments in the canton of Zug – have generally failed to gain broad adoption.
SPAR Zug accepts Bitcoin payments via Lightning Network – a new step for crypto in the Swiss retail market.
The markets stabilize
In addition: The uncertainty surrounding Trump’s tariff policy unsettled global markets in recent weeks. Bitcoin was not spared from this risk-off phase. The price of the largest cryptocurrency fell more than 30% from its all-time high, which was reached shortly before the Republican’s inauguration. After the markets’ strong negative reactions, Trump is now softening his stance. The administration announced a significant reduction in tariffs on China, no intention to dismiss Powell, and a potential lifting of the debt ceiling. Both the stock markets and the Bitcoin price began to recover. Since the low point, the Bitcoin price has risen by 22% and is trading again above $90,000.
Trump’s sweeping tariffs have thrown the global markets into chaos, which has also led to a slump in Bitcoin and crypto prices.
