Bitcoin wrapped up the week on a downward trajectory, experiencing a halt in its latest recovery phase. The cryptocurrency traded around $63,000 on June 19, marking a decrease from $65,000 at the beginning of the week. Previously, Bitcoin had received a short-lived boost following a peace agreement between the U.S. and Iran, coinciding with a drop in crude oil prices below $80 per barrel. However, the positive momentum was short-lived as the U.S. Federal Reserve indicated a likely increase in interest rates over the next few months, sending shockwaves through the crypto market.
On June 17, the Fed announced expectations of raising interest rates by at least 25 basis points in the latter half of the year, contributing to a downturn for cryptocurrencies. Analysts note that risk assets such as Bitcoin perform better in an environment of declining interest rates. Current investor sentiment toward digital currencies remains weak; while some experts speculate that Bitcoin may have reached its lowest point when it fell under $60,000, skepticism still lingers. Bearish analysts highlight the lack of near-term catalysts that could stimulate growth for Bitcoin and similar assets.
In other crypto-related developments, options traders are now wagering that Bitcoin’s price may fall to as low as $52,000 in the coming weeks, reflecting a growing bearish trend among market participants.
Additionally, Strategy’s preferred stock has faced challenges, hitting an all-time low at $83. This stock, which is intended to offer high dividends while retaining a stable value of $100, has recently plunged below its initial IPO price of $90.
The Ethereum Foundation also faced turmoil as Hsiao-Wei Wang, its executive director, announced her resignation, marking another departure in a series of similar exits from the organization.
On a more positive note, online brokerage Wealthsimple announced it would enable Canadians to access Kalshi’s prediction market, launching an app designed for retail investors to engage in economic and financial event betting.
In the ETF space, Franklin Templeton is working on innovative funds that would convert corporate dividends into Bitcoin exposure, having registered two ETFs, the “Franklin US Equity Bitcoin DRIP Index ETF” and the “Franklin US Innovation Bitcoin DRIP Index ETF,” which could begin trading by September.
Meanwhile, Microsoft has raised alarms about a new malware targeting cryptocurrency wallets, capable of draining funds from infected systems, which it has identified as a “crypto clipper.”
Prediction market platform Kalshi is exploring an IPO, driven by its rising popularity among retail investors and impressive revenue growth. Recent reports indicate that Kalshi has started discussions with investment banks as its annual revenue run rate exceeds $2 billion.
In stock market news, HIVE Digital saw its shares rise by 12% following a $220 million investment deal with Bell Canada and AI firm Cohere, aimed at enhancing its high-performance computing capabilities.
Moody’s has also made strides into the cryptocurrency space, embedding credit ratings into the Solana network, allowing issuers of tokenized assets to include these assessments directly into blockchain-based securities.
Lastly, BitGo Holdings announced a $50 million stock buyback program that has led to a 13% increase in its stock price. In contrast, user activity on the memecoin platform Pump.fun has plummeted by 80%, indicating a shift as investors turn toward other trading instruments. Previously averaging $4.8 million daily in revenue, the platform’s earnings have sharply declined to around $800,000 per day in June.
