Sustaining its rebound, Bitcoin pushed decisively above $80,000 for the first time since late January, reclaiming the key level on the back of robust ETF inflows ($532.21 million in May 4), strong options activity, and a technical breakout that squeezed out leveraged shorts.
As per CoinMarketCap data, BTC price topped $81,200 earlier today before settling near $80,900–$81,000, recording roughly 2% gains in the past 24 hours and extending its solid April rebound—its strongest monthly performance in over a year.
The total crypto market capitalization climbed to roughly $2.68 trillion, up about 1.2%, with trading volume exceeding $154 billion. Ethereum held steady around $2,380 (up modestly ~1%), Solana traded near $85, XRP hovered just above $1.40, and Chainlink surged as much as 11.5% to lead selective altcoin strength.
Bitcoin dominance sat elevated near 60.4%, with the Fear & Greed Index moved into neutral territory around 47, reflecting growing optimism fueled by regulatory progress and easing Middle East tensions.
CoinGlass data shows 24 hours liquidations topped $367 million ($141 million in longs and $225 million in shorts) across the market, with Bitcoin accounting for a large share as bears faced heavy pressure.
Key Highlights of the Day
Here are the key highlights on what happened in crypto in past 24 hours (1:30 PM IST – May 5, 2026):
CLARITY Act Advances with Stablecoin Yield Compromise
U.S. Senators released compromise language on stablecoin regulations under the Digital Asset Market Clarity Act, banning passive deposit-like yields while allowing activity-based rewards for transactions or trading.
The breakthrough cleared a major hurdle, sending shares of Circle and Coinbase higher and lifting industry sentiment. Banks voiced reservations, but many expect a Senate Banking Committee markup as soon as next week.
Aave Files Emergency Motion Over $71 Million in Frozen ETH
Aave LLC filed an emergency motion in New York federal court seeking to lift a restraining notice that froze roughly 30,766 ETH (valued at $71–73 million) held by the Arbitrum DAO. The assets stem from recovered funds tied to the April KelpDAO/rsETH exploit linked to North Korean actors.
Aave warned the freeze could inflict “catastrophic” damage on DeFi users and recovery efforts, pushing for a rapid hearing (set for Wednesday) or a $300 million bond alternative. Founder Stani Kulechov backed the move, calling it vital for the ecosystem.
WLFI Escalates Feud with Justin Sun: Defamation Lawsuit Filed
World Liberty Financial, the Trump family-linked crypto project, filed a defamation lawsuit against Tron founder Justin Sun in Florida state court. WLFI accuses Sun of orchestrating a coordinated smear campaign—using influencers, media, and his large social following—to crash the token price after the project froze tokens held by Sun-affiliated entities.
The suit claims Sun, an early investor who put in tens of millions and received billions in non-transferable WLFI tokens plus an advisory role, violated terms through unauthorized actions and alleged short-selling. When restrictions were enforced, he allegedly labeled the project “World Tyranny” and spread claims of hidden “trap doors.”
While WLFI seeks damages and a retraction, Sun dismissed the filing as a “meritless PR stunt,” following his own earlier lawsuit accusing WLFI of fraud. The WLFI token spiked as much as 12% on the news amid broader market strength but remains volatile. The very public clash has spotlighted governance, lockup enforcement, and power dynamics in high-profile projects.
Institutional and Corporate Activity Picks Up
Strive Inc. added 444 BTC for ~$33.9 million, lifting its treasury past 15,000 BTC. Mining company Hut 8 refinanced a higher-cost Coinbase loan with FalconX to cut expenses while expanding AI/HPC operations.
On the tokenization front, the DTCC confirmed plans for a July pilot and October launch of its tokenized securities platform for stocks, bonds, and ETFs. Western Union rolled out its USDPT stablecoin on Solana for cross-border settlements. Haun Ventures closed on roughly $1 billion for a new fund targeting crypto and AI agents.
Altcoins, rumors, and ecosystem moves
Ripple ramped up sharing of threat intelligence on North Korean crypto tactics following recent breaches.
Multiple token unlocks in early May (SUI, ARB, others) could inject $350–600 million in potential supply pressure. Prediction markets shattered April records with $8.6 billion in volume.
The Consensus 2026 conference launched in Miami, setting the stage for announcements on stablecoins, tokenization, and regulatory updates through May 7.
In a notable AI-related incident, an attacker used a prompt injection attack involving Morse code to trick xAI’s Grok and autonomous Bankr wallet on Base, draining roughly $150,000–$175,000 worth of DRB tokens; most of the funds were later returned after negotiations.
On a notable side, prediction markets shattered April records with $8.6 billion in volume, with it largely dominated by Polymarket.
Sentiment check and what’s next
Sentiment across trading desks and social platforms has turned more constructive in recent days. ETF inflows have resumed strongly, and institutional positioning remains net positive despite occasional pauses in corporate buying.
Derivatives data show persistent short squeezes, while options flow leans toward calls for further upside. That said, caution persists: leverage remains elevated, and any failure to sustain above $80,000 could trigger a swift retest of lower supports.
Looking ahead, traders will focus on upcoming ETF flow reports, broader macro signals, and key events.
The combination of technical breakout confirmation and steady capital inflows supports a cautiously bullish near-term outlook, but the market’s history of sharp reversals means participants are watching closely for signs of exhaustion.
Also read: Toncoin Jumps 26% as Telegram Cuts Fees 6x and Takes Control of TON
