Weekly Review: Bitcoin on a Rollercoaster, While Russia Introduces New Crypto Regulations
The past week was extremely eventful for the cryptocurrency market. Bitcoin once again demonstrated its volatility, making sharp moves up and down, while regulatory news from Russia and Europe set a new direction for the industry's development. Let's break down the key events.
Bitcoin: Swings from $62,000 to $67,000 and Back
The week began with an optimistic surge. Amid rumors of a truce between the US and Iran, the leading cryptocurrency jumped from $64,000 to a local high of $67,278. However, the market quickly cooled: geopolitical disagreements and weak institutional demand brought quotes back to the $64,000 mark. The decisive blow came from the US Federal Reserve meeting, which kept the key interest rate at 3.5-3.75% and did not rule out a hike. This triggered a drop below $64,000.
The culmination of the week was Friday, when Bitcoin fell to $62,000 due to renewed uncertainty in the Middle East. Nevertheless, the weekend brought a rebound: after the resumption of negotiations and a drop in oil prices, the cryptocurrency returned above $64,000. As a result, the week ended for BTC virtually unchanged, allowing altcoins like Solana (+8.6%) and Hyperliquid (+12%) to show impressive growth.
The waning interest in Bitcoin is confirmed by a record six-week outflow from spot ETFs, totaling approximately $5.43 billion. The total capital in these products has shrunk to $78.3 billion — the level of November 2024. The Fear and Greed Index, although it rose from 18 to 23 points, is still in the "extreme fear" zone.
Russia: Cryptocurrency Officially Becomes an Item of Theft
The key event for the Russian crypto community occurred on June 16. The Plenum of the Supreme Court of the Russian Federation amended a 2002 ruling, officially recognizing digital currency, digital rubles, and digital rights as items of theft. This means that cryptocurrency theft will now be classified under articles on theft, robbery, and assault. The court also clarified that the moment of completion of theft of non-cash funds is considered from the moment they are debited from the victim's account. This is an important step for law enforcement practice, enhancing investor protection.
Europe: MiCA Cleans Up the Market
The European Securities and Markets Authority (ESMA) reminded that from July 1, crypto platforms without a MiCA license must cease servicing clients from the EU. The regulator requires companies to prepare an exit plan from the market in advance. According to estimates, out of 3,000 firms operating in the region, only 194 have received official authorization. It is expected that about 75% of old platforms will close or leave the European market, leading to account blocking and the need for users to withdraw funds.
Ethereum: Funding Crisis and Quantum Protection
The Ethereum ecosystem faces a potential "slowly escalating funding crisis." A former Ethereum Foundation employee warned that due to the foundation's spending cuts and the conclusion of the Client Incentive Program, developers may run out of funds. Without stable funding of $30 million, the ecosystem risks losing key specialists and falling behind in preparing for future challenges, including quantum computing.
At the same time, a positive solution emerged: a concept for post-quantum account protection called SPHINCS- was proposed, costing just $0.07. This solution does not require a hard fork and will secure wallets against attacks from quantum computers using the NIST signature standard.
My analysis: The week showed that the market remains extremely sensitive to macroeconomic and geopolitical factors. However, the most interesting developments are in the regulatory sphere. Recognizing cryptocurrency as an item of theft in Russia is a double-edged sword: on one hand, it increases protection; on the other, it strengthens control. In Europe, MiCA is already beginning to act as a sieve, filtering out illegal players. Investors should prepare for further consolidation and a transition to licensed platforms.