Weekly review: bitcoin at a crossroads, Russia's Supreme Court recognizes cryptocurrencies as property, and EU regulator issues ultimatum
The past week was extremely eventful for the cryptocurrency market. Bitcoin once again demonstrated its volatility, moving from $62,000 to $67,000 and back, while regulatory events in Russia and Europe set a new direction for the entire industry. Let's break down the key points.
Bitcoin: swings on geopolitics and weak investor interest
The beginning of the week was marked by a sharp surge in Bitcoin to the $67,278 level amid news of a possible truce between the US and Iran. However, the euphoria quickly faded. The market faced disagreements between the parties and bearish factors, particularly weak demand from institutional investors. The Fed meeting, which kept the rate at 3.5-3.75% and hinted at a possible hike, only worsened the situation, sending the price below $64,000.
By Friday, Bitcoin fell to $62,000 due to a new wave of uncertainty in the Middle East, but recovered to $64,000 by the weekend thanks to the resumption of negotiations. As a result, the first cryptocurrency ended the week virtually unchanged, allowing altcoins such as Solana (+8.6%) and Hyperliquid (+12%) to show more impressive dynamics.
A key signal confirming the weakening interest in Bitcoin was a record six-week outflow of funds from spot ETFs. Over this period, about $5.43 billion was withdrawn from these products, and the total capital volume decreased to $78.3 billion — the level of November 2024.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, indicating dominant pessimistic sentiments in the market.
Russia: cryptocurrency officially becomes an object of theft
On June 16, the Plenum of the Supreme Court of the Russian Federation made historic changes to judicial practice. Digital currency, along with digital rubles and digital rights, is now officially recognized as an object of theft. This means that the theft of crypto assets will be qualified under the Criminal Code articles on theft, robbery, and assault. The court also clarified the moment the crime is completed — it is considered the moment funds are debited from the victim's account. This is an important step for forming a legal framework and protecting investor rights in Russia.
Europe: MiCA comes into effect — an ultimatum for crypto platforms
The European Securities and Markets Authority (ESMA) reminded that from July 1, all crypto companies without a license under the MiCA regulation must cease servicing clients from the EU. The regulator requires advance preparation of plans for winding down operations. According to estimates, only 194 out of 3,000 companies previously operating in the region have received official authorization. It is expected that up to 75% of old platforms will leave the European market, leading to account blocking and forced fund withdrawals for users.
Ethereum ecosystem: funding crisis and quantum threat
Former Ethereum Foundation employee Trent Van Epps warned of a "slowly escalating funding crisis" in the Ethereum ecosystem. Among the reasons are the shrinking of the foundation's treasury and the end of the Client Incentive Program. Without stable funding of $30 million, the ecosystem risks losing key developers and falling behind in scaling.
Simultaneously, Ethereum introduced the concept of post-quantum account protection SPHINCS- at a cost of just $0.07. This solution, which does not require a hard fork, is intended to protect wallets from attacks by quantum computers that could crack the current elliptic curve digital signature algorithm.
My comment: The week showed that the market is in a state of uncertainty. Bitcoin is squeezed between geopolitics and macroeconomics, while institutional interest is waning. At the same time, regulatory changes in Russia and the EU are long-awaited clarity that, in the long term, will benefit the industry by weeding out dishonest players and forming civilized rules of the game.