Weekly Review: Bitcoin on a Rollercoaster, While Russia Changes the Status of Cryptocurrencies
The market endured another week of extreme instability: Bitcoin made a sharp surge to $67,000, then retreated below $62,000, only returning to $64,000 by the weekend. Meanwhile, a landmark event occurred in Russia — the Supreme Court officially recognized cryptocurrency as an object of theft. Let's break down the key trends.
Bitcoin: A Bounce Without Strength
The early-week rise was triggered by news of a potential truce between the US and Iran, temporarily boosting risk appetite. However, fundamental factors remained bearish: weak demand and geopolitical uncertainty quickly returned the price to its starting point. The Fed meeting under Kevin Warsh, which kept the rate at 3.5-3.75%, only confirmed the regulator's hawkish stance, traditionally weighing on risky assets.
The net weekly dynamics were virtually flat, a clear signal of weakness. Against this backdrop, altcoins like Solana (+8.6%) and Hyperliquid (+12%) showed outperforming growth, siphoning capital from the leading cryptocurrency. Six consecutive weeks of outflows from spot Bitcoin ETFs, totaling $5.43 billion, further confirm cooling institutional interest. BTC dominance fell to 58.4%, and the Fear and Greed Index, while rising to 23 points, remains in the extreme fear zone.
Russia: Cryptocurrency Equated to Property
The Plenum of the Supreme Court of the Russian Federation introduced fundamental changes to judicial practice, adding digital currency to the list of objects of theft alongside digital rubles and rights. This is a crucial step, moving cryptocurrencies from the gray zone into the category of full-fledged objects of criminal law.
Key clarification: the moment of completion of the theft is now fixed when funds are debited from the victim's account, not when they are received by the perpetrator. This simplifies the qualification of crimes. The court also clarified that a series of consecutive debits united by a single intent is considered one continuing crime. This decision creates clear legal frameworks for investigating cybercrimes involving crypto assets.
Regulatory Pressure in the EU and the Ethereum Crisis
The European regulator ESMA is tightening requirements: from July 1, crypto platforms without a MiCA license must cease servicing EU clients. It is expected that up to 75% of older platforms will leave the region. For users, this means account blocking and the urgent need to withdraw funds.
The Ethereum ecosystem faces a new challenge. Former Ethereum Foundation employee Trent Van Epps warned of a "slowly escalating funding crisis." The problem is compounded by the foundation's shrinking budget and the end of the client incentive program. Without a stable $30 million for developers, the network risks losing key talent and falling behind in the scaling race.
My take on the situation: The week showed the market is not ready for a sustained rally without clear macroeconomic signals. The Russian Supreme Court's decision is a double-edged sword: on one hand, it protects investors from fraudsters; on the other, it sets a precedent for stricter control. And the warning about the crisis in Ethereum is an alarm bell for all L1 projects that rely on centralized funding. Decentralization must also encompass the economic model.