Tether Backed Twenty One Capital Buys $458.7M in Bitcoin As Price Eyes New ATH

Monicah W

Tether Backed Twenty One Capital Buys $458.7M in Bitcoin As Price Eyes New ATH

Tether-backed Bitcoin investment firm Twenty One Capital has acquired 4,812 BTC valued at $458.7 million, according to a U.S. Securities and Exchange Commission (SEC) filing dated May 13. The transaction is part of a private investment in public equity (PIPE) deal tied to the firm’s ongoing SPAC merger with Cantor Equity Partners.

This buy comes amid Bitcoin price movements suggesting a potential new all-time high, with the asset trading around $103,540 at the time of purchase.

Twenty One Capital Bitcoin Acquisition Linked to SPAC Merger

The purchase was executed by stablecoin issuer Tether, which transferred the BTC to an escrow wallet on May 9. The Bitcoin was later moved to a wallet controlled by Tether, and will be sold to the public entity Twenty One Capital for $458.7 million.

This transfer is part of a PIPE arrangement connected to the company’s SPAC merger with Cantor Equity Partners. Once the merger is finalized, the company will trade under the ticker XXI. Currently, it trades under CEP, and the SPAC is backed by Wall Street firm Cantor Fitzgerald.

The newly acquired BTC increases Twenty One Capital’s total holdings to 36,312 BTC. Of this amount, 31,500 BTC is held on behalf of the company by Cantor Equity Partners, as disclosed in the SEC filing.

Company Positioning and Ownership Structure

Twenty One Capital is led by Jack Mallers, founder of the BTC payments app Strike. The firm has adopted a Bitcoin-focused strategy similar to that of Michael Saylor’s Strategy. In April, the firm told the SEC that it aims to become a “superior vehicle” for capital-efficient BTC exposure.

Tether and its sister company, Bitfinex, are majority owners of the company. Japanese investment group SoftBank has invested $900 million and holds a minority stake. Cantor Fitzgerald is both sponsor and advisor to the merger, and has raised $585 million to fund future BTC purchases.

According to filings, the company’s goal is to reach 42,000 BTC in total holdings upon its public launch. Expected contributions include 23,950 BTC from Tether, 10,500 BTC from SoftBank, and 7,000 BTC from Bitfinex. These will be converted into equity at $10 per share.

Market Reaction and Trading Activity

Shares of Cantor Equity Partners (CEP) experienced high volatility following news of the BTC purchase. On May 2, the share price rose from $10.65 to $59.73, before falling back to $29.84. After the recent filing, the stock gained another 5.2% in after-hours trading.

According to BitcoinTreasuries.net, Twenty One Capital is now the third-largest corporate holder of BTC, behind MicroStrategy (568,840 BTC) and MARA Holdings (48,237 BTC). The firm’s strategy is to measure performance using Bitcoin per share rather than earnings per share.

Other firms are also increasing their exposure with, Japanese firm Metaplanet adding 1,271 BTC for $126.7 million on Monday.

Bitcoin Price Nearing New All-Time High

The purchase by Twenty One Capital coincides with a strong upward trend in Bitcoin’s price, which has surged to around $103,540. This puts the cryptocurrency within range of its previous all-time high. Market analysts are watching closely for a breakout.

Michaël van de Poppe, a market analyst, noted on X that recent Consumer Price Index (CPI) data showed inflation to be lower than expected. He said, “Inflation is calming down… this would also signal that the FED can lower interest rates.” According to him, this environment could create favorable conditions for the crypto’s next upward move to a new ATH.

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Another analyst ColinTCrypto, also referred to the ongoing correlation between BTC  and the Global M2 money supply. He pointed out that the current cycle mirrors patterns seen earlier in the year when BTC rose from $76,000 to $105,000 between April 8 and mid-May nearing the all-time high at $109k. He added that Bitcoin is “still right on track with Global M2,” and suggested a breakout above $120,000 could occur by the end of May to set a new all-time high.

The post Tether Backed Twenty One Capital Buys $458.7M in Bitcoin As Price Eyes New ATH appeared first on CoinGape.

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HYPE Price Crashes 9% As Hyperliquid Faces Outflows After ETH Whale Liquidation

HYPE Price Crashes 9% As Hyperliquid Faces Outflows After ETH Whale Liquidation

Hyperliquid’s native cryptocurrency HYPE has tanked by another 9% slipping to $12.54, as the network faces massive $160 million in outflows following the liquidation of the massive ETH long positions on the platform. The ETH whale liquidation event triggered a $4 million loss in the platform’s HLP Vault, triggering huge seeling pressure in HYPE price.

HYPE Price Drops As Hyperliquid Records $166M AUM Outflow

Following the liquidation of the ETH long positions, HYPE price has come under severe selling pressure in the last 24 hours. The recent 8% drop comes along with a 51% surge in daily trading volumes, shooting past $207 million. This shows that there’s a growing bearish sentiment around the altcoin as of now.

Hyperliquid experienced a significant net outflow of $166 million in assets under management (AUM) on March 12, marking the platform’s second-largest single-day outflow on record. The substantial outflow is believed to have been driven primarily by withdrawals from HLP Vault depositors in response to the losses.

Whale’s $340M ETH Long Position Triggers Liquidation

A high-leverage whale trade involving 175,000 ETH, valued at approximately $340 million, has led to significant market movements. The trader initially secured a floating profit of $8 million and closed 15,000 ETH before transferring 17.09 million USDC in margin back to their address.

However, following the margin withdrawal, the remaining 160,000 ETH long position was liquidated. The large liquidation size forced Hyperliquid HLP to assume the position at $1,915. The platform is now gradually unwinding the position to mitigate market disruption and manage associated risks.

In order to avoid the massive outflows and user panic, Hyperliquid stated that this wasn’t a part of the protocol vulnerability or a hacking incident. Instead, the user withdrew margin while holding unrealized profits, lowering their margin ratio and triggering liquidation. Despite a $4 million loss in the past 24 hours, Hyperliquid’s HLP maintains a total historical profit of approximately $60 million.

Is It Right Time to Buy the HYPE Dips?

Prominent crypto analyst CryptoGod John has expressed bullish sentiments for HYPE price, highlighting the current market conditions as a potential buying opportunity.

John noted that the token has retraced significantly since its earlier listing pump, entering what he describes as a strong support zone.

“Seen some drama on the timeline about it — but think this is a good area to scoop some while most hypetards who were loud at $20+ have now become very quiet,” John remarked.

HYPE Price
Source: Johnny

The post HYPE Price Crashes 9% As Hyperliquid Faces Outflows After ETH Whale Liquidation appeared first on CoinGape.

Will XRP Fall Below $2 Again?

XRP is down 5% over the past week, struggling to regain momentum as technical indicators flash mixed signals. Its Relative Strength Index (RSI) has dropped below 50, and the price remains stuck within a tight range between key support and resistance levels.

At the same time, the Ichimoku Cloud has shifted from green to red, with a thickening cloud ahead suggesting growing bearish pressure. With volatility compressing and momentum fading, XRP is nearing a critical point where a breakout—or breakdown—seems increasingly likely.

XRP Struggles to Regain Momentum as RSI Drops Below 50

XRP’s Relative Strength Index (RSI) is currently sitting at 44.54, after recovering from an intraday low of 40.67. Just yesterday, it was at 51.30, highlighting increased short-term volatility.

RSI is a momentum indicator that measures the speed and magnitude of recent price changes to evaluate overbought or oversold conditions.

Readings above 70 typically suggest an asset is overbought, while readings below 30 indicate it may be oversold.

XRP RSI.
XRP RSI. Source: TradingView.

With XRP’s RSI at 44.54, it’s currently in neutral territory, showing neither strong buying nor selling pressure.

However, the fact that it hasn’t crossed the overbought threshold of 70 since March 19—over a month ago—signals a lack of sustained bullish momentum. This could mean XRP is still in a consolidation phase, with the market waiting for a clearer direction.

If RSI continues to climb toward 50 and beyond, it may hint at building momentum, but without a breakout above 70, upside could remain limited.

XRP Faces Uncertainty as Bearish Trend Begins to Expand

XRP is currently trading inside the Ichimoku Cloud, signaling market indecision and a neutral trend.

The Tenkan-sen (blue line) has crossed below the Kijun-sen (red line), which is a bearish signal, but with the price still within the cloud, it lacks full confirmation.

The cloud itself acts as a zone of support and resistance, and XRP is now moving sideways within that zone.

XRP Ichimoku Cloud.
XRP Ichimoku Cloud. Source: TradingView.

Looking ahead, the cloud has shifted from green to red—a sign that bearish momentum may be building. Even more concerning is that the red cloud is widening, which suggests increasing downward pressure in the near future.

A thickening red Kumo often signals stronger resistance overhead and a potential continuation of a bearish trend if the price breaks below the cloud.

Until XRP breaks out decisively in either direction, the market remains in a wait-and-see phase, but the growing red cloud tilts the bias toward caution.

XRP Compression Zone: A Breakout Could Send Price to $2.50 — Or Much Lower

XRP price is currently trading within a tight range, caught between a key support level at $2.05 and resistance at $2.09. This narrow channel reflects short-term uncertainty, but a decisive move in either direction could set the tone for what’s next.

If the $2.05 support fails, the next level to watch is $1.96. A break below that could trigger a steep drop toward $1.61, which would mark the first close below $1.70 since November 2024—a bearish signal that could accelerate selling pressure.

Recently, veteran analyst Peter Brandt warned that a major correction could hit XRP soon.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView.

On the flip side, if bulls regain control and push XRP above the $2.09 resistance, the next target lies at $2.17. A breakout beyond that could open the door to a move toward $2.50, a price level not seen since March 19.

For that to happen, XRP would need a clear resurgence in momentum and buying volume.

Until then, the price remains trapped in a narrow zone, with both upside and downside potential on the table.

The post Will XRP Fall Below $2 Again? appeared first on BeInCrypto.