Key takeaways

• The oversold technical conditions may limit the pace of the decline, but the broader market structure remains bearish.
•  The structure will remain bearish unless BTC can reclaim the $64,000 region and build momentum back above key moving averages. 

BTC Extends Losses Ahead of Key US Inflation Data Bitcoin (BTC) continued its decline on Wednesday, trading below $61,500 as renewed geopolitical tensions in the Middle East and persistent institutional selling kept risk sentiment subdued. 

Investors are also preparing for the release of the US Consumer Price Index (CPI) data for May, which could significantly influence expectations for Federal Reserve policy. 

Renewed Middle East tensions keep risk assets under pressure

Geopolitical concerns intensified after the United States conducted what it described as self-defense strikes against Iran following the downing of a US Apache helicopter in the Strait of Hormuz. 

Iran’s Islamic Revolutionary Guard Corps (IRGC) responded by saying it had targeted an airbase in Jordan hosting US forces, as well as locations in Kuwait and Bahrain, and warned of further escalation if US actions continue.

Market participants are closely watching the upcoming US inflation data. Economists expect the May CPI report to show another increase in consumer prices, partly due to elevated energy costs linked to the Middle East crisis. 

If inflation comes in hotter than expected, it could strengthen expectations that the Federal Reserve will maintain a hawkish stance and keep interest rates elevated for longer. 

Higher borrowing costs tend to reduce liquidity and make yield-bearing assets more attractive relative to risk assets, potentially adding further pressure on Bitcoin. 

Institutional demand remains weak. According to CoinGlass, US-listed spot Bitcoin ETFs recorded net outflows of $77.44 million on Tuesday, following $91.37 million in outflows earlier in the week.

These withdrawals extend a broader trend of persistent weekly outflows from spot Bitcoin ETFs, suggesting that large investors remain cautious amid macroeconomic uncertainty and geopolitical risks.

Bitcoin technical outlook: Bears retain control

The BTC/USD 4-hour chart is bearish and efficient as Bitcoin maintains a clearly bearish near-term structure. 

Price remains well below all three major moving averages, while a former upward trendline near $73,004 has turned into resistance, reinforcing the view that the medium-term uptrend has been broken. 

The RSI near 38 indicates oversold conditions that could slow the decline, but it does not yet signal a confirmed reversal. 

The MACD remains in negative territory, although downside momentum appears to be moderating, increasing the risk of consolidation rather than an immediate recovery. 

If the bulls regain control, immediate resistance is seen at the $64,004 level, with the $72,037 zone also posing as a strong supply zone.

No significant support levels are identified immediately below the current price in this setup, leaving BTC vulnerable to further downside if selling pressure persists. 

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 1663.81, down 1.4% (-24.03) since 4 p.m. ET on Tuesday.

All of the 20 assets are trading lower.

Leaders: CRO (-0.1%) and AAVE (-0.5%).

Laggards: NEAR (-4.3%) and BCH (-4.1%).

The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

Key Highlights

• DFS revises stablecoin framework to meet GENIUS Act certification criteria
• Proposed regulations maintain state-level supervision for compliant issuers
• Enhanced requirements include custodian concentration limits and comprehensive risk management
• State framework updated to harmonize with federal regulatory expectations
• Federal certification pathway could safeguard New York’s regulatory jurisdiction

The New York Department of Financial Services is pursuing federal recognition of its stablecoin regulatory program under the GENIUS Act framework. Through newly proposed rules, DFS aims to demonstrate substantial equivalence with federal standards while retaining jurisdiction over qualified stablecoin issuers. The framework strengthens existing requirements around reserve management, redemption protocols, auditing standards, and operational risk controls.

DFS Framework Adjusted to Meet Federal Certification Standards

Acting Superintendent Kaitlin Asrow unveiled the regulatory proposal from the New York State Department of Financial Services. The initiative expands upon previous DFS guidance from June 2022 governing dollar-pegged stablecoin operations. This update directly addresses federal certification pathways established by the GENIUS Act.

The proposed framework retains New York’s core requirements for reserve composition, token redeemability, and acceptable backing assets. DFS-licensed issuers would continue facing mandatory independent audit obligations. These foundational elements already constitute New York’s current approach to stablecoin regulation.

Yet the proposal introduces additional safeguards designed to satisfy federal benchmarks. The updated rules would cap reserve concentration with individual custodial institutions. Issuers would also need to implement structured risk management frameworks spanning critical operational functions.

State Pursues Federal Recognition to Preserve Regulatory Authority

New York seeks official designation that its regulatory structure substantially mirrors federal stablecoin requirements. Achieving this certification would permit qualifying issuers to continue operating under DFS jurisdiction. Absent such recognition, certain operators might transition to direct federal regulatory oversight.

The GENIUS Act establishes a bifurcated regulatory architecture for stablecoin supervision. Issuers with circulating tokens exceeding $10 billion come under federal regulatory authority. Smaller operators may continue under state supervision provided federal authorities certify those state programs.

A designated Stablecoin Certification Review Committee evaluates state regulatory frameworks under the legislation. This committee comprises officials from the Treasury Department, Federal Reserve, and FDIC. Consequently, New York must demonstrate regulatory parity with federal requirements.

Enhanced Custodial and Operational Risk Requirements Introduced

The revised regulatory framework extends beyond reserve backing and redemption mechanics. Issuers would implement controls governing corporate governance structures, cybersecurity protocols, and internal audit functions. Risk management programs must address asset expansion, revenue generation, and third-party service provider relationships.

The draft regulations also establish standards for related-party transactions and affiliate arrangements. DFS indicated these enhancements support more robust supervision amid expanding stablecoin market activity. The department emphasized its framework draws upon empirical data, active supervision, and stakeholder input.

DFS has maintained regulatory oversight of stablecoin issuance since 2018. Its current framework encompasses reserve requirements, redemption guarantees, disclosure obligations, and restrictions on asset rehypothecation. The new proposal modernizes this structure for compatibility with the federal GENIUS Act regime.

Public Comment Period Precedes 2027 Implementation Timeline

The regulatory proposal initiates with a 10-day preliminary comment period. Following State Register publication, DFS will conduct a 60-day formal public comment period. Regulators will subsequently evaluate stakeholder input before issuing final rules.

DFS indicated the finalized regulation becomes operative alongside the GENIUS Act on January 18, 2027. Current DFS-licensed stablecoin issuers would benefit from a one-year transition window. Meanwhile, existing DFS stablecoin guidance continues governing licensed entities.

This proposal reflects broader collaborative efforts between DFS and fellow regulators. Recently, DFS executed a supervisory cooperation agreement with the European Banking Authority. This action underscored New York’s determination to preserve its prominent position in stablecoin regulatory oversight.

Key takeaways

• ADA remains under pressure after last week’s 30% sell-off
• The coin could dip lower if the bearish trend in the market persists.

Cardano (ADA) continues to struggle on Wednesday, trading near $0.1600 and extending losses following last week’s sharp 30% decline. 

The cryptocurrency remains under intense selling pressure as investor confidence weakens and retail participation fades.

Despite the bearish backdrop, on-chain data suggests that selling activity from long-term holders may be approaching exhaustion, potentially laying the groundwork for a future recovery.

Dormant supply spike suggests capitulation among long-term holders

Recent on-chain data from Santiment shows a significant surge in dormant ADA supply re-entering circulation during early June.

Several spikes in dormant supply spent exceeded 20 billion ADA, culminating in a massive 40.6 billion ADA movement on June 9, the largest recorded spike during the current sell-off.

This wave of activity indicates that long-term holders who had previously remained inactive chose to move or sell their holdings amid market weakness. 

The surge also interrupted the growth in the average age of ADA wallets, confirming that dormant addresses became active again.

While further selling from long-term holders remains possible, such spikes are often viewed as capitulation events that signal the exhaustion of selling pressure and frequently precede market bottoms.

Retail sentiment toward Cardano has deteriorated significantly following last week’s decline.

Derivatives data highlights the decline in speculative demand. According to CoinGlass, Cardano futures Open Interest (OI) has dropped to $348.55 million, its lowest level since November 2024. This extends a steady decline from $585.35 million recorded on May 12.

A falling OI typically signals that traders are closing leveraged positions and becoming more risk-averse, reducing the likelihood of a strong recovery in the near term.

ADA price analysis: Can Cardano stay above $0.1500?

Cardano is trading slightly below $0.1600, maintaining a bearish trajectory after reaching a short-term peak of $0.1745 on Monday.

Technical indicators continue to favor sellers. The Relative Strength Index (RSI) at 39 is approaching the oversold territory, indicating severe selling pressure.

The Moving Average Convergence Divergence (MACD) remains below the zero line, confirming that bearish momentum remains dominant.

While oversold conditions could trigger occasional relief rallies, there is currently no strong evidence of a trend reversal.

If the rally resumes, ADA could surge past Monday’s high of $0.1745 before hitting the $0.2000 psychological level. 

A move back above the $0.2205–$0.2275 zone would be needed to weaken the prevailing bearish outlook.

However, if the selloff persists, ADA could drop below Saturday’s low of $0.1486, with the major long-term support at $0.1000 also a target. 

A break below $0.1486 could expose ADA to a deeper decline toward the $0.1000 region.

The European Union proposed banning transactions on 11 crypto platforms as part of its 21st sanctions package against Russia.

Kaja Kallas, vice president of the European Commission and the EU’s high representative for foreign affairs and security policy, outlined measures targeting banks, weapons manufacturers, oil traders, refineries and other entities outside the bloc.

“We will also tighten our ban for crypto-asset services to certain third countries, add new designations, and ban transactions on 11 crypto platforms,” Kallas said in a post on X.

The proposal would widen the EU’s sanctions campaign beyond Russian banks and energy revenues to crypto firms accused of helping Moscow circumvent restrictions imposed over its war in Ukraine.

Source: Kaja Kallas

The Commission did not identify the 11 crypto platforms in its public statements. Cointelegraph sought clarification on which platforms would be affected, but the Commission did not provide additional details before publication.

European Commission President Ursula von der Leyen said the package includes bans on 31 additional Russian banks and 20 entities in third countries, including banks, crypto platforms and oil traders.

She said the targets had served sanctioned Russian individuals and entities or helped circumvent EU measures.

EU proposal follows UK sanctions against HTX

The EU proposal follows the United Kingdom’s May 26 sanctions against Huobi Global S.A., the Panamanian company behind HTX, over alleged support for Russia-linked financial networks.

UK authorities said there were reasonable grounds to suspect HTX had supported the Russian government through financial services and funds facilitated by A7 Limited Liability Company and Garantex, both sanctioned entities.

Related: MiCA architect says EU should prioritize tokenization over DeFi rules

HTX has denied the allegations, saying the sanctioned entity is separate from the online exchange. A Global Ledger report later said HTX processed about $21.06 billion in high-risk crypto flows between 2021 and May 2026. Of that total, at least $7.64 billion was linked to Russian high-risk entities and darknet markets, including Garantex, its successor Grinex, A7A5 and Hydra.

The UK sanctions drew criticism from blockchain researchers, who warned that broad exchange-level tainting could freeze legitimate users and make crypto compliance tools less effective at tracing illicit funds.

Magazine: Vietnam preps crypto pilot, HK pushes tokenization: Asia Express

Botanix, a Bitcoin scaling network that set out to bring “real utility” to BTC without token incentives, is winding down after four years in operation.

In a Tuesday post on X, Botanix told users to withdraw all Bitcoin and other assets by July 9, after which remaining assets will be swept and “be unrecoverable.”

The decision comes despite integrations with major crypto infrastructure providers, including Chainlink, Fireblocks and Galaxy, and the launch of a consumer-facing Bitcoin neobank app.

Botanix’s Spiderchain architecture combines an Ethereum Virtual Machine-compatible chain with proof-of-stake-style consensus.

That structure allowed it to offer Ethereum-like programmability for Bitcoin while relying on a set of validators and a dynamic federation, rather than purely on Bitcoin’s own consensus for security and settlement.

In its shutdown notice, the team said the technology and products worked but failed to achieve sustainable product-market fit or economics.

Botanix shut-down notice. Source: Botanix

Botanix said most users still treat Bitcoin primarily as a reserve asset and yield vehicle rather than something they want to use frequently in onchain applications, and that existing demand for Bitcoin-backed decentralized finance (DeFi) is largely being met by wrapped BTC on Ethereum.

Related: Bitcoin payments held back by tax policy, not scaling tech: Crypto exec

The team also cited a broader concentration of attention and trading volume on large exchanges, trading platforms and traditional financial intermediaries, which left infrastructure-heavy networks like Botanix struggling to generate enough fee revenue to cover their costs.

Users have until July 9 to withdraw assets

Botanix has warned that anyone who does not remove their Bitcoin and other assets by July 9 will lose access, highlighting the practical risks for retail users when experimental DeFi platforms are wound down.

The shutdown comes as other projects seek to extend Bitcoin’s programmability, including Stacks and Rootstock, which operate independent blockchains linked to Bitcoin, and newer efforts such as Citrea that use different mixes of Bitcoin anchoring, proof-of-stake-style designs and token incentives

Citrea co-founder and chief executive Orkun Mahir Kılıç told Cointelegraph Botanix’s experience is less an indictment of Bitcoin DeFi than of “a cloning-first approach” that largely replicated existing EVM protocols without offering long-term BTC holders a distinct value proposition. 

He argued that Citrea is instead focused on applications that “fundamentally require Bitcoin’s specific architecture and trust-minimized settlement,” rather than competing as one more general-purpose chain, pointing to use cases like private payments and Bitcoin-native capital markets rather than generic lending and trading forks.

Cointelegraph reached out to Botanix for comment but did not receive a response by publication.

Magazine: Bitcoin will not hit $1M by 2030, says veteran trader Peter Brandt