As we close out May 2025, the cryptocurrency market is experiencing a notable upswing, revitalized by an influx of macroeconomic liquidity. Bitcoin has solidified its position in this landscape, showcasing a robust on-chain capital structure alongside a growing appetite for riskier investments. This week, Chloe from HTX Research highlights the significant potential of crypto credit and InfoFi as sectors ready to emerge as focal points in this new market phase.
The Macro Landscape and Bitcoin Resilience
As per recent updates, the Federal Reserve’s net liquidity has rebounded to approximately 6,022.869, recovering from a low point earlier in the month. While it hasn’t yet re-entered the pivotal range of 6,100–6,200, this recovery signals a welcome return of liquidity, supporting the cryptocurrency market. Recent bond auctions, especially in the U.S. and Japan, raised concerns about a potential liquidity squeeze. With the U.S. long-bond yields breaching 5% and Japanese rates hitting a 25-year high, fears about global liquidity were heightened. However, these developments have not drastically affected crypto, as the U.S. Treasury continues to absorb cash mainly through short-term T-Bills, limiting impact on risk assets.
Bitcoin’s strength is evident. Spot ETFs are consistently seeing daily inflows, and over 70% of Bitcoin’s supply remains dormant for more than six months. Exchange balances are dwindling, while purchasers from Asia and the Middle East are capitalizing on dips in the market. The ongoing Treasury issuance, anticipated to reach about $1.25 trillion in the third quarter, might bring about some pressure, but the overall environment remains favorable for high-beta assets. Notably, a weaker dollar narrative further enriches the landscape for investment.
On-chain data supports this bullish sentiment as public chains like Solana and Base continue to observe rising activity. Capital appears to be reallocating from Bitcoin – often considered a safe-haven asset – to high-beta altcoins. While Bitcoin remains dominant, if dominance were to dip below 52% soon, alongside further liquidity expansion, we could very well witness the onset of a new altcoin season.
The Ascendancy of Crypto Credit
Wall Street’s interest in crypto credit is burgeoning. Cantor Fitzgerald has unveiled a Bitcoin-collateralized credit program, boasting a total size of $2 billion. This significant move marks a formal entry into the crypto credit market. Notably, FalconX, a crypto broker, and the decentralized lending protocol Maple Finance are among the initial beneficiaries. FalconX has secured more than $100 million under this alluring new framework, while Maple Finance has successfully completed its inaugural loan issuance.
The $SYRUP token linked with Maple Finance has garnered attention, featuring active trading options on HTX for spot trading, perpetual futures, and yield products. Following its listing, $SYRUP surged by 110%, indicative of growing investor confidence and market recognition. Maple’s newly introduced syrup USDC/USDT perpetual institutional credit pool offers lucrative annual yields, attracting a significant influx of idle institutional stablecoins. This month has seen the Total Value Locked (TVL) balloon from $800 million to $1.3 billion, a clear signal that the market is aligning in favor of the innovative SYRUP model.
Looking to InfoFi’s Future
On the other side of the spectrum, InfoFi is emerging as another promising sector within the cryptocurrency landscape. The $COOKIE token from CookieDotFun, for example, is poised for impressive growth. Comparatively, its market cap stands at a fraction of similarly positioned projects, suggesting significant room for upward mobility. The forthcoming launch of governance features like leaderboard functionalities and advertising monetization could lead to a substantial valuation uptick.
HTX has promptly responded by launching COOKIE/USDT perpetual futures, capitalizing on this potential. Moreover, KAITO, another project discussed in the HTX DeepThink column, has also been listed on HTX, boasting an impressive 138% gain in value over the last 30 days.
Final Thoughts and Market Outlook
The current macroeconomic backdrop, combined with robust movements within the crypto credit sector and the evolution of InfoFi, indicates a shifting paradigm in cryptocurrency investment. These sectors are evidently gaining momentum and could redefine market dynamics.
While the proceedings in the cryptocurrency sector may appear volatile, HTX DeepThink endeavors to bring clarity and insight to this ever-changing landscape, encouraging crypto enthusiasts to monitor these emerging trends closely.
Our hope is to foster a deeper understanding of these dynamics and prepare investors for upcoming opportunities in a market ripe for exploration and growth. Please bear in mind that the content shared here should not be interpreted as investment advice but rather as an examination of trends and market movements that may warrant further research and consideration.
As always, stay informed, stay cautious, and navigate the crypto realm with wisdom and an eye on potential futures.
