Good morning. Here’s what’s happening:

Bitcoin prices: Bitcoin prices and other cryptos stabilize after Wednesday afternoon’s dip. BTC gains $25K.

Insights – The increasing regulatory scrutiny in the United States has not moved large bitcoin holders.


Bitcoin Recovers $25K after Dip

Bitcoin recovered $25,000 from a dip on Wednesday, which was fueled by concerns about the central banks’ hawkishness in the second half of the year.

BTC is currently trading at around $25,171, down 3.1% in the last four hours as part of an overall crypto selloff. BTC, the largest cryptocurrency by market value, had been trading comfortably below $26,000 over the past five-day period as markets awaited U.S. Central Bank’s latest interest rate announcement and continued to digest last week’s U.S. Securities and Exchange suits against Binance and Coinbase.

Federal Reserve chose to suspend rate increases, but comments made by bank chair Jerome Powell after the announcement seemed to scare markets. Powell reiterated that the Fed is committed to lowering annual inflation to its target of 2.5%. Currently, it is at 4%. Critics of bank policy claim that the focus placed on prices could send the economy into recession.

Digital assets plummeted just as the equity markets closed a dull day. Ether, second-largest crypto by market capital, dropped to $1,630, before recovering to hover around $1,654, down 5.1% on Tuesday.

XRP, among other major cryptos has recently retreated is down 6.4% and traded at just under 48 cents in the last 24 hours. CoinDesk Indicators data shows that it had fallen as low as 46cents in the morning, its lowest point in June. CoinDesk Market Index is a measure for crypto markets. It was down 3.8% recently.

Ruslan Lienkha wrote in an email to CoinDesk that the late drop of bitcoin did not necessarily portend a bigger downturn. Lienkha wrote: “We must remember that the crypto-market is relatively small, and a couple hundred million dollars are enough to move the market by a few percentage points.” Let’s wait and see if this is a real downward trend, or just one whale selling off.

Markus Levin wrote in a comment following an earlier CoinDesk note that he thought that despite Fed’s hawkish post-announcement remarks, he felt that the current “four-year” cycle has already “bottomed out.”

“But there is no certainty in this market. Especially when it comes crypto,” he said. If we enter recession territory for example, we need to be prepared for Bitcoin and other assets further down the risk curve.

The Biggest Gainers

Biggest Losers


Bitcoin holders of large size hold their ground

Even though recent regulatory turmoil has hit the crypto markets, large holders of bitcoin are not reducing their bitcoin investments.

(Glassnode)

The data from Glassnode shows that addresses with between 100 and 1,000 BTC increased their BTC positions since the U.S. Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase.

Addresses with between 10 and 100 BTC also performed similar. Risk appetite was lower for wallets that held more than 1,000 BTC.

The segment of addresses with between 1,000 BTC and 100,000 BTC was relatively stable, but there was a slight drop in the segment between 1,000 BTC and 10,000 BTC.

The data is in line with BTC funding rates which are still positive as well as the decrease of BTC on central exchanges. The data is not necessarily a signal of a bullish market, but it does suggest that big bitcoin investors are happy to hold their positions for the time being.

This article has been written and edited solely to provide accurate information for the reader. CoinDesk could earn a commission if you click on the link provided by Glassnode. See our Ethics Policy for more information.


Important events.

9:30 a.m. HKT/SGT(1:30 UTC) Australia Unemployment Rate s.a. (May)

10:00 am HKT/SGT (2:00 UTC) China Retail sales (YoY/May).


CoinDesk TV

If you haven’t seen it yet, here is the latest episode of “First Mover” on CoinDesk TV.

Bitcoin traders took a defensive position ahead of today’s Fed monetary policy meeting. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, joined “First Mover.” He discussed. Separately the federal judge who is overseeing the U.S. Securities and Exchange Commission’s (SEC’s) case against Binance and Binance.US has declined to order an order temporarily freezing the U.S. Trading Platform’s assets. Nikhilesh De, Managing Editor of CoinDesk Global Policy and Regulation, explains the decision. Aaron Kaplan, co-CEO of Prometheum and its founder, joined the show following his appearance on Capitol Hill to discuss crypto legislation.

DeFi platform EigenLayer rolls out Restaking Protocol on Ethereum mainnet EigenLayer developers raised $64.5M in investment rounds.

The Graph Migrates its Settlement Layer from Ethereum The goal of the transition is to reduce barriers for The Graph users by reducing gas costs and accelerating transactions.

“Distributed validator technology” marks the last key milestone in Ethereum’s current era : DVT is a technology that involves splitting a validater’s private keys across multiple node operators. By reducing the number of single points, the goal is to improve the resilience of the network while protecting the validators.

Bitcoin Exchanges Supply Falls to a Three-Year Low : The supply is likely to drop as traders and investors choose to self-custody bitcoin holdings in light of regulatory and exchange risk.

Alchemy, a Blockchain Developer Platform, Releases AI-Powered Web3 Builder Tools AlchemyAI is launching as two new products: an in-app Chatbot and a ChatGPT Plugin.

James Rubin is the editor.