A federal court fight tied to Trump administration layoffs has erupted into the latest AI scandal after attorneys admitted that fabricated quotations generated by Anthropic’s Claude AI made their way into an official court filing.

Several key members have left the Ethereum Foundation (EF) in recent months, further impacting the morale of the Ethereum community. According to PANews, this comes at a time when the price of ETH is relatively low.

The US SEC is planning a new rule that could allow tokenised stocks to be traded on crypto platforms. These tokens may track share prices but not give normal shareholder rights like voting or dividends.

U.S. stock index futures experienced a decline, with Nasdaq futures falling more than 0.8%. According to Jin10, the S&P 500 futures also decreased by over 0.5%, while Dow Jones futures saw a 0.3% drop.

Kevin Warsh is set to be sworn in as the next chair of the US Federal Reserve Board of Governors on Friday, succeeding Jerome Powell in one of the most closely watched central bank leadership transitions in years — arriving at a moment when the odds of the interest rate cuts President Trump is demanding have collapsed to their lowest level since the current tightening cycle began. The US Senate confirmed Warsh largely along party lines on Wednesday. He is expected to assume the role on Friday, with his first major policy test arriving at the June 16 Federal Open Market Committee meeting — the next scheduled opportunity at which interest rates could be changed. Rate cut odds have collapsed The scale of the shift in rate expectations surrounding Warsh's arrival is striking. Prediction market platform Kalshi currently prices a 38.2% chance that the Fed will cut rates before the end of 2026 — down from 96% as recently as February. CME FedWatch is even more definitive, showing a 98.8% probability that the Fed leaves its benchmark rate unchanged at 3.50% to 3.75% through the end of June, with more than 94% odds of the same through July. The collapse in cut expectations reflects the broader macro environment Warsh is inheriting: back-to-back hot CPI and PPI prints, oil above $100 per barrel driven by ongoing US-Iran conflict and Strait of Hormuz disruption, and bond markets pricing in the possibility of rate hikes rather than cuts before year-end — a scenario that was considered highly unlikely just three months ago. Trump's expectations versus market reality The tension at the center of Warsh's confirmation is the gap between what President Trump wants and what market data suggests is appropriate. Trump repeatedly pressured outgoing chair Jerome Powell to cut rates, said in April he would be disappointed if Warsh did not immediately move to lower rates upon confirmation, and has publicly framed rate cuts as a priority for his second term economic agenda. Warsh, however, is widely regarded by markets as more hawkish on inflation than Powell — a reputation that has contributed to the collapse in rate cut expectations following his nomination. As Fed chair, Warsh will have significant influence over how policymakers approach the rate path, but the Fed's institutional independence means that presidential preferences do not translate directly into policy outcomes. Senator Elizabeth Warren, who opposed the nomination, said at Warsh's Senate Banking Committee confirmation hearing that confirming him could result in the Fed granting special accounts to the Trump family's crypto company or providing bailouts to connected Wall Street firms. Warsh disclosed more than $100 million in assets ahead of the April hearing, including investments in AI and crypto companies — disclosures that drew scrutiny from lawmakers concerned about potential conflicts of interest. CFTC nominations still outstanding Warsh's swearing-in comes as a separate regulatory gap is drawing attention from lawmakers. The Commodity Futures Trading Commission has been led solely by Trump's pick Michael Selig since December, following the departure of acting chair Caroline Pham. The agency has taken an aggressive stance on asserting exclusive federal oversight of prediction market platforms including Kalshi and Polymarket amid state-level lawsuits against those companies over sports betting classifications. On Friday, the Republican and Democratic leaders of the House Committee on Agriculture jointly called on Trump to nominate a full panel of CFTC commissioners, citing urgent regulatory issues. The lawmakers specifically flagged concerns about the CFTC's capacity to execute rulemaking if the Digital Asset Market Clarity Act becomes law — noting that a fully staffed commission would be essential to implementing the crypto market structure framework the CLARITY Act would establish. What it means for crypto For Bitcoin and crypto markets, Warsh's arrival as Fed chair represents both a near-term headwind and a longer-term variable. In the near term, his hawkish inflation reputation reinforces the higher-for-longer rate narrative that has driven $1.5 billion in Bitcoin ETF outflows since May 7 and pushed Polymarket bettors to assign a 65% probability that Bitcoin falls to $75,000 this month. The longer-term picture is more complex. Warsh's disclosed investments in AI and crypto companies have led some analysts to speculate that his tenure could be more nuanced on digital asset policy than his inflation hawkishness implies for traditional rate markets. His first FOMC meeting on June 16 will be the first real signal of how he intends to navigate the competing pressures of Trump's rate cut demands, re-accelerating inflation, and an increasingly fragile risk asset environment.

CryptoQuant analyst Sunny Mom has highlighted that the BTC HODL Waves data indicates a potential cycle bottom forming in the range of $65,900 to $70,500. According to Odaily, this analysis provides insights into the current Bitcoin market trends.

This Friday, Kevin Warsh will be sworn in as chairman of the Federal Reserve at a ceremony held at the White House, presided over by US President Donald Trump.

Crypto investors pulled nearly $1 billion from Bitcoin funds last week while simultaneously pouring fresh capital into XRP and Solana products — a divergence that points to selective altcoin rotation rather than a broad exit from digital assets, according to CoinShares weekly flow data. XRP products attracted $67.6 million in net inflows and Solana drew $55.1 million in the week ended May 15. Bitcoin funds bled $982 million over the same period and Ethereum products lost $249 million — two of the largest weekly outflow figures recorded this year for the two largest crypto assets by market cap. "Altcoins held up notably well," CoinShares Head of Research James Butterfill wrote in the report. Beyond XRP and Solana, inflows were also recorded for TON, Dogecoin, and Chainlink listed products. "Investors are looking past Bitcoin and Ethereum for selective exposure," Butterfill added. Why XRP is attracting capital during the selloff The rotation into XRP products is partly explained by the token's relative resilience during the recent market decline. XRP fell approximately 5.1% over the past week compared to Ethereum's 7.4% drop and Bitcoin's $5,000 slide from $82,000 — outperforming both major assets on a relative basis during a period when capital naturally gravitates toward whatever is holding up best. The CLARITY Act's advancement through the Senate Banking Committee earlier in the week also provided XRP with a specific regulatory tailwind that Bitcoin and Ethereum — already operating under clearer legal frameworks — did not receive to the same degree. For institutional allocators seeking crypto exposure with a legislative catalyst attached, XRP offered a more compelling near-term story than the macro-pressured Bitcoin trade. Bitcoin sentiment turns sharply bearish The $982 million weekly outflow from Bitcoin funds is not happening in isolation — it is being reinforced by multiple concurrent signals of deteriorating sentiment. ETF outflows have now totaled more than $1.5 billion since May 7 according to SoSoValue data, with Monday alone seeing $648 million exit — the largest single-day redemption since January 29. Cumulative volume delta in both spot and futures markets has turned deeply negative, reflecting aggressive selling rather than passive distribution. Options delta skew has risen to 14.4% from 10.9% as traders pay up for downside protection. Prediction markets are reflecting the same pessimism. On Polymarket, bettors now assign a 65% probability that Bitcoin falls to $75,000 this month — compared to just an 11% chance of a recovery to $85,000. The speed of that sentiment shift, from broadly constructive to heavily bearish in under two weeks, mirrors the pace at which the macro narrative flipped from rate cut expectations to rate hike odds following back-to-back hot CPI and PPI prints. The rotation picture: selective, not structural The key distinction in last week's flow data is that capital leaving Bitcoin and Ethereum is not leaving crypto entirely — it is rotating into specific assets with identifiable catalysts. XRP has the CLARITY Act. Solana has continued developer momentum, institutional staking activity, and real-world payments partnerships. TON, Dogecoin, and Chainlink each carry their own near-term narratives that attracted smaller but still positive flows. That selective rotation is a more nuanced signal than a blanket risk-off move. It suggests institutional investors are not abandoning digital assets as an asset class but are actively repositioning within it — trimming exposure to the two assets most correlated with the macro environment and adding to assets with idiosyncratic drivers that can perform independently of Federal Reserve policy and oil prices. Whether that rotation holds or reverses will depend heavily on Wednesday's FOMC minutes and whether Bitcoin finds support at the $76,000 level analysts have identified as the critical near-term floor.

NYSE-listed Hyperscale Data reported holding 692.4 BTC valued at $53.6 million as of May 17. According to NS3.AI, the company intends to utilize its cash assets to acquire additional Bitcoin.

The main driver of Bitcoin's price is not the regulatory policies or political attitudes of any particular country, but rather the expansion of global fiat currency liquidity.

Microsoft AI chief Mustafa Suleyman warned that AI could automate most office jobs like legal, accounting and marketing within 12 to 18 months. He said AI is improving fast and may soon handle most computer-based work with little human input.

AI Agent, Payment, Issuing Bank Cards to Machines: A Complete Record of the Twelve-Month Surge in AI Agent Payments (Golden Finance) - The pipeline is open, all that's waiting is the water.

The Global Economic Crisis Under the Strait of Hormuz Blockade: A Seven-Stage Evolution and Systemic Risk Analysis

Polymarket, made a fortune of 2.4 million. These 9 insider addresses understand the Iraq War best. Golden Finance, their win rate on Polymarket is as high as 98%.

Iran’s Nobitex exchange moved at least $2.3 billion through Tron and BNB Chain since 2023, according to a Reuters investigation. The report also highlighted indirect links between the networks and crypto figures tied to the Trump family’s World Liberty Financial project.

On May 17, Trade.xyz acquired the SPCX code on HIP-3, and on May 18, officially launched SpaceX's Pre-IPO perpetual contract. This is the second project launched on the platform's Pre-IPO section after Cerebras Systems.