Bitcoin Gains 7% as U.S. Data Shows Slower Inflation in April

Bitcoin Gains 7% as U.S. Data Shows Slower Inflation in April

Bitcoin rose 7% as U.S. data revealed a slowdown in consumer price inflation for April, with annual consumer prices up 3.4%, a decrease from March’s 3.7%. Following the release from the Bureau of Labor Statistics, Bitcoin’s price reached $63,142. Ethereum also saw a 1.8% increase to $2,944.94. 

The report indicated that housing and gas were major contributors to the price rise. Despite expectations earlier this year for a rate cut by the Federal Reserve, current forecasts suggest this may occur by September. Meanwhile, U.S. equities, especially tech stocks, experienced gains.

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Lido Co-Founders and Paradigm Secretly Back EigenLayer Rival

The co-founders of Lido and Paradigm are reportedly funding Symbiotic, a new venture in the restaking space poised to compete with EigenLayer. Symbiotic will allow users to deposit various assets, including Lido’s stETH, and participate in securing decentralized networks. 

Unlike EigenLayer, which only accepts ETH, Symbiotic will accept all ERC-20 tokens, aiming to offer more flexible restaking options. The project, still under wraps and projected for a launch by year-end, has the potential to significantly impact the decentralized finance landscape by broadening the scope of assets usable for restaking, thereby challenging EigenLayer’s growing influence.

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BlockTower Hedge Fund Partially Drained in Hack

BlockTower Capital’s main hedge fund has been “partially drained” due to a security breach, reports Bloomberg, though the exact amount stolen remains undisclosed. The crypto investment firm has enlisted blockchain forensics experts to investigate the incident, with the attackers yet to be caught.

This setback follows previous troubles, including a $1.55 million loss in TrueFi tokens earlier in February and the winding down of another BlockTower fund previously managing over $100 million. Founded in 2017, BlockTower has invested in well-known crypto and web3 companies like Dapper Labs and Sky Mavis.

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Wisconsin Purchases Nearly $100M in BlackRock Bitcoin ETF

Wisconsin has become the first U.S. state to purchase shares in a Bitcoin ETF, specifically BlackRock’s iShares Bitcoin Trust, acquiring 94,562 shares valued at nearly $100 million in Q1 of this year. Additionally, the State of Wisconsin Investment Board (SWIB) also bought approximately $64 million worth of shares in Grayscale’s Bitcoin Trust.

This move by a major institutional investor is noted as a significant indication of growing acceptance of cryptocurrency investments among traditional finance entities. SWIB, established in 1951, manages over $156 billion in assets, including those of the Wisconsin Retirement System and other state trust funds. The purchases were disclosed in line with the SEC’s 13F reporting requirements.

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Other breaking news

• GameStop Memecoin Surpasses $100M Market Cap
• New EU Law May Challenge DeFi’s Decentralization
• Polymarket Secures $70M from Vitalik Buterin and Founders Fund
• Cypher Team Member Confesses to Stealing $260K and Gambling It Away
• Robinhood Launches Solana Staking in Europe

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