Wintermute said Bitcoin’s latest rally has failed its first major macro test, 
arguing that the move was driven more by leverage and short covering than by 
durable spot demand. In its May 18 market update, the trading firm pointed to 
hot inflation, rising Treasury yields, ETF outflows and renewed rate-hike 
pricing as the backdrop behind a sharp reversal across digital assets. “Last 
week we said we&#8217;d find out fast what kind of rally this was. We found out,” 
Wintermute wrote. “BTC failed at the 200-day on the first real macro shock, 
which tells you it was the squeeze driving it all along.” The firm’s update 
framed the week as a macro-led repricing. April CPI came in at 3.8% year over 
year, above the 3.7% consensus estimate, while core CPI rose 0.4% month over 
month. Wintermute said the inflation shock has become harder for markets to 
dismiss, noting that the prolonged energy shock is now moving into core 
inflation and that real wages turned negative for the first time in three 
years. Related Reading: Bitcoin Hits ‘Wall Of Resistance,’ CryptoQuant 
Research Head Warns Rates responded quickly. The 10-year Treasury yield rose 
28 basis points on the week to 4.58%, its highest level since September 2025, 
while fed funds futures erased all expected cuts for 2026 and began pricing a 
44% chance of a rate hike by December, up from 22.5% a week earlier. 
Wintermute said the market narrative shifted from “when do they cut” to “do 
they hike” in only five trading days. That repricing hit long-duration assets. 
Wintermute said 20-year-plus Treasuries fell 2.8%, while gold dropped 3.8% 
despite the geopolitical backdrop. Brent crude rose 8.6%, leaving the firm to 
conclude that “the only things that worked were the things causing the 
problem.” Why $75,000 Bitcoin Is The Line In The Sand Bitcoin briefly moved 
above $82,000 after the CLARITY Act vote, but then reversed sharply and closed 
Friday near $78,000, down 5.7% for the week. A weekend slide toward $77,000 
triggered $657 million in liquidations, including $584 million from long 
positions. Ethereum underperformed even more, falling 10.2% on the week. 
Wintermute said ETH continued to weaken across both spot and derivatives 
markets, with ETH/BTC pressing 0.0275, funding softer and relative implied 
volatility elevated. The firm described ETH as the “wrong asset for this 
macro.” ETF flows also turned against the market. Bitcoin spot ETFs recorded 
$1 billion of outflows for the week, ending six consecutive weeks of inflows, 
while ETH ETFs saw $255 million leave the products. Wintermute cited Glassnode 
data showing institutions were “selling into strength,” with the seven-day 
moving average of net flows at negative $88 million per day, the weakest level 
since mid-February. “When leverage is the marginal buyer, the unwind is fast,” 
Wintermute wrote. Related Reading: Strategy Wants 1,000,000 Bitcoin Treasury 
And This Is How They Plan To Get To That Number The firm said Bitcoin remains 
below its 200-day moving average near $82,200 after being rejected five times 
this month. The immediate support zone is $76,000 to $78,000, according to the 
update, while a break of $75,000 could open the way toward $70,000 to $72,000. 
Wintermute did not dismiss the broader structural case for Bitcoin. It noted 
that exchange reserves remain near multi-year lows, long-term holders are 
still accumulating, and the CLARITY Act continues to move forward after 
clearing the Senate banking committee. The firm also said tokenized Treasuries 
reached $15 billion onchain, describing the segment as an area of continued 
growth. Still, Wintermute argued that short-term flows matter more than the 
structural story for now. “The flow data shows institutions used the rally to 
take profit rather than add, and in the short term that matters more than the 
structural story,” the firm wrote. The next test, according to the update, is 
whether Bitcoin can hold the $76,000 to $78,000 area through Nvidia earnings 
on Wednesday, May 20. A hold would “rebuild some confidence,” Wintermute said, 
but a break below $75,000 with funding resetting and ETF flows negative could 
bring the low $70,000s back into view quickly. At press time, BTC traded at 
$77,297. Featured image created with DALL.E, chart from TradingView.com

Wintermute said Bitcoin’s latest rally has failed its first major macro test, arguing that the move was driven more by leverage and short covering than by durable spot demand. In its May 18 market update, the trading firm pointed to hot inflation, rising Treasury yields, ETF outflows and renewed rate-hike pricing as the backdrop behind &#8230;

Wintermute Says Bitcoin Rally Was A Squeeze, Low $70,000s Loom

Zama&#8217;s acquisition of TokenOps could revolutionize institutional token 
management by enhancing privacy and security in blockchain transactions.
The post Zama acquires TokenOps to bring encrypted token distributions to 
institutional issuers appeared first on Crypto Briefing.

Zama&#8217;s acquisition of TokenOps could revolutionize institutional token management by enhancing privacy and security in blockchain transactions. The post Zama acquires TokenOps to bring encrypted token distributions to institutional issuers appeared first on Crypto Briefing.

Zama acquires TokenOps to bring encrypted token distributions to institutional issuers

Qivalis expands to 37 banks after adding 25 new members across 15 countries, 
boosting euro stablecoin plans ahead of a second-half 2026 launch.

Qivalis expands to 37 banks after adding 25 new members across 15 countries, boosting euro stablecoin plans ahead of a second-half 2026 launch.

Euro stablecoin project Qivalis adds 25 banks ahead of launch

OpenAI is opening its first overseas applied AI lab in Singapore through a 
$234 million partnership expected to create more than 200 technical roles.

OpenAI is opening its first overseas applied AI lab in Singapore through a $234 million partnership expected to create more than 200 technical roles.

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BitMEX co-founder Arthur Hayes has suggested that Zcash (ZEC) could eventually 
reach 10% of Bitcoin’s market capitalization, a long-term bullish thesis on 
privacy coins rather than a near-term price forecast. Based on ZEC’s 
circulating supply of around 16 million tokens, that scenario would imply a 
price in the high four-figure range, roughly $8,000–$10,000, depending on 
Bitcoin’s valuation. A Chart Pattern Worth Watching On the technical side, 
traders point to a possible cup-and-handle pattern, but this is a subjective 
chart formation with no guarantee of outcome. Resistance is often cited around 
$625–$650, with some speculative projections suggesting a move toward $1,000, 
though this depends heavily on broader market conditions and is not a 
confirmed target. The target also lines up with ZEC&#8217;s 1.618 Fibonacci 
extension, drawn from a $745 swing high down to a $185 swing low. Privacy 
Coins Pull Ahead ZEC is not moving alone. Monero and Dash, both privacy- 
focused tokens, have also posted gains over the past month. But Zcash leads 
the pack. Reports indicate the coin climbed more than 80% in 30 days while the 
total crypto market cap barely moved — up just 0.2% over the same stretch. 
$ZEC update This thing is running its own bull market rn… gg I closed my 
short. Especially with $BTC sitting on support around $76k Even a small pump 
in Bitcoin makes ZEC go absolutely stupid right now https://t.co/xLs6ficv7l 
pic.twitter.com/obAhbnXqfp — SnorlaX お金 (@SnorlaxOnChain) May 18, 2026 In the 
past three days alone, ZEC added 18% as the broader market slipped 3%. That 
split has prompted some traders to say Zcash is running its own bull market. 
Growing demand for financial privacy appears to be the main force behind the 
move, pulling fresh interest into a coin that had been largely overlooked for 
years. Related Reading: XRP Will Go ‘Higher, Much Higher,’ Analyst Says, 
Betting On Explosive Breakout Institutional Interest Adds Fuel Earlier in May, 
hedge fund Multicoin Capital disclosed it holds a position in ZEC. Around the 
same time, Robinhood added the token to its platform, opening it up to a wider 
pool of retail investors. Both developments landed at a time when the privacy 
narrative was already building. Hayes&#8217;s comment added another layer. His 
estimate was speculative — based on a market cap comparison to Bitcoin — but 
it drew attention and, according to data, ZEC&#8217;s value in Bitcoin terms has 
risen about 20.5% since he made the remark. Whether the cup-and-handle plays 
out or not, the coin has already proven it can move on its own terms. Featured 
image from Quicknode, chart from TradingView

BitMEX co-founder Arthur Hayes has suggested that Zcash (ZEC) could eventually reach 10% of Bitcoin’s market capitalization, a long-term bullish thesis on privacy coins rather than a near-term price forecast. Based on ZEC’s circulating supply of around 16 million tokens, that scenario would imply a price in the high four-figure range, roughly $8,000–$10,000, depending on &#8230;

Zcash Soars 88% In 30 Days: Is ZEC The Stealth Winner Of This Crypto Cycle?

Ethereum privacy plan from Vitalik Buterin outlines AA, FOCIL, keyed nonces 
and Kohaku work to reduce metadata leaks and censorship risks.

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Wintermute Says Bitcoin Rally Was A Squeeze, Low $70,000s Loom

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