Bitcoin supercycle chatter suddenly returns

May 07, 2026

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South Korea locks in 2027 crypto tax rollout

Key points:

  • South Korea confirmed that a 22% tax on crypto gains above 2.5 million won will officially begin on January 1, 2027.

  • Regulators are expanding compliance systems with local exchanges even as industry groups continue pushing back against stricter oversight rules.

News - South Korea has formally confirmed that its long-delayed crypto tax framework will take effect in January 2027, ending years of uncertainty around the policy.

At a parliamentary policy forum in Seoul, Finance Ministry official Moon Kyung-ho said the government would proceed with virtual asset taxation as scheduled. Under the current framework, crypto trading and lending profits above 2.5 million won annually will face a combined 22% tax, including a 20% national tax and a 2% local levy.

The announcement arrives as debate over the policy intensifies. Critics argue crypto investors are being unfairly targeted after South Korea abolished its financial investment income tax on stock investors. However, officials defended the move, stating that crypto taxation was legislated separately through amendments passed in 2020.

Exchanges prepare for tighter oversight - South Korea’s National Tax Service is now working with major exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax to finalize reporting standards and transaction tracking systems before rollout.

Authorities are also preparing guidance for complex areas such as staking rewards, lending income, airdrops, and other blockchain-related earnings.

Pushback has not disappeared - Despite the government’s firm stance, resistance remains active. Industry group DAXA recently warned that proposed anti-money laundering rules tied to overseas transfers could overwhelm exchanges with compliance burdens.

Meanwhile, the ruling People Power Party has continued backing proposals to abolish the crypto tax before the 2027 deadline.

$202M Bitcoin whale move, Bollinger flip, and VanEck forecast fuel supercycle buzz

Key points:

  • A new wallet withdrew 2,500 BTC worth roughly $202 million from Binance, while John Bollinger’s Tactica model separately flipped bullish on Bitcoin.

  • Analysts say Bitcoin still needs to reclaim the $85K-$88K range as support before confirming a lasting market bottom.

News - Bitcoin’s latest rebound unfolded alongside a $202 million whale withdrawal from Binance, bullish technical signals, and fresh long-term forecasts.

On-chain trackers flagged a new wallet withdrawing 2,500 BTC within an hour, reinforcing speculation that large investors may still be accumulating despite recent volatility. The move appeared as Bitcoin hovered around the low-$80K range during its recovery attempt.

Separately, John Bollinger’s Tactica trading model reportedly turned positive and entered a full Bitcoin position. Traders also pointed to Bitcoin’s weekly RSI crossing back above 50 after previously dipping below 30, a pattern historically linked to previous cycle bottoms.

Resistance zone still matters - Despite improving sentiment, analysts warned that Bitcoin still faces major resistance before a stronger breakout can be confirmed.

Glassnode identified the $85.2K region as a key structural hurdle, while other market watchers argued Bitcoin must reclaim and hold roughly $88K to validate a more durable recovery. Elevated profit-taking from long-term holders also continues to pressure rallies.

$1M forecasts return - The improving backdrop has also revived aggressive long-term projections. VanEck’s Head of Digital Assets Research, Matthew Sigel, recently said Bitcoin could eventually reach $1 million within the next several years, potentially within five years, though he cautioned that the market would remain highly cyclical and volatile along the way.

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TON leads altcoin surge, but analysts still doubt altseason

Key points:

  • TON, ZEC, ALGO, TAO, and several other altcoins outperformed Bitcoin and Ether as traders rotated into higher-risk assets.

  • Despite the rallies, analysts say market structure still points toward selective rotation rather than broad altseason rallies seen in 2021.

News - As Bitcoin and Ether cooled off after recent rallies, traders increasingly shifted capital into select altcoins, fueling fresh debate over whether the market is entering a new altseason phase.

Toncoin (TON) emerged as the biggest standout after Telegram CEO Pavel Durov announced that Telegram would become the “driving force” behind TON and serve as the network’s largest validator. The token surged sharply during the week, while Zcash (ZEC), Algorand (ALGO), Bittensor (TAO), Internet Computer (ICP), and Ondo (ONDO) also posted strong gains.

The rotation extended beyond spot prices. TON’s open interest climbed to fresh highs alongside rising prices, signaling continued capital inflows and aggressive directional positioning from traders.

Market structure still favors Bitcoin - Despite improving sentiment across altcoins, several broader indicators continue to challenge the idea of a full market-wide rotation.

Bitcoin dominance remained near the 61% range, while BlockchainCenter’s Altcoin Season Index stayed well below the traditional altseason threshold of 75. Analysts also pointed to falling Bitcoin-altcoin correlations, suggesting the current rally may reflect isolated strength rather than synchronized market momentum.

Some traders argued that Ethereum’s relative weakness further complicates the altseason narrative, especially compared to the broad rallies seen during 2021.

Selective winners may define this cycle - Several market watchers now expect capital to rotate more selectively across crypto markets instead of lifting the entire altcoin sector equally.

Bitwise CIO Matt Hougan recently said future gains are more likely to concentrate around projects with stronger adoption and real-world traction.

Bitcoin miners bleed cash as AI data center pivot accelerates

Key points:

  • Hut 8, Core Scientific, Riot, Cipher Digital, and American Bitcoin all reported major Q1 losses as weaker Bitcoin prices, impairment charges, and digital asset markdowns pressured earnings.

  • At the same time, several miners accelerated their shift toward AI infrastructure and colocation businesses as mining profitability remained under pressure.

News - The Bitcoin mining sector faced another difficult quarter as several major firms reported major losses while simultaneously pushing deeper into AI infrastructure and data center operations.

Core Scientific posted a $347.2 million quarterly loss after its Bitcoin mining revenue dropped sharply and impairment charges weighed on results. The company mined 279 BTC during the quarter, down 45% year-over-year, while high-density colocation revenue surged to become its largest business segment.

Hut 8 also reported a net loss exceeding $253 million, largely tied to unrealized losses on digital assets. Meanwhile, Trump family-linked American Bitcoin posted an $81.8 million quarterly loss despite lowering its mining costs to roughly $36,200 per Bitcoin.

AI hosting takes center stage - Core Scientific’s colocation revenue climbed to $77.5 million from $8.6 million a year earlier, supported by its expanding relationship with AI firm CoreWeave. The company’s contracted infrastructure with CoreWeave now spans roughly 590 megawatts across multiple sites and is projected to generate $10.2 billion over 12 years.

Other miners are making similar moves. Hut 8 unveiled a $9.8 billion Beacon Point lease, Riot Platforms generated $33.2 million in data center revenue, and Cipher Digital continued expanding hyperscale leasing operations.

Mining pressure still lingers - Despite the AI push, pressure across the mining business remains elevated. Several firms sold Bitcoin holdings or faced weaker mining revenues as the broader market struggled to regain early-2026 highs.

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Interesting facts

  • A crypto exchange is trying to buy its way into Wall Street’s plumbing: Bullish agreed to buy transfer agent Equiniti in a $4.2 billion deal, giving the crypto exchange access to infrastructure that tracks registered shareholders for stock issuers. Equiniti also supports over 20 million verified shareholders, making this a tokenization play with real capital market roots.

  • India’s crypto gray zone just got a property law twist: The Madras High Court recognized cryptocurrency as property in a 2025 WazirX-related case involving frozen XRP holdings. The ruling strengthened the idea that crypto owners can seek proprietary protection, not just damages, when assets are held by custodians.

  • A Texas homebuilder is turning crypto rewards into a housing perk: Megatel Homes plans to issue MegPrime, a crypto payments and rewards token, after receiving an SEC no-action letter. The token can be used through a digital wallet and payment card, with rewards tied to gift cards and housing-related benefits.

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Top 3 coins of the day

Siren (SIREN)

Key points:

  • SIREN jumped above the $1.10 region after a sudden momentum burst reignited interest in AI-themed speculative tokens.

  • A bullish Parabolic SAR flip and overheated Stochastic RSI readings reflected accelerating upside pressure, while breakout volume surged to its strongest levels in weeks.

What you should know:

Buying activity around SIREN intensified rapidly after the token broke free from its prolonged $0.65–0.80 trading range, with traders rotating back into high-beta AI agent narratives on BNB Chain. Interest also remained tied to the project’s earlier 26% supply burn, which continued supporting scarcity-driven speculation during periods of rising momentum.

On the chart, Parabolic SAR dots flipped beneath the candles as the rally accelerated, confirming a bullish shift in trend structure. At the same time, Stochastic RSI climbed deep into overbought territory near the upper band, signaling increasingly stretched momentum after the sharp move higher. Volume expanded aggressively during the breakout, though the price approaching the $1.20 region may continue attracting short-term volatility if momentum begins cooling.

World Liberty Financial (WLFI)

Key points:

  • WLFI climbed back above $0.07 after rebounding sharply from its recent selloff zone near $0.053.

  • The token traded firmly above its 9-day SMA, while the EWO histogram expanded further into positive territory alongside rising volume.

What you should know:

WLFI’s recovery gathered pace after the project’s escalating legal clash with Justin Sun fueled heavy speculative trading activity across crypto social channels. Momentum also received support from the rollout of WorldRouter, which introduced AI-focused payment settlement using WLFI and USD1, alongside the project’s expanded lending integration through Dolomite.

On the technical side, buyers steadily reclaimed control after the token stabilized near its recent lows. WLFI pushed above its short-term SMA and broke through earlier resistance signals around the $0.068–0.07 region. At the same time, green EWO bars continued strengthening, reflecting improving bullish momentum after the earlier bearish phase. Trading volume also accelerated during the recovery leg. If momentum holds, traders may monitor the $0.08 region next, while $0.065 remains an important nearby support zone.

Pudgy Penguins (PENGU)

Key points:

  • PENGU slipped back toward the $0.01 area after traders reacted to large treasury-linked transfers moving onto exchanges.

  • Parabolic SAR flipped above the candles, while the MACD crossed bearish with weakening histogram strength during the latest decline.

What you should know:

Selling pressure intensified after blockchain trackers flagged roughly 137 million PENGU moving from treasury-linked wallets toward exchanges, reviving fears of near-term distribution after the token’s recent rally. Market caution also increased ahead of the project’s May 17 vesting event, where a large batch of tokens is scheduled to unlock for insiders and ecosystem participants.

On the chart, PENGU lost momentum after failing to hold its recent push toward the $0.0115 region. The Parabolic SAR shifted above price action during the pullback, reflecting a short-term bearish trend change. At the same time, the MACD line crossed below its signal line as negative histogram bars expanded, confirming fading bullish momentum. If sellers remain active, traders may monitor $0.01 as immediate support, while $0.0115–0.0118 remains the key resistance zone overhead.

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