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▲ Iran, USA, Bitcoin (BTC)/AI Generated Image
Bitcoin (BTC) shed some of its weekly sharp decline pressure on expectations of a peace agreement between the US and Iran. The cryptocurrency market, which had been shaken by concerns of escalation in the Middle East, hawkish remarks from the Federal Reserve, and weakening risk asset preference, quickly rebounded after US President Donald Trump's peace-related statements.
BeInCrypto reported on May 24 (local time) that Bitcoin recovered from a one-month low after signs of a peace agreement between the US and Iran. As Trump stated that a peace memorandum of understanding between the US and Iran had been largely negotiated, geopolitical instability from the Middle East, which had been weighing on global markets, partially eased. Bitcoin, after falling below $77,000, recovered to around $77,000, and investors shifted back to risk assets.
Bitcoin's rebound also spread to some altcoins. NEAR, Worldcoin (WLD), Zcash (ZEC), ONDO, MORPHO, and Hyperliquid (HYPE) showed strong momentum. This rebound once again demonstrated that the cryptocurrency market remains sensitive to geopolitical risks. However, the final agreement requires clearer specific conditions surrounding sanctions, the Strait of Hormuz, and Iran's nuclear program.
Bitcoin had previously fallen below $77,000 due to hawkish remarks from a Fed official. Federal Reserve Governor Christopher Waller stated that if inflation remains high, the possibility of future interest rate hikes cannot be ruled out. The market reacted quickly, and traders began to price in a potential 25bp rate hike in October 2026. High real interest rates and a strong dollar put pressure on Bitcoin as investors faced both weakening consumer sentiment and the risk of rising energy prices.
Regulatory issues also emerged as a major variable in the cryptocurrency market this week. Grayscale stated that if the US cryptocurrency market structure bill passes, Ethereum (ETH), Solana (SOL), BNB Chain, and Canton Network could be major beneficiaries. Grayscale believes that institutional funds are likely to move first to chains with strong activity in tokenized assets, stablecoins, DeFi, and regulated finance.
Grayscale assessed Ethereum and Solana as clear candidates in terms of liquidity and developer base. Canton Network differentiates itself by being designed for regulated financial institutions. The network's connection to major companies such as DTCC, J.P. Morgan, HSBC, and Visa was also highlighted.
Outside of cryptocurrency, SanDisk was identified as the investable asset with the highest returns so far in 2026. SanDisk's stock price surged 509% from January 1 to May 20. Demand for memory chips used in AI data centers drove the stock's rise. Seagate, Intel, crude oil, and copper were also mentioned as strong assets this year. In contrast, Bitcoin fell approximately 23% year-to-date, failing to lead the 2026 risk asset rally.
Cardano (ADA) garnered attention due to governance conflicts surrounding research funding votes. Charles Hoskinson warned that if a 32.9 million ADA treasury proposal is rejected, Cardano could lose key scientists and research capabilities. The proposal includes support for quantum-resistant cryptography, zero-knowledge proofs, scalability, and university-affiliated research.
Hoskinson argued that these areas are crucial for Cardano's long-term competitiveness. However, opposition was strong. As of the reporting time, approximately 81% of active dRep stake opposed the proposal, and it fell significantly short of the 67% approval threshold required for passage. This week, the cryptocurrency market saw increased volatility as Bitcoin's geopolitical rebound, Fed interest rate concerns, a selective altcoin rally, expectations of regulatory benefits, and Cardano's governance conflict converged.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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