Bitcoin surges on trade deal hopes

May 07, 2025

Reading time: 5 minutes

Ethereum’s Pectra upgrade goes live: Major leap for staking, smart wallets, and scalability

Key points:

  • Ethereum activated its long-awaited Pectra upgrade, introducing major changes to staking, wallet functionality, and data scalability.

  • The update includes EIP-7702 (smart wallets), EIP-7251 (higher validator caps), and EIP-7691 (blob throughput boost) — key steps toward Ethereum’s scaling and UX goals.

News - Ethereum has officially activated the “Pectra” upgrade, its most ambitious network overhaul since the 2022 Merge. Triggered at 10:05 UTC and finalized 13 minutes later, the hard fork integrates 11 Ethereum Improvement Proposals (EIPs) focused on scalability, staking reform, and user experience.

Macro narrative: Scaling and competitiveness - Pectra lands amid rising pressure from faster L1 competitors like Solana and developer concerns over Ethereum’s stagnant growth narrative. The upgrade is viewed as a foundational step in regaining momentum and attracting broader Web3 adoption.

Core highlights: Smart wallets and staking reform

  • EIP-7702 enables externally owned accounts to function as smart contracts temporarily. This paves the way for features like gasless transactions, stablecoin fee payments, and wallet recovery — a leap toward account abstraction and smoother Web2-style UX.

  • EIP-7251 raises the validator cap from 32 ETH to 2,048 ETH, allowing institutional and large-scale validators to consolidate nodes, reduce overhead, and streamline operations.

Developers and analysts say these changes are critical for improving Ethereum’s user onboarding and staking architecture. “This upgrade gives Ethereum the infrastructure to support full abstraction moving forward,” said Preston Van Loon, co-founder of Prysmatic Labs.

Efficiency and market impact

  • EIP-7691 doubles blob throughput per block from 3 to 6, directly benefiting Layer-2 rollups by lowering transaction costs and improving scalability.

  • Other bundled EIPs improve validator deposits, cryptographic operations, and consensus-efficiency — without breaking existing smart contracts.

What’s next? - The upgrade went smoothly, with major exchanges like Binance and Coinbase briefly suspending ETH-related services as a precaution. With Fusaka slated for later this year, Ethereum’s roadmap now pivots fully to scaling via Layer-2s and PeerDAS.

Bitcoin eyes $100K as trade talks, liquidations fuel rally

Key points:

  • Bitcoin climbed to $97,700, driven by renewed optimism over a potential U.S.–China trade deal and over $83.6M in short liquidations.

  • Strong ETF inflows, long-term accumulation, and bullish chart patterns point to continued upside, with $100K as the next key target.

News - Bitcoin surged to $97,700 on May 7, gaining over 3% in 24 hours, as hopes for a U.S.–China trade breakthrough sparked renewed risk appetite. Treasury Secretary Scott Bessent confirmed plans to meet China’s Ministry of Commerce in Switzerland, with both sides signaling openness to dialogue.

The market rally coincided with $83.6 million in Bitcoin short liquidations, adding fuel to the move. Open interest surged 26% over the past month to $64.4 billion, and funding rates flipped positive, reflecting a sharp shift in trader sentiment.

Fed and macro volatility in focus - Despite the momentum, uncertainty looms ahead of the May 7 FOMC meeting. While a rate pause is expected, markets are bracing for any hawkish surprises in Fed Chair Powell’s statement. Traders view any tone shift as a potential risk trigger across both crypto and equities.

What’s next? - Bitcoin continues to validate a breakout from its falling wedge pattern, reclaiming key levels like the $93,000 yearly open and aiming for $100,200. On-chain metrics are bullish: Long-term holders have added over 250K BTC since March, and short-term holders resumed accumulation last week. Still, the $99.9K level may see selling pressure, making strong demand critical to sustain this breakout.

MOVE meltdown: Co-founder fired, project rebrands amid market maker scandal 

Key points:

  • Movement Labs fired co-founder Rushi Manche amid a scandal tied to controversial market maker deals.

  • MOVE token plunged over 35% this week, leading Coinbase to suspend trading.

  • New entity Move Industries launched with a pledge to restore transparency and rebuild community trust.

News - Movement Labs has officially terminated its co-founder Rushi Manche, following explosive revelations about secret market maker deals that tanked the MOVE token. The decision, shared via X on May 7, comes in the wake of growing backlash from the crypto community, Coinbase's delisting of MOVE, and a third-party investigation.

The controversy centers around a December 2024 agreement Manche allegedly orchestrated with Rentech, which involved 66 million MOVE tokens—5% of total supply—being sold off by market maker Web3Port. The result? A $38 million liquidity dump and severe price erosion. MOVE is down over 35% this week and trading near $0.16.

Rebranding and restructuring - In an effort to salvage the project, Movement Labs has rebranded as Move Industries, appointing Torab Torabi as CEO and Will Gaines as President. The new leadership promises a “return to crypto’s radical roots” with better governance, more transparency, and community-focused town halls.

Move Industries will continue with initiatives like MoveDrop, DeFi Spring, and Parthenon, despite the reputational hit. A community AMA is scheduled for Friday to address lingering concerns.

Larger trend: Market makers under fire - The saga adds to a growing list of market maker controversies. From Wintermute’s alleged wash trading to Jump Crypto’s pump-and-dump allegations and DWF Labs’ volume manipulation reports, confidence in centralized liquidity deals is eroding.

The Movement Labs case echoes a broader industry reckoning. As one community member put it, “If decentralization and governance matter, transparency must be the default—not the exception.”

Metaplanet crosses 5,555 BTC with $53M buy, plans more via U.S. expansion

Key points:

  • Japan’s Metaplanet purchased 555 BTC for $53.5 million, pushing its total holdings to 5,555 BTC.

  • The Tokyo-listed firm plans to issue another $25M in zero-coupon bonds to fund additional Bitcoin buys.

News - Tokyo-based Metaplanet has expanded its Bitcoin treasury again, purchasing 555 BTC for ¥7.63 billion ($53.5 million) at an average price of $96,134 per BTC. This move brings its total stash to 5,555 BTC, valued at over $536 million at current prices, making it Asia’s largest public Bitcoin holder and 11th globally, according to BitcoinTreasuries.NET.

The acquisition, disclosed on May 7, follows a series of aggressive buys since early 2024, and coincides with the firm’s announcement of another $25 million bond issuance via partner EVO FUND to fuel further Bitcoin investments. The firm has now raised over ¥35 billion (~$244M) through debt instruments and stock acquisition rights.

U.S. expansion and Bitcoin strategy - Last week, Metaplanet also announced the formation of a U.S.-based subsidiary, Metaplanet Treasury Corp., headquartered in Florida. The goal is to tap into American capital markets and raise up to $250 million to extend its Bitcoin accumulation strategy.

CEO Simon Gerovich emphasized the firm’s long-term conviction in Bitcoin amid macroeconomic uncertainty. “In Japanese, the number 5 is pronounced ‘Go,’ so today we’re shouting: Go go go go — to the moon and beyond!” he wrote on X.

Macro context and market response - Metaplanet’s bold move arrives as Bitcoin holds near its February highs at $96,500, buoyed by easing U.S.–China trade tensions and growing institutional appetite. The firm’s BTC Yield — a proprietary performance indicator — surged to 309.8% in Q4 2024, and remains at 21% this quarter.

Shares of Metaplanet surged 11.5% on the Tokyo exchange following the announcement, underlining investor support for its Bitcoin-first strategy.

Did you know?

  • The DOGE-1 mission, set to be the first lunar payload funded entirely by Dogecoin, remains grounded. Despite initial plans for a 2022 launch, the CubeSat is still under development, with no confirmed launch date as of today.

  • In 2024, approximately 18.3% of stolen crypto funds were recovered or frozen within 90 days, doubling the recovery rate from 2022. This trend indicates enhanced global cooperation in combating crypto theft.

  • While Switzerland is known for its progressive stance on cryptocurrency, there is no confirmed adoption of Bitcoin or Ethereum payments for organ transplants or major surgeries in Swiss private healthcare networks yet.

Top 3 coins of the day

Litecoin (LTC)

Key points:

  • At press time, LTC was trading at $92, up 0.47% over the last 24 hours.

  • The CMF reading turned positive while LTC approached the upper Bollinger Band, hinting at sustained buying pressure.

What you should know:

Litecoin showed signs of renewed momentum after bouncing above the $90 mark, even as the SEC’s delay in ETF approval lingered in the background. The Chaikin Money Flow (CMF) hovered just above the zero line at 0.03, suggesting slight capital inflows, while the Bollinger Bands began widening—indicating rising volatility. The price candles also started to test the upper band, reflecting potential bullish intent if the breakout sustains. Meanwhile, trading volumes appeared elevated compared to early April, lending credibility to the price uptick. However, traders may want to monitor the $93–$95 zone closely, as it serves as a key resistance level. The ETF delay may have tempered expectations temporarily, but rising open interest and Litecoin’s position among top daily gainers have rekindled speculative interest. If momentum holds, LTC could challenge higher bands again in the short term.

Ethereum (ETH)

Key points:

  • At press time, ETH was trading at $1,834, reflecting a 0.96% increase over the past 24 hours.

  • The Awesome Oscillator flashed consistent green bars, while the Parabolic SAR remained supportive of a mild uptrend.

What you should know:

Ethereum continued its slow yet steady recovery, with price action consolidating around the $1,800–$1,850 range. The Parabolic SAR dots remained below the candles, suggesting that bullish momentum still held some ground despite a lack of strong breakouts. The Awesome Oscillator (AO), meanwhile, displayed a solid series of green bars—indicating sustained, albeit modest, bullish pressure in recent days. Notably, Ethereum's price movement came on the heels of the Pectra upgrade activation, which raised the maximum staking limit to 2048 ETH. Although the upgrade didn’t cause a price explosion, it reinforced ETH’s long-term credibility among investors. Additionally, data from on-chain sources showed that accumulation addresses had been steadily increasing holdings, signaling that long-term believers were still buying the dips. However, unless ETH decisively closes above the $1,870 resistance zone, this current phase might continue to mirror consolidation rather than breakout behavior.

Virtuals Protocol (VIRTUAL)

Key points:

  • At press time, VIRTUAL was trading at $1.35, down 9.20% over the past 24 hours.

  • The Parabolic SAR flipped to a bearish setup, while the DMI indicator pointed toward weakening bullish strength.

What you should know:

After an impressive rally that saw VIRTUAL surge over 200% in the past month, the token appeared to be entering a short-term correction phase. The Parabolic SAR flipped above the candlesticks, hinting at a potential trend reversal. Meanwhile, the Directional Movement Index (DMI) showed the +DI (green) losing its edge over the -DI (red), suggesting that bullish momentum had begun to fade. However, the ADX remained relatively strong above 45, indicating that the ongoing trend—bullish or bearish—could be significant. Despite the dip, sentiment around VIRTUAL has remained relatively upbeat, driven by smart money inflows and increased attention from major investors. News surrounding its integration with AI-agent platforms and increased Genesis ecosystem support helped VIRTUAL make headlines recently. Still, traders may want to watch the $1.20–$1.25 support zone for signs of stabilization or further declines, especially if bearish pressure persists in the short term.

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