Crypto Market May Analysis Report

1. Macroeconomic Situation

In May 2025, the U.S. economy is at a crucial turning point. Inflation continues to decline, the labor market is performing strongly, monetary policy is in a wait-and-see period, trade policy has uncertainties, and fiscal policy is affecting market expectations through operations similar to quantitative easing. Against this backdrop, the crypto market demonstrates strong resilience, and the global risk asset structure may face a new round of reassessment.

inflation trend

The CPI annual rate in April dropped to 2.3%, the lowest since February 2021, indicating that price pressures continue to ease. The U.S. Treasury initiated a $40 billion Treasury bond repurchase operation, seen as a measure to release liquidity and support the prices of risk assets.

labor market

In April, non-farm employment increased by 177,000, exceeding expectations and reflecting the resilience of the job market. This provides a basis for the Federal Reserve to maintain a wait-and-see policy, but it may also reduce the likelihood of multiple rate cuts this year.

monetary policy trends

The Federal Reserve Chairman stated that they will reassess the current monetary policy framework and may abandon the "average inflation targeting" mechanism. Future policies may be more flexible, and there is no rush for preemptive rate cuts in the short term.

Trade Policy and Global Economy

Trump announced tariffs on EU goods, which were later postponed, but have already affected market sentiment. China implemented a "reserve requirement ratio cut + interest rate cut" combination policy, which is seen as the beginning of a new round of easing cycle, raising market expectations for an improvement in China-U.S. relations.

2. Crypto Market Overview

trading volume analysis

On May 27, the average daily trading volume in the market was $117.4 billion, up 15.8% from the previous period. During this time, there were multiple instances of significant single-day trading volume increases, reflecting a rise in market activity.

market cap change

As of May 27, the total market capitalization of cryptocurrencies reached $3.56 trillion, an increase of 17.0% compared to last month. Bitcoin's market share is 62.6%, while Ethereum's is 9.6%, with the latter showing significant growth.

popular new coins

Among the popular tokens launched in May, venture capital-backed projects dominate, including Layer 2 project SOPH and B2. In addition, USD1-related projects have also received widespread attention.

3. On-chain Data Analysis

ETF capital flow

In May, Bitcoin ETFs saw a net inflow of $5.77 billion, while Ethereum ETFs had a net inflow of $317 million. Bitcoin's price increased by 13.5% during the month, and Ethereum rose by 31.9%.

stablecoin market

In May, the total circulation of the stablecoin market increased by approximately 7.28 billion USD, mainly driven by the growth of USDT, USDE, and DAI.

4. Main Encryption Currency Price Analysis

Bitcoin ( BTC )

The price of Bitcoin has broken its historical high, reaching $111,959. Bulls are trying to maintain the price above $109,588, indicating that there is buying interest during pullbacks. If the upward trend continues, it may pave the way for further increases.

Ethereum ( ETH )

Ethereum rebounded from the 20-day EMA at $2,425, showing strong demand at lower price levels. Bulls are attempting to break through the resistance level of $2,738, and if successful, it could rise to $3,000.

( Solana ) SOL ###

Solana found support at the 20-day EMA at 1169 US dollars, indicating a positive market sentiment. Bulls will attempt to break through the resistance level of 188 US dollars, and if successful, it may rise to 210 US dollars or even 220 US dollars.

5. Hot Events

( USD1 ecological development

The market capitalization of the USD1 stablecoin has surpassed $2.1 billion, making it the seventh largest stablecoin. Its core advantage lies in the endorsement by the Trump family, being the first stablecoin project endorsed by a president. The prices of multiple USD1 ecosystem project tokens have surged significantly.

) The rise of the Believe platform

The core token of the Believe platform, Launchcoin, has surged significantly this month, with its market value nearing $310 million at one point. The platform focuses on the concept of "social assetization," but it also faces sustainability concerns.

6. Future Outlook

( Stablecoin Bill Progress

The "GENIUS Act" has entered the revision process through a debate motion. The bill involves multiple aspects such as issuance qualifications, reserve requirements, and compliance obligations, aiming to regulate the crypto market and strengthen the dominance of the US dollar in the digital currency space.

) Ethereum ETF pledge approval

The SEC has postponed its decision on the Grayscale Ethereum Trust ETF until June 1. Hong Kong has approved some Ethereum ETFs for staking. The market expects that U.S. regulators may soon reach a regulatory framework regarding the related mechanisms, advancing the approval of Ethereum spot ETFs.