Bitcoin Rebounds Above $100K Amid Volatility
Crypto markets experienced a rollercoaster over the past quarter, with Bitcoin plunging roughly 30% to just under $75,000 in early April amid a global risk-off selloff, then rebounding above the $100,000 mark by
early May. [1] Investor sentiment was initially rattled as many altcoins crashed even harder than Bitcoin did, but a narrative of Bitcoin as a “digital gold” store-of-value — reinforced by heavy institutional buying and
surging spot ETF inflows — helped fuel a rapid recovery in its price. [2] By late June, overall market sentiment had cautiously improved alongside Bitcoin’s resurgence, although traders remained wary of further
volatility and mindful of macroeconomic headwinds after witnessing such dramatic swings. [3]
Macro Turmoil and Policy Pause Shape Crypto Outlook
Escalating geopolitical and economic tensions, notably the Trump administration’s announcement of new tariffs in early April, stoked fears of stagflation and initially sent shockwaves through both crypto and equity
markets. [1] As the quarter progressed, signs of a trade détente (including a U.S.–UK trade deal that helped reverse the tariff panic) and a steady monetary stance by central banks – with the U.S. Federal Reserve
holding interest rates unchanged amid the uncertainty – allowed risk appetite to recover and bolstered crypto prices. [4] The crypto market’s gyrations this period underscored its heightened sensitivity to
macroeconomic signals, from tariff news to central bank policy, as improving global conditions translated into a relief rally in digital assets.
U.S. Regulators Reverse Course on Crypto Enforcement
Marking a major policy shift, the U.S. Securities and Exchange Commission under new leadership abruptly dropped its high-profile lawsuits against crypto
exchanges Binance and Coinbase this quarter. The SEC’s voluntary dismissal of the Binance case with prejudice (meaning it cannot be refiled) was hailed by the industry as a “landmark moment” and a welcome end
to “regulation by enforcement,” as even the agency acknowledged it was exercising discretion in light of broader policy considerations. President Donald Trump had pledged to be a “crypto-friendly” president, and
indeed the SEC has since withdrawn or put on hold numerous crypto cases while its new chairman pivots toward establishing clear regulatory “rules of the road” for digital assets. [5]
Stablecoin Legislation Advances
In a landmark move, the U.S. Senate passed the bipartisan GENIUS Act in June, aiming to establish federal guardrails for dollar-pegged stablecoins by requiring issuers to hold
reserves and comply with basic consumer protections. Proponents argue this long-awaited bill will protect users and pave the way for stablecoins to go mainstream as legitimate payment tools. [6]
DeFi Hacks Surge with USD 225 Million Exploit Halting a Blockchain
The past three months saw a sharp uptick in crypto hacks and exploits, peaking in May when investors lost over USD 300 million to various scams and
attacks according to blockchain security firm CertiK. Code-related vulnerabilities were the primary culprit – accounting for about USD 229 million of May’s losses, a staggering 4,483% increase in exploit losses compared
to the previous month. The single largest incident was a USD 225 million exploit of the Cetus Protocol in May, which was so severe that it forced the Sui network to halt its blockchain to contain the damage. [1]
Institutional Adoption and Integration Accelerate
Traditional finance players deepened their crypto involvement this quarter, exemplified by Citi’s announcement of a pilot program to custody and tokenize
approximately USD 75 billion worth of private equity shares on a regulated blockchain platform in Switzerland. Institutional and corporate investors also continued to accumulate crypto assets: for instance, businessintelligence
firm MicroStrategy purchased an additional 1,895 BTC ( ~USD 180 million worth), boosting its total holdings to about 555,450 BTC acquired at an aggregate cost of USD 38 billion. Even the public sector is
edging in – New Hampshire became the first U.S. state to authorize its treasury to invest up to 5% of public funds in bitcoin (via approved custodians or ETFs), a sign of growing mainstream acceptance of digital
assets as a legitimate reserve asset. [4]
Source: [1] Coindesk [2] VanEck [3] Saxo [4] Gemini [5] Reuters [6] abcnews
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