Cryptocurrency Market News: Bitcoin Is Growing, But It’s Still Under $70,000

However it did not recover as much as other risk assets, the cost of BTC fall this week ahead of news on inflation and the Federal Reserve.

Both Joe Biden and Donald Trump, the front-runners for the US presidency, keep emphasizing how important cryptocurrency is to voters.

Terraform Labs and the SEC reached a $4.5 billion settlement.

Changepeng Zhao, the founder of Binance, was included among the richest 25 individuals worldwide.

Crypto specialists are keeping a careful eye on the price of bitcoin this week to determine whether the recent volatility is ending.

The price of bitcoin (BTC) has experienced a rollercoaster journey over the last week.

Forward to the Federal Reserve meeting and May inflation data, the cost of BTC fall down $67,000 on Tuesday. On Wednesday, Bitcoin made some progress before collapsing once more on Friday. Bitcoin was unable to recover its losses, while other risky assets like stocks did, thanks to inflation data that was lower than anticipated.

Cryptocurrency is popular on the campaign trail for the US presidential election, notwithstanding the performance of bitcoin last week. Donald Trump, the presumed Republican nominee, met with bitcoin miners this week, and an email leak revealed that members of President Joe Biden’s team will also meet with the cryptocurrency community.

In other news, the U.S. Securities and Exchange Commission (SEC) and Terraform Labs have reached a massive $4.5 billion settlement over the TerraUSD stablecoin disaster of 2022. Additionally, an investigative report found that Changpeng “CZ” Zhao, the founder and former CEO of Binance, is among the world’s 25 richest people.

Blockchain Increasing in Importance in the US Presidential Election

In the current election season, former president Donald Trump has changed his position on cryptocurrencies and is actively courting the community to gain an advantage over competitors Joe Biden and Robert F. Kennedy Jr.

Following a meeting with bitcoin miners at his Mar-a-Lago resort, Trump encouraged supporters of cryptocurrencies on his Truth Social platform to “vote for Trump,” presenting himself as a protector against what he describes “Biden’s hatred of Bitcoin.”

This new strategy comes after Trump’s harsh condemnation of cryptocurrencies during his presidential campaign, when he described them as extremely volatile, uncontrolled assets that support illicit activity. On the other hand, Trump’s campaign has now said that it will take bitcoin contributions in an effort to raise a “crypto army” to ensure his election success.

Conversely, the Biden Administration’s approach on Bitcoin and cryptocurrency has drawn criticism, particularly in light of its recent veto of a bill endorsing crypto custody by financial institutions and its proposed levies on Bitcoin mining. Biden is anticipated to begin taking cryptocurrency donations for his campaign, per a story in The Block.

According to Bitcoin Magazine, members of Biden’s team are expected to attend a roundtable on blockchain technology and bitcoin next month.

Terraform Labs Agrees to SEC Settlement of $4.5 Billion

Terraform Labs agreed to a roughly $4.5 billion payment to end an SEC complaint, according to a court filing last Wednesday. The application asked the court to approve the settlement, ending the legal dispute about the company’s involvement in the abrupt demise of TerraUSD in May 2022, which resulted in an estimated $40 billion loss for investors.

The settlement includes $420 million in civil penalties, nearly $460 million in prejudgment interest, and about $3.5 billion in disgorgement. In addition to personally donating more than $200 million to the Terraform bankruptcy estate, former CEO Do Kwon has been disqualified from holding any position as an officer or director of a publicly traded firm.

This deal, which was first negotiated in advance of a hearing on May 29, intends to impose significant financial remedies and expedite investors’ restitution. The SEC made clear that the goal of these fines is to prevent fraud in the cryptocurrency space in the future. Before being found guilty of misleading investors at its SEC trial earlier this year, Terraform Labs filed for bankruptcy.

Changpeng Zhao, the founder of Binance, is thought to be the 24th richest person in the world.

Changpeng “CZ” Zhao, the creator of Binance, has witnessed a notable rise in his net worth following his incarceration.

Zhao is presently ranked as the 24th richest person in the world by Forbes, with an estimated net worth of $61 billion.

His $33 billion investment, or 90% of Binance, is the source of this increase. In November 2023, Zhao resigned from his position as CEO of the company due to a plea agreement reached with the US Department of Justice. Zhao’s personal financial impact was only $50 million, despite the company’s legal troubles and a $4.3 billion sentence. Since then, Binance has expanded even more, increasing its market share from 38% to 42% prior to Zhao’s exit.

One significant source of Zhao’s wealth is his Binance Coin (BNB) holdings. According to Forbes, he possesses above 94 million tokens, or 64% of all Binance tokens. Notwithstanding Binance’s legal issues, BNB has increased by 100% in 2024 and now has a $110 billion market valuation.

A substantial amount of the unsold tokens from Binance’s 2017 initial coin offering were kept by Zhao and Binance, according to forensic investigation. BNB is currently one of the most traded tokens on Binance’s platform, and even as Zhao serves his sentence, the token’s performance has added billions to his net worth.

What the Markets Will See This Week

Since U.S.-based bitcoin ETFs and other digital asset investment products saw withdrawals of more than $600 million during last week’s dip in price of bitcoin, all eyes will be on the price of bitcoin this week, according to CoinShares.

The infamous bitcoin bulls at MicroStrategy (MSTR) declared a second $500 million convertible note offering in spite of the market decline. The offering was then updated to $700 million with the intention of buying additional bitcoin.

According to a JPMorgan analysis, despite the fact that bitcoin has fluctuated within a small range this month, the cryptocurrency has underperformed a number of bitcoin mining equities. This is believed to be a reaction to Core Scientific’s (CORZ) artificial intelligence agreement with CoreWeave.

Spot ether ETF clearance by the SEC currently seems to be a matter of “when” rather than “if.” During a Senate hearing last week, SEC Chair Gary Gensler stated that the issue will be settled over the summer. Furthermore, Eric Balchunas, a Bloomberg analyst, projects a 50/50 possibility that the clearance will occur by July 2. Seventy-five percent of prediction market participants believe that a spot ether ETF will trade by July 4.

News About Cryptocurrency Markets: Bitcoin Slightly Drops Below $68K, Ether Stumbles Following ETF Approval

Following significant gains last week, ether and bitcoin saw a decline on Tuesday.

The expectation that the SEC will approve a spot ether ETF caused ether to soar last week.

Although it might take months before a spot ether ETF is accessible for trading, the regulator established the groundwork for them by changing the rules to permit the listing of these products.

A bill voted by the US House of Representatives will divide up regulatory authority over cryptocurrencies and offer more clarity. There is no support from President Joe Biden for the bill in the Senate.

Donald Trump, a former president of the United States, has strengthened his support for cryptocurrencies by declaring he will pardon the darknet marketplace Silk Road inventor who was convicted.

Bitcoin (BTC) and ether (ETH) saw brief but significant price increases last week; on Tuesday, they began to decline.

After temporarily trading above $70,000 early last week, Bitcoin now trades below $68,000. On the other hand, ether saw a 25% rise in just one day due to anticipation surrounding the approval of spot ether exchange-traded funds (ETFs). Nevertheless, despite the product receiving regulatory approval, the boom was fleeting.

Other notable stories were the growing number of cryptocurrency references made by US presidential contenders trying to win over votes, a harsh ruling from a British judge disproving Craig Wright’s assertion that he is the person who invented bitcoin, Satoshi Nakamoto, and the imprisonment of a former FTX CEO.

Authorities Prepare the Ground for Spot Ether ETFs

The listing of spot ether ETFs on US exchanges was unexpectedly made possible on Thursday by the U.S. Securities and Exchange Commission (SEC). The second-largest cryptocurrency by market capitalization, behind bitcoin, is ether, the token that powers the Ethereum network.

Even while the SEC’s ruling represented a major change in the legal landscape, it may still take months before firms like Fidelity, Grayscale, and BlackRock (BLK) list these ETFs. According to Galaxy Digital, the products must first have their S-1 registration filings approved, which might take until July or August.

If approved, a crucial concern is whether ether exchange-traded funds (ETFs) would create demand akin to that of the historic introduction of U.S. spot bitcoin ETFs, which have drawn in over $13.5 billion, as reported by Farside Investors.

Some remain hesitant, pointing out that the market for ether is smaller and less well-known than that of bitcoin, while others are positive that the new listings will draw in institutional and individual investors. Another significant drawback for investors is the inability to stake ether held by ETFs.

House Considers Cryptocurrency Regulating Bill

The Financial Innovation and Technology for the 21st Century Act (FIT21) was decisively approved by the House of Representatives last week, giving the cryptocurrency industry a major win in Washington.

According to the plan, the SEC would govern digital assets using non-decentralized blockchains, while the Commodities Futures Trading Commission (CFTC) would become the primary regulator of digital assets. The CFTC would have sole control over cash or spot markets for digital commodities. The crypto sector has long yearned for this precise separation of regulatory duties.

Although the bill passed the House with a resounding 279-136 vote, it will encounter difficult obstacles in the Senate and may not pass. Citing insufficient protections for investors and consumers, President Joe Biden opposed FIT21.

Former President Trump Strengthens His Support for Cryptocurrency

Donald Trump demanded that Ross Ulbricht’s sentence be commuted in an effort to win over Libertarian supporters and establish himself as the candidate who supported cryptocurrency. Ulbricht, the convicted owner of the Silk Road internet marketplace, is currently receiving a life sentence for operating a website where people could buy illegal goods like drugs and other contraband with bitcoin.

In an address at the Libertarian Party convention, Trump promised, “I will commute Ross Ulbricht’s sentence on day one if you vote for me.” He has completed his 11-year term. We will bring him home.”

This action is in line with Trump’s plan to increase his base of support in order to counter the threat posed by independent candidates like Robert F. Kennedy Jr. before he faces President Joe Biden again in November.

Trump’s open adoption of cryptocurrencies marks a significant shift from his earlier remarks, in which he expressed a strong preference for the US currency over bitcoin.

A judge declares Craig Wright to be a scammer.

In an effort to establish his identity as Satoshi Nakamoto, computer scientist Craig Wright engaged in widespread lying and widespread forgery, according to a ruling by a U.K. High Court judge, as reported by WIRED.

Justice James Mellor concluded in a thorough ruling released on May 20 that Wright had created multiple fake documents to back up his allegations of fraud and had taken advantage of the legal system to commit fraud.

This decision ends a six-week trial that was started by the Crypto Open Patent Alliance (COPA), which wanted a finding stating that Wright is not the person who invented Bitcoin in order to stop him from suing other parties and creators of the cryptocurrency.

Wright intends to appeal, but his credibility has taken a serious hit.

What the Markets Will See This Week

As the FIT21 law makes its way to the Senate, regulators and observers of the cryptocurrency industry will be closely monitoring its progress.

Another former executive of the now-defunct cryptocurrency exchange FTX has also received a sentence. Ryan Salame, the former co-CEO of the exchange’s Bahamian subsidiary, was sentenced to 90 months in prison for conspiring to operate an unregistered money transmitter and breaking campaign financing rules.

There was also a major development on Tuesday. The bitcoin infrastructure startup Riot Platforms (RIOT) announced that it intends to buy Bitfarms, a bitcoin mining company, through a cash and stock transaction. With a total equity value of $950 million, Riot’s buyout offer for Bitfarm is set at $2.30 per share, which is a 24% premium over the company’s one-month volume-weighted average share price as of May 24. With the acquisition, Riot, which now holds a 9.25% share in Bitfarms, says it would create the “world’s largest publicly listed bitcoin miner.”