Bitcoin’s Volatile Week: A Wild Ride Ahead of Inflation and Federal Reserve News
The past week has been a wild ride for the price of bitcoin (BTC). The cryptocurrency fell below $67,000 on Tuesday ahead of May inflation data and the Federal Reserve’s meeting. Bitcoin regained some ground on Wednesday before tumbling again on Friday. While other risk assets such as stocks bounced back on cooler-than-expected inflation data, bitcoin failed to claw back the losses.
Bitcoin’s price volatility
Despite bitcoin’s performance last week, crypto is having a moment on the U.S. presidential election campaign trail. Presumptive Republican nominee Donald Trump met with bitcoin miners last week and a leaked email showed members of President Joe Biden’s administration will meet with members of the crypto community.
“Crypto is a notable election issue.” - A political analyst
Terraform Labs Agrees to $4.5 Billion SEC Settlement
Terraform Labs has agreed to a massive $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC) regarding the TerraUSD stablecoin disaster from 2022. The settlement comprises roughly $3.5 billion in disgorgement, over $460 million in prejudgment interest, and $420 million as a civil penalty. Former CEO Do Kwon will also personally contribute over $200 million to the Terraform bankruptcy estate and is barred from serving as an officer or director of a public company.
Terraform Labs agrees to massive settlement
Binance Founder Changpeng Zhao Estimated to Be 24th Richest Person in the World
Binance founder Changpeng Zhao has seen a significant increase in his net worth. Forbes now estimates Zhao’s fortune is $61 billion, making him the world’s 24th richest person. This rise comes from his 90% stake in Binance, valued at $33 billion.
Binance founder Changpeng Zhao
What to Expect in the Markets This Week
All eyes are on the bitcoin price this week, as digital asset investment products, which include U.S.-based bitcoin ETFs, experienced more than $600 million in outflows amidst bitcoin’s price drop last week, according to CoinShares.
Bitcoin ETFs see outflows
Despite the price drop, the notorious bitcoin bulls at MicroStrategy (MSTR) announced another $500 million convertible note offering for the purpose of purchasing more bitcoin before updating the offering to $700 million later in the week.
MicroStrategy announces convertible note offering
While bitcoin has traded in a relatively narrow range this month, the crypto asset has been outperformed by several bitcoin mining stocks, as noted by a JPMorgan report.
Bitcoin mining stocks outperform
This is thought to be a response to Core Scientific’s (CORZ) deal with CoreWeave related to artificial intelligence.
Core Scientific’s deal with CoreWeave
The SEC’s approval of spot ether ETFs also now appears to be an issue of “when” rather than “if.” SEC Chair Gary Gensler indicated in a Senate hearing last week that the matter will be resolved over the summer. Additionally, Bloomberg analyst Eric Balchunas gives a 50-50 chance that the approval will take place by July 2.
SEC’s approval of spot ether ETFs
Prediction market Polymarket puts chances of a spot ether ETF trading by July 4 at 75%.
Polymarket’s prediction
