Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors

Hodler’s Digest: Bitcoin Faces Bearish Pressure at $69K, Hong Kong Passes Stablecoin Bill, and More

Bitcoin Price Faces Correction Concerns

Bitcoin’s recent surge to all-time highs has traders on edge, with many predicting a pullback to as low as $69,000. After seven consecutive weeks of gains, analysts argue the rally is losing steam, citing bearish signals in the Relative Strength Index (RSI). Trader Roman noted on X that Bitcoin “looks exhausted,” comparing current market dynamics to the 2021 cycle peak. Support levels between $90,000 and $105,000 are in focus, with some expecting a consolidation phase before any further upside. Despite institutional inflows driving momentum, skepticism persists about the bull run’s longevity.

CZ Refutes World Liberty Financial Allegations

Binance CEO Changpeng Zhao (CZ) dismissed a Wall Street Journal report claiming he acted as a “fixer” for World Liberty Financial (WLF), a crypto platform linked to former U.S. President Donald Trump. In a May 20 X post, CZ called the allegations “baseless,” clarifying he has no involvement with WLF. The report suggested Zhao facilitated connections for the platform, which recently launched a stablecoin, USD1. Zhao emphasized his focus remains on Binance’s global expansion, distancing himself from U.S.-based crypto ventures amid regulatory scrutiny.

Hong Kong Advances Stablecoin Regulation

Hong Kong’s Legislative Council passed the Stablecoin Bill on May 21, setting the stage for regulated fiat-backed stablecoin issuance by year-end. Legislative Council member Johnny Ng Kit-Chong announced on X that major institutions can soon apply for licenses from the Hong Kong Monetary Authority. The bill aims to position Hong Kong as a global Web3 hub, building on its crypto-friendly policies. Yield-bearing stablecoins, now at $11 billion in circulation, are gaining traction, with Pendle holding 30% of this market.

OpenAI’s AI Companion Devices Spark Crypto Speculation

OpenAI CEO Sam Altman and former Apple designer Jony Ive are developing AI-powered “companion” devices, according to a May 21 Wall Street Journal report. Acquired by OpenAI for $6.5 billion, Ive’s startup is working on hardware integrating AI into daily life, with plans to ship 100 million units. While specifics remain unclear, the project’s focus on seamless tech integration has sparked speculation about potential blockchain applications, such as decentralized identity or payment systems, though no concrete crypto ties have been confirmed.

U.S. Lawmaker Targets Trump’s Crypto Ventures

California Representative Maxine Waters announced plans on May 22 to introduce the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025. The legislation aims to curb “crypto corruption” by restricting the U.S. president, vice president, members of Congress, and their families from engaging in crypto activities. Waters pointed to Trump’s memecoin launches, his family’s USD1 stablecoin via WLF, and efforts to establish a national Bitcoin reserve as examples of concerning activity. The bill reflects growing regulatory tensions in the U.S. crypto space.

Market Snapshot

At the close of the week, Bitcoin (BTC) stands at $96,500, Ether (ETH) at $3,750, and XRP at $2.30, with a total market cap of $3.5 trillion, per CoinMarketCap. The top altcoin gainers include PAX Gold (PAXG) at 4.8%, Dai (DAI) at 0.9%, and Gemini Dollar (GUSD) at 0.6%. Leading losers are Ai16z (AI16Z) at -15.2%, Bitcoin SV (BSV) at -7.8%, and Sui (SUI) at -6.3%. For detailed market insights, check Cointelegraph’s analysis.

Final Thoughts

This week’s developments highlight the crypto market’s volatility and regulatory shifts. Bitcoin’s potential correction looms large, while Hong Kong’s stablecoin bill signals a push for global Web3 leadership. Meanwhile, political and legal debates in the U.S. underscore the challenges facing crypto’s mainstream adoption. Stay tuned for next week’s updates on these evolving trends.