Bitcoin remains stable around $78,000, while Ethereum hits record activity levels. American Bitcoin faces $500 million in losses amid rising market volatility.
Bitcoin maintained its position around $78,000, while Ethereum experienced a surge in activity, reaching record levels. American Bitcoin investors faced substantial losses of approximately $500 million, marking significant events from the past week.
Market Volatility and Bitcoin Stability
Despite Bitcoin's stability above $78,000, recent fluctuations have raised concerns among investors regarding the sustainability of this trend. The cryptocurrency opened the week with a decline, dropping from a peak of $79,500 to $76,500, and later consolidating around $76,000 on Tuesday.
On Wednesday, Bitcoin recovered slightly but saw a rapid drop to $75,000 after the U.S. Federal Reserve announced it would keep interest rates in the 3.5–3.75% range for the third consecutive meeting. This decision was influenced by inflationary pressures stemming from rising global energy prices and geopolitical uncertainties in the Middle East.
Market analysts, however, suggest that the Fed's decision may not be the primary driver for Bitcoin's price movements, with attention shifting towards the proposed U.S. CLARITY Act.
As the week progressed, Bitcoin gradually recovered, stabilizing around $78,000 by Friday and trading within a narrow range over the weekend. Currently, it is priced at approximately $78,800, reflecting a weekly increase of 1.3% and a notable monthly gain of 11.8%, the first positive month in a year.
However, analysts from CryptoQuant emphasized the speculative nature of the recent rally, indicating that the rise from $66,000 to $79,000 was largely driven by perpetual futures rather than spot demand, which remained negative. This pattern resembles the beginning of the bear market in 2022, where rising derivative volumes coincided with declining spot activity.
Other major cryptocurrencies followed Bitcoin's trend, with Ethereum holding steady around $2,300 and Solana near $85. In the Bitcoin ETF segment, inflows continued for the fifth consecutive week, totaling a net $153 million from April 27 to May 1, although volumes have begun to decline.
Ethereum's Record Activity
Ethereum saw a significant increase in active addresses, with the 100-day moving average surpassing 587,000, marking an all-time high. Analysts noted a notable divergence between Ethereum's market price and its fundamental indicators, suggesting that the asset may be undervalued despite the current price activity.
While the influx of new users is a positive sign, some researchers reported a decline in open interest for Ethereum derivatives on Binance, which dropped to $4.99 billion from an average of $5.31 billion, indicating cautious sentiment among traders.
In terms of staking, a large volume of Ethereum has accumulated in the exit queue, reaching over 530,000 ETH on May 2, further highlighting market dynamics.
American Bitcoin's Losses
Forbes reported that American Bitcoin, owned by Eric Trump, has incurred losses amounting to $500 million since its Nasdaq debut in September 2025. The company's shares have plummeted by 92%, and it has faced challenges in profitability, with a mining cost of about $90,000 per Bitcoin.
Despite acquiring a significant amount of Bitcoin through share sales rather than mining, the firm has faced operational difficulties, with only two full-time employees and heavy reliance on external partnerships for mining equipment.
"Just a year ago, American Bitcoin didn’t exist. […] Today we own 9,000 BTC and are the 16th largest public Bitcoin company in the world," Eric Trump stated.
Cybersecurity Concerns
The crypto industry faced a record number of hacks in April, with over 20 incidents reported, leading to total losses of $651 million. Notable attacks included Kelp and Drift Protocol, with losses of $292 million and $280 million, respectively.
As the crypto landscape continues to evolve, stakeholders are urged to remain vigilant against cybersecurity threats while navigating market uncertainties.
