Weekly roundup: bitcoin on a rollercoaster, Russia clarifies the legal status of cryptocurrencies, and the EU tightens the screws
The past week was packed with events that set the direction for the entire crypto market. Bitcoin once again demonstrated its volatility, the Russian judiciary took an important step in recognizing digital assets, and a European regulator finally tightened the rules of the game. Let's break down the key moments.
Bitcoin: Swings on Geopolitics and Weak Investor Interest
The leading cryptocurrency started the week with a confident surge from $64,000 to a local high of $67,278, driven by news of a potential truce between the US and Iran. However, as is often the case, euphoria quickly gave way to a correction. Market skepticism about the durability of the agreement and weak demand took their toll. After the Fed's decision to keep the rate at 3.5-3.75% and hints of a possible hike by the end of the year, Bitcoin broke through the $64,000 support level, and on Friday even fell to $62,000. The cause was renewed uncertainty in the Middle East.
Nevertheless, by the weekend the situation stabilized, and the asset returned to just above $64,000. As a result, Bitcoin's price remained virtually unchanged over the week, allowing altcoins like Solana (+8.6%) and Hyperliquid (+12%) to show more impressive dynamics. This signals a capital shift from "digital gold" to riskier, but higher-yielding instruments.
The weakening interest in Bitcoin is confirmed by a record six-week outflow from spot ETFs — products lost a total of about $5.43 billion, reducing the total capital volume to $78.3 billion. This is the level of November 2024. The Fear and Greed Index, although rising from 18 to 23 points, is still in the "extreme fear" zone, indicating dominant pessimistic sentiment.
Russia: Cryptocurrency Now Officially a Subject of Theft
The key event for the Russian crypto community was the decision of the Plenum of the Supreme Court. On June 16, amendments were made to the 2002 ruling on judicial practice in cases of theft, robbery, and assault. Digital currency, along with digital rubles and digital rights, has been officially recognized as a subject of theft. This is an important step in law enforcement practice, which, on one hand, protects asset owners, and on the other, gives law enforcement clear tools for qualifying crimes. The moment of completion of non-cash theft was separately clarified — from the moment of debiting from the victim's account.
Europe: No MiCA License — Goodbye
The European Securities and Markets Authority (ESMA) reminded that from July 1, crypto companies that have not obtained a license under the MiCA regulation must cease servicing clients from the EU. The regulator requires a business wind-down plan to be prepared in advance. According to expert estimates, out of 3,000 firms operating in the region, only 194 have received official permission. It is expected that up to 75% of old platforms will leave the European market. For users, this means account blocking and the need to urgently withdraw funds. Europe is finally tightening the screws, creating a precedent for strict regulation.
Ethereum Ecosystem: Crisis Warning and Quantum Protection
Former Ethereum Foundation employee Trent Van Epps warned of a "slowly escalating funding crisis" in the ecosystem. The main risks are related to the foundation's spending cuts and the end of the client incentive program. Without stable funding of $30 million per year, the ecosystem risks losing key developers and falling behind in preparing for challenges, including quantum computing.
At the same time, a solution for post-quantum account protection was proposed in Ethereum. The SPHINCS+ project, costing just $0.07, will allow securing wallets without a hard fork, using the NIST signature standard. This is a pragmatic and inexpensive way to prepare for future threats.
My comment: The week showed that the market is in a phase of uncertainty. Bitcoin continues to react to macroeconomic and geopolitical triggers, but the internal weakness of demand, confirmed by ETF outflows, prevents it from consolidating higher. Regulatory actions in the Russian Federation and the EU, although multidirectional, ultimately lead to greater legalization and structuring of the market, which in the long term is a positive signal.