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13 May 2026, 11:03

SharpLink’s Ethereum Bet Just Generated a $686 Million Loss: Is the Galaxy Deal News a Lifeline or a Vote of Confidence?

SharpLink posted a Q1 2026 net loss of nearly $686 million, driven almost entirely by $507 million in unrealized losses from its Ethereum treasury, a figure that dwarfs the firm’s less than $1 million loss in the same period last year. Bearish news for ETH treasuries. The trigger was a 45% peak-to-trough ETH drawdown that turned the company’s aggressive accumulation strategy into a paper catastrophe under GAAP fair-value accounting rules. The same earnings release announced a $125 million on-chain yield fund with Galaxy Digital, which some analysts are reading as a lifeline in disguise. SBET Stock / Source: Tradingview The tension at the center of this story is real: does the Galaxy deal signal institutional confidence in ETH staking infrastructure, or does it signal that SharpLink needed a structural backstop to stay credible? Those are not the same thing. How a 45% ETH Drawdown Produced a $686M Loss, and Why the Math Works That Way The mechanism here is worth understanding precisely, because it is not a trading loss or an operational failure in the traditional sense. SharpLink holds approximately 872,984 ETH valued at roughly $2.1 billion at current prices. GAAP fair-value accounting requires the firm to mark those holdings to market at each reporting date, which means a price decline flows directly into the income statement as an unrealized loss – no ETH sold, no cash out the door. ETH fell from approximately $3,354 on January 15, 2026, to $2,104 by March 31 – a drop of roughly 37% over the quarter alone, contributing the bulk of that $507 million unrealized hit. Across the broader peak-to-trough cycle, the 45% ETH drawdown compressed the dollar value of SharpLink’s entire treasury position with mechanical precision. The larger the ETH stack, the larger the paper loss on the way down. SharpLink Revenue / Source: Finsee The staking revenue side did not come close to offsetting this. Q1 2026 revenues jumped to more than $12 million from under $1 million a year earlier, a genuine operational improvement powered by the firm’s staked Ethereum treasury. SharpLink has accumulated 18,800 ETH in staking rewards since launching its treasury strategy in June 2025, running a mix of 66% native staking, 33% liquid staking, and 1% restaking. That is a functioning yield engine. It is just not a $507 million yield engine. The distinction that matters analytically: this is not a validator economics failure, nor a leverage blowup. It is a concentration risk event, amplified by accounting standards that require mark-to-market recognition of assets that have not been liquidated. SharpLink ended Q1 with $16.9 million in cash and 872,984 ETH still on its books. The loss is real on paper. The ETH is still there. That said, the accounting and liquidity risks in institutional Ethereum staking operations are not theoretical. A 45% drawdown does not just create paper losses; it compresses the equity cushion that supports the entire treasury model and raises legitimate questions about what a further leg down would look like on the balance sheet. Ethereum News: The Galaxy Digital Fund Is a Signal, But Not Necessarily the One Being Advertised The $125 million on-chain yield fund announced alongside the Q1 results is structured as follows: $100 million comes from SharpLink’s staked ETH treasury, and $25 million from Galaxy Digital. Galaxy is responsible for protocol selection, exposure sizing, and ongoing monitoring of all on-chain deployments. SharpLink brings the capital. Galaxy brings the operational oversight. Galaxy Digital CEO Mike Novogratz framed the deal in sector terms: “Institutional capital is moving on-chain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets.” Proud to partner with @Sharplink and @joechalom on the Galaxy Sharplink Onchain Yield Fund, putting one of the most significant ETH treasuries among public companies to work. Institutional capital is moving onchain, and the infrastructure is finally there to meet it. https://t.co/Jw4r3ggMrk — Mike Novogratz (@novogratz) May 11, 2026 That is a bullish read on institutional crypto broadly, and Galaxy’s own stock performance supports the narrative. GLXY shares are up 43% in the last month, recently trading at $30.92. SharpLink CEO Joseph Chalom described the strategic direction as moving “beyond foundational staking into a broader set of on-chain opportunities,” emphasizing a “comprehensive risk-management framework” designed to deliver shareholder value across market cycles. The language is disciplined. The timing raises a question worth naming: a firm reporting a $686 million quarterly loss is not negotiating from a position of strength. The conflict of interest embedded in this structure is also worth naming. Galaxy is both a financial contributor to the fund and the entity managing its on-chain deployment decisions. That does not make the partnership wrong. It does mean the assumption that Galaxy’s protocol selection is purely independent of its own positioning deserves scrutiny from investors and analysts watching this sector. Ethereum (ETH) 24h 7d 30d 1y All time If ETH price recovers meaningfully through Q2 and Q3, the fund launch will look like a well-timed DeFi pivot that turned a paper-loss narrative into a yield-diversification story. If ETH continues to grind lower, the $100 million deployed from SharpLink’s treasury into on-chain protocols will be exposed to additional mark-to-market pressure on top of the core holdings. The asymmetry runs in both directions. The post SharpLink’s Ethereum Bet Just Generated a $686 Million Loss: Is the Galaxy Deal News a Lifeline or a Vote of Confidence? appeared first on Cryptonews .

13 May 2026, 10:30

Crypto CLARITY Act Faces 100-Plus Amendments As Stablecoin, Banking Fight Intensifies

The US Senate Banking Committee’s crypto market structure push is running into a dense wall of amendments ahead of Thursday’s markup, with lawmakers filing more than 100 proposed changes to the CLARITY Act. The amendment rush puts stablecoin rewards, crypto firms’ access to the Federal Reserve system and even the use of digital assets for tax payments at the center of Washington’s latest fight over crypto regulation. According to Politico, committee members submitted more than 100 amendments before the markup vote. Crypto journalist Eleanor Terrett reported that Senator Elizabeth Warren alone filed more than 40 amendments, including one that would prevent the Federal Reserve from issuing master accounts to crypto companies. Terrett also flagged an amendment from Senator Jack Reed that would “prohibit crypto from being used as legal tender, for example, to pay taxes.” That language would cut directly against one of the industry’s longer-running policy goals: expanding digital assets beyond investment and trading into payments, settlement and public-sector use cases. Terrett noted the contrast with prior pro-Bitcoin tax-payment proposals, writing that Representative Warren Davidson had introduced a bill last year “to do that very thing” with BTC. Crypto Bill Enters High-Stakes Senate Markup The latest clash comes after Senate Banking Committee Chairman Tim Scott, Senator Cynthia Lummis and Senator Thom Tillis released new market structure text that will serve as the basis for the committee markup. The committee said the text reflects negotiations with Democrats and input from lawmakers, regulators, law enforcement, financial institutions, innovators and consumer advocates. Scott framed the bill as a consumer-protection and national-competitiveness measure. “Over the past year, we have listened, negotiated, and strengthened this bill because families, small businesses, investors, and innovators all benefit from clear rules of the road,” Scott said. “This bill reflects serious, good-faith work across the Committee and delivers the certainty, safeguards, and accountability Americans deserve.” The most immediate fault line remains stablecoin rewards . The Senate text would ban rewards on idle stablecoin balances that closely resemble bank deposits, while allowing rewards tied to transaction-based activity, such as stablecoin payments. The SEC, CFTC and Treasury Department would be tasked with issuing joint rules to implement that provision. Banks are not satisfied. Brendan Pedersen reported that Reed and Senator Tina Smith filed an amendment that would incorporate bank-requested changes to stablecoin yield restrictions, forcing lawmakers to choose between the crypto and banking industries. The amendment would target rewards “substantially similar” to deposit interest, a phrase that goes to the core of the banking lobby’s argument: that crypto platforms should not be allowed to compete with deposits through yield-like incentives while avoiding bank-style regulation. Terrett reported separately that American Bankers Association members had sent more than 8,000 letters to Senate offices urging lawmakers to revise the stablecoin-yield compromise. The ABA has argued that the current language does not adequately close what it calls a loophole allowing exchanges and other digital asset service providers to bypass the GENIUS Act’s ban on interest or yield on payment stablecoins. The bill also reaches well beyond stablecoins. Digital commodity exchanges, brokers and dealers would be treated as financial institutions under the Bank Secrecy Act, bringing them into anti-money-laundering, customer-identification and due-diligence regimes. The text would also allow crypto companies to raise up to $50 million annually, and up to $200 million total, without SEC registration, while clarifying that tokenized securities remain subject to securities law. The political path is still fragile. Terrett said Senate Minority Leader Chuck Schumer appeared engaged in a Democratic member meeting and eager for members to reach a “yes” on the CLARITY Act, but stressed that ethics negotiations needed to move further before Thursday’s markup. Warren, the committee’s top Democrat, has been pressing that issue hard, saying the bill “puts investors, our national security and our entire financial system at risk” and would “turbocharge Donald Trump’s crypto corruption ” without stronger conflict-of-interest provisions. At press time, the total crypto market cap stood at $2.67 trillion.

13 May 2026, 10:29

Ethereum Price Prediction: ETH Pattern Resembles Past Surge

Ethereum is holding near a key support area while its short-term correction remains active. At the same time, the weekly chart shows ETH forming a setup that looks similar to past consolidation zones before larger rallies. Ethereum Holds $2,220 Support as ETH Correction Stays Active Ethereum remains in a corrective phase after briefly breaking below Friday’s swing low during CPI driven volatility, according to a chart shared by MCO Global on X. The 1-hour ETH chart shows price slipping below a short-term support area before stabilizing near the same zone. The move came after stronger-than-expected inflation data added pressure to risk assets and reduced expectations for quicker rate cuts. Ethereum 1-Hour Chart. Source: MCO Global on X MCO Global said Ethereum has not confirmed a local low yet. The chart places the next key support near the $2,220 swing low, which now acts as the main level for the short-term structure. As long as ETH holds above that level, the pullback can still fit as a B-wave correction. Under that scenario, Ethereum could later form another C-wave higher if buyers defend support and reclaim the nearby range. However, the setup remains uncertain. ETH has moved sideways for nearly a month, and that long consolidation increases the chance of a more complex correction before a clear direction forms. The chart also shows Ethereum trading inside a broader rising channel. The lower boundary sits below the current support area, while the upper resistance zone is marked near $2,646. For now, Ethereum’s next move depends on the $2,220 level. A hold could keep the bullish wave structure alive, while a break below it would weaken the setup and point to deeper downside risk. Ethereum Chart Shows ETH Repeating Setup Before Past Rallies Ethereum is showing a weekly setup that resembles earlier consolidation zones before major upside moves, according to a TradingView chart shared by Moe on X. The chart highlights four similar areas where ETH moved sideways after a recovery phase. The first three blue circles came before sharp rallies, marked by large green projection boxes. Ethereum Weekly Pattern Chart. Source: Moe on X The latest blue circle appears near the current ETH range. It shows Ethereum consolidating after rebounding from its recent low, while the chart projects a possible move toward the upper price area if the pattern repeats. Moe captioned the chart with “No time to explain,” pointing to the visual comparison between the current setup and past ETH moves. The chart does not confirm a breakout yet. ETH still needs stronger follow-through above the current consolidation range before the setup can match the earlier rallies. However, the weekly structure keeps attention on whether buyers can hold the current base. If ETH stays above the recent recovery zone, the chart keeps the repeat pattern active. A failed hold would weaken the setup and shift focus back to lower support. For now, Ethereum remains in a comparison phase, with traders watching whether the current range develops like the previous bullish setups.

13 May 2026, 10:20

Australian Dollar Gains Ground as Hawkish RBA Bets Intensify

BitcoinWorld Australian Dollar Gains Ground as Hawkish RBA Bets Intensify The Australian Dollar (AUD) has emerged as one of the best-performing major currencies this week, buoyed by a growing wave of market speculation that the Reserve Bank of Australia (RBA) will maintain a hawkish policy stance for longer than previously anticipated. Traders are recalibrating their expectations after recent domestic data showed persistent inflationary pressures and a resilient labor market, reinforcing the view that the RBA may not cut interest rates as soon as some had hoped. What Is Driving the Hawkish RBA Bets? The shift in market sentiment follows the release of stronger-than-expected employment figures and a core inflation reading that remains above the RBA’s target band. The central bank has repeatedly signaled that it remains vigilant against upside risks to prices, and recent comments from Governor Michele Bullock have been interpreted as leaning toward a more cautious approach to easing. According to data from the Australian Bureau of Statistics, the unemployment rate edged lower to 3.9% in March, while monthly CPI indicators showed services inflation staying sticky. These figures have prompted money markets to push back the timing of the first rate cut from August to November, and some analysts now see a possibility that the RBA could even raise rates again if inflation proves stubborn. How Has the Australian Dollar Reacted? The AUD has rallied against all of its G10 peers this week, with the AUD/USD pair climbing above the 0.6550 level for the first time in three weeks. Against the Japanese yen, the Australian Dollar hit a multi-month high, benefiting from the widening interest rate differential between Australia and Japan. The currency’s strength has been particularly notable against the New Zealand Dollar, where the AUD/NZD cross rose to its highest level since early March. This reflects not only the hawkish repricing of RBA expectations but also the relatively dovish stance of the Reserve Bank of New Zealand, which has already begun cutting rates. Implications for Traders and Investors For forex traders, the current environment suggests that the Australian Dollar may continue to find support in the near term, especially if upcoming data reinforces the hawkish narrative. However, the currency remains sensitive to global risk sentiment, and any deterioration in the outlook for China’s economy—Australia’s largest trading partner—could quickly reverse gains. Investors with exposure to Australian assets should monitor the RBA’s communication closely. The central bank’s next policy meeting is scheduled for early May, and the tone of the accompanying statement will be critical in determining whether the recent AUD rally has further to run. Conclusion The Australian Dollar’s outperformance this week underscores the market’s reassessment of the RBA’s policy path. With inflation proving stickier than expected and the labor market remaining tight, the central bank is under less pressure to ease than many of its peers. While the AUD’s trajectory will depend on incoming data and global developments, the current hawkish repricing provides a solid foundation for the currency in the short to medium term. FAQs Q1: Why is the Australian Dollar strengthening? The AUD is gaining because markets are increasingly betting that the Reserve Bank of Australia will keep interest rates higher for longer due to persistent inflation and a strong labor market. Q2: What does ‘hawkish RBA bets’ mean? It means traders and investors expect the RBA to maintain or even increase its hawkish stance—keeping rates high or raising them—rather than cutting rates soon. Q3: How does this affect Australian Dollar exchange rates? A hawkish RBA outlook tends to attract capital inflows, boosting demand for the AUD and pushing its value higher against other currencies like the US Dollar, Euro, and Japanese Yen. This post Australian Dollar Gains Ground as Hawkish RBA Bets Intensify first appeared on BitcoinWorld .

13 May 2026, 10:07

Eric Trump outlines Bitcoin accumulation plan to rival Strategy

Eric Trump, the son of President Donald Trump and founder of the Bitcoin ( BTC ) mining and treasury management company American Bitcoin (NASDAQ: ABTC), announced new plans that will help his company (and the U.S.) dominate the global cryptocurrency market. Speaking in an interview with David Lin published on May 12, Trump said there are effectively “two races” in the industry. The first one is centered on accumulating the largest Bitcoin treasury, and the other on acquiring the asset at the lowest possible cost.​ In regard to the first “race,” Trump mentioned Strategy’s Michael Saylor, saying he’s done an unbelievable job building his BTC holdings and acted as a visionary in the industry. Turning to the second “race,” however, Trump promised that American Bitcoin would claim the gold. “Michael’s done unbelievably. What a visionary he’s been. And then there’s the race of who can acquire the most, the cheapest. And I can tell you, at American Bitcoin, that’s the race we want to win. We want to be the ones that acquire the most, the cheapest,” Trump said. Eric Trump’s Bitcoin acquisition strategy Elaborating on his plans, the American Bitcoin co-founder said his company’s strategy is centered entirely on growing its Bitcoin reserves rather than selling mined coins into the market. When asked what circumstances would force him to sell, Trump said it would need to be something “beyond catastrophic.” “Our only premise of our entire company is to grow our Bitcoin stack. And our north star is growing Satoshi’s per share… We believe in Bitcoin. Come hell or high water, it would take us a lot to have to sell our treasury,” Trump added. Of course, Trump’s comments came after he referenced Saylor’s recent suggestion that Strategy could potentially sell some BTC to help finance dividends . While he acknowledged Saylor’s influence, the guest made it clear that American Bitcoin intends to pursue a stricter accumulation model. Further, the conversation also noted that Bitcoin adoption has accelerated rapidly among institutions, banks, and corporations, describing the current environment as an unprecedented global accumulation race. What gives American Bitcoin an edge, Trump said, is infrastructure and energy efficiency. Specifically, he claimed the company can effectively mine Bitcoin at roughly “50 cents on the dollar” because of low-cost energy access and lean operations. Currently, the company controls more than 90,000 mining machines and accounts for roughly 2.5% to 3% of the global mining capacity despite being only eight months old. What’s more, Trump added that the firm already holds more than 7,000 BTC. Featured image via Shutterstock The post Eric Trump outlines Bitcoin accumulation plan to rival Strategy appeared first on Finbold .

13 May 2026, 10:05

Japanese Yen Recovery Faces Key Resistance Near 158.30, Says UOB

BitcoinWorld Japanese Yen Recovery Faces Key Resistance Near 158.30, Says UOB The Japanese yen’s recent recovery against the US dollar is encountering a significant hurdle near the 158.30 level, according to analysts at United Overseas Bank (UOB). The currency pair, which has seen heightened volatility amid shifting interest rate expectations, is now testing a critical resistance zone that could determine the next directional move. UOB’s Technical Assessment UOB’s foreign exchange strategy team notes that while the yen has managed to claw back some ground from recent lows, the 158.30 mark represents a formidable barrier. This level aligns with previous swing highs and is reinforced by key moving averages on the daily chart. A sustained break above this point would signal a weakening of the yen’s recovery momentum, potentially opening the door for further USD/JPY upside. Market Context and Drivers The yen’s performance is being shaped by a complex interplay of factors. The Bank of Japan’s (BOJ) cautious approach to normalizing monetary policy continues to weigh on the currency, as interest rate differentials with the US remain wide. Meanwhile, the US dollar has found support from resilient economic data and hawkish commentary from Federal Reserve officials, which has tempered expectations for aggressive rate cuts. Implications for Traders For traders and investors, the 158.30 level serves as a key inflection point. A failure to breach this resistance could reinforce the yen’s recovery narrative, with potential targets lower toward 156.00 or even 154.50. Conversely, a decisive breakout above 158.30 would suggest the recovery is losing steam, shifting focus back to the 160.00 psychological barrier. Conclusion The Japanese yen’s recovery path remains fraught with challenges, with UOB highlighting the 158.30 resistance as a critical juncture. Market participants will closely monitor upcoming economic data from both Japan and the US, as well as any policy signals from the BOJ and Federal Reserve, to gauge the next leg for USD/JPY. FAQs Q1: What does resistance near 158.30 mean for the yen? A resistance level indicates a price point where selling pressure is expected to emerge, potentially halting or reversing the yen’s recovery. A break above it would signal strength in the USD/JPY pair. Q2: Why is the yen recovering despite BOJ policy? The yen’s recovery is partly driven by profit-taking after a prolonged selloff, along with shifting market expectations for US interest rates. However, the BOJ’s slow policy normalization limits the yen’s upside potential. Q3: How does this affect Japanese exporters? A weaker yen generally benefits Japanese exporters by making their goods cheaper abroad. A stalled recovery or renewed weakness could therefore support export-driven stocks, while a stronger yen might pressure them. This post Japanese Yen Recovery Faces Key Resistance Near 158.30, Says UOB first appeared on BitcoinWorld .