Elon Taper Fade price

Words: Haotian The sharp rise in Ethereum's $ETH this time, many people have come back and asked whether it will be related to the recent Pectra upgrade? The answer is probably not. The Pectra upgrade is more like the "finishing touches" of the Cancun upgrade, with low-level optimizations and details rather than breakthrough technological innovations. From a technical point of view, the four EIPs included in the Pectra upgrade all point in the same direction: making Ethereum more stable and efficient. EIP-7044's state expiration standardization, EIP-7524's redefinition of fuel limits, EIP-7697's transaction pipeline optimizations, and EIP-6789's difficulty adjustment improvements are typical "tinkering" upgrades that address some of the edge issues left over from the Cancun upgrade. The logic that really determines the price trend of Ethereum this time is actually the "value repair" after being over-FUD. In the past few months, Ethereum has indeed experienced a round of "concentrated firepower"-like doubts: layer2 liquidity dispersion has been amplified into ecological splitting, performance comparison with Solana has been interpreted as a failure of the technical route, and the expansion of layer2 ecological applications has not been as expected, and the stacking of technical narratives such as restaking, modularization, and zk cannot be captured by value, etc.; While all the focus is on Ethereum, some key facts are overlooked: the total DeFi lock-up value remains stable at $119B, the Cancun upgrade has indeed significantly reduced layer2 costs, ETF inflows continue to increase, and new narratives such as RWA and PayFi are also developing primarily in the Ethereum ecosystem. With too much fundamentals, it is not as bad as the market sentiment reflects. And institutional investors clearly see through this emotional imbalance. The most typical example is Abraxas Capital's huge purchase of 242,652 ETH (about $561 million). In addition, during the period from May 9 to 14, there was also a significant increase in large-value ETH transfers (>$1M), and the ETH balance of institutional-grade wallet addresses increased significantly, which indicates that there is a planned large-scale institutional positioning. Therefore, if you have to find a logic for this round of Ethereum rise: Ethereum has been overdone by FUD and needs to rediscover the existing value, and institutions have taken the opportunity to buy the bottom first?

The exchange reserves remain one of the most important data points. From the data, it can still be observed that even though the price of BTC has risen above $105,000, the Bitcoin reserves on exchanges continue to show signs of leaving the exchanges. We have been discussing this situation for a long time. It represents that more investors remain optimistic about BTC's long-term trend and have not chosen to exit due to short-term price fluctuations. Most investors are still opting to buy. However, there is a divergence between spot buying and BTC spot ETF buying. In the spot market, it can be seen that exchange reserves are continuously declining, but as mentioned earlier, ETF investors have seen their purchasing power drop by more than half in the past two weeks. This also indicates that traditional investors, while maintaining expectations for BTC's trend, are not very active in buying. On the other hand, exchange investors are more driven by BTC FOMO. Therefore, whether BTC can continue to rise depends not only on exchange users but also on an increase in purchasing power from traditional users. This tweet is sponsored by @ApeXProtocolCN | Dex With ApeX

$ETH staking ETF loading... This is defnitely not priced in yet.

Words: SuperEx Compilation: Vernacular blockchain As of May, competition for liquidity has intensified significantly. The surge in Bitcoin holdings by institutional investors over the past year has led to a drying up of liquidity. The latest data shows that more than 8% of the total circulating supply of Bitcoin is now held by government and institutional investors. This unprecedented level of sovereign and institutional involvement in decentralized assets has sparked a heated debate: Is this the legitimization of Bitcoin as a strategic reserve asset, or is it a risk of centralization that threatens the core idea of crypto? Strategic hedging in a volatile world For many governments and institutions, the accumulation of bitcoin reflects a rational strategy in the face of macroeconomic uncertainty. With fiat currencies facing inflationary pressures and geopolitical instability persistent, Bitcoin is increasingly seen as an alternative to digital gold. Reserve diversification: Some central banks and sovereign wealth funds have begun to reallocate a portion of their portfolios from fiat currencies and gold to digital assets. Bitcoin's fixed supply of 21 million provides an inflation hedge that fiat assets can't. Countries with weak currencies or weak monetary policies, such as Argentina or Turkey, have shown particular interest in BTC as a tool for diversifying their reserves. Institutional legalization: When pension funds, hedge funds, and publicly traded companies allocate a small portion of their portfolios to Bitcoin, this transmits confidence to other market participants. The high-profile allocations of institutions like BlackRock, Fidelity, and sovereign wealth funds have had a legitimizing effect on the Bitcoin asset class. Bitcoin is no longer just the domain of speculative retail traders; It has found a home in the board of directors and government coffers. Strategic Autonomy and Sanctions Resistance: In an increasingly fragmented global financial order, Bitcoin provides countries with a means to bypass traditional payment channels dominated by the US dollar and the SWIFT system. For sanctioned countries or countries that want to reduce their reliance on Western-dominated financial infrastructure, holding Bitcoin provides a form of financial sovereignty. Real Inflation Hedge: Countries experiencing high inflation are now considering Bitcoin as a functional hedge. For example, Nigeria and Venezuela's growing Bitcoin reserves are often driven by the need to preserve value in the face of fiat currency depreciation. These practical uses further cement the narrative of Bitcoin as "digital gold". Risk of Exceeding Threshold: Concentration Concerns While institutional and government adoption brings legitimacy and liquidity, more than 8% of Bitcoin's total supply is concentrated in the hands of a small number of large players, raising concerns about the long-term health of the network. Decentralization erosion: Bitcoin's founding philosophy was built on decentralization and financial democratization. The concentration of holdings by a small number of big players, whether governments or corporations, threatens this idea. If a small number of entities control the majority of the supply, there is a risk of collusion, market manipulation, or coordinated selling that could lead to market instability. Liquidity implications: Large investors typically store their bitcoins in cold wallets or long-term custody arrangements, which means that these coins are effectively removed from the circulating supply. As more BTC is used for strategic purposes rather than regular transactions, the available liquid supply shrinks. This can lead to increased price volatility, as small buying and selling pressures in the remaining circulation can significantly affect prices. Market Distortions and Moral Hazard: Government purchases and holdings of Bitcoin can inadvertently affect market sentiment and pricing. If a major government suddenly announces a sale or policy change, it can trigger panic in the market. In addition, this power could be used as policy leverage, contradicting Bitcoin's promise of independence from political manipulation. Custodian Risk and Governance Implications: When an institution holds Bitcoin through a custodian, the decentralized nature of the network is partially weakened. These custodians can be subject to political pressure, legal obligations, or even central banks. This can lead to pseudo-centralization, where control of Bitcoin, while not on-chain, is concentrated in a small number of centralized institutions. The Specter of Sovereign Confiscation: History shows that states can and do confiscate assets. The more bitcoins a government holds, the more likely the regulatory framework is likely to be to tightly control or even enforce escrow transfers, especially during a financial crisis. The 1933 U.S. gold confiscation case provides a historical precedent that cannot be ignored. Balancing legitimacy with network integrity To ensure Bitcoin's continued resilience as a decentralized asset, the community must remain vigilant. Here are some mitigation strategies and future directions: Encourage retail participation: Broader retail adoption can balance the impact of large households. Educational efforts and more accessible tools are essential. Position transparency: Public disclosure of BTC holdings by institutions and governments may help increase accountability and reduce manipulation concerns. Strengthen non-custodial infrastructure: Communities should invest in technologies that allow large players to secure assets in a decentralized manner (e.g., multi-signature, distributed custody). Policy safeguards: Policymakers embracing Bitcoin should also support a regulatory framework that upholds decentralization and financial autonomy. Thoughts on this Although the institutionalization of Bitcoin is accelerating, it is worth noting that more than 85% of Bitcoin's supply is still held by non-institutional investors, with retail investors remaining the dominant force. This means that despite the large amount of BTC locked up by ETFs or corporate vaults, the decentralized nature of the market has not been fundamentally shaken. Some worry that with so much Bitcoin "dormant" or escrowed, the reference value of on-chain data may be waning. This concern is not unfounded, but it is not new either. Looking back, Bitcoin's primary trading activity has always been focused off-chain, particularly on centralized platforms like Coinbase, BN, and early FTX. These transactions are difficult to detect on-chain but have a significant impact on market prices and structure. We're in a similar situation today, but the analytics tools we rely on have become more sophisticated. ETF fund flows and changes in company and country holdings are often subject to disclosure obligations, which in turn provides market analysts with more trackable and transparent data than traditional trading platforms. Overall, institutional interest in Bitcoin has reached an all-time high. From ETFs and corporate coffers to national reserves, the total amount of Bitcoin held by institutions has exceeded 2.2 million BTC and continues to grow. Undoubtedly, this inflow injected significant stability into the market during a bear market. However, there are hidden concerns beneath the stability: Bitcoin is becoming financialized, and its price volatility is increasingly influenced by macroeconomic sentiment and correlation with traditional financial assets. This connection is reshaping the original myth of Bitcoin's independence. conclusion More than 8% of Bitcoin is now in the hands of governments and institutions, which is a double-edged sword. On the one hand, it marks the historic legitimization of cryptocurrencies as an asset worth stockpiling. On the other hand, it introduces centralizing pressures that can undermine the fundamental principles of Bitcoin.

Cognitively leading the market by two weeks