Happy Friday everyone and welcome to another edition of The Bitcoin Weekly!
Every week, we break down the four most important events shaping Bitcoin. From protocol updates to the macroeconomic and geopolitical forces driving the market. We explain what happened, why it matters, and how it impacts your stack. Plus, we always include one educational concept to help you level up your Bitcoin knowledge.
Let’s dive into this week’s top stories.
1. Kevin Warsh Confirmed as Fed Chair in Historic Vote
In the most divisive confirmation vote in the central bank's modern history, the U.S. Senate confirmed Kevin Warsh as the next chair of the Federal Reserve by a 54-45 margin. Warsh, who takes over from Jerome Powell on May 15, is the first incoming Fed chair to have direct exposure to digital assets, including an equity stake in a Bitcoin payments startup. He has publicly described Bitcoin as "an important asset" and "a very good policeman for policy," while also opposing central bank digital currencies (CBDCs).
This is a monumental shift in monetary leadership. While Warsh faces immediate pressure from a hot CPI print (3.8% in April), his confirmation puts a crypto-fluent, anti-CBDC leader at the helm of the world's most powerful central bank. His view that Bitcoin's price reflects real-world confidence in the Fed's inflation management suggests he sees Bitcoin not as a speculative bubble to be popped, but as a legitimate macroeconomic signal.
2. The Trump-Xi Summit and the $90K Magnet
President Donald Trump landed in Beijing this week for a high-stakes summit with Chinese President Xi Jinping, accompanied by top U.S. executives including Elon Musk and Larry Fink. The market immediately priced in optimism for a framework agreement that would ease tariffs on Chinese goods (which peaked at 60% in late 2025). As news of the summit broke, Bitcoin surged past $81,000, recovering from a brief dip caused by the hot U.S. inflation data.
A successful trade deal would stabilize global supply chains and reduce a major macro headwind, potentially unlocking massive sidelined capital for risk assets. Analysts note that clearing the $82,500 resistance level on trade optimism could open a rapid path toward $90,000.
3. The CLARITY Act Clears Senate Committee
After nearly a year of delays, the Senate Banking Committee officially advanced the Digital Asset Market Clarity Act (CLARITY) in a 15-9 bipartisan vote. The landmark bill, which already passed the House in 2025, aims to draw a clear regulatory boundary between the SEC and the CFTC, giving the CFTC exclusive jurisdiction over spot markets for decentralized digital commodities like Bitcoin. The bill now heads toward a full Senate floor vote.
Regulatory clarity is the final boss for institutional adoption. By legally defining Bitcoin as a digital commodity under CFTC jurisdiction, the CLARITY Act removes the lingering threat of SEC overreach. This provides the legal certainty required for massive traditional finance pools (like pension funds and corporate treasuries) to allocate capital to Bitcoin without fear of retroactive enforcement actions.
4. MARA Dumps $1.5B in Bitcoin to Pivot to AI
Bitcoin mining giant MARA Holdings (formerly Marathon Digital) revealed in its Q1 earnings that it sold $1.5 billion worth of Bitcoin to improve liquidity and retire debt. The massive liquidation dropped MARA from the second- to the fourth-largest public corporate Bitcoin holder. The company signaled a strategic pivot, stating that up to 90% of its non-hosted mining capacity could eventually be redirected toward artificial intelligence and high-performance computing data centers.
This highlights an evolution that is occurring in the mining sector. Public miners are no longer just "Bitcoin accumulation vehicles." They are energy infrastructure companies. By using their massive Bitcoin treasuries as balance-sheet ammunition to fund AI pivots, miners are diversifying their revenue streams. However, while the $1.5B sale introduced significant sell pressure, the fact that the market absorbed it while Bitcoin still climbed above $80,000 demonstrates incredible underlying demand.
5. Bitcoin Concept of the Week: The "Cost Basis"
When analysts talk about Bitcoin's price action, you'll often hear them mention the "Short-Term Holder Cost Basis." What does that mean?
In traditional finance, your "cost basis" is simply the original price you paid for an asset. In Bitcoin, because the blockchain is a public ledger, analysts can look at every single coin and see the exact price it was last moved at.
By aggregating this data, we can calculate the average purchase price for different groups of investors.
Long-Term Holders (coins that haven't moved in over 155 days) usually have a very low cost basis.
Short-Term Holders (coins moved recently) have a cost basis much closer to the current price.
Why does this matter? Human psychology. If the current price drops below the Short-Term Holder Cost Basis, recent buyers are suddenly underwater (losing money). This often triggers panic selling. Conversely, if the price stays above their cost basis, they feel confident and hold. It acts as a psychological support line for the entire market.
Thanks for reading! If you enjoyed this week's breakdown, share it with a friend who needs to get off zero.
Stay humble, stack sats.
Stephan