As May draws to a close, the crypto market has been anything but quiet. While overall price movement stayed relatively flat, key narratives emerged around Bitcoin's push toward a new all-time high, a potential XRP ETF, and the dramatic collapse in NFT lending activity. Here's what you need to know.
Crypto Market Moves Sideways – But Stories Tell Otherwise
This past week was defined by low volatility with a sideways trend across most digital assets. Bitcoin rose modestly by 2.23%, while Ethereum gained 3.5%. On the flip side, XRP and DOGE saw slight declines, falling 2.16% and 1.5%, respectively. The price changes were minor—but the underlying developments were not.
Bitcoin Briefly Breaks $110K – But On-Chain Data Warns of Overheating
On May 27, Bitcoin rallied to a high of $110,700, supported by two key developments: a strong open in U.S. equity markets and an announcement from Trump Media & Technology Group outlining plans to raise $2.5 billion for a Bitcoin treasury.
The broader macro backdrop also lent support. According to Ecoinometrics, the National Financial Conditions Index (NFCI) has shifted into looser territory. This reflects a more favorable environment for risk-taking, with lower credit spreads and easier access to capital—typically a bullish setup for high-beta assets like BTC.
Market indicators point to potential upside, especially if Bitcoin can breach the $115,000 mark, where over $3.6 billion in short positions are currently at risk of being liquidated in a short squeeze.
However, caution is warranted. On-chain metrics such as the Supply in Profit Market Bands and the Advanced Net UTXO Supply Ratio are approaching historically overheated levels. The last time similar readings were observed—in December 2024—Bitcoin dropped from $107,000 to $93,000.
In short, momentum remains strong, but the risk of a local top is increasing. Traders would be wise to keep an eye on both price action and chain-based indicators as Bitcoin edges closer to uncharted territory.
XRP Speculation Grows as ETF Rumors Swirl
XRP has found itself back in the spotlight with a wave of bullish developments:
Rumors are swirling that BlackRock may be preparing to launch an XRP ETF, joining the likes of VanEck and Franklin Templeton.
Betting markets (like Polymarket) now give over 80% odds of SEC approval for such an ETF.
A leveraged XRP-based ETF (XXRP) has already amassed $112 million in assets in under two months.
Adding fuel to the fire, large investors appear to be positioning for a rally. On-chain data shows whale accumulation accelerating, with addresses holding over 1 million XRP aggressively increasing their holdings.
This optimism is further supported by expectations of Federal Reserve rate cuts later this year. A looser monetary policy could benefit risk assets broadly—especially altcoins like XRP.
NFT Lending Plummets as Market Confidence Evaporates
The NFT lending space is in steep decline. After hitting highs of nearly $1 billion in January 2024, weekly loan volumes have now dropped to just over $50 million—a 97% collapse.
Key takeaways:
The average loan size has fallen to $4,000, down 71% year-on-year.
User participation is down sharply: from over 20,000 borrowers in early 2024 to just 2,049 in May 2025.
Top NFT collections have lost over 50% of their floor value, undermining the collateral base that once supported lending activity.
Platforms like Blend and NFTfi are still active, but volume has dried up and momentum has faded.
The sector appears to be in a holding pattern, awaiting a potential NFT market revival or a new product innovation to reignite interest.
EU–US Trade Tensions Eased… For Now
Outside of crypto, geopolitics also made headlines. President Trump announced a delay to the planned 50% tariff on EU imports, moving the start date to July 9 to allow more time for negotiations. He reportedly discussed the issue with European Commission President Ursula von der Leyen, who confirmed ongoing talks.
Still, uncertainty remains. Trump later stated he’s not necessarily seeking a deal, while the European Commission has already prepared retaliatory measures targeting €116 billion in U.S. goods.
If no resolution is reached by the July deadline, a full-blown trade war may resume. EU exporters already face steep tariffs, and additional levies could further disrupt trade and investment on both sides of the Atlantic.
Final Thoughts
The crypto market may be moving sideways, but the stories behind the scenes are anything but flat. Bitcoin is flirting with all-time highs, XRP is riding a wave of speculation, and NFT lending is experiencing a harsh reset. Meanwhile, global trade politics continue to cast a shadow over the macro environment.
As always, staying informed and watching both price and narrative developments remains key.
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