Bitcoin on an emotional rollercoaster: weekly recap, cryptocurrency status in Russia, and Ethereum's funding crisis
The past week was marked by sharp fluctuations in the Bitcoin price, important legal changes in Russia, and alarming signals for the Ethereum ecosystem. The market once again demonstrated high sensitivity to geopolitical news and macroeconomic factors.
Bitcoin: Rollercoaster Ride and Waning Interest
The week began with a sharp surge in the leading cryptocurrency: from levels around $64,000, it jumped to a local high of $67,278 on Binance. The catalyst was optimistic news about a potential truce between the US and Iran. However, the euphoria quickly faded as the parties failed to overcome their differences, and the market moved into a correction. Additional pressure came from the first Federal Reserve meeting under Kevin Warsh. The regulator kept the key rate at 3.5-3.75% but did not rule out a hike by the end of the year, which triggered a break below the $64,000 support level.
The culmination of the week was Friday, June 19, when Bitcoin crashed to $62,000 amid renewed uncertainty in the Middle East. US Vice President JD Vance postponed a trip to Switzerland, which was perceived as a signal of failed negotiations. However, the situation eased by the weekend: the American delegation eventually departed, and falling oil prices attracted capital into risk assets, bringing the price back to just above $64,000.
Notably, on a weekly basis, the Bitcoin price remained virtually unchanged. This allowed altcoins to show more impressive dynamics: Solana rose by 8.6%, Ethereum by 3.5%, and the Hyperliquid token surged nearly 12%. Waning interest in Bitcoin is confirmed by a record six-week outflow from spot ETFs: during this period, the products lost about $5.43 billion, and total capital shrank to $78.3 billion, a level last seen in November 2024. The Fear and Greed Index, although rising from 18 to 23 points, still remains in the zone of extreme fear.
Russia: Cryptocurrency Recognized as an Object of Theft
On June 16, the Plenum of the Supreme Court of the Russian Federation introduced important changes to judicial practice. The list of objects of theft now officially includes digital rubles, digital rights, and digital currency. This decision closes a legal loophole: the theft of crypto assets will now be classified under the relevant articles of the Russian Criminal Code.
Additionally, the Supreme Court clarified the moment when the theft of non-cash funds is considered complete — the crime is deemed finished from the moment the money is debited from the victim's account. This is an important nuance that could affect court rulings. It was also noted that if funds from a single victim are stolen through multiple debits but are united by a single intent, this should be considered a single continuing crime.
Ethereum: Warning of a Funding Crisis
Former Ethereum Foundation (EF) employee Trent Van Epps made an alarming statement: the Ethereum ecosystem could face a "slowly escalating funding crisis" within the next 3-9 months. The main risks are tied to the EF's philosophy, which seeks to move away from being the sole center of power, but de facto legitimacy still concentrates around the foundation.
Van Epps highlighted two key pressure factors: treasury contraction (a plan to reduce annual spending from 15% to 5% by 2030) and the end of the Client Incentive Program in April 2026. This program was a key mechanism for funding client teams through staking, and there is currently no replacement. Estimates suggest the ecosystem needs approximately $30 million to support developers. Without stable funding, Ethereum risks losing critically important talent, falling behind in scaling, and becoming vulnerable to future challenges, including quantum computing.
Regulatory and Technological News
ESMA reminded that from July 1, crypto companies without a MiCA license must cease servicing clients from the EU. By May, only 194 out of 3,000 companies previously operating in the region had received official authorization. It is expected that around 75% of old platforms will close or exit the European market, leading to account freezes for regular users.
On a positive note: the lead of the Kohaku project at the Ethereum Foundation presented the concept of post-quantum account protection, SPHINCS-. The solution, costing just $0.07, does not require a hard fork and is based on the SPHINCS+ signature standard. This will serve as an intermediate step before launching the more efficient leanSPHINCS system, which will further reduce costs through data aggregation.
My View on the Situation
The week showed that the market remains extremely sensitive to geopolitical signals, and fundamental factors, such as ETF outflows, point to investor fatigue. However, recognizing cryptocurrency as an object of theft in Russia is not just a tightening of rules but also a step towards legalization: assets are now protected by law. And the warning about Ethereum's funding crisis is a serious wake-up call for the community. If the ecosystem cannot ensure stable funding for developers, it could slow the pace of innovation and jeopardize the network's leadership.