This Week in Crypto: Top News, Bitcoin and Altcoin Volatility, Major Hacks, and DeFi Investments

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This week in the crypto market, significant events happened, with the latest one being the Consumer Price Index (CPI) news, which came in softer than anticipated. This development led to extreme volatility in the market, with Bitcoin’s price fluctuating between $65,000 and $70,000. In this report, we will dive into the key news and developments that controlled the market this week.

Top Trending Crypto News This Week

The burning question on everyone’s mind is: “Is the crypto market in a bull run?” Recent weeks have seen a series of significant developments, strengthening the market’s position considerably. This week also brought notable fluctuations, and we’ll explore those details in this section.

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Terraform Labs and Do Kwon settle with the SEC for $4.5 billion

A U.S. District Court judge approved a $4.5 billion settlement between the SEC, Terraform Labs, and its ex-CEO, Do Kwon. The settlement permanently bans them from the crypto industry following Terra’s $40 billion collapse.

Donald Trump advocates for U.S. dominance in Bitcoin mining

President Donald Trump has advocated for all future Bitcoin mining to occur within the U.S., following a meeting with Riot Platforms’ CEO Jason Les and head of public policy, Brian Morgenstern. He expressed his support for domestic mining firms on Truth Social, highlighting the strategic importance of keeping Bitcoin operations stateside.

OKX reports identity theft drained several user accounts

OKX revealed in a statement that a hacker exploited forged “judicial documents” to access personal information of a few users, with the matter now under investigation by judicial authorities. The breach, revealed by two compromised user accounts on social media, involved the creation of new API keys following unusual risk notification SMS texts from Hong Kong.

CPI Report triggered a market volatility

The U.S. Consumer Price Index (CPI) remained unchanged in May, outperforming forecasts of a 0.1% increase and showing a year-over-year rise of 3.3%, slightly below the anticipated 3.4%. This news triggered a brief surge in the market; however, it later triggered significant long-liquidation.

MicroStrategy Upsizes Offering to Boost Bitcoin Holdings

MicroStrategy, led by Michael Saylor, has increased its convertible senior notes offering from $500 million to $700 million, according to a recent announcement. This upsized offering will fund further Bitcoin acquisitions and general corporate affairs.

Bitcoin And Altcoin Performance

This week, Bitcoin experienced increased volatility due to two key macroeconomic factors. The Federal Reserve’s announcement after its interest rate decision and the release of the Consumer Price Index (CPI) data both led to significant fluctuations in Bitcoin’s price, pushing it close to the critical $70,000 mark. However, the price later fell.

Over the last seven days, investors continued to accumulate BTC near the dip. Japanese company Metaplanet capitalized on the bearish price movement of Bitcoin to enhance its treasury. On June 11, the firm announced that it had acquired an additional 23.25 Bitcoin, increasing its total holdings to 141.07 Bitcoin. These were purchased at an average price of $65,365.

The altcoin market also witnessed a surge in activity due to Bitcoin’s massive volatility. Purchases were not limited to Bitcoin, as Ether also saw significant buying activity among long-term holders. Julio Moreno, the head of research at CryptoQuant, reported on X that accumulation addresses acquired 298,000 Ether within 24 hours on June 12. This figure was just slightly below the record purchase of 317,000 Ether on September 11, 2023.

This week, the price of BTC reached a peak of $70,035 and dipped to a low of $65,103, ultimately reflecting a 5% decrease overall. On the other hand,

Crypto Dominance

This week was volatile for the crypto market; however, Bitcoin’s market cap surged in dominance. It recorded gains over 0.83%, with the current BTC price dominance at 55.3%. 

On the other hand, the dominance of altcoins (excluding top 10) witnessed a steep decline due to Bitcoin’s surge in buying interest. Data reveals that the dominance of altcoins dropped by nearly 4% to 10.57%.

Bitcoin’s On-Chain Metrics Flashed Mixed Signals

Cumulative Value Coin Days Destroyed (CVDD): The latest data from the Cumulative Value-Days Destroyed (CVDD) metric supports the idea that Bitcoin has not reached its maximum value potential yet. This analysis suggests that there could be further upward movement in the market, making BTC a good buying opportunity.

Decline In Profitable Addresses: Due to this week’s bearish volatility in the BTC price, there was a steep decline in the profitable addresses.

Data reveals that the metric dropped from the peak of 98.82% to a recent low of 91.85%. This is currently triggering a surge in liquidation for the Bitcoin market.

Bitcoin Price Rainbow Chart: However, the rainbow chart suggested buying opportunities during the price dip. According to the current analysis presented by the rainbow chart, the timing remains favorable for purchasing Bitcoin. 

This suggests that the current market conditions might offer a valuable opportunity for investors looking to capitalize on future price increases.

Drop In Whale Interest: The whale interest for BTC price witnessed a drop this week. 

Data from IntoTheBlock suggests that large transaction volume faced a drop from the peak of $54.84 billion to the low of $47 billion.

Bitcoin’s ETF Data

Bitcoin has remained relatively stable in its price movements over the past few months, even though there has been a record $12 billion in net inflows into spot Bitcoin ETFs. This unexpected stability has caused concern among investors, especially since many analysts had forecasted a very bullish trend for Bitcoin following the launch of these ETFs. 

According to Farside data, on June 10, Bitcoin (BTC) ETFs saw their first outflows since May 10, totaling $64.9 million and ending a 19-day streak of inflows. The outflows were led by Grayscale’s GBTC with $39.5 million, followed by Invesco Galaxy Bitcoin ETF (BTCO) at $20.5 million, Valkyrie’s Bitcoin Strategy ETF (BRRR) at $15.8 million, and Fidelity’s Bitcoin ETF (FBTC) with $3 million. Despite this, the net inflows for these ETFs generally remain positive. 

Bitcoin ETFs experienced over $226 million in net outflows on Thursday, marking the third day of withdrawals this week, a pattern similar to late April. Preliminary data from SoSoValue indicates that Fidelity’s FBTC led with $106 million withdrawn, followed by Grayscale’s GBTC with $62 million, and Ark Invest’s ARKB with $53 million in outflows. BlackRock’s IBIT was the exception, gaining $18 million. Valkyrie, Franklin Templeton, Hashdex, and WisdomTree’s ETFs saw no changes in flow. Wednesday was the week’s only day of net inflows, adding $100 million.

Bitcoin’s Technical Analysis

Bitcoin price opened this week at $69,075; however, it failed to maintain this trading range by the end of this week. On 11 June, BTC price dropped toward the low of $66K; however, it later surged ahead of the CPI report and FOMC meeting. As CPI came in softer than expected, Bitcoin and other assets witnessed a steep decline, with the price testing buyers’ patience around $65K. As of writing, BTC price trades at $66,230, declining over 0.6% in the last 24 hours.

The 20-day exponential moving average (EMA) has begun to decline, currently sitting at $67,025, and the relative strength index (RSI) has moved below the midline, suggesting that bears currently have an advantage. A drop below the $65K level might send the BTC price to test $60.1K.

For the bulls, time is critical. They need to push and sustain the price above the 20-day EMA to avert further declines. If successful, the pair could ascend towards $70,000 and possibly extend gains up to $72,000.

Top Cryptocurrency Weekly Analysis

Setting Bitcoin aside, we will now dive into other areas of the cryptocurrency market that have seen significant activity this week. This will cover detailed analyses of memecoins, AI tokens, and stablecoins, as well as a review of the week’s top gainers and losers and key blockchain activities.

Top Gainers/Losers This Week

This week in the cryptocurrency market, several tokens stood out with notable gains. Non-Playable Coin (NPC) led the pack with a remarkable 54.1% increase in its price, followed by Beldex (BDX) and Metaplex (MPLX), which rose by 30.7% and 27.3% respectively. Rocket Pool (RPL) also saw significant growth at 14.5%, showcasing its strong market presence. Rollbit Coin (RLB), while having the smallest gain among the top performers, still managed a respectable 9.2% rise.

Beercoin (BEER) led the losses with a drastic 47.7% drop, followed closely by Wormhole (W) which decreased by 35.7%. Curve DAO (CRV) also faced a tough week, declining by 32.2%. Echelon Prime (PRIME) and SATS (Ordinals) (SATS) were not far behind, recording losses of 31.7% and 30.1% respectively.

Top Memecoins Analysis Of This Week

This week in the cryptocurrency market, notable meme coins by market cap have shown varied price movements. Dogecoin (DOGE) experienced an 8.06% decline, while Shiba Inu (SHIB) saw a more substantial drop of 13.88%. Pepe (PEPE) also faced a decrease of 7.98%. Dogwifhat (WIF) recorded a 14.27% decline, marking significant volatility. The most dramatic fall was seen in FLOKI, which plummeted by 28.29%. Despite these declines, there were minor positive changes in the hourly changes, suggesting some level of trading cooldown among meme coin enthusiasts.

Top AI Coins Analysis Of This Week

This week, top AI-related cryptocurrencies exhibited notable declines. NEAR Protocol saw the largest drop at 18.00%, while Bittensor decreased by 23.33%. Injective and Render also faced significant downturns.

Top Metaverse Tokens Analysis Of This Week

This week’s top metaverse tokens by market cap experienced significant fluctuations. Immutable (IMX) faced the sharpest weekly decline of 16.57%, while Gala (GALA) also dropped considerably by 17.22%. FLOKI saw the most severe downturn at 29.09%. In contrast, Notcoin (NOT) displayed stability with a modest weekly gain of 0.83%. Axie Infinity (AXS) declined by 14.18%.  

Top Stablecoins Analysis

This week in the stablecoin sector, Tether (USDT) continues to lead with a market cap of over $112 billion, despite slight fluctuations in trading volume. USDC and Dai showed modest changes, with market caps of approximately $32 billion and $5 billion, respectively. Notably, Ethana USDe reported a significant 51.6% increase in its market cap, highlighting growing investor interest. Conversely, First Digital USD experienced a sharp 33% decrease.

Read More About This: Stablecoin Performance and Analysis May Update: An In-depth Monthly Report 

Top Blockchains Weekly Analysis

In this segment, we’ll dive into the major activities across top blockchains, examining their market dominance and total value locked (TVL). We will separately analyze layer-1 and layer-2 blockchains to offer a detailed view on current market trends and sentiments.

Dominance of L1 Chains

This week’s overview of the top layer-1 blockchains shows Ethereum leading significantly in both market dominance at 81.65% and total value locked (TVL) at $61.775 billion. BNB Smart Chain and Solana follow, with market dominances of 6.81% and 5.66%, respectively, and TVLs over $5 billion each. Bitcoin, usually not categorized purely as a smart contract platform, shows a TVL of $1.102 billion with a 1.46% dominance. Avalanche also features, with a TVL of $786 million and a 1.04% market dominance.

Dominance of L2 Chains

This week’s analysis of top layer-2 blockchains reveals varied performance. Arbitrum One leads in market dominance at 28.85% with a notable 12.1% increase over 30 days. Blast showed a significant 35.7% growth, the highest in the group. Base and Optimism recorded moderate long-term gains. Despite recent declines, Polygon POS maintains steady activity.

Also Check Out: Blockchain Monthly Report For May 2024: All You To Need To Know To Stay Ahead

Top Crypto Exchanges Performance Analysis (7-day)

Top Centralized Exchanges

Binance, the largest exchange, boasts a normalized 24-hour volume of approximately $8.6 billion and an actual volume nearing $16.6 billion, attracting about 65.5 million visits monthly. Bybit and HTX follow, with notable volumes and lower visitor counts. Coinbase and Gate.io also show significant trading activity, with monthly visits of 40.9 million and 16.1 million, respectively.

Top Decentralized Exchanges

Uniswap V3 on Ethereum leads with a 24-hour volume of approximately $1.04 billion, capturing 18.5% of the market share and attracting over 10 million monthly visits. Raydium and Orca follow, with respective market shares of 10.7% and 8.2%, indicating substantial trading activity. Uniswap V3 on Arbitrum One also shows notable engagement, mirroring the Ethereum platform’s visit count. Curve on Ethereum, though smaller in volume, maintains a consistent user base. 

Top Derivatives

Binance Futures leads with $19.5 billion in open interest and $54.4 billion in daily trading volume. Bybit follows with $13.2 billion in open interest and $19.4 billion in volume. Bitget, Deepcoin, and CoinW also have significant activity, with billions in both open interest and trading volume.

Crypto Funding Analysis This Week

Crypto Fundraising Trend

The crypto fundraising trend over the past two weeks shows a significant variation in funds raised. From June 10 to June 15, 2024, $112.8 million was raised across 32 fundraising rounds. This contrasts with the previous week, June 3 to June 9, 2024, which saw $409.43 million raised in 29 rounds. While the number of rounds increased in the more recent week, the total funds raised were notably lower

Active Investors This Week

The table highlights the activity of various investment funds in the crypto space. Electric Capital and Castrum Capital lead with four deals each. Several other funds, including Gains Associates, Kangaroo Capital, and Web3Port, followed with two deals each. Smaller funds like Animoca Brands and Paradigm participated in one deal each.

Crypto Fundraising by Category

According to Cryptorank’s data, DeFi was the most invested category this week, with Electric Capital and Castrum Capital leading the way. Blockchain infrastructure and GameFi also attracted significant investments, reflecting a diverse interest in various sectors of the market.  

Top Hacks This Week

The UwU Lend protocol was hacked for nearly $20 million on June 10. Another exploit resulted in $3.5 million being stolen from UwU during the reimbursement process. Additionally, the cryptocurrency exchange Lykke was breached on June 10, losing $22 million in digital assets.

Holograph’s native token fell 79.4% after a hacker exploited its operator contract, minting 1 billion HLG tokens worth $14.4 million. Holograph confirmed the hack on June 14 and is working to freeze the hacker’s accounts.

As a result, nearly $60 million was stolen this week from four different hacks.

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Conclusion

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price

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This week in the crypto market witnessed significant events, including softer-than-expected CPI news that led to market volatility, with Bitcoin fluctuating between $65,000 and $70,000. Major developments included Terraform Labs settling with the SEC for $4.5 billion and Donald Trump advocating for U.S. dominance in Bitcoin mining. Hacks were a major concern, with nearly $60 million stolen from UwU Lend protocol, Lykke exchange, and Holograph. Despite the turbulence, notable investments were made in DeFi, blockchain infrastructure, and GameFi.