Bitcoin saw significant price fluctuations this week while Russia classified digital assets as theft. EU regulators reminded businesses of MiCA compliance.
Bitcoin has seen significant price fluctuations this week, while Russia has officially classified digital assets as objects of theft, and the EU regulator has reiterated the MiCA regulations for crypto businesses.
Bitcoin Fluctuates Around $64,000
At the beginning of the week, Bitcoin's price climbed from approximately $64,000 to a peak of $67,278 on Binance, primarily fueled by news of a ceasefire between the U.S. and Iran. However, optimism was tempered by ongoing disagreements between the two nations and weak demand, which pressured the price downward.
After the U.S. Federal Reserve's first meeting under new leadership, Bitcoin's value dropped below $64,000, as the Fed maintained interest rates and hinted at potential hikes later in the year. By June 19, Bitcoin's price fell to $62,000, impacted by renewed Middle Eastern tensions and a postponed trip by U.S. Vice President J.D. Vance to negotiate with Iran.
Over the weekend, Bitcoin recovered slightly, surpassing $64,000, aided by the American delegation's departure for negotiations and declining oil prices that encouraged investment in riskier assets. Throughout the week, Bitcoin's price remained largely stable, allowing several altcoins to outperform it, with Solana rising by 8.6% and Ethereum by 3.5%.
Investor interest in Bitcoin has waned, evidenced by a record outflow from spot ETFs totaling around $5.43 billion since mid-May, bringing total capital down to $78.3 billion, the lowest since November 2024. Ethereum also saw about $10 million withdrawn from its funds this week, continuing a negative trend.
The cryptocurrency fear and greed index rose from 18 to 23, indicating extreme fear but approaching higher levels. The total market cap remained around $2.2 trillion, with Bitcoin's dominance dropping to 58.4% and Ethereum's share rising to 9.5%.
Russia's Supreme Court Classifies Cryptocurrency as Theft
On June 16, the Russian Supreme Court updated its judicial practices regarding theft, officially recognizing digital assets, including cryptocurrencies, as objects of theft. This amendment clarifies that theft is complete once funds are debited from a victim's account and specifies that only cashless funds are considered in such crimes.
Funding Crisis Predicted for Ethereum
Trent Van Epps, a former Ethereum Foundation employee, warned of a potential funding crisis for the Ethereum ecosystem within the next three to nine months. He cited treasury constraints and the upcoming end of the Client Incentive Program as critical factors impacting funding. The Ethereum ecosystem may require around $30 million for developer support to avoid losing essential talent and falling behind in technological advancements.
ESMA Enforces MiCA Compliance for Crypto Firms
Starting July 1, the European Securities and Markets Authority (ESMA) will require crypto companies without a MiCA license to cease operations in the EU. Only 194 companies have received official approval out of approximately 3,000 that previously operated in the region, leading to expectations that around 75% of these platforms may exit the market.
New Quantum Protection Proposal for Ethereum Accounts
Nicolas Consigny from the Ethereum Foundation proposed a new method for protecting accounts from quantum computing threats, called SPHINCS-. This solution, which will cost around $0.07 to implement, is designed to enhance wallet security without requiring major protocol changes.
