Over the past week, the crypto market gradually shifted from a “war-driven safe haven” narrative toward trades centered on a “soft landing + rate cut expectations.” Expectations of a Middle East ceasefire, combined with strong AI and tech earnings, pushed the Nasdaq up 4.70% for the week, while BTC broke above $82,000 amid continued ETF inflows. On the macro side, oil prices pulled back sharply as concerns over supply disruptions eased, while Treasury yields and the dollar index both weakened, helping market risk appetite gradually recover. Overall, capital did not exit risk assets, but instead rotated back into mainstream assets and core trading venues with deeper liquidity and stronger absorption capacity after the recent volatility, signaling a renewed phase of structural risk appetite expansion.
Highlights from last week’s market overview
- Market Focus: Easing geopolitical tensions and rising rate cut expectations reinforced each other, with tech and AI stocks leading a broader rebound in risk assets. BTC remained firmly above $82,000.
- Liquidity Analysis: BTC ETFs recorded approximately $632M in net inflows for the week, with IBIT continuing to dominate institutional allocations; ETH ETFs also turned back to net positive flows. On-chain TradFi trading remained heavily driven by macro assets such as gold and crude oil, while the number of equity-related TradFi assets listed on CEXs continued to expand.
- On-chain Insights: Capital rotated back into leading DEXs such as Uniswap and PancakeSwap, while stablecoin liquidity increasingly concentrated in compliant, settlement-oriented, and cross-chain dollar assets. Aave is still digesting the aftermath of the rsETH incident, while emerging ecosystems such as MegaETH and Plasma began attracting incremental inflows. Solana LSTs were among the first sectors to benefit from improving market risk appetite.
- Derivatives Tracking: BTC maintained a “negative funding rate + high-level consolidation” structure, with the earlier short squeeze gradually unwinding. Options volume and implied volatility both spiked during the breakout phase before cooling off again.
- Institutional Updates: In May, spot trading volume increased 14.54% month-over-month, while futures volume rose 18.10%. CrossEx recorded record highs in both trading volume and assets under custody for the third consecutive week, with demand for cross-exchange arbitrage and hedging strategies continuing to grow. Gate Institutional Circle Amsterdam has officially entered the preparation stage, further expanding Gate’s institutional ecosystem presence in Europe.
- Outlook for This Week: Key events to watch include April CPI and PPI data, as well as the potential liquidity impact from upcoming APT, STRK, and ARB token unlocks.
Discover more details today → Gate Institutional Weekly: BTC Short Squeeze Momentum Slows as Aave Funding Rates Return to Rational Levels (May 5, 2026 – May 10, 2026)
Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides deep content for readers, including technical analysis, market insights, industry research, trend forecasting, and macroeconomic policy analysis.
Disclaimer
Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.
Gate Team
May 13, 2026
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