Earlier, the likelihood of renewed open hostilities in the Middle East increased after Iran attacked oil production infrastructure in the United Arab Emirates and Washington signaled its intention to conduct a military operation to unblock the Strait of Hormuz. However, Operation Project Freedom was halted after significant progress was achieved in negotiations aimed at a diplomatic settlement of the conflict, according to U.S. President Donald Trump. This development put pressure on the dollar and supported alternative assets, including digital ones. Nevertheless, the sector has now returned to decline, as the sides exchanged new attacks in the waters, damaging port facilities of the Islamic Republic and American vessels. The head of the White House has already commented on the continuation of the ceasefire, but investors prefer to remain cautious.
Negative momentum could also intensify today after the release of April U.S. labor market data at 14:30 (GMT+2). According to forecasts, unemployment is expected to remain at 4.3%, while the number of new nonfarm jobs may reach 73,000. This would support those within the U.S. Federal Reserve who favor keeping the current monetary policy in place for longer, although most officials are already not inclined to adjust the interest rate. Experts believe that, amid rising inflation and economic stabilization, the regulator may keep borrowing costs unchanged until the end of the year, which could strengthen the national currency in the medium term.
Michael Saylor, founder of analytics company Strategy Inc., the world’s largest publicly traded holder of BTC, stated that the company could sell part of its tokens to cover dividend obligations, although he had previously said more than once that the corporation would not dispose of the world’s first cryptocurrency under any circumstances. These reports alarmed traders and worsened overall market sentiment. As a result, the Fear and Greed Index, which had risen to 47 and had almost entered neutral territory, retreated again to 38 in the “fear” zone. On Thursday, investors withdrew $268.5 million from Bitcoin ETFs and $103.6 million from Ethereum ETFs.
On the positive side, representatives of the banking and cryptocurrency industries reached a compromise on the Digital Market Clarity Act, or CLARITY Act. Under the new approach, stablecoin issuers will be able to receive rewards only for processing transactions with coins, while income based solely on holding them will be prohibited, as such programs resemble traditional bank deposits and could trigger an outflow of funds from the conventional financial system. As a result, businesses will have to shift from a “buy and hold” model to a “buy and use” model. Ripple CEO Brad Garlinghouse welcomed the change, noting that clearer legal rules are necessary for the industry’s development. Experts expect the bill to come into force as early as June.
Overall, the situation in the sector remains complex and highly sensitive to incoming geopolitical signals. Under these conditions, most key digital assets may resume moderate growth next week or move into consolidation.
