Bitcoin Reaches All-Time High as Five US States Pass Crypto Laws in May

In May, Bitcoin surged to a new all-time high of over $111,000 while Coinbase joined the S&P 500, showcasing growing crypto integration. Five US states enacted significant crypto laws including Texas establishing a state Bitcoin reserve. However, after an initial boom, demand for Bitcoin waned towards month-end, leading to significant outflows in the crypto ETFs. OpenAI announced its relocation to the US amid legal challenges globally.

In May, the crypto sphere buzzed with activity, especially when Bitcoin (BTC) reached new heights by surpassing $111,000. Adding to the excitement, Coinbase officially joined the S&P 500 Index, marking a pivotal moment for crypto adoption. The markets braced for a possible shake-up when, on May 12, President Trump announced a trade deal with China, momentarily easing tariffs that had created jitters in the market. This news sent Bitcoin soaring to $105,000 before it dipped slightly to $102,000.

New legislation took center stage with five states in the US moving forward with crypto laws, further legitimizing the digital currency landscape. In Texas, a long-anticipated bill was passed to establish a state Bitcoin reserve. Meanwhile, similar moves were observed in New Hampshire where the state treasurer got the green light to invest in public funds involving Bitcoin. Arizona took things a step further with a Bitcoin and Digital Assets Reserve Fund, allowing the state to claim ownership of unclaimed digital assets after three years of no contact from their owners.

In Nebraska, Bitcoin miners now face regulations as a new bill gives public power utilities authority to manage miners consuming over 1 megawatt. This adds layers of bureaucracy for those in the digital mining space as they must now adhere to permit requirements and cover infrastructure costs. Meanwhile, Oregon added its own twist by including cryptocurrencies within its Uniform Commercial Code.

Then there’s Coinbase, which, despite suffering a $400 million security breach disclosed on May 15, saw its stock price rise by 19.37% throughout the month. The stock closed at $248.84 on May 29, just a week after the incident, showcasing resilience amidst chaos. Its entry into the S&P 500 was celebrated as a significant stride for crypto markets, but not everyone viewed this positively. Some analysts expressed skepticism about the exchange’s volatility. “All I can tell you is this is not good,” remarked Ed Elson, a commentator on business and economics.

The walls of crypto took a battering from external pressures as major indexes rebounded following the US-China deal. Stocks saw gains of around 4.5% for the S&P 500 and 3% for the Nasdaq the day after tariffs were suspended. Bitcoin increased by 2%, but analysts warned that despite these boosts, the overall macroeconomic environment seemed to favor traditional stocks more than cryptocurrencies. Gold, on the other hand, faced depreciation, losing 3.4% on the same day.

“Bitcoin Pizza Day” on May 22 marked a nostalgic celebration for crypto enthusiasts, as Bitcoin’s market cap reached $2.2 trillion, surpassing Amazon’s market value. This day commemorates the infamous purchase of two pizzas for 10,000 BTC back in 2010. On top of that, Bitcoin hit a then unprecedented all-time high of over $109,000, eventually breaking that record earlier by hitting $111,970. However, by the end of May, the excitement took a toll as demand slowed, leading to a significant drop in Bitcoin ETF inflows, which turned negative with $347 million in outflows observed on May 29.

In broader tech news, OpenAI announced that its digital identity project, dubbed World, would be relocating to the United States after facing legal hurdles in 12 countries. Countries like Kenya cited data privacy issues, while Brazil raised concerns about economic manipulation via World’s token. Despite the heat, OpenAI insisted it has no identifying information tied to its eye-scanning Orb devices, putting control back in the users’ hands through their World ID. The project’s future remains under scrutiny, sparking discussions about regulatory challenges in the fast-evolving crypto landscape.

Overall, May was a volatile yet defining month for cryptocurrency, marked by Bitcoin’s ascension to new heights and several states pushing forward with crypto-friendly legislation. Coinbase’s listing on the S&P 500 and the reactions to security breaches also played critical roles. As new policies emerge and excitement builds, the landscape continues adapting, albeit with challenges from scrutiny and regulation looming over the horizon.

Original Source: cointelegraph.com