Category: Cryptocurrency

Galaxy Digital has revised its outlook for the CLARITY Act becoming law this year, citing a shrinking legislative window in the Senate. The firm now estimates only a 60% chance of passage, down from 75% in May.

Alex Thorn, Galaxy’s research chief, explained that the bill’s momentum has stalled due to the crowded Senate calendar. He noted that floor time must be secured by July to allow for debate, amendments, and reconciliation with House versions before the August recess. After that, midterm campaigning will dominate, making major legislation difficult to advance.

Key unresolved issues include provisions on ethics and illicit finance, which continue to divide lawmakers. Thorn indicated that odds could improve if Senate leaders commit to a July vote and bridge these differences. Senator Cynthia Lummis has urged action, emphasizing that the bill has cleared committee and needs only floor approval.

Other industry observers share the caution. JPMorgan has placed passage chances below 50%, while Bitwise’s CIO noted estimates as low as 5% to 30% among Washington insiders. The CLARITY Act remains a top priority for crypto advocates, but its fate hinges on whether leaders can navigate procedural hurdles and bipartisan negotiations before the election season tightens the schedule.

PiggyBank has terminated a hedge linked to the LAB token after volatile price swings and deeply negative funding rates made the position unsustainable, causing notable impact on several vaults. The DeFi yield protocol announced that the closure will reduce net asset values, with the USDC product facing an estimated 15% drawdown. SPYx could see a 12% decline, while JitoSOL may fall 9%. These losses stem from removing locked LAB tokens from NAV calculations until they become tradeable in August.

The protocol initially placed $100,000 into the trade a month ago, representing roughly 2% of the portfolio. The strategy involved purchasing locked LAB tokens at a discount via an over-the-counter desk while shorting LAB perpetual futures to hedge price risk. However, LAB experienced what PiggyBank described as violent price manipulation, thin liquidity, and extremely negative funding rates, which escalated the cost of maintaining the short. The team decided closing the position was economically rational to prevent further damage.

On-chain investigator ZachXBT criticized the trade, accusing the protocol of using depositor funds to gamble on what he called blatant scam coins. Earlier allegations claimed LAB insiders controlled over 95% of the token supply and hid distribution details. PiggyBank’s statement did not address those claims, focusing instead on the hedge closure and accounting treatment. The protocol said it acted before the position breached internal risk limits.

The locked LAB tokens are currently valued at about $1.35 million, but they cannot be sold until August 14. PiggyBank excluded this holding from NAV because of illiquidity, leading to the reported drawdowns. Users have limited information on whether withdrawals can be made at revised values or if compensation is planned. The team promised to release a detailed report outlining next steps, trade records, risk thresholds, and plans for the unlock. Until then, the final recovery value remains uncertain.

Analysts at JPMorgan have raised concerns about the financial health of Michael Saylor’s Strategy, warning that the company may need to strengthen its dollar reserves to cover annual dividend payments of around $1.7 billion. The bank’s caution comes after Strategy sold 32 Bitcoin in late May, a move that, while small, sparked questions about how the firm will meet future obligations without tapping its Bitcoin holdings.

According to the JPMorgan report, Strategy’s current cash reserves would only cover about six months of dividend payments. The bank suggests that rebuilding these reserves could ease fears that Strategy might be forced to liquidate Bitcoin to pay dividends. This scrutiny follows Strategy’s earlier establishment of a $1.44 billion reserve in December to support preferred stock dividends and debt interest.

Despite these concerns, JPMorgan expects Strategy to remain a major Bitcoin buyer, projecting around $32 billion in purchases in 2026, up from previous estimates. The bank also lowered its overall outlook for digital assets, giving less than a 50% chance that the CLARITY Act will pass this year. Bitcoin’s price near $60,000 and Mining costs around $87,000 are also cited as key factors.

Industry figures like BTCTOP CEO Jiang Zhuoer have defended Strategy, arguing that selling Bitcoin would damage its reputation and that the company can manage even if Bitcoin drops to $30,000. However, JPMorgan warns that the current pessimism could turn bullish if conditions improve later in the year.

Bitcoin has made a notable recovery, climbing back above $62,000 after dipping to around $59,100 last week. This rebound briefly pushed the cryptocurrency to nearly $64,200 before sellers stepped in, leaving the market in a tug-of-war between key support and initial resistance. At time of writing, Bitcoin was trading near $63,000, up 1.39% in 24 hours, with a daily range of $61,206 to $63,739. Despite the bounce, the seven-day loss still stands at 14.06%, indicating that buyers have slowed the decline but not reversed the broader weekly trend. The upcoming ETF flows and futures positioning will be crucial tests for this recovery.

The most significant support is the 200-week simple moving average at approximately $62,800, which Bitcoin managed to hold after sweeping February’s low. Crypto analyst Crypto Rover noted that a weekly close above this level is a positive sign, suggesting another test of the $64,000–$64,200 range could be on the cards. If Bitcoin closes below the 200-week average, attention will shift to $60,000 and the recent low of $59,100. The current decline stems from a convergence of macroeconomic pressures, including higher inflation that dashed hopes for looser monetary policy and robust U.S. employment data. In May, the economy added 172,000 jobs against an expectation of 85,000, keeping unemployment at 4.3%. This led to a sell-off that saw Bitcoin dip below $60,000, triggering over $1.7 billion in crypto liquidations in 24 hours.

Technical indicators paint a mixed picture. Bitcoin’s 14-day RSI is at 26.43, below the oversold threshold of 30, suggesting selling has been overdone and a relief bounce is possible. However, the MACD remains bearish, with the MACD line at -4,019.58 below the signal line at -2,951.83 and a negative histogram. This divergent setup means that while short-term momentum may favor buyers, sellers still control the broader trend. The Fear and Greed Index has fallen to 8, signaling extreme fear, which historically has preceded bottoms. Trader Scott Melker sees a potential weekly bullish divergence forming on the RSI, but it requires confirmation through a higher close on both price and RSI.

Geopolitical developments have also influenced Bitcoin’s movement. Reports of a potential deal between the U.S. and Iran initially boosted risk assets, but subsequent Israeli strikes on Iranian targets have reintroduced uncertainty. Brent oil rose above $96 per barrel, which could fuel inflation fears and keep pressure on interest rates. Bitcoin’s correlation with traditional markets means that energy price spikes may weigh on the recovery. Meanwhile, analyst Ali Martinez outlines a support ladder emphasizing the 200-week SMA at $62,800, the 300-week SMA at $55,000, and the 400-week SMA near $42,500. Bitcoin must first defend $62,800 and $60,000 before lower levels become relevant. The $55,000 area, aligned with a long-term trendline tracked by Crypto Patel, is the next major support if the recent low is breached. Calls for deeper corrections remain speculative until these key levels are lost.

Derivatives data adds an extra layer of risk. Open interest has risen while prices fell, indicating increased leverage. This setup could trigger a short squeeze if Bitcoin clears $64,200, or a long squeeze if it falls below $60,000. A firm close above $64,200 would strengthen the recovery and support the bullish RSI divergence case. For now, the 200-week average at $62,800 is the critical dividing line. Holding it keeps $64,200 in play and allows buyers to build a base. Losing it would bring $60,000, $59,100, and potentially $55,000 into focus, with the bearish MACD as the dominant signal.

Josh Swihart, the founder of Zcash Open Development Lab (ZODL), has disclosed the emergency measures taken to address a severe vulnerability discovered in the Orchard shielded pool, which is a central component of Zcash’s privacy architecture. The flaw could have allowed attackers to generate unlimited counterfeit ZEC, threatening the integrity of the entire network.

Swihart explained that the response involved two sequential network upgrades. Initially, a soft fork was implemented to temporarily disable Orchard transactions, reducing the risk of exploitation while the team worked on a permanent fix. This cautious approach prevented public disclosure of details that could have been used to attack the network. Subsequently, the NU6.2 hard fork went live, fully repairing the underlying security issue and allowing Orchard transactions to resume.

The vulnerability was initially brought to light by Shielded Labs, an independent organization supporting Zcash. They highlighted that the bug in the Orchard circuit could enable unlimited creation of counterfeit coins, though they noted there is no evidence it was ever exploited. While they consider prior exploitation unlikely, they acknowledged the absence of cryptographic proof that the flaw remained dormant.

Orchard serves as the main shielded pool in Zcash, facilitating private transactions using zero-knowledge proofs that hide transaction details while ensuring validity. The rapid response to this critical vulnerability was coordinated with key ecosystem participants, including mining pools and exchanges. Swihart credited ViaBTC and Foundry for their crucial roles in reviewing the emergency code changes and helping to orchestrate the network’s response.

In addition to the immediate fix, discussions have emerged about longer-term protective measures. Shielded Labs has proposed a plan called Ironwood, which would isolate the current Orchard pool, track outflows through turnstile accounting, and eventually transition users to a new, more resilient shielded pool with enhanced supply verification. Meanwhile, David Schwartz, former CTO of Ripple, addressed concerns about funds left in Orchard, stating that passive holders would retain ownership of their coins if no exploit occurred before a migration, as consensus rules could still recognize those balances.

The market reacted sharply to the news, with ZEC dropping from approximately $630 to $303. However, the token has since rebounded, recovering over 41% from its June 5 low. According to recent data, ZEC rose 13.5% in the last 24 hours to $428.67. Despite the turmoil, BitMEX co-founder Arthur Hayes revealed he had sold his entire ZEC position following the disclosure. Summarizing the incident, Swihart emphasized that the network successfully addressed the vulnerability, tested its incident response, strengthened relationships with partners, and united developers around a clear recovery path for the project.

An early Ethereum investor demonstrated impeccable timing by liquidating roughly $188 million in digital assets just before a sharp market downturn, only to repurchase at reduced prices afterward. On-chain analytics firm Lookonchain tracked the transactions, noting that the wallet sold 60,000 ETH valued at $117.25 million and 9,442 wstETH worth $24 million, both at an average price near $2,040. The trader also offloaded 600 WBTC for approximately $47.12 million, with an average sale price of $78,538.

Following the market decline, the same entity bought back 611 WBTC for about $38.68 million at an average cost of $63,280, and acquired 60,088 ETH ($95.3 million) plus 10,000 wstETH ($21.08 million) at an average price close to $1,606. This move allowed the whale to rebuild a slightly larger position—11 additional WBTC and minor increases in ETH and wstETH—while using less capital than the original sale proceeds.

Ethereum’s price has since rebounded from a brief dip toward $1,500, trading near $1,674 at publication, up roughly 4% in 24 hours. However, the token remains significantly lower over the past week, and volatility persists with a daily range of $1,607 to $1,706. A separate profitable trader, identified as pension-usdt.eth, extended a short position by 10,000 ETH, bringing the total to 60,000 ETH worth about $101 million. This trader has a record of 22 consecutive winning trades and over $45 million in total profit, according to Lookonchain.

Market analysts have observed mixed signals. The TD Sequential indicator flashed a buy signal for Ethereum, while Coinbase whales reportedly placed short-term sell walls above current levels. Some suggest that if buyers can clear this supply, ETH might advance toward $2,000, but this remains a conditional outlook.

Exchange reserves have also declined, with data from CryptoQuant indicating that tracked Ethereum balances across Binance, OKX, Gemini, and Bitfinex fell by roughly 475,000 ETH in early June. Binance saw a drop of about 190,000 ETH, and Bitfinex lost another 180,000 ETH. Lower exchange reserves can signal reduced available supply for sale, though the ultimate impact on price depends on where the coins are moved.

Ethereum now faces resistance between its recent daily high of $1,706 and former support zones above $1,800. A decisive break above these levels could reignite bullish momentum toward $2,000. Conversely, failure to sustain the recovery might push prices back toward $1,600 and $1,500, especially given the persistent bearish positioning from large short sellers.

The notion that excitement surrounding SpaceX’s potential initial public offering contributed to Bitcoin’s price drop in June has gained traction among market observers. While the theory offers an intriguing narrative, a deeper examination reveals a more complex interplay of factors behind the crypto market’s turbulence.

Proponents of the capital rotation hypothesis argue that the anticipated SpaceX IPO, rumored to value the company at $1.8 trillion, along with a surge of other high-profile public offerings, diverted speculative capital away from cryptocurrencies. They point to the simultaneous occurrence of crypto’s $250 billion decline and stock markets hovering near record highs as evidence of this shift. However, this correlation does not necessarily imply causation.

Critics of the rotation theory highlight several inconsistencies. The crash was abrupt, with over $1.7 billion in leveraged positions liquidated within 24 hours—a pattern characteristic of leverage cascades rather than gradual capital outflows. Furthermore, specific catalysts were present that week: a strong U.S. jobs report dampening rate cut expectations, geopolitical tensions with U.S.-Iran military strikes, Strategy’s first Bitcoin sale in nearly four years, and record Bitcoin ETF outflows. These events provide a more immediate explanation for the sell-off.

While the rotation theory captures a real phenomenon—speculative capital gravitating toward high-growth equities like AI and pre-IPO opportunities—its impact is likely a slow-acting headwind rather than an acute trigger. Historical precedents show that crypto’s sharpest declines have typically stemmed from internal issues like leverage blowups or exchange failures, not competition from other asset classes.

The SpaceX IPO saga symbolizes a broader shift in the speculative landscape. Crypto no longer holds a monopoly on asymmetric upside; investors now have accessible alternatives in public markets. Yet, attributing a single week’s crash to this trend oversimplifies the dynamics. The June decline was a convergence of acute macroeconomic and crypto-specific shocks hitting a fragile, overleveraged market.

In summary, the SpaceX IPO narrative is a compelling but incomplete explanation. It rightly identifies a structural challenge for crypto but misidentifies the immediate cause of the crash. For investors, understanding both the slow-moving rotation of capital and the leverage-driven volatility is essential for navigating these markets.

XRP is currently trading around $1.14 after a sharp weekly decline from $1.45 at the start of the month. The token briefly touched support near $1.10 during a broader market selloff driven by macroeconomic pressures, geopolitical tensions, and liquidation cascades that pushed momentum indicators into oversold territory.

Market sentiment remains fragile as Bitcoin slipped toward $60,000, spot Bitcoin ETFs saw persistent outflows, and a stronger U.S. dollar emerged following robust labor market data that dampened expectations for Federal Reserve rate cuts. These factors have kept risk appetite subdued, with rising oil prices adding to inflation concerns.

WTI crude futures surged over 4% above $94 per barrel after renewed missile exchanges between Iran and Israel, threatening President Trump’s ceasefire efforts. Higher energy costs could make it more difficult for the Fed to ease policy, which typically weighs on non-yielding assets like altcoins.

Bitcoin’s recovery to the $62,000–$63,000 range has helped slow the selloff, but the Crypto Fear and Greed Index remains in Extreme Fear territory. XRP’s current consolidation appears more like a pause than a reversal, with analyst warnings pointing to further downside.

Crypto analyst Ali Martinez has highlighted the $0.90 level as a potential long-term buying opportunity. Technical indicators support a bearish outlook: the weekly MACD remains below zero, the Aroon Down indicator stands at 92.86%, and Aroon Up is at 14.29%, confirming sellers dominate the larger trend.

A 3-day liquidation heatmap shows heavy leverage concentrated between $1.08 and $1.05, with another liquidity pocket near $1.04. A sweep of these levels could trigger forced selling before a stronger rebound. Upside liquidity is clustered around $1.17 to $1.20, but XRP would need to reclaim $1.31 and then $1.50 to weaken the descending channel pattern.

Fundamentals provide some counterbalance: the XRP Ledger attracted $1.5 billion in real-world asset inflows over the past month, while Ethereum saw $1.2 billion in outflows. XRPL’s RWA market cap surged over 124% in Q1. Ripple’s RLUSD expansion through Wormhole has also improved cross-chain liquidity.

However, price action remains the near-term driver. A weekly close below $1.10 could expose $1.05 and then the $0.90 zone flagged by Martinez. A recovery above $1.20 would ease immediate downside pressure, but a break above $1.50 is needed to signal a trend reversal.

Matt Cole, the chief executive of Strive Asset Management, has voiced support for removing capital gains taxes on Bitcoin transactions in the United States, arguing that such a policy shift could significantly boost the cryptocurrency’s use as a medium of exchange rather than a mere store of value. In a recent social media exchange, Cole endorsed the idea, stating that Strive is actively working with policymakers in Washington to advance this initiative. The firm is reportedly channeling resources into the effort via the Bitcoin Policy Institute, though Cole acknowledged that achieving such legislative change may require patience and sustained advocacy.

This development comes shortly after Strive bolstered its Bitcoin holdings. The company acquired 2,500 BTC between late May and early June, spending roughly $185.2 million, which brought its total treasury to 19,000 Bitcoin. According to a regulatory filing, the average purchase price including fees was approximately $74,092 per coin. This expansion underscores Strive’s long-term confidence in digital assets, even as market conditions fluctuate.

Meanwhile, the U.S. House Ways and Means Committee is gearing up for a hearing on June 9 to discuss cryptocurrency taxation. The committee has released seven discussion drafts addressing various aspects, including stablecoins, staking rewards, mining income, and transaction reporting. Among the proposals is a potential de minimis exemption that would eliminate reporting requirements for smaller transactions, which industry advocates argue would relieve burdens on everyday crypto users. While a related bill earlier this year proposed a $200 threshold for stablecoin payments, it did not extend to Bitcoin. The upcoming hearing signals growing legislative interest in reshaping digital asset tax policies to foster innovation and adoption.

edgeX has initiated payouts for users impacted by the June 2 EDGE token crash, offering half of the approved compensation immediately in USDC stablecoins. The derivatives exchange confirmed that eligible participants can now claim 50% of their verified losses through the platform’s rewards dashboard, with the remaining balance scheduled for distribution in April 2027 using native EDGE tokens.

The second tranche will be calculated based on a seven-day time-weighted average price of EDGE at the time of distribution. According to edgeX, these tokens will come from the Ecosystem and Community Allocation, which remains locked until after the token generation event and begins vesting on March 31, 2027. The final amount each user receives will depend on EDGE’s market price during that period.

To qualify, users must have experienced realized losses from long positions liquidated or stopped out on edgeX Perp V1 or V2 between 04:50 and 06:00 UTC+8 on June 2. Compensation excludes trading fees, funding costs, and unrealized profits, with a cap of 100,000 USDC equivalent per user across both payments. Those who haven’t yet filed a claim must submit a Discord ticket by June 9 at 14:00 UTC+8, as late submissions will forfeit eligibility for the goodwill program.

The platform stated that the initial sell-off involved 174 addresses placing large EDGE sell orders into a shallow PancakeSwap pool, dropping the token price by roughly 23% in under a minute. This triggered a cascade of forced liquidations across multiple exchanges, with edgeX reporting $140.66 million in combined sell volume from Binance, OKX, Bybit, and its own perpetual markets within one hour. The high concentration of long positions, with a 68.2% long-short ratio, exacerbated the downturn.

Blockchain investigator ZachXBT publicly questioned the platform’s explanation, suggesting insiders may have controlled a significant portion of the token supply and calling for transparency around market makers and related agreements. EdgeX denied any team involvement in the crash, stating that early reviews from exchanges and liquidity providers found no evidence of team-linked selling. It also announced a 200,000 USDC bounty for information leading to the identification of the wallets responsible for the initial dump.

Users who have already submitted claims can now access their first payment in USDC through the edgeX rewards page. The remaining half will be delivered in EDGE tokens during the first week of April 2027, using the token’s seven-day average price for calculation. The platform emphasized that the goodwill program is voluntary and does not constitute an admission of liability.