Morning Minute is a daily newsletter authored by Tyler Warner. The views and analysis presented are his and do not necessarily represent those of Decrypt. Additionally, be sure to check out our new daily news show that summarizes key stories in five minutes, available on Apple Pod or Spotify.

Good morning!

Here are the main headlines today:

  • Bitcoin has bounced back to $63.5k after dipping below $60k last Friday.
  • ZEC surged by over 50% following the Ironwood proposal that enables independent verification.
  • Congress is set to discuss seven crypto tax bills in a hearing this week.
  • SpaceX’s IPO is scheduled for Thursday, June 12, with shares priced at $135 each.
  • The Yuga Labs whitehat team intervened to protect NFTs during a Flooring Lab exploit.

📉 Bitcoin's Plunge and Recovery

Bitcoin experienced its first drop below $60,000 since October 2024 on Friday, reaching a low of $59,227 before climbing back to approximately $63,000 as buyers entered the market.

During this period, more than $1.6 billion in liquidations occurred as ETH fell to $1,500, SOL dropped to $63.75, and several altcoins lost significant value. Overall, the crypto market has seen a reduction of around $2.5 trillion in market capitalization since reaching its all-time high in October 2025.

Three main factors are contributing to this situation:

  • Jobs Report and Interest Rate Adjustments: The US economy added 172,000 jobs in May, significantly exceeding the forecast of 85,000. April's numbers were also revised upward by 64,000, indicating potential interest rate hikes. The CME FedWatch tool suggests a 42.7% probability of higher rates by December. The CPI report is due this week, followed by Warsh's first FOMC meeting on June 16-17, which should provide further clarity.
  • Capital Drain from AI Investments: Google recently raised $84 billion, while Meta plans to inject “tens of billions” more into AI projects. SpaceX’s upcoming IPO, valued at $75 billion, has led figures like Saylor, Mati Greenspan, and Jameson Lopp to suggest that the AI investment cycle is diverting funds that would typically flow into crypto.
  • Saylor's Market Influence Shift: Michael Saylor's first Bitcoin sale in four years disrupted the market's strong institutional support. Although the "never sell" philosophy was not legally binding, it had been a significant psychological support for the market.

The pressing question now is—when and where will the selloff conclude?

The AI investment trend is likely to continue affecting the market in the short term, and clarity on interest rate hikes should emerge after the CPI report and Warsh's FOMC meeting. Regaining trust in the Saylor narrative may take time, but today's trading data will provide critical insights.

However, there are positive indicators as well. Gold has fallen below its 200-day moving average for the first time since October 2023, which could lead to a rotation into Bitcoin. A cooling off in AI investment could also facilitate this shift, and overcoming concerns related to Saylor may help restore confidence.

So, there is still reason for optimism, but a turbulent summer may lie ahead…

📈 Zcash's Remarkable Recovery Following Ironwood Proposal

ZEC saw a remarkable increase of 45% on Monday after Zcash's development team introduced the Ironwood network upgrade, responding to a recently uncovered four-year vulnerability in the Orchard privacy pool that caused a 38% drop in the token's value.

The ZODL team, collaborating with Tachyon, Valar Group, the Zcash Foundation, and Shielded Labs, has proposed a new shielded pool aimed at restoring users' ability to independently verify Zcash's circulating supply, with an activation target of late July 2026. This mechanism involves a Turnstile where all existing Orchard funds must be transferred through a verifiable checkpoint into the new pool, allowing users to confirm the total ZEC supply by running a node and summing balances from active pools as soon as Ironwood is activated. Any counterfeited ZEC created during the vulnerability will either surface during migration or remain trapped in the old pool.

The upgrade is supported by formal verification, independent audits, and an AI-assisted security review, presenting a much stricter assurance framework compared to the original Orchard pool.

Regarding the potential Orchard exploit, Polymarket bettors currently assign only an 11% likelihood that it was actually exploited, indicating that the panic may be somewhat exaggerated.

💰 SpaceX's IPO on the Horizon

SpaceX is scheduled to debut on Nasdaq under the ticker SPCX on June 12, with shares priced at $135 each, positioning it for what could become the largest IPO in history by a considerable margin.

With over 555 million Class A shares available at $135, SpaceX aims to raise approximately $75 billion, valuing the company at around $1.75 trillion. Notably, 30% of the offering is allocated for retail investors, distributed through platforms like Robinhood, Schwab, Fidelity, and E*Trade—three times the industry average.

This timing is challenging for the crypto market, as the $75 billion capital influx is often cited as a key reason for the current market downturn, with funds liquidating risk assets to accommodate SPCX allocations. According to Nasdaq-100 fast-entry rules, index funds will need to purchase SPCX within 15 trading sessions of the listing, which could inject $15-30 billion in buying pressure. The crucial question remains whether this demand will arrive immediately post-listing or if it will amplify the current capital rotation away from risk assets before eventually providing support.

🏛️ Congressional Hearing on Crypto Tax Bills

The House Ways and Means Committee has circulated seven crypto tax discussion drafts ahead of a hearing scheduled for today at 2 pm ET.

This event marks a significant step as it is the first time congressional leaders have advanced tax-focused legislation related to crypto, aiming to address longstanding issues within the industry. Chairman Jason Smith opted to present seven separate bills instead of a single omnibus package to facilitate coalition-building around individual provisions without forcing an all-or-nothing vote.

Here’s a breakdown of the seven bills:

  1. De Minimis Exemption for Small Transactions: Currently, using Bitcoin for minor purchases, like coffee, and realizing a small gain is considered a taxable event. This bill proposes a threshold, targeting a $10 exemption for crypto network transaction fees, with broader exemptions for everyday purchases under discussion.
  2. Tax Clarity for Mining and Staking Act: This proposal would exempt crypto obtained through staking and mining from being taxed as income upon receipt. Currently, staking rewards are taxed at the moment they are earned, regardless of whether they are sold. The proposed change defers taxation until the sale occurs, aligning with industry demands.
  3. Stablecoin Transaction Treatment: Regulated dollar-backed stablecoins would be treated like cash for tax purposes, eliminating the need for complex reporting on minor gains or losses from routine stablecoin transactions.
  4. Wash Sale Rules Applied to Crypto: This bill would extend wash sale rules to digital assets, preventing the common practice of selling a losing position to realize a tax loss and then immediately repurchasing the same asset—currently permissible for crypto but not for stocks.
  5. Mark-to-Market Accounting for Crypto Traders: Professional crypto traders would have the option to use mark-to-market accounting, simplifying tax reporting and eliminating the need to track individual cost bases across numerous transactions.
  6. IRS Safe Harbor for Prior Reporting Failures: This provision would offer a safe harbor for taxpayers who previously failed to report crypto gains correctly, giving a fresh start to many who may have underreported due to unclear guidance without any intent to evade taxes.
  7. Charitable Donation Appraisal Relief: Currently, donating crypto above a certain threshold necessitates a qualified appraisal, similar to physical property. This bill aims to remove or simplify this requirement, making large crypto charitable donations less administratively burdensome.

The hearing today will serve as a platform to refine these proposals before any formal markup. The strategic separation into seven distinct bills suggests a tactical approach aimed at passing what is feasible, rather than waiting for comprehensive reform.

Collectively, these bills represent the most extensive simultaneous proposal for crypto tax reform ever presented by Congress alongside market structure legislation.

🌎 Macro Crypto and Market Overview

  • Major cryptocurrencies are recovering from Friday's dip; BTC +1.4% at $62.9k; ETH +4% at $1,670; SOL +3% at $66.20; HYPE +7% at $61.54
  • DEXE (+16%), HASH (+13%) and NEAR (+12%) are also performing well.
  • Oil +4% at $94; Gold -1% at $4,326
  • Stock futures show mixed results, with the DOW unchanged and Nasdaq up 0.7%
  • Gold has fallen below its 200-day moving average for the first time since October 2023
  • Crypto shorts suffered losses exceeding $500M on Sunday, marking the worst day for bearish traders since April.
  • JPMorgan analysts indicate that Bitcoin’s performance in the second half of the year will depend on how Saylor manages his $1.7B annual debt obligations.
  • Bybit launched IPO Express and a tokenized SpaceX subscription in collaboration with xStocks, enabling users to subscribe to SPCX ahead of its June 12 Nasdaq listing.

Corporate Treasuries & ETFs

Meme Coin Update

📈 Market Highlights of the Day

💰 Token and Protocol Insights

🚚 NFT Developments

  • NFT leaders generally saw gains over the weekend; Punks +7% at 32.7 ETH, BAYC +20% at 9.15 ETH, Pudgy +3% at 4.28 ETH; Hypurr rose +2% at 264 HYPE.
  • NPC (+97%) and Brainrot (+50%) were notable weekly gainers.
  • Yuga Labs conducted a successful white hat intervention to rescue numerous NFTs during the ongoing Flooring Protocol exploit.

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