Bitcoin Breaks $97K as Institutions Double Down and Regulation Gains Steam

TL;DR

• Bitcoin climbs nearly 30% from April lows, hitting $97K

• FCA proposes ban on credit-based crypto purchases in the UK

• Galaxy Digital confirms Nasdaq listing for May 16

• U.S. House Republicans prepare landmark crypto legislation

• Kraken rolls out crypto derivatives in the UK for professionals

• Strategy eyes $21B equity raise for more Bitcoin despite Q1 loss

Bitcoin Breaks Through $97K as Bullish Momentum Accelerates

Bitcoin crossed the $97,000 mark on Thursday, hitting a local high before pulling back slightly. The breakout follows a period of consolidation between $93,000 and $96,000, with technical support forming near $88,000–$90,000. Total market cap rose to $1.90 trillion, while 24-hour volume reached nearly $30 billion.

The rally marks a nearly 30% gain from April lows and builds on bullish momentum sparked by a breakout from the $74,000 range earlier this month. Investors point to strong technical patterns—such as a double bottom and bullish flag breakout—along with the absence of a feared death cross, as signs of continued upside.

Institutional demand is also strengthening, with spot Bitcoin ETFs pulling in $2.9 billion in April and major firms like Tether, SoftBank, and Trump Media adding BTC to their treasuries. Broader macro factors, including soft U.S. economic data and growing speculation about Fed rate cuts, have further reinforced the bullish sentiment.

UK’s FCA Proposes Ban on Buying Crypto With Credit

The UK’s Financial Conduct Authority (FCA) is weighing a ban on purchasing cryptocurrencies with credit, as part of a broader regulatory overhaul aimed at improving consumer protection. In a new discussion paper, the agency outlined plans to restrict credit card use and e-money credit lines for buying crypto—though authorized stablecoins would be exempt.

The proposal comes amid rising crypto adoption in the UK, where the number of retail investors more than doubled from 6% in 2022 to 14% in 2023, according to YouGov. The FCA, which currently oversees crypto firms under anti-money laundering and financial promotions rules, said it aims to “drive sustainable, long-term growth of crypto in the UK” through clearer regulation.

Among other measures, the FCA is calling for crypto platforms to separate proprietary trading from customer activity, increase transparency around pricing and execution, and operate through a registered local entity. While decentralized platforms may remain outside the scope, those with identifiable controllers would fall under the proposed rules.

Galaxy Digital Eyes Nasdaq Debut Amid Rebound in Crypto Stocks

Galaxy Digital plans to begin trading on the Nasdaq under the ticker symbol GLXY on May 16, pending final shareholder approval and regulatory clearance. The move marks a strategic shift for the Mike Novogratz-led firm, which has been listed on the Toronto Stock Exchange since 2020. A special shareholder vote is scheduled for May 9 to finalize the redomiciling process.

CEO Mike Novogratz called the planned listing a major milestone that will help broaden Galaxy’s U.S. investor base and bolster its presence across both the crypto and AI sectors. “This positions us to advance our vision of building a gateway for investors to safely and efficiently access every corner of the digital asset and artificial intelligence ecosystems,” he said.

Galaxy’s plans come amid a notable rebound in publicly traded crypto companies. In April, Coinbase (COIN) rose 17.8%, Strategy (MSTR) jumped 31.86%, and mining firm CleanSpark (CLSK) gained 21.58%. While Galaxy shares remain down year-to-date on the TSX, the upcoming Nasdaq listing could offer fresh momentum as U.S. capital markets continue to warm to digital asset exposure.

House Republicans to Release Draft of Landmark Crypto Bill Ahead of Key Hearing

Republican lawmakers in the U.S. House of Representatives are preparing to release a draft bill outlining a comprehensive regulatory framework for digital assets ahead of a joint committee hearing scheduled for May 6. The effort is led by senior members of the House Financial Services and Agriculture Committees, including Reps. French Hill, Bryan Steil, GT Thompson, and Dusty Johnson.

The draft legislation is expected to closely resemble last year’s Financial Innovation and Technology for the 21st Century Act (FIT 21), which passed the House. The upcoming hearing, titled “American Innovation and the Future of Digital Assets,” is set to explore the structure of the U.S. crypto markets and lay the groundwork for formal rulemaking around token classification and agency oversight.

While Republicans have spearheaded the effort, bipartisan consensus may prove difficult, especially as Trump-backed crypto ventures add a new layer of political complexity. Despite this, industry groups say momentum is building quickly. “Lawmakers could opt for a markup session almost immediately,” said Ron Hammond, director of government relations at the Blockchain Association. He noted that the draft is said to be “90% similar” to FIT 21, though the final text remains under wraps. Discussions around linking the market structure bill with stablecoin legislation are ongoing.

Kraken Launches Derivatives Trading for Professional Investors in the UK

Crypto exchange Kraken has officially rolled out crypto derivatives trading for professional investors in the United Kingdom, the company’s second-largest market. The product will be offered via the firm’s regulated Multilateral Trading Facility (MTF), operated by its subsidiary Crypto Facilities, and is accessible through Kraken’s Bermuda-based futures broker.

Alexia Theodorou, Kraken’s Head of Derivatives, said the offering was initially launched quietly and is now available to all eligible clients who complete a dedicated onboarding process. She noted that derivatives already represent 70–75% of total crypto volume and are growing faster than spot trading, particularly among institutional investors.

The move follows Kraken’s recent acquisition of a MiFID II entity in Cyprus and its $1.5 billion purchase of U.S.-based NinjaTrader. With the UK rollout now complete, Kraken plans to continue expanding its regulated derivatives offerings into new markets, reinforcing its strategy of catering to institutional demand with capital-efficient trading products.

Strategy to Raise $21 Billion for Additional Bitcoin Purchases Despite Q1 Loss

Bitcoin treasury firm Strategy, formerly MicroStrategy, announced plans to raise another $21 billion through a new equity offering, doubling down on its BTC accumulation despite reporting a significant Q1 loss. The company recorded a $5.9 billion impairment on its Bitcoin holdings and a $16.49 loss per share amid market volatility earlier this year.

Despite the downturn, Strategy executives reaffirmed their long-term commitment to Bitcoin, with co-founder Michael Saylor stating the capital raise would support further BTC acquisitions. “With over 70 public companies worldwide now adopting a Bitcoin treasury standard, we are proud to be at the forefront in pioneering this space,” said CEO Phong Le.

The move follows Strategy’s broader capital deployment plan, announced in October, to raise up to $42 billion through equity and fixed income over the next three years. As of late April, the company held approximately 554,000 BTC—valued at around $53 billion—acquired at an average cost of $68,459. Strategy’s Q1 revenues fell 3.6% year-over-year to $111 million, though subscription services revenue rose 61.6% to $37.1 million.