Invest ideasNews
18 May 2026, 04:40
Analysts Split on Risk of Bitcoin May Plunge in Midterm Election Year
BitcoinWorld Analysts Split on Risk of Bitcoin May Plunge in Midterm Election Year As May approaches, a familiar debate is resurfacing among cryptocurrency analysts: could Bitcoin be headed for a sharp decline, mirroring patterns seen in previous U.S. midterm election years? While historical data suggests a potential drop, market experts are divided on whether the same forces are at play in 2026. Historical Patterns vs. Unique Market Drivers Crypto analyst Merlijn Enkelaar has pointed to Bitcoin’s performance in May of 2018 and 2022, both midterm election years, when the asset recorded significant losses. In 2018, Bitcoin fell from around $9,000 to below $6,000, while in 2022, it dropped from approximately $38,000 to near $28,000. Enkelaar suggests a similar trend could unfold this year, potentially pushing Bitcoin down to $33,000. However, CoinEx Senior Analyst Jeff Ko argues that attributing these declines solely to seasonality overlooks the specific negative catalysts at play. The 2018 crash was largely driven by the Mt. Gox collapse, China’s initial coin offering (ICO) regulations, and the beginning of the Federal Reserve’s tightening cycle. The 2022 downturn was triggered by the Terra ecosystem collapse and the subsequent FTX implosion. Market Structure Has Fundamentally Changed Ko contends that the current market environment bears little resemblance to previous cycles. The introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. has brought institutional capital and regulatory oversight to the market. Corporate Bitcoin acquisitions, led by firms like MicroStrategy, have also added a layer of demand that did not exist in prior midterm years. Furthermore, progress on the CLARITY Act in the U.S. Congress, which aims to provide a clearer regulatory framework for digital assets, could reduce the uncertainty that historically triggered sell-offs. Ko believes that the probability of a 70-80% crash, similar to past cycles, is low this time. Why This Matters to Investors The debate underscores a critical question for crypto investors: should they brace for a seasonal downturn, or has the market matured enough to break historical patterns? The answer has significant implications for portfolio positioning, particularly for those who entered the market after the 2022 crash. If Ko is correct, the absence of a major black swan event and the presence of institutional support could provide a floor under prices. If Enkelaar’s historical analysis proves prescient, investors may face a challenging month ahead. Conclusion While historical data offers a cautionary tale, the structural changes in the Bitcoin market since 2022 suggest that a simple repeat of past May plunges is far from certain. The outcome likely depends on whether any unforeseen negative catalysts emerge, rather than on calendar-based patterns alone. Investors are advised to monitor regulatory developments and macroeconomic conditions closely, rather than relying solely on seasonal trends. FAQs Q1: Why is May considered a risky month for Bitcoin in midterm election years? Historical data shows Bitcoin experienced significant price drops in May of 2018 and 2022, both U.S. midterm election years, leading some analysts to anticipate a similar pattern. Q2: What specific events caused the Bitcoin crashes in 2018 and 2022? The 2018 crash was driven by the Mt. Gox collapse, China’s ICO regulations, and Federal Reserve tightening. The 2022 crash was triggered by the Terra ecosystem collapse and the FTX bankruptcy. Q3: How have spot Bitcoin ETFs changed the market? Spot Bitcoin ETFs have brought institutional capital, increased liquidity, and regulatory oversight, potentially reducing the likelihood of extreme volatility and sharp crashes. This post Analysts Split on Risk of Bitcoin May Plunge in Midterm Election Year first appeared on BitcoinWorld .
18 May 2026, 04:37
Yet another crypto bridge falls victim to an $11 million hack
The latest attack adds to growing string of cross-chain infrastructure exploits.
18 May 2026, 04:24
Oobit expands to Colombia as Latam crypto economy hits $44B and usage surges 200%
Crypto payments platform Oobit has expanded into Colombia, betting on rising demand for stablecoin-based payments across Latin America as the region’s crypto economy grows to an estimated $44 billion. Colombia is now Oobit’s ninth active market, following its launches in Argentina, Brazil, and Chile across Latin America. Oobit’s entry comes as Colombia is recognised one of the largest stablecoin markets in Latam. A recent Chainalysis report even showed that the Colombian Peso is the second most-used currency in the region for buying stablecoins. Oobit allows users to spend cryptocurrencies directly from self-custodied wallets via a Visa-linked infrastructure accepted by more than 150 million merchants across 80+ countries. Latin America has emerged as one of the world’s fastest-growing regions for crypto payments, driven by increasing stablecoin adoption and rising demand for faster, lower-cost digital transactions. Oobit sees strong performance in Brazil Oobit has already established a strong presence in Brazil. Since entering the country, the platform has recorded over 200% growth in user activity. More recent figures reveal that active Brazilian users spend an average of $400 per month across roughly 20 transactions. A trend that holds across most of the app’s Latin American markets. USDT still claims the top spot for transactions. Oobit’s own token holds the number two spot in usage, leaving USDC in third place. Meanwhile, everyday purchases are driving most Oobit crypto card usage. In LATAM, grocery stores and supermarkets make up 35% of spending, ahead of restaurants at 8.8%, miscellaneous food stores at 7.2%, department stores at 5.3%, and fast-food restaurants at 4.1%. Use cases in Brazil have broadened to include mainstream service stations and grooming businesses. Beauty salons and barber shops captured 5.5% of spending activity, followed by gas stations at 5%, and purchases at electronics and automotive outlets. Oobit’s co-founder & CEO, Amram Adar, recently pointed to Latin America as a rising global leader in practical crypto use cases. He commented, “We are seeing a regional shift where crypto is no longer just an investment, but a primary way to pay for groceries and healthcare, and we are proud to lead the change across LATAM.” How much crypto growth has Latin America seen? According to Chainalysis, crypto is booming in Latin America. Nearly $1.5 trillion has changed hands between July 2022 and June 2025. Crypto activity rose from $20.8 billion in mid-2022 to a record $87.7 billion in late 2024, consistently holding above $60 billion into early 2025. The region’s economy is now valued at over $44 billion. High remittance demand has been driving crypto adoption for fast and inexpensive cross-border transfers. Regionally, Brazil is at the forefront, accounting for $318.8 billion—nearly a third of the total Latin American crypto market. Argentina secured the regional number two position with $93.9 billion in transaction volume. Latin America is also ahead in its use of centralized exchanges: its CEXs account for 64% of global market activity, behind only MENA (66%) and comfortably ahead of Europe (53%) and North America (49%). Powerful household names, such as Mercado Bitcoin, Ripio, Bitso, Wenia, and SatoshiTango, have attracted users via fiat on-ramps and local payment integrations. So far, Brazil is the region’s fastest-growing crypto market, with a period-over-period growth rate of 109.9% . That number has been attributed in large part to the country’s use of stablecoins. Stablecoins made up more than 90% of crypto flows in Brazil. Chainalysis signaled that the region may continue to see more growth. It noted: “Looking ahead, Latin America’s crypto ecosystem appears poised for continued growth, driven by the interplay of institutional adoption in markets like Brazil and persistent retail demand for stablecoins across the region.” It said the overall trajectory of the market and crypto more broadly in the region, especially stablecoins, is moving beyond its earlier adoption phase and entering the fabric of Latin America’s financial system. The smartest crypto minds already read our newsletter. Want in? Join them .
18 May 2026, 03:52
Bitcoin slides under $77,000 as oil shock and Treasury yields hit risk assets
Long-term holders are still sitting tight and exchange balances remain near six-year lows, Binance Research data shows, but underwater short-term holders leave BTC vulnerable to macro shocks.
18 May 2026, 03:40
Tom Lee: Ethereum Could Rebound If Oil Prices Reverse Course
BitcoinWorld Tom Lee: Ethereum Could Rebound If Oil Prices Reverse Course Tom Lee, chairman of Bitmine (BMNR) and co-founder of Fundstrat Global Advisors, has identified rising oil prices as the primary short-term factor behind Ethereum’s recent price weakness. In a post on X, Lee explained that the surge in oil prices over the past six weeks has exerted significant downward pressure on ETH, noting that the inverse correlation between the two assets has reached an all-time high. Oil Prices as a Short-Term Headwind for Ethereum Lee’s analysis points to a clear inverse relationship: as oil prices have climbed, Ethereum has struggled to gain upward momentum. He suggests that if oil prices begin to decline, ETH could see a meaningful price recovery. However, he emphasized that this dynamic is purely short-term in nature and should not be interpreted as a long-term forecast for the cryptocurrency. Long-Term Catalysts: Tokenization and AI Agents Looking beyond the immediate oil price correlation, Lee remains optimistic about Ethereum’s medium- to long-term prospects. He pointed to two key growth drivers: the expanding tokenization of real-world assets and the rise of AI agents operating on blockchain networks. According to Lee, these sectors could fuel a sustained rise in ETH value, and he reiterated his view that Ethereum will show stronger performance this year compared to recent periods. What This Means for Investors For market participants, Lee’s commentary underscores the importance of monitoring macro factors like commodity prices when assessing short-term crypto market movements. While oil prices may be a temporary headwind, the fundamental developments in Ethereum’s ecosystem — particularly in tokenization and AI — could provide a more durable foundation for price appreciation. Investors should weigh these short-term macro pressures against longer-term technological adoption trends. Conclusion Tom Lee’s analysis highlights a rarely discussed but increasingly relevant factor in Ethereum’s price action: the inverse correlation with oil prices. While a potential reversal in oil could trigger a short-term ETH rebound, the more significant story for the cryptocurrency remains its adoption in tokenization and AI. As always, market participants should consider both macro and technological factors when evaluating Ethereum’s outlook. FAQs Q1: Why does Tom Lee believe oil prices affect Ethereum? Lee points to an all-time high inverse correlation between oil prices and ETH, suggesting that rising oil prices have acted as a short-term headwind for the cryptocurrency. When oil prices surge, ETH tends to decline, and a reversal could lead to a rebound. Q2: Is this correlation likely to persist? Lee describes this as a short-term dynamic. In the medium to long term, he believes Ethereum’s price will be driven more by fundamentals like tokenization and AI agent adoption rather than commodity price movements. Q3: What are the key long-term catalysts for Ethereum according to Lee? Lee identifies two main areas: the tokenization of real-world assets (bringing traditional assets onto blockchain networks) and the growth of AI agents that operate on Ethereum’s infrastructure. He expects these sectors to drive stronger ETH performance this year. This post Tom Lee: Ethereum Could Rebound If Oil Prices Reverse Course first appeared on BitcoinWorld .
18 May 2026, 03:10
Crypto Futures Liquidations Surpass $468 Million as Longs Get Wiped Out
BitcoinWorld Crypto Futures Liquidations Surpass $468 Million as Longs Get Wiped Out The cryptocurrency derivatives market experienced a sharp correction over the past 24 hours, with total liquidation volumes across major perpetual futures contracts exceeding $468 million. Data from leading analytics platforms shows that long positions bore the overwhelming majority of losses, accounting for over 90% of all liquidations across Bitcoin, Ethereum, and Solana markets. Liquidation Breakdown: BTC, ETH, and SOL Bitcoin (BTC) perpetual futures saw approximately $182.96 million in liquidations, with long positions representing 88.25% of that total. Ethereum (ETH) recorded the highest single-asset liquidation volume at $257.45 million, with an even more lopsided 95.08% coming from longs. Solana (SOL) followed with $27.94 million in liquidations, where 95.9% of positions were long. The data underscores a concentrated buildup of leveraged bullish bets that were rapidly unwound as prices moved against expectations. The concentration of long liquidations suggests that many traders had anticipated continued upward momentum and were caught off-guard by the sudden reversal. What This Means for the Broader Market High liquidation events often signal periods of heightened volatility and can act as a reset for leverage in the system. When a large number of long positions are forcibly closed, it can create a cascading effect, accelerating downward price pressure. However, such events also clear out excess speculative leverage, potentially setting the stage for more stable price action in the days that follow. For Ethereum, the $257 million liquidation figure is particularly notable, as it exceeds Bitcoin’s total despite ETH having a smaller market capitalization. This indicates that Ethereum futures traders were using disproportionately higher leverage, making the asset more susceptible to sharp liquidation cascades. Implications for Traders and Risk Management These figures serve as a reminder of the risks inherent in leveraged trading, especially in the crypto derivatives market where funding rates and open interest can shift rapidly. Traders using high leverage on perpetual swaps face the risk of total loss during even moderate price swings. The data also highlights the importance of monitoring liquidation levels as a real-time gauge of market sentiment and potential turning points. Conclusion The $468 million liquidation event across BTC, ETH, and SOL futures underscores the current market’s sensitivity to leverage and the speed at which bullish bets can be unwound. While such events can be painful for overleveraged traders, they also contribute to market health by reducing systemic risk. Traders and analysts will be watching closely to see whether this liquidation cascade signals a broader trend shift or a temporary shakeout within an ongoing uptrend. FAQs Q1: What are crypto futures liquidations? Liquidations occur when a trader’s position is forcibly closed by an exchange because the margin balance falls below the required maintenance level, usually due to adverse price movements. This is common in leveraged trading. Q2: Why were such a high percentage of liquidations from long positions? Long positions are bets that the price will rise. When the market moves down sharply, these positions become unprofitable. If the price drop is large enough to exceed the trader’s margin, the position is liquidated. The data shows the market moved against the majority of leveraged bullish traders. Q3: Does a large liquidation event predict future price direction? Not necessarily. While large liquidations can cause short-term volatility and price cascades, they also remove excess leverage from the market. After such events, prices can stabilize or even reverse as the selling pressure from forced closures subsides. This post Crypto Futures Liquidations Surpass $468 Million as Longs Get Wiped Out first appeared on BitcoinWorld .
