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Market update for May 19
Bitcoin dropped to $76,959 after President Trump issued a warning to Iran, saying the clock is ticking. BTC fell roughly 1.4%, triggering over $580 million in liquidations across derivatives markets within just four hours. Brent crude surged to $111.20 per barrel, fueling fresh inflation fears. Rate cut expectations have nearly vanished, with Fed funds futures now pricing in just a 2% chance of a cut in 2026.
Crypto fund inflows broke a six-week streak, with $1.07 billion in net outflows last week. That marks the third-largest weekly withdrawal of 2026. Bitcoin saw $982 million in outflows, while Ethereum lost $249 million. But altcoins bucked the trend XRP attracted $67.6 million in inflows, and Solana pulled in $55.1 million. A clear sign that capital is rotating beneath the surface.
The SEC is expected to announce a tokenized stock exemption this week, allowing unauthorized third parties to trade tokenized equities on decentralized platforms. Commissioner Hester Peirce is leading this push. If confirmed, this would be one of the most significant regulatory rollbacks under the Trump administration for crypto.
The CLARITY Act passed the Senate Banking Committee with a 15-9 vote, moving closer to a full Senate vote. The bill aims to clarify digital asset regulation in the U.S. Still, it must navigate controversy tied to the Trump family's crypto project. Market participants see this as a pivotal step toward regulatory clarity.
Solana is undergoing a major transformation. According to Messari, Wall Street firms and payment giants are moving tens of billions of dollars onto the Solana network, primarily for tokenized funds and global payments. Q1 on-chain app revenue hit $342.2 million, while real-world asset value rose 43% quarter-over-quarter to $2.01 billion. Visa, Stripe, and others are now using Solana for cross-border payments. The shift from meme coin hub to institutional financial infrastructure is real.
#BTC #Solana
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