The A16z team intends to lock the acquired ZRO tokens for three years to ensure its market stability.
ZRO price is well primed for a major bullish rebound if the wider crypto market rises in the near future.
Andreessen Horowitz (a16z) has been a huge contributor to the success of the LayerZero (ZRO) omnichain protocol. On Thursday, Ali Yahya, General Partner at a16z crypto, announced that the venture capital firm has invested an additional $55 million in LayerZero by purchasing ZRO tokens.
According to the announcement, a16z will lock the purchased ZRO tokens for the next three years.
“Our global financial system is evolving, and it’s great to see the protocol enabling many new businesses and complex workflows to move on-chain,” Ali noted.
A16Z’s Deep Connection With LayerZero
In the past few years, a16z has been a key supporter of the LayerZero protocol. The venture capital firm participated in LayerZero’s Series A+ round in 2022, which closed with $135 million raised and a valuation of about $1billion.
In 2023, a16z was among the 33 participants who helped LayerZero raise $120 million in its Series B, thus tripling its valuation to $3 billion.
The strategic investment in LayerZero has helped it build the necessary infrastructure to enable a trustless inter-chain communication protocol with the help of ZRO tokens.
Impact on ZRO
Following the announcement, ZRO price rallied over 5 percent in the past 24 hours to trade about $2.49 on Thursday, during the mid New York session. The mid-cap altcoin, with a fully diluted valuation of about $2.49 billion and a 24 hour average trading volume of around $66.6 million, has been forming a potential reversal pattern.
From a technical analysis standpoint, ZRO price has been forming a potential inverse head and shoulders (H&S) pattern coupled with a bullish divergence of the daily Relative Strength Index (RSI). As a result, a consistent close above the resistance level around $3.26 will trigger a rally beyond $5.
The Federal Reserve’s upcoming FOMC meeting on May 7, 2025, is drawing serious attention from crypto investors. With interest rate decisions and Powell’s speech on the agenda, the market is on edge.
After a long pause following aggressive hikes in 2022–2023, the Fed began cutting rates in late 2024, bringing the current rate to 4.25%–4.50%. Now, with a 94% probability that the Fed will hold rates steady, investors are watching closely.
Despite strong job numbers, inflation remains slightly high, clouding the timeline for future cuts. Experts say more rate cuts may come later in 2025, but there’s still no clear roadmap.
Volatility Ahead of Powell Speech
Market analyst King Baldwin shared his pre-FOMC outlook on X, pointing to the high odds of no change in interest rates. However, he warns that a hawkish tone from the Fed could send Bitcoin down to a support zone between $91,500 and $92,000.
Jerome Powell Jerome Hayden “Jay” Powell is an American attorney and investment banker who has served since 2018 as the 16th chair of the Federal Reserve
Finance
signals a dovish stance or hints at near-term cuts, Bitcoin could rebound toward the $100,000 mark. Baldwin notes that Core PCE inflation stands at 2.6%, and recession odds are at 60%—both factors keeping investors cautious.
All eyes are now on Powell’s press conference, with hopes for a June rate cut signal.
Crypto analyst Michaël van de Poppe believes a rate cut is highly unlikely at this FOMC meeting. He suggests the Fed will stay cautious due to sticky inflation. A surprise cut would shock markets.
Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
who continues to push for cuts amid rising tariffs. But the Federal Reserve is expected to focus on inflation control rather than bow to political pressure.
Crypto Market Braces for Powell’s Speech
Trump’s aggressive stance on trade and monetary policy is stirring debate about the Fed’s independence. With fiat volatility rising, many investors are turning back to Bitcoin as a hedge.
With Powell’s speech scheduled for May 7, both traditional and crypto markets are bracing for volatility. Analysts are urging traders to avoid leverage and expect short-term turbulence.
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The post FOMC Meeting May 7: Will Powell’s Speech Trigger Bitcoin Crash or Rally? appeared first on Coinpedia Fintech News
The Federal Reserve’s upcoming FOMC meeting on May 7, 2025, is drawing serious attention from crypto investors. With interest rate decisions and Powell’s speech on the agenda, the market is on edge. After a long pause following aggressive hikes in 2022–2023, the Fed began cutting rates in late 2024, bringing the current rate to 4.25%–4.50%. …
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee as we analyze Standard Chartered’s Bitcoin (BTC) price projections. According to the bank, Bitcoin price could hit $500,000 as global institutions accumulate Strategy’s MSTR stock for indirect exposure to Bitcoin.
Crypto News of the Day: Standard Chartered’s Bold Bitcoin Prediction
Bitcoin was trading for $105,178, up by a modest 2.27% in the last 24 hours. In recent developments, the pioneer crypto market capitalization has ascended to an all-time high of $2.09 trillion.
However, analysts hold that institutional interest has much to do with Bitcoin’s value surge. Firstly, Bitcoin ETFs (exchange-traded funds), which offer Traditional Finance (TradFi) players indirect exposure to BTC, drive institutional interest.
In the same way, institutions are gaining indirect exposure to Bitcoin via Strategy’s MSTR stock. A recent US Crypto News publication indicated that Strategy (formerly MicroStrategy) held 576,230 BTC as of May 19.
Holding a significant amount of Bitcoin on its balance sheet, Strategy’s MSTR stock price correlates closely with Bitcoin’s price movements.
MSTR vs. BTC performance in the past year. Source: ivanhoff.com on X
Analysts ascribe this correlation to a dynamic where Bitcoin is the base layer while MSTR operates as a vehicle with different risks, mechanics, and rewards.
Against this backdrop, BeInCrypto contacted Geoff Kendrick, Head of Digital Assets Research at Standard Chartered. According to Kendrick, Bitcoin is still on course to hit $500,000 before the end of Trump’s second administration.
Kendrick ascribes this to deepening institutional adoption, particularly through indirect exposure via MicroStrategy’s MSTR shares.
Standard Chartered Says Increasing Allocations to MSTR Is Bullish for Bitcoin
Newly released Q1 2025 13F filings from the US SEC (Securities and Exchange Commission) support the bank’s bullish thesis. Specifically, Strategy saw increasing allocations to MSTR by a range of global sovereign and quasi-sovereign entities.
“As more investors gain access to the asset and as volatility falls, we believe portfolios will migrate towards their optimal level from an underweight starting position in Bitcoin,” Kendrick said in an email to BeInCrypto.
While direct holdings of Bitcoin ETFs declined slightly overall, largely due to the State of Wisconsin Investment Board selling its entire 3,400 BTC-equivalent position in BlackRock’s IBIT ETF, other entities quietly increased exposure via MSTR, which Kendrick described as a “Bitcoin proxy.”
“Government entities increased their holdings of Strategy Incorporated (MSTR), which typically trades like a Bitcoin proxy. Entities in Norway, Switzerland, and South Korea reported significant MSTR increases, and Saudi Arabia added a very small position for the first time,” Kendrick told BeInCrypto.
The Standard Chartered executive emphasized that while Bitcoin ETF flows were “unexciting,” the MSTR accumulation trend was the real story this quarter.
“The MSTR ownership detail was where the excitement was,” he added.
Geoff Kendrick went further, detailing Standard Chartered’s analysis of the filings. Based on their analysis:
Norway added 700 BTC-equivalent via MSTR, now holding 6,300 BTC-equivalent.
Switzerland also added 700 BTC-equivalent, reaching 2,300 BTC-equivalent.
South Korea added 700 BTC-equivalent, bringing its total to 1,300 BTC-equivalent.
US state funds (California, New York, North Carolina, Kentucky) added 1,000 BTC-equivalent collectively, now at 3,300 BTC-equivalent.
Saudi Arabia’s Central Bank opened a small MSTR position—its first.
Meanwhile, Abu Dhabi’s quasi-sovereign wealth fund Mubadala added 300 BTC equivalent via ETF holdings, increasing its position to 5,000 BTC equivalent.
“SEC 13F data for Q1 supports our thesis that Bitcoin is attracting a wider range of buyers. While data on Bitcoin ETF holdings was disappointing, MSTR – a Bitcoin proxy – saw increased buying. Overall sovereign positions were unchanged due to the Wisconsin pension fund selling its ETF holdings,” Kendrick concluded.
The data reinforce Standard Chartered’s outlook that institutional and sovereign flows—both direct and indirect—will be a key driver of Bitcoin’s ascent to $500,000 in the coming years.
Chart of the Day
Governement holdings of BTC ETFs and MSTR. Source: Standard Chartered
This chart illustrates the total government holdings of Bitcoin ETFs and MicroStrategy’s MSTR stock from Q4 2023 to Q1 2025, measured in ‘000 (thousands) BTC equivalents. Based on the chart, holdings have grown steadily, peaking in Q1 2025 at around 18,000 BTC.
The chart shows that key contributors include Abu Dhabi (ETFs), Norway, Sweden, South Korea, France, New York, Wisconsin (ETFs), Michigan (ETFs), Switzerland, Liechtenstein, California, North Carolina, Saudi Arabia, and Kentucky, with varying contributions across quarters.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
Despite ongoing legal battles, Ripple’s XRP token continues to garner increasing attention, with many in the crypto space showing optimism about its future. A recent survey by Patrick Bet-David showed this shift, showing that 43.8% of respondents believe Ripple has the best long-term tech, while Bitcoin only received 35% of the vote. According to social media, Bitcoin investors are feeling frustrated and confused by the growing excitement surrounding the XRP community.
Eric Yakes, author and Managing Partner at EpochVC, expressed his thoughts on the situation, explaining that Ripple’s long-standing presence in the market has sparked interest. “Ripple has been around since 2012, and the question remains: How has it been used? What’s been done with it?” Yakes said. While Ripple’s network initially aimed to facilitate remittance payments and serve as a banking settlement system, its focus has shifted toward creating a Central Bank Digital Currency (CBDC), a direction Yakes opposes.
“Its best case scenario is that it’s a CBDC and its XRP token is not going to be used for that. There isn’t value that’s going to accrue to that token, so if you’re thinking that, it’s never going to win,” he said.
Despite concerns over its past marketing tactics, Ripple’s ability to generate significant value through a large pre-mine and effective marketing campaigns has caught the attention of investors.
Ripple’s involvement in facilitating payments through RippleNet currently sees $7 billion in payments processed annually, even amid an ongoing lawsuit with the SEC. This success has created a narrative that’s helping XRP gain traction, leaving Bitcoin investors questioning why Ripple’s project is thriving in the face of adversity.
The post ‘Ripple is Never Going to Win’: Popular Author Questions XRP’s Real Use Case appeared first on Coinpedia Fintech News
Despite ongoing legal battles, Ripple’s XRP token continues to garner increasing attention, with many in the crypto space showing optimism about its future. A recent survey by Patrick Bet-David showed this shift, showing that 43.8% of respondents believe Ripple has the best long-term tech, while Bitcoin only received 35% of the vote. According to social …
