Crypto news

The past week was eventful for both the digital asset market and the regulatory environment. Bitcoin once again demonstrated classic volatility, while Russian courts and European regulators made important steps shaping the future of the industry.

Bitcoin: Rollercoaster Ride and Stagnating Interest

The leading cryptocurrency started the week with a confident rally, jumping from $64,000 to a local peak of $67,278 amid news of a potential truce between the US and Iran. However, the euphoria quickly faded: disagreements between the parties and weak demand brought the bears back to the market. The key moment was the US Federal Reserve meeting, which kept the rate at 3.5-3.75% but did not rule out a hike by the end of the year. This triggered a break below the $64,000 level.

By Friday, Bitcoin had slumped to $62,000 due to renewed uncertainty in the Middle East. Nevertheless, the weekend brought a recovery to just above $64,000 after the resumption of negotiations. As a result, on a weekly basis, the BTC price remained virtually unchanged, allowing altcoins, especially Solana (+8.6%) and Hyperliquid (+12%), to show more impressive dynamics.

The main alarm signal is a record six-week outflow from spot Bitcoin ETFs, totaling approximately $5.43 billion over this period. The total capital in these products fell to the level of November 2024 — $78.3 billion. The Fear and Greed Index, although rising from 18 to 23 points, is still in the "extreme fear" zone. This indicates deep pessimism among institutional investors, who are likely taking profits or moving into safer assets amid macroeconomic uncertainty.

Russia: Cryptocurrency Now an Item of Theft

On June 16, the Plenum of the Supreme Court of the Russian Federation officially recognized digital currency as an item of theft, alongside digital rubles and digital rights. This is an important step in shaping law enforcement practice. Now, the theft of crypto assets will be classified under the relevant articles of the Criminal Code, providing law enforcement with clear tools to combat this type of crime. Additionally, the court clarified that the theft of non-cash funds is considered complete at the moment the money is debited from the victim's account, closing a number of legal gaps.

Europe: MiCA Deadline and Ethereum Funding Crisis

The European Securities and Markets Authority (ESMA) reminded that from July 1, crypto companies without a MiCA license must cease servicing clients in the EU. The regulator requires platforms to prepare market exit plans in advance. Given that only 194 companies out of approximately 3,000 previously operating have received official authorization, the market is facing a major shakeout. Estimates suggest that about 75% of old exchanges will close or leave the region. For users, this means account blocking and the need to withdraw funds.

Meanwhile, an internal crisis is brewing in the Ethereum ecosystem. Former Ethereum Foundation employee Trent Van Epps warned of a "slowly growing funding crisis" over the next 3-9 months. The main risks are associated with reduced foundation spending and the end of the client team incentive program. According to his estimate, the ecosystem needs about $30 million to stably support developers. Without this, Ethereum risks losing key specialists and falling behind in preparing for challenges such as quantum computing. Against this backdrop, the proposal for post-quantum account protection for $0.07 looks like a timely but only temporary measure.

My comment: The week showed that the market is in a phase of consolidation and uncertainty. Bitcoin is squeezed between macroeconomic factors and declining institutional demand. Regulatory actions in the Russian Federation and the EU, although moving in different directions, ultimately work towards legalizing and structuring the market. However, for Ethereum, internal funding problems could become a more serious challenge than any external regulation.