Chainlink’s price is wrestling with key support near $21, a level that has drawn heavy attention from traders and institutions alike. Chainlink (LINK) was down 2% to $22.30 as selling pressure weighed on the token. The move comes at a time when derivatives activity in the asset has jumped sharply, raising both expectations of a rebound and the risk of further losses.

Related Reading

Institutional Pathway Through 21X

The network’s importance was reinforced after the launch of 21X, Europe’s first regulated tokenized securities platform. Approved under European rules, 21X connects financial institutions to blockchain infrastructure using Chainlink’s technology.

CEO Max Heinzle described Chainlink as a vital backbone for tokenized markets, stressing that global institutions are lining up behind tokenization projects. By building on a regulated platform, Chainlink gains credibility in bridging traditional finance with decentralized networks.

Europe’s first regulated tokenized securities platform 21X:

“The work that Chainlink is doing … with the involvement of the largest financial institutions in the world … could not be more at the forefront.”

Discover how tokenization is reshaping capital markets and why… pic.twitter.com/3SlmcNaWsA

— Chainlink (@chainlink) September 5, 2025

This development has been seen as a step toward establishing Chainlink as a core platform for tokenized assets. Its data feeds and interoperability features make it a practical link between standard securities and blockchain applications, adding momentum to its institutional appeal.

Support And Resistance Levels In Focus

Market watchers say LINK is testing major support at $22.10, with deeper support zones at $20.55 and $19. In a worst-case scenario, the coin could even revisit $17. On the upside, clearing the volume-weighted average price of $22.10 may open a path back to $24, and possibly $26, which marked the highs reached in August.

At the time of writing, LINK was trading at $23.17, up 0.3% and 1.9% in the daily and weekly timeframes, data from Coingecko shows.

Derivatives Market Points To Heavy Speculation

According to CoinGlass, LINK futures volume jumped 51% to over $2 billion. The increase in futures volume is in sync with open interest, whose numbers likewise soared over 2% to $1.5 billion. These increases show a sharp rise in speculative bets at current levels. Traders seem to be sitting tight, indicating anticipation of a decisive action over a pullback.

Related Reading

There are warnings that the levels of leverage are so high that they will encourage volatility. If support is maintained, the bulls could be in charge to drive LINK to $26. But if it fails to hold present levels, liquidations and deeper losses could follow.

The coming sessions will be crucial. Chainlink, viewed as both a token and a critical piece of market infrastructure, now faces a battle around $22. How the price reacts here could determine whether optimism around institutional adoption translates into a sustained recovery, or if traders brace for another correction.

Featured image from 21x.eu, chart from TradingView

We look forward to announcing the launch of a regulated crypto derivative in Europe and providing clients and partners with access to a range of liquid futures equipment within an all-recognized regulatory framework.

Eligible clients and partners in the European Economic Area (EEA) are now able to trade a wide range of crypto derivatives, including both permanent and fixed maturity agreements. These products comply with the Financial Instruments Directive (Mifid II) market and offer them through MIFID-regulated investment companies that we acquired earlier this year.

One of Europe’s most fluid onshore regulatory brokers and crypto derivative exchanges, Kraken Derivatives offers facility-grade infrastructure, strong local FIAT support and flexible collateral options. This allows traders to optimize capital allocation and manage risk more effectively. The launch of MiFID controlled futures is an important step to strengthening our market position by providing these benefits under a reliable regulatory regime.

“Europe is one of the fastest growing regions for digital asset trading and investment, some of the most sophisticated and demanding clients and institutions,” says Shannon Kurtas, head of Kraken. “The launch of regulated derivatives in Europe is very timed to meet this growing demand, highlighting our commitment to providing reliable and compliant access to the best markets and trading opportunities.”

Since acquiring its first regulated crypto derivatives venue in 2019, it has built one of the deepest global liquidity pools for crypto-trading derivatives. The deployment of the mid-fid control derivative marks another major milestone. This strengthens our leadership as a comprehensive and compliant platform for crypto trading in Europe.

Kurtas added: “With a regulated framework, clients and partners are increasingly looking for comprehensive products. This launch allows futures to be traded seamlessly as part of a complete product from one of Europe’s most established platforms.

Our new derivative offerings are available through Payward Europe Digital Solutions (CY), a Cyprus-based entity regulated under MiFID II.

Plus: Sam Altman’s orbs land in the US

GM. If the crypto market was a smoothie, it’d be a wild blend of gains, regrets, and mystery berries.

Europe is lagging…

News drops: crypto advocacy groups want clarity on staking, Sam Altman’s World enters the US + more

There was blood. There were tears. There was A LOT of grinding. But you did it!

Season 7 is officially wrapped. Big congrats to everyone who scored a reward!

Now, let’s get those airdrops sorted. Winners should’ve already gotten an email with all the info we need. We’ll be collecting details until May 11, and the airdrops will start flying out from May 12.

So, that’s that. But let’s be honest… you’re not done chasing prizes yet, are you?

Good news: Missions are still live, still rewarding, and still waiting for you

Market flavor today

Things are looking pretty good – no big price decreases, and the Fear and Greed index upgraded from Neutral to Greed today.

That’s likely because people are betting the Fed might cut rates sooner than expected (and rate cuts are usually a W for crypto).

Now, nobody’s expecting much from the next Fed meeting on Wednesday – but the June 18 meeting? That one might actually bring some action

So why are rate cut hopes rising? Recent US macro data: the Q1 2025 GDP numbers and March PCE Inflation report.

Let’s start with GDP, which measures the total value of everything a country produces and shows whether its economy is growing or shrinking.

And, uhh… it’s not lookin’ great.

The US economy shrank last quarter – the first time that’s happened since early 2022. GDP decreased by 0.3%, while economists had been hoping for a 0.4% increase.

Why the sudden dip? Imports. Tons of them. *Trump voice* Yuge amounts. Companies rushed to stock up on goods before Trump’s new tariffs kicked in, leading to a 41% jump in imports.

And since imports count as a negative in GDP math (because that’s money flowing out of the country), it dragged the whole number down.

A shrinking economy usually suggests lower demand, which would push the Fed toward cutting rates or at least keeping them steady to give growth a boost.

But – and it’s a big but – this GDP drop seems to be a one-time thing. It wasn’t broad economic weakness, just businesses panic-buying, so the Fed probably won’t freak out over that.

Now, let’s talk inflation. Things are complicated.

The Fed’s favorite inflation gauge – the personal consumption expenditures (PCE) price index – jumped to 3.6% last quarter. That’s up from 2.4% the quarter before and way above the Fed’s 2% target. So, inflation is still a problem.

But if you just look at March, PCE inflation rose only 2.3% year-over-year, down from 2.5% in February. That suggests inflation might be cooling off month by month, even though the quarterly number looks hot.

So yeah, this new data isn’t exactly making the Fed’s life easier.

Now, when the central bankers meet next week, they’ll probably focus more on inflation than the GDP hiccup.

The increase in quarterly inflation will make them cautious about cutting rates too soon. But the slower inflation growth in March could give them some confidence that things are headed in the right direction.

So for now? Expect the Fed to keep rates steady while they wait for clearer signs that inflation is really chilling out before considering any cuts.

Memecoin harvest

Today’s gainers make zero sense, but your wallet doesn’t seem to care.

Data as of 04:50 AM EST.

Check out these memecoins and plenty more here.

Europe has a lot of things to be proud of:

• Universal healthcare;

• Stunning old towns, legendary art, and architecture;

• Pizza (thx Italy), wine (thx France);

• Eurovision (and the vibe of pretending to love your neighbouring countries when you usually can’t stand them).

Y’know, some nice fun stuff goin’ on.

But when it comes to crypto? Oh boy. EUROPE’S SO BEHIND.

Let’s take a look at the US for comparison.

Donald Trump signed an executive order to start building a US Bitcoin reserve.

On top of that, individual states are racing to get involved. For example, North Carolina’s House of Representatives just passed a bill allowing the state treasurer to invest public money into approved crypto assets. It’s now heading to the Senate.

And it’s not just the US:

• Dubai’s been all-in on crypto;

• One of the regions in Bhutan has added Bitcoin, Ethereum, and BNB to its reserves.

Overall, countries all over the world are making moves to embrace crypto – and fast.

And what’s Europe been up to lately?

Well… they banned privacy coins (like Monero and Zcash) and anonymous crypto accounts starting in 2027.

Not exactly an open-minded approach.

This is something that ex-Binance CEO CZ pointed out at the Token2049 conference in Dubai – the US is adopting crypto and also nudging other countries to get involved, but Europe is barely in the conversation.

(Except for Montenegro, which he said has been open to crypto.)

But the reality is simple:

The rest of the world is catching on and moving fast. The longer Europe waits, the harder – and more expensive – it’ll be to catch up.

News drops

About 30 crypto advocacy groups have asked the SEC to set clear rules for crypto staking and similar services. They explained that staking is a technical function, not an investment.

Sam Altman’s crypto project, World, is now live in the US. Their weird little iris-scanning devices, called orbs, are already set up in Atlanta, LA, Miami, Nashville, Austin, and San Francisco.

Coinbase is delisting the MOVE token – the one used on the Movement Network blockchain. Trading will stop on May 15.

The US Treasury wants to block Cambodia’s Huione Group from using the American banking system. Officials say the company’s been helping North Korea’s Lazarus Group launder stolen crypto.

Natasha Lyonne – best known for her roles in Russian Doll and Orange Is the New Black – will direct and star in a new sci-fi movie called Uncanny Valley. The film will explore the blurry line between human performance and AI, and they’ll even use generative AI to help create some of the visuals.

Changelly is throwing a 10-year anniversary party with a $100K+ prize pool! Open the Changelly app, sign up or log in, get a free spin (plus another if you make a transaction), and see what you won.*

*Sponsored

Juicy memes

Finance officials in the European Union are concerned US President Donald Trump’s embrace of digital assets could affect Europe’s monetary sovereignty and financial stability.

“The US administration is favorable toward cryptocurrencies and especially dollar-denominated stablecoins, which may raise certain concerns in Europe,” European Stability Mechanism (ESM) managing director Pierre Gramegna said at a Eurogroup press conference on March 10. 

Gramegna cautioned that the US crypto pivot “could eventually reignite foreign and US tech giants’ plans to launch mass payment solutions based on dollar-denominated stablecoin,” adding, “And if this were to be successful, it could affect the euro area’s monetary sovereignty and financial stability.”  

The ESM “supports the ECB’s urgency in making the digital euro a reality to safeguard Europe’s strategic autonomy — this digital euro is today more necessary than ever,” he added.

The ESM is an intergovernmental organization established by member states of the euro area, helping countries overcome financial crises and maintain long-term financial stability and prosperity.

“Policy developments in other jurisdictions can have important consequences for us here in Europe,” concurred Irish finance minister Paschal Donohoe. 

“These discussions are fundamentally linked to our own autonomy and to the resilience of our currency,” he added, stating that a European central bank digital currency (CBDC) was now critical to staying ahead of the curve.

In February, the European Central Bank said it was expanding the development of its CBDC payment system to settle transactions between institutions. The ECB has been exploring CBDCs since 2020, including a consumer-facing retail digital euro and wholesale cross-border settlement between central banks.

Meanwhile, Trump has spoken out against a Federal Reserve CBDC, signing an executive order in January to establish a crypto working group while prohibiting the “establishment, issuance, circulation, and use” of a US CBDC. 

Related: Crypto academics slam controversial ECB paper blasting Bitcoin

The ECB has also rejected the idea of adding Bitcoin (BTC) to its monetary reserves or allowing other European central banks to do so. 

In late January, ECB President Christine Lagarde said that the reserves of central banks have to be “liquid, secure and safe,” implying that they would not include crypto assets. 

She added that she was “confident” that Bitcoin would not enter the reserves of banks under the European Council. 

Magazine: Bitcoin’s odds of June highs, SOL’s $485M outflows, and more: Hodler’s Digest

]]> https://earlybirdsinvest.com/trump-crypto-push-could-hurt-europes-financial-stability-top-eu-official/feed/ 0 24451