Bitcoin was trading down slightly to $27,400 on Thursday after initially climbing following the release of the Bureau of Labor Statistics' Consumer Price Index (CPI) on Wednesday. The annual U.S. inflation rate slowed to 4.9% in April from 5.0% in March and versus economist forecasts for 5.0%. The crypto initially rose as high as $28,300 following the news before quickly giving up those gains and more amid rumors the U.S. government was preparing to sell some of its bitcoin holdings. A break below current levels could see bitcoin test $25,250 according to a report by SEBA Bank, which said $27,000 should be an important support and near-term upside could be capped at $28,500.

Fund giant Franklin Templeton, which has some $1.4 trillion in assets under management, plans to add to its crypto market offerings with a second blockchain fund, according to a Wednesday filing with the U.S. Securities and Exchange Commission. The Blockchain Fund II is a private equity fund and will carry a minimum investment of $100,000. The firm's previous blockchain fund, established in late 2021, was venture capital-focused. The offering also differs from the firm's foray into crypto last year, which involved separately managed accounts strategies through investment in the 10-15 largest digital assets.

Central banks should veto large stablecoins if they have fears they could upend monetary policy, the chair of the European Banking Authority (EBA) has said, observing that the use of permissionless blockchains could prove financially unsound. EBA Chairperson José Manuel Campa will in the coming months be setting out the detailed rules to implement the European Union’s Markets in Crypto Assets regulation (MiCA), a landmark framework that will require stablecoin issuers to obtain a license and hold suitable reserves. “Central banks should have the power to veto the widespread introduction of so-called stablecoins” if they affect public policy goals, including financial stability or monetary policy, Campa said at an event hosted by think tank OMFIF on Thursday.

Spot trading volume at Binance, the world’s largest cryptocurrency exchange, dropped for a second straight month in April, falling 48% amid declining transaction levels across the industry, according to CCData.

Volume dropped to $287 billion in April, the second-lowest level since 2021. The exchange’s market share also fell for a second month to 46%.

Binance isn’t alone. Spot trading volume on centralized exchanges overall fell 40% to the lowest levels since December. The uncertainty surrounding macroeconomic conditions such as looming recession threats alongside the collapse of several U.S. banks contributed to the declining volumes, CCData said.

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