[June 12: CRYPTO MARKET UPDATE-2]
• The Most Published News
The U.S. Senate has advanced the GENIUS Act, a bipartisan stablecoin regulation bill designed to provide clarity and oversight for stablecoin issuers, with a cloture vote of 68-30 signaling imminent final passage. This legislation mandates full backing of stablecoins by liquid U.S. assets and aims to integrate crypto payments into the mainstream financial system. Meanwhile, Nasdaq-listed Interactive Strength announced plans to raise up to $500 million to build an AI-focused crypto treasury by acquiring FET tokens from https://t.co/Zrg1OghU6K, marking a shift among public companies toward incorporating AI-driven digital assets beyond Bitcoin. On institutional adoption fronts, Mercury Fintech revealed intentions to raise $800 million for a long-term Bitcoin reserve, underscoring growing corporate interest in diversifying treasury holdings with digital assets. Additionally, the XRP Ledger’s expansion into tokenized U.S. Treasuries via Ondo Finance highlights the real-world asset (RWA) tokenization trend, blending crypto with traditional finance and forecasting a multitrillion-dollar market opportunity by 2033.
• Current Market Trends
Bitcoin is trading near $110,000, fueled by softer U.S. inflation data, easing U.S.-China trade tensions, and growing institutional interest evidenced by record Bitcoin ETF inflows totaling over $165 million on a single day. Long-term Bitcoin holders are increasing supply accumulation amid historically low volatility, suggesting potential for significant price discovery if demand intensifies. Ethereum is gaining momentum, with futures open interest at all-time highs surpassing $41 billion and ETF inflows reaching $240 million, supported by technical breakouts near $3,000 and bullish leveraged bets. Alternative coins like Solana and Litecoin are observing ETF-driven optimism with Solana’s spot ETF approval chances hitting 91% and Litecoin positioned for regulatory approval as well. The broader stablecoin market has reached a record $249 billion in supply, driven largely by USDT and USDC, with stablecoins increasingly used in B2B cross-border payments and payment financing.
• Regulations and Policies
Regulatory progress is highlighted by the bipartisan advance of the GENIUS Act in the U.S. Senate, aiming to establish a federal framework for stablecoin issuance and operation with strict reserve, disclosure, and licensing requirements. Alongside, the Digital Asset Market Clarity Act (CLARITY Act) has passed key House committees, clarifying oversight roles between the SEC and CFTC and protecting noncustodial digital asset tools. The regulatory climate benefits from a relatively dovish SEC leadership under Chair Paul Atkins, supportive of self-custody and less aggressive enforcement. However, Senate Democrats raise privacy and consumer protection concerns regarding Meta’s stablecoin intentions amid the GENIUS Act debate. South Korea is developing regulatory frameworks targeting stablecoins and exchange supervision, reflecting growing global regulatory alignment. Meanwhile, Connecticut enacted legislation banning state and local government crypto investments, diverging from broader trends embracing digital asset reserves.
• Technology and Innovation
Innovations continue to push crypto adoption boundaries, with Ripple integrating OndoFinance’s USD Treasury-backed tokens on the XRP Ledger to expand RWA access and liquidity. Trust Wallet is advancing plans to incorporate RWAs into a self-custodial wallet, aiming to unify DeFi, real-world assets, and self-custody in a neobank-style app. Sam Altman’s World Chain has deployed a native USDC integration supported by Circle’s Cross-Chain Transfer Protocol V2, enhancing cross-chain liquidity and reducing bridge risks. Stripe’s acquisition of crypto wallet provider Privy signals a deeper commitment to integrating embedded wallet technology to scale crypto and stablecoin payments across over 75 million accounts. On the quantum front, Bitcoin developers are actively addressing looming risks from advancing quantum computing, proposing complex upgrades to safeguard cryptographic security as threats accelerate.
• Institutional Investor News
Institutional confidence in cryptocurrencies remains robust. Michael Saylor’s Strategy continues to build Bitcoin reserves and recently launched a Bitcoin-backed preferred stock on Nasdaq, while activists in Sweden’s H100 Group raised $10.5 million to expand their Bitcoin treasury holdings, generating rapid 400% stock gains. VivoPower committed $100 million in XRP to Flare Network’s yield-generating protocols, underscoring diversified crypto treasury strategies beyond Bitcoin. GameStop plans to raise $1.75 billion convertible notes, potentially to fund expanded Bitcoin reserves, albeit its shares fell post-announcement, reflecting cautious investor response. Circle and Matera’s partnership to enable multi-currency accounts including USDC in Brazil highlights growing crypto integration in traditional financial institutions. Invesco’s hiring of a JPMorgan blockchain veteran to lead its $1.6 billion crypto ETF portfolio exemplifies increasing institutional adoption and sophistication.
• Market Forecasts and Expert Opinions
Analysts forecast sustained bullish momentum for Bitcoin, projecting targets ranging from $138,000 by summer to $200,000 by year-end, premised on easing U.S. inflation, anticipated Federal Reserve rate cuts, and broad institutional ETF inflows. Michael Saylor and ARKInvest envision Bitcoin reaching as high as $1 million over the next five years, emphasizing its role as digital gold amid monetary expansion. Paul Tudor Jones advocates including Bitcoin, gold, and stocks in diversified inflation-hedging portfolios. Ethereum’s outlook is increasingly positive, with record futures open interest and bullish options positioning signaling potential rallies to $3,600–$3,800. Meanwhile, emerging narratives highlight stablecoins becoming central to U.S. government debt financing, with Treasury officials projecting a $2 trillion stablecoin market by 2028. However, regulatory uncertainty, particularly around staking ETFs, and geopolitical risks such as the Israel-Iran conflict introduce volatility risks requiring investor vigilance.
• Security and Hacking News
Security concerns persist in the crypto space. The Ethereum Foundation faces internal turmoil following accusations of secret competing client development teams and developer dismissals, raising questions about project governance and decentralization. The ByBit hack, involving a $1.4 billion loss, prompted the wallet provider Safe to establish Safe Labs, focusing on institutional-grade wallet security enhancements. Crypto-related violence has escalated, with convictions in kidnapping and assault linked to attempts to extract crypto access, highlighting physical security risks for crypto entrepreneurs. Regulatory authorities continue cracking down on fraudulent schemes, as demonstrated by a 10-year ban imposed on an Australian adviser involved in a $9.6 million crypto scam. Additionally, significant quantum computing threats to Bitcoin security have prompted developer-led discussions on cryptographic upgrades to mitigate future vulnerabilities.
• Conclusion
The crypto market is navigating a transformative phase marked by increased institutional uptake, regulatory clarity, and technological innovation, driving bullish sentiment amid easing inflation and geopolitical uncertainties. Investors should monitor key legislative developments such as the GENIUS Act and the CLARITY Act, which promise to set foundational frameworks for stablecoins and broader digital assets, potentially catalyzing mainstream adoption. Bitcoin's trajectory near all-time highs, coupled with record ETF inflows and strategic reserve formations, signals robust demand, though caution is warranted given volatility risks around macroeconomic shocks and security challenges. Ethereum and selected altcoins like Solana and XRP present compelling opportunities fueled by ETF momentum and real-world asset integrations. Investors are advised to approach positions with disciplined risk management, staying informed on regulatory shifts, market liquidity, and emerging technological risks such as quantum computing threats.
Daily crypto market update is an AI summarization of important news published in major crypto media in the last 24 hours at the time of sending. The full news story can be found at the URL below.
https://t.co/zokRJWaGRk