Crypto news

The past week was packed with events that once again confirmed the high volatility and interconnection of the cryptocurrency market with traditional finance and geopolitics. Bitcoin tested important support levels, the Ethereum Foundation announced a radical change in direction, and SpaceX's market cap plummeted by an amount comparable to half the market value of the first cryptocurrency. Let's break down the key trends.

Bitcoin under pressure from macroeconomics and geopolitics

On the evening of June 24, the Bitcoin exchange rate took a sharp dive, reaching $59,000. This drop was a classic example of reverse convergence: the US Dollar Index (DXY) soared to a 13-month high, putting immense pressure on all risk assets, including cryptocurrencies. The next day, selling intensified, and the first cryptocurrency tested the $58,000 level. A low of $58,100 was recorded on the Binance exchange, while the weighted average local low across all platforms since the start of the year stood at $58,454.

The catalyst for the decline was the escalation of the situation in the Middle East — an exchange of strikes between the US and Iran. However, after reaching these levels, the market found the strength to bounce back, and Bitcoin stabilized around $60,000, losing more than 6% of its value over the week. This movement dragged down the entire altcoin market: Dogecoin fell by 11.6%, Ethereum by 8.2%, and XRP by 8%. Even the recent growth leader, the HYPE token, corrected by nearly 7%.

Institutional interest continues to wane. Outflows from spot Bitcoin ETFs accelerated to $1.79 billion for the week — the second-largest figure in history, trailing only the record $2.61 billion recorded in late February 2025. Ethereum-based funds also showed negative dynamics, losing $273.3 million. The Fear and Greed Index plunged into the "extreme fear" zone, dropping from 23 to 18 points. The total market capitalization shrank to $2.07 trillion, and Bitcoin's dominance decreased from 58.4% to 58.1%.

Ethereum Foundation: an era of change and austerity

One of the most significant events of the week was the announcement by the Ethereum Foundation (EF) of a major reorganization. Ethereum co-founder Vitalik Buterin confirmed that the foundation is cutting its budget by approximately 40%, transitioning to a long-term capital management model. This means the EF is gradually moving away from its previous wasteful model: whereas until 2026, about 15% of reserves were spent annually, after 2030 this figure is expected to drop to 5%.

The new management structure will focus on three key areas: core protocol development (Protocol), accelerating technology adoption and ecosystem growth (Acceleration), and ensuring the long-term sustainability of the network and community (Stewardship). The goal is to increase transparency and speed up the implementation of strategic objectives. However, the budget cuts have already led to personnel changes and the winding down of several initiatives. This signals that even leading organizations in the crypto industry are forced to adapt to new market realities.

Russia's financial watchdog tightens the screws

Russia continues to tighten regulation of cryptocurrency turnover. Rosfinmonitoring announced new rules under which all new market participants — brokers and trust managers — will be required to conduct full client identification and disclose beneficiary data. To reduce the burden on exchanges, they will be allowed to delegate identification functions to commercial banks. Additionally, the list of transactions subject to mandatory control is expanding, and the digital depository will be integrated into the transaction information support system. This effectively implements the Travel Rule standard, already in effect in the EU and most FATF jurisdictions.

SpaceX: a $600 billion drop in three days

In the traditional sector, an event also occurred that could not help but affect overall sentiment. The market capitalization of Elon Musk's company SpaceX collapsed by more than $600 billion over three trading sessions. The trigger was news of the company's plans to issue $20 billion in bonds to refinance a bridge loan related to the purchase of xAI. Shares fell by 16% in one day, with a total decline of about 23% over three days. The dynamics were also influenced by weak financial results from the AI division xAI (a loss of $6.36 billion on revenue of $3.2 billion) and the acquisition of AI assistant developer Cursor for $60 billion. SpaceX's market cap now stands at $2.02 trillion, more than 30% below its all-time high.

My analysis: The current week clearly demonstrates the fragility of the market. Bitcoin, despite its bounce from $58,000, remains in a risk zone as long as the dollar index continues to rise. The restructuring of the Ethereum Foundation is a necessary but painful step that could temporarily weaken confidence in the ecosystem. And the decline of SpaceX is a reminder that even giants are not immune to corrections, and that the "artificial intelligence" bubble could burst faster than expected. Investors should prepare for further volatility.