Hyperliquid hits all-time high
The crypto market is currently in a phase where investor interest has temporarily shifted elsewhere. The sentiment is relatively weak, and outside of Bitcoin there appears to be very little activity. This is why the exceptions stand out even more. Hyperliquid has quickly grown into one of the most notable success stories of this bear market, driven in part by applications that also attract attention outside the crypto world. Speaking of success stories in the bear market: Bitcoin as a geopolitical tool is also continuing to gain more traction. More on that in this edition of Market News.
Market update
Over the past nine months, the crypto market has transitioned from a bull market to a bear market. Most tokens peaked in September or October, dropped to a low point in January or February, and have since moved sideways. Market sentiment remains weak, with signs of capitulation and growing investor fatigue.
Hyperliquid (HYPE) is a notable exception. After reaching a peak of ā¬50.47 in September, the token dropped by 65% to ā¬17.50 in January. What followed, however, was not the sluggish period of price stability seen across much of the broader crypto market. Instead, a new upward trend began, culminating last week in a new all-time high of ā¬55.62.
The reason is simple: usage of the platform is exploding. Not only within the crypto world but increasingly beyond as well. In March, Hyperliquid attracted attention through trading in oil futures at times when traditional trading houses were closed. Now the focus has shifted to pre-IPO stock futures, with SpaceX as the major attraction.
In some ways, it resembles the story of Polymarket: a crypto-based application that, because it enables something new, quickly becomes known to a large audience. At Polymarket, the downside also became apparent fairly quickly, leading to a debate about oversight and regulation. This is something to keep in mind for Hyperliquid as well.
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Will America buy 1 million Bitcoin?
Over the past week, social media has been buzzing with claims that America is about to launch a large-scale Bitcoin purchase program. The trigger wasĀ a new bill by Republican Nick Begich: the American Reserve Modernization Act, or ARMA for short. According to some reports, the U.S. government would purchase 200,000 BTC annually over five years, with the ultimate goal of building a strategic reserve of 1 million BTC.
That sounds impressive, but the conclusion appears to be premature.
Donald Trump prominently positioned himself as the Bitcoin president during his election campaign. In March 2025, he signed anĀ executive order establishing a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile. This reserve would primarily be funded with Bitcoin obtained by the U.S. government through criminal or civil procedures. In other words: Bitcoin that ends up in government hands would no longer be automatically sold.
However, such a presidential decree can relatively easily be reversed by a subsequent president. This is where ARMA comes into play. Begich wants to legally anchor the Bitcoin reserve through legislation so that it becomes less dependent on a single administration and more embedded as structural U.S. reserve policy.
The full text of the bill is not yet publicly available. Based on Begich'sĀ explanatory statement, the Department of the Treasury would be responsible for the Strategic Bitcoin Reserve. Other digital assets would be placed in a separate Digital Asset Stockpile. Government agencies would be required to report their crypto holdings, management would be centralized, and the framework would include quarterly reports, independent audits, and oversight by Congress.
Also notable is that any Bitcoin added to the reserve would be required to be held for a minimum of twenty years. This aims to prevent future administrations from selling off the position as soon as it seems budgetarily attractive.
The key question isĀ therefore what ARMA does 'not' do. According toĀ The Block, which claims to have reviewed the bill text here, the proposal does not contain a binding obligation to buy 1 million BTC. Instead, the Treasury is said to be tasked with exploring ways to expand the reserve in a budget-neutral manner, for example through existing government assets, seized holdings, or other mechanisms that would not require additional taxation.
All in all, it is encouraging news for Bitcoin and Bitcoin holders. While ARMA is unlikely to immediately create a largeĀ buy wall on exchanges, it does strengthen the status of Bitcoin as a geopolitical and reserve asset. The development may therefore be less dramatic than headlines suggesting āAmerica is buying 1 million Bitcoin.ā But for Bitcoin as a maturing asset class, it may ultimately be the healthier outcome: less hype, greater transparency, and more sustainable growth.
In other news
Truth Social withdraws applications for Bitcoin ETFs. Trump's media company unexpectedly pulled the plug on the SEC procedure this weekĀ for its Bitcoin fund and combined Bitcoin/Ether fund. The move appears to be a strategic shift. A new application is expected to be submitted under a different structure, allowing for more flexibility in areas such as futures, derivatives, and broader investment strategies. In doing so, Truth Social appears to be trying to avoid the fierce competition in the spot ETF market.
Major Dutch banks back a European stablecoin after all. ABN AMRO, Rabobank, and INGĀ have joined Qivalis in an Amsterdam-based consortium of 37 European banks, and aim to launch a euro stablecoin later this year under the supervision of DNB. The stablecoin is intended to counter the dominance of dollar stablecoins from Tether (USDT) and Circle (USDC). The move stands out because these banks have kept their distance from crypto for years, often citing fraud and speculation concerns. They now increasingly see stablecoins as a potential building block for payments, crypto trading, and tokenization.
Departing senior figures and growing frustration over governance: Ether faces deeper bear market sentiment. Investors are searching for explanations for the coin's poor performance. The price of ETHĀ has dropped nearly 10% over the past 30 days. This starkly contrasts with the performance of competing coins, such as Solana (-0.6%) and Hyperliquid (+51%). The focus has increasingly been on the Ethereum Foundation. In recent weeks,Ā multiple senior figures have departed. Ethereum figurehead Vitalik Buterin felt compelled toĀ respond publicly, arguing that the foundation should become smaller, more efficient, and less influential.
Crypto companies may gain direct access to the U.S. central bank's payment system. This would eliminate one of the biggest vulnerabilities of the sector: reliance on commercial banks that can suddenly cut off access to payments. The Federal ReserveĀ is working on so-called payment accounts: limited accounts that would allow institutions to settle transactions directly through the Fed's infrastructure. A regional branch of the central bank already conducted an experiment earlier this year using this new type of account.
Satoshi Radio: InĀ the latest episode of Satoshi Radio, the stock market and the crypto market briefly cross paths. The reason? SpaceX is working on a historic IPO and reportedly holds thousands of bitcoins on its balance sheet. Major Dutch banks are also discussed, as they are suddenly rallying behind a European stablecoin. Furthermore, the hosts cover the battle surrounding prediction markets, as well as Trumpās new plans and the future of bitcoin miners.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.