Bitcoin and S&P 500 Fear Gauges Surge by 10%, Reflecting Risk Aversion
Implied volatility indexes, often called fear gauges, tied to both bitcoin (BTC) and the S&P 500 spiked sharply as concerns over technology stocks weighed on global markets. Bitcoin’s 30-day implied volatility index (BVIV) jumped nearly 10% to 46.5%, according to Volmex data. The index, which tends to move inversely to bitcoin’s spot price, reflects growing demand for options protection. Meanwhile, the VIX, the S&P 500’s 30-day implied volatility gauge, surged 16.5% to 20.0, its highest level in recent weeks. These moves indicate increased demand for options to hedge against further downside.
Global equities came under pressure, with Nasdaq futures down around 3% in early trading. South Korea’s Kospi index plunged as much as 10% earlier in the day, hammered by sharp losses in memory-chip shares. The synchronized rise in volatility across traditional and crypto markets underscores a broad risk-off sentiment, with investors bracing for continued turbulence in tech-heavy sectors.
Spacex Drops Another 16.5%, Closing in on Return to IPO Price
Losses for Elon Musk's SpaceX (SPCX) accelerated into the close, with the stock shedding another 16.5% to $154.60. Spacex IPO'd 10 days ago at $135 and quickly ran higher to as much as $225 in subsequent sessions. It has been straight down since, with even news of a multi-billion dollar deal to provide computing resources to AI startup Reflection AI failing to stop the decline. The Nasdaq closed near its session low, down 1.3%, while the S&P 500 lost just 0.35% and the DJIA actually gained 0.3%. Bitcoin lost most of an early gain, trading at $64,500, up just 0.6% over the past 24 hours.
Hawkish Fed Caps Bitcoin's Upside
Zooming out from the hourly moves, bitcoin remains stuck in a range caught between two forces: a hawkish Federal Reserve and a potential Iran-U.S. peace deal. Analysts said in a report that easing tensions in the Middle East could help keep oil prices and inflation in check, but the Fed remains focused on broader price pressures and increasingly appears biased toward keeping policy tight. From a technical perspective, the firm sees $68,500–$72,000 as a key resistance zone where many recent buyers may look to sell as they break even. Bitcoin failed to reclaim that range last week, reinforcing the view that the market remains stuck in consolidation.
Three key levels to watch include $54,000 as a longer-term floor, $72,000 as the breakeven level for many recent buyers, and $77,200 as the next major hurdle. With markets increasingly pricing a higher-for-longer Fed, both gold and bitcoin could remain under pressure unless inflation shows signs of cooling. For now, bitcoin is expected to continue trading within a broad $60,000–$70,000 range, but momentum remains fragile.
Franklin Templeton Launches Crypto Division
Franklin Templeton completed its acquisition of crypto investment firm 250 Digital and formally launched Franklin Crypto, a new division focused on active digital asset management for institutional investors. Christopher Perkins, co-founder of 250 Digital, will lead Franklin Crypto as head of the division. Seth Ginns will serve as chief investment officer alongside Franklin Templeton digital assets executive Tony Pecore. The group will report to Sandy Kaul, the firm’s head of innovation. Franklin Crypto will offer actively managed cryptocurrency investment strategies through Franklin Templeton’s global distribution network. The launch builds on Franklin Templeton’s existing digital asset business, which includes research, portfolio management and institutional risk oversight capabilities.
Strategy's CEO Buys $1 Million of STRC
“I bought $1 million of STRC today,” said Strategy CEO Phong Le on social media. “Will hold it until it reaches par, likely longer.” A cynic might call the second part of that post curious. If Le truly believes in STRC, why would he suggest he's just buying it for a trade instead of collecting the tax deferred 11.5% (or higher) yield in perpetuity? A bigger cynic might say the post sounds similar to Do Kwon's infamous May 2022 Twitter post written days before TerraUSD's ultimate collapse: “Deploying more capital — steady lads.” STRC today is up 1.2% to $89.68.
Crypto Shares Give Up Gains, Turn Lower Alongside Nasdaq and Bitcoin
Monday morning's early rally dissipated as bitcoin headed back to the $64,000 area and the Nasdaq slipped to a session low, down 1.2%. Google, Amazon, Microsoft, Broadcom, and Oracle led the Nasdaq lower, though some AI favorites like Intel, Micron, and AMD held onto gains. Up sizably early in the day, Strategy (MSTR) turned lower by 2.7%, while Coinbase (COIN) returned to flat after also being up big. Circle (CRCL) and Galaxy Digital also turned lower. Among those holding gains were Bullish (BLSH) and MARA Holdings (MARA).
U.S. Dollar Strength Pressures Bitcoin as Yields Rise and Risk Assets Retreat
The U.S. Dollar Index (DXY) climbed above 101, pressuring risk assets across markets. The move higher in the dollar was accompanied by a 1.2% rise in the U.S. 10-year Treasury yield, pushing it back above 4.5%. Bitcoin briefly traded above $65,500 early in U.S. hours before retreating to around $64,700. Strategy (MSTR) fell more than 7% intraday, after reaching a session high of $120 before dropping to $111. Earlier, the company announced the purchase of an additional 520 BTC and increased its cash reserves by $300 million, bringing total U.S. dollar holdings to $1.4 billion. Gold fell over 1% below $4,200, Brent crude dropped 2.5% below $74 per barrel, while the Nasdaq 100 and S&P 500 both slipped modestly into negative territory.
Nasdaq Quickly Reverses to 1% Loss as SpaceX Tumbles Another 10%
Stocks started in strong fashion Monday but quickly reversed a bit more than an hour into the session. The Nasdaq turned lower by more than 1%, led by a 5% decline in Google and 3.5% drops in Amazon and Broadcom. SpaceX, not yet part of the index but nonetheless influential, fell 10.4% to $165.78. Though still nicely higher than the $135 offering price, SpaceX dropped about 27% from its record $225. Bitcoin gave up some early gains, though it remained higher for the day at $64,800.
Bank of America Sees Fed Raising Rates Three Times by Year-End
Bank of America now expects the Federal Reserve to raise interest rates three times before the end of 2026 as opposed to holding rates steady throughout the year. In a research note, the bank said it expects 25-basis-point rate hikes in September, October and December, which would lift the Federal Funds rate to a range of 4.25% to 4.5%. The revised forecast comes as a result of stronger-than-expected economic data and what it described as a more hawkish Fed “reaction function.” Bank of America said core personal consumption expenditures (PCE), the Fed's preferred inflation gauge, could reach 3.5% in May, about 70 basis points above its level a year earlier. It also said that policymakers seem increasingly concerned that inflation pressures are becoming more persistent. The bank also expects the Fed to keep rates unchanged through 2027, arguing that inflation is likely to remain sticky and prevent real interest rates from becoming overly restrictive.
Micron-Anthropic Deal Sparks Broader AI Infrastructure Rally
Micron Technology (MU) and Anthropic announced a strategic partnership aimed at advancing next-generation AI infrastructure. The collaboration includes joint development of AI memory and storage architectures, a multi-year supply agreement, and enterprise deployment of Anthropic’s Claude models. MU shares soared to a new record high above $1,200 on the news. They pulled back to $1,188, still higher by 4.8% for the day. The partnership fueled gains across AI infrastructure and data center plays, with WhiteFiber (WYFI) up 13%, KEEL Holdings (KEEL) up 14%, and Hive Digital (HIVE) up 23%.
Bitcoin Rises Above $65,000 in Early Crypto Bounce
After yet another rough week, crypto got off to a good start on Monday. Bitcoin (BTC) and ether (ETH) were both higher by more than 2% over the past 24 hours, with BTC rising above $65,000 and ether to $1,770. Among crypto-related stocks making moves were Coinbase (COIN), Galaxy Digital (GLXY) up 4.3%, and Circle Financial (CRCL) up 4.8%. Strategy (MSTR) was higher by 5.6%. The company's roughed-up high-yielding preferred stock STRC was ahead 2.5% to $90.85, continuing to bounce after its plunge to below $83 at one point on Thursday.
Strive Added 759 Bitcoin for $50 Million
Matt Cole-led Strive (ASST) announced the purchase of 759 bitcoin for a hair under $50 million, or an average price of $65,850 per coin. The purchase was funded via the sale of common stock and high-yielding preferred stock, SATA, according to a filing. Strive now holds 19,864 bitcoin valued at $1.29 billion at BTC's current price of $65,000.
Strategy Raises Cash Reserve to $1.4 Billion and Buys 520 More Bitcoin
Strategy (MSTR) lifted its USD reserve by $300 million to $1.4 billion and bought another 520 bitcoin for $35 million, taking its holdings to 847,363 BTC. The cash reserve, which backs the dividends on the preferred shares it markets as Digital Credit, has now grown by $400 million in two weeks while the bitcoin stack barely moved. Strategy said it will keep replenishing the reserve to support the credit quality of those securities, consistent with recent weeks when it funded both the cash cushion and its bitcoin buying through stock sales.
Robinhood Raises $2 Billion Through Convertible Notes
Robinhood (HOOD) announced plans to raise $2 billion through a private offering of convertible senior notes due 2029, with an option for investors to purchase an additional $200 million. The company said the capital raise is intended to enhance strategic flexibility and support future growth initiatives. Approximately $300 million of the proceeds will be used for share repurchases, while part of the funds will finance capped call transactions designed to limit shareholder dilution up to a targeted 125% premium to the stock's pricing date. Following the announcement, Robinhood shares fell roughly 2% in premarket trading.
Bank of England Drops Stablecoin Holding Limits, Sets £40 Billion Cap
The Bank of England scrapped plans to limit how much stablecoin consumers and businesses can hold, replacing the proposal with a temporary £40 billion ($50.6 billion) cap on the total issuance of any single systemic stablecoin. The move follows criticism from lawmakers and the crypto industry, which argued the restrictions would hurt innovation and competitiveness. The central bank also eased reserve requirements, allowing issuers to hold up to 70% of backing assets in short-term U.K. government debt. While interest payments to stablecoin holders remain banned, transaction-based rewards will be allowed. The framework is expected to support a regulated stablecoin launch in 2027.
Bitcoin Options Expiry Worth $10.5 Billion Looms
About $10.5 billion in bitcoin options are set to expire for June on Friday on Deribit, making it one of the largest expiries of the year. Bitcoin is currently trading around $64,000, while the options market's max pain price sits at $72,000, the level at which option holders would experience the greatest aggregate losses at expiry. Market positioning remains relatively balanced, with a put-to-call ratio of 0.83, indicating slightly stronger bullish sentiment. The largest concentration of put open interest is at the $60,000 strike, suggesting a key downside support level, while the highest call open interest is clustered at $80,000, highlighting a major upside target for traders.
A Weekend Trade Betting on a HYPE Rally to $150
Onchain options platform Derive saw a massive bull call spread in HYPE over the weekend, signaling expectations of a rally to $150 by year-end. A trader moved 50,000 contracts targeting the December 2026 expiry by buying the $100 strike call while simultaneously selling calls at the $150 strike. The bull call spread is essentially a bet that HYPE is headed higher, with a specific ceiling of $150 in mind. The trader wants the asset to settle well above $100 but ideally stay just under the $150 mark. This multi-leg strategy is a classic way to reduce the cost of a bullish bet while still capturing a significant move higher. As of this writing, HYPE changed hands at $67.
Strategy's STRC Rebounds Toward $90 as Saylor Hints at Another Bitcoin Purchase
After Thursday's selloff in Strategy's (MSTR) STRC preferred shares, which fell as low as $82.53, the stock rebounded and traded just below $90 in Monday pre-market action. Bitcoin remained steady around $64,000, while Strategy (MSTR) was up roughly 1% in pre-market trading. Executive Chairman Michael Saylor also hinted at another bitcoin purchase over the weekend. Posting on X on Sunday, he wrote: “Looks better with more dots,” a phrase that the company will likely announce additional bitcoin acquisitions on Monday.
Bitcoin Is Stuck Near $64,000 as ETF Outflows Reach a Sixth Week
Bitcoin is trading around $64,000, still searching for a catalyst strong enough to break the range it has held for weeks. Selling from spot bitcoin ETFs has eased from earlier this month, but fresh institutional demand has yet to return. U.S. spot bitcoin ETFs have now posted a sixth straight week of net outflows, with only a sparse few days of green. The scale has narrowed, but the absence of any sustained inflow shows institutions remain defensive as markets reassess the Federal Reserve's interest-rate path. A bigger weight is the rebounding dollar. After the June meeting, the Fed's cautious message weakened expectations for near-term rate cuts, lifting the Dollar Index to the 100.6-100.8 area while keeping Treasury yields high. With liquidity still tight, capital favors assets with steadier yields over volatile ones like bitcoin. Easing geopolitical tension after the U.S.-Iran deal has improved risk appetite, but it has not been strong enough to offset the firmer dollar and cautious flows. Bitcoin will likely hold a $60,000 to $67,000 range in the near term, with the market balanced between supportive and restrictive forces. A sustainable recovery in the second half would need more time to accumulate, a return of ETF inflows, and stronger institutional demand. Until then, the current rebounds look technical rather than the start of a new uptrend.
Other notable developments include the UK markets showing limited reaction to Keir Starmer's resignation, with GBP/USD slipping just 0.15% to $1.32 and the 10-year gilt yield edging up to 4.85%. Additionally, analysts point to a hawkish Fed as capping bitcoin's upside, while Strategy continues to accumulate bitcoin and build its cash reserve. The options expiry on Friday could introduce further volatility, with $10.5 billion in bitcoin contracts set to expire.
Source: Coindesk News