Holograph Token Suffers 79% Plunge After $14.4M Hack

Blockchain tokenization platform Holograph experienced a severe blow as its native token, HLG, plummeted by as much as 79.4% following a significant security breach. A malicious actor exploited the platform's operator contract, minting 1 billion HLG tokens worth $14.4 million.

Holograph confirmed the hack on their X account, revealing that they have since patched the initial exploit. The platform is now working closely with cryptocurrency exchange partners to freeze the accounts associated with the malicious actor. In addition to internal investigations, Holograph is contacting law enforcement to assist in tracking down the perpetrator.

The exploit began on June 13 at 9:47 am UTC, according to Etherscan data. The hacker minted the 1 billion HLG tokens across nine transactions, taking advantage of a vulnerability in the smart contract. Seven of these transactions involved 100 million HLG tokens each. The impact on the token's value was immediate; within just 10 minutes, the price started to decline sharply.

Within nine hours, HLG's price dropped from $0.014 to a local low of $0.0029, marking a steep 79.4% decline. During this time, the market cap of HLG fell dramatically from nearly $22 million to $4.8 million. The token has since recovered slightly to $0.008. Approximately four hours after the initial exploit, they began converting the minted HLG into Tether (USDT), a stablecoin, further complicating recovery efforts. At the current prices, the 1 billion HLG tokens are valued at $7.4 million.

Holograph operates within the Omnichain ecosystem, providing a platform that enables tokens to move seamlessly between blockchains while maintaining the same contract address. This functionality allows asset issuers to index cross-chain data efficiently. The platform has attracted venture capital funding from notable firms such as Animoca Brands and Mechanism Capital.

Ethereum (ETH) Sees Surge in Long-Term Holder Accumulation Amid Price Dip

Ethereum (ETH) has experienced a significant boost in long-term holder accumulation, taking advantage of a recent 2% price drop over the past 24 hours. This surge marks one of the largest days for accumulation in the cryptocurrency’s history.

On June 13, CryptoQuant's head of research, Julio Moreno, highlighted the dramatic increase in Ether demand. In a post on X, Moreno revealed that 298,000 Ether tokens were acquired by accumulation addresses over a 24-hour period on June 12. This accumulation is valued at approximately $1.34 billion at the time of publication.

Moreno noted that this influx was only 6% shy of the record set on September 11, 2023, when long-term holders scooped up 317,000 Ether as the price fell below $1,600 This surge in demand comes amidst a broader 8.49% price decline for Ether over the past week. Initially dropping below $3,800 on June 8, Ether has struggled to rebound but has managed to stay above $3,400, according to data from CoinMarketCap. As of this writing, Ether is trading at $3,503.

In parallel with these market movements, regulatory developments may provide further context for Ether’s future. On June 13, SEC Chair Gary Gensler indicated that spot Ether exchange-traded funds (ETFs) could potentially receive final approval for trading before the end of September. This forecast was shared during a Senate Banking Committee hearing, where Gensler suggested that the regulator might sign off on the final approvals for listing and trading shares of spot Ether ETFs within three months.

This follows the SEC’s preliminary regulatory approval on May 23 for spot Ether ETFs in the U.S., approving 19b-4 filings from eight applicants. However, trading can only commence once the S-1 registration statements are also approved.

Solana Labs Launches Blockchain-Based Customer Loyalty Platform

Solana Labs, the company behind the layer-1 blockchain Solana, is set to transform the way brands engage with their customers through its latest offering, Bond. Officially launched on June 12, Bond is a blockchain-based customer engagement platform designed to help brands foster long-term loyalty without necessitating direct engagement with cryptocurrency.

Bond aims to address significant limitations in traditional loyalty programs, particularly the loss of connection with customers when products are resold or gifted. Solana Labs emphasizes that Bond will allow brands to maintain a continuous relationship with their end customers, ensuring sustained engagement and loyalty.

Unlike some of Solana Labs' other recent ventures, such as Solana Mobile, Bond minimizes the focus on cryptocurrency. The platform is designed to provide a seamless user experience where customers might not even realize they are interacting with Web3 technology. This approach allows brands to leverage blockchain technology without requiring any prior blockchain experience. The service is accessible through a single application programming interface (API), making it user-friendly and straightforward to implement.

The Bond platform utilizes the Solana blockchain to offer collectible "digital twins" and limited-edition digital products that complement real-world items. These digital twins can enhance customer engagement and increase overall customer value by encouraging repeat interactions. Solana Labs describes these digital twins as an augmented reality experience, adding a new dimension to customer engagement.

Digital identities for products also enable customers to verify the authenticity of their purchases. Meanwhile, brands can track their products even after they are resold or given away, maintaining a connection with the customer throughout the product's lifecycle.

Paradigm Closes $850M for Third Crypto Fund

Venture capital firm Paradigm has closed its third fund, securing $850 million to invest in early-stage projects. This substantial capital raise marks one of the largest in the history of crypto-focused funds.

Announced on June 13, the completion of this $850 million investment fund underscores Paradigm's ongoing commitment to the crypto space. The firm, co-founded by Matt Huang and Fred Ehrsam in 2018, has been discussing this new fund for several months, particularly as the crypto markets have shown signs of recovery.

“When we founded Paradigm in 2018, we believed that crypto would be one of the most important technical and economic shifts of the coming decades. Six years later, that belief has only gotten stronger,” said Matt Huang, co-founder and managing partner of Paradigm.

Paradigm has a robust portfolio, having invested in several high-profile crypto companies. Their investments include Coinbase, Fireblocks, Blast, Optimism, Uniswap, MakerDAO, Chainalysis, MoonPay, Gitcoin, and Friend.tech. The crypto and blockchain sectors have seen a surge in venture capital investments. Data from Galaxy Research shows that investors poured $2.49 billion across 603 deals in the first quarter of 2024. This represents a 29% increase in funding and a 68% rise in deal volume compared to previous quarters, highlighting the growing interest and confidence in these emerging technologies.

In addition to Paradigm, other venture capital firms are also ramping up their crypto investments. Pantera Capital, for instance, is reportedly seeking to raise over $1 billion for a new fund that will offer exposure to a "full spectrum" of blockchain assets. This fund is expected to launch in April 2025.

Curve Finance Founder Repays 93% of $10M Debt Amid Market Turmoil

Michael Egorov, the founder of decentralized finance (DeFi) protocol Curve Finance, has announced that he has repaid 93% of a $10 million debt incurred during a soft liquidation earlier in the day. The liquidation was triggered as the price of Curve’s native token, CRV, plummeted over 28% following a hacking incident.

“Size of my positions was too large for markets to handle and caused $10 million of bad debt,” Egorov explained. “I have already repaid 93%, and I intend to repay the rest very shortly.”

On June 13, Curve Finance’s soft liquidation mechanism was put to a real-world test during the hacking attempt. While the mechanism managed the situation effectively, the CRV token's price took a significant hit. According to blockchain analytics firm Arkham Intelligence, Egorov faced $140 million in liquidations due to borrowing $95.7 million in stablecoins, mostly crvUSD, against $141 million in CRV across five accounts on five different protocols.

In response to the crisis, Egorov has proposed burning 10% of the outstanding CRV tokens, valued at $37 million at the time of publication, to help stabilize the token's price and return it to pre-incident levels. “As a reward, active voters will earn a 3-month APY booster on all platform deposits,” he added.

This is not the first time Egorov's financial maneuvers have significantly impacted Curve Finance. In August 2023, the protocol suffered a $62 million exploit, which also resulted in bad debt linked to Egorov’s $100 million borrowings. Despite the turmoil, Egorov managed to repay the funds eventually.

Bitcoin Steady as Fed Keeps Interest Rates Unchanged Following FOMC

Bitcoin's price remained relatively stable following the U.S. Federal Reserve's decision to maintain current interest rates. The Federal Open Market Committee (FOMC) held the benchmark federal funds rate steady at a range of 5.25% to 5.50%, in line with analysts' expectations.

In its statement, the Federal Reserve highlighted ongoing economic growth and robust job gains. "Recent indicators suggest that economic activity has continued to expand at a solid pace," the central bank noted. "Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee's 2 percent inflation objective."

The Fed reiterated its dual mandate of achieving maximum employment and stable inflation. "The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks," the statement read.

James Butterfill, Head of Research at CoinShares, expressed concern over the Fed's limited options in the face of potential stagflation—a scenario of stagnant economic growth combined with high inflation. "The Fed is in a precarious situation with stagflation looming over the macroeconomic environment," Butterfill told The Block. "This could lead to financial instability and severely impact banks, similar to past crises."

The Fed's decision to keep rates steady had a noticeable impact on equity markets. Major stock indices held steady and even rallied during mid-day trading on Wednesday. The S&P 500 gained 1%, the Nasdaq Composite rose by 1.7%, and the Dow Jones Industrial Average was up slightly less than 1%. Bitcoin was trading around $69,159.19, reflecting a 3.47% increase over the past day.

Biden Campaign Allegedly Exploring Crypto Donations Through Coinbase Commerce

U.S. President Joe Biden’s reelection campaign is reportedly in discussions with cryptocurrency industry leaders about accepting crypto donations via Coinbase Commerce. This move comes as Biden’s team seeks to engage crypto-focused voters and tap into the financial resources of pro-crypto donors, according to The Block.

Coinbase Commerce, a payment service enabling merchants to accept a variety of cryptocurrencies, is already facilitating crypto donations for Donald Trump’s campaign, the presumptive Republican candidate. Trump’s campaign began accepting digital currency contributions last month, setting a precedent that Biden’s campaign appears keen to follow.

The Biden campaign’s exploration of crypto donations is part of a broader strategy to court voters interested in digital currencies. According to sources who requested anonymity due to the sensitivity of the discussions, Biden’s team is looking at ways to show support for the crypto industry, which could prove crucial in an election expected to be tightly contested.

The move to consider crypto donations marks a significant shift in the Biden campaign’s approach to the digital currency sector. Last month, Biden’s team began ramping up efforts to engage with the crypto community, shortly after Trump made headlines for his pro-crypto stance.

This shift has intensified, particularly following President Biden’s controversial decision to strike down a bipartisan effort to repeal SAB 121, a legislative measure criticized for hindering crypto industry growth in the U.S. The backlash from this decision has pushed Biden’s advisors to reconsider their stance on crypto.

The attention of pro-crypto donors has not gone unnoticed by political candidates across the spectrum. Crypto-backed super PACs have amassed a $100 million war chest, according to a May report by the consumer rights advocacy group Public Citizen, citing Open Secrets data. How this substantial sum is distributed could significantly impact the election, as votes often align with the financial backing of wealthy donors.

AI and Crypto Industries Poised to Add $20 Trillion to Global GDP by 2030, According to Bitwise

The intersection of artificial intelligence (AI) and cryptocurrency could significantly bolster the global economy, potentially adding a combined $20 trillion to global GDP by 2030, according to a new report from digital asset manager Bitwise.

Bitwise Senior Crypto Research Analyst Juan Leon emphasized the immense potential of the collaboration between the AI and crypto industries in a report released on Tuesday. “The intersection of AI and crypto is going to be even bigger than people imagine,” Leon wrote, highlighting the growing synergy between these two transformative technologies.

One notable area of collaboration is the emerging partnership between bitcoin miners and AI, which could revolutionize both fields. As AI continues to boom, the demand for data centers, AI chips, and electricity has surged, creating unique opportunities for bitcoin miners.

The AI industry's rapid growth has propelled companies like Nvidia to unprecedented heights. Nvidia recently reached a $3 trillion market cap, making it the third-largest company globally, trailing only Microsoft and Apple. This explosive growth is driving an intense race for “AI supremacy,” leading to a significant shortage of data centers, AI chips, and access to electricity. The world’s four largest cloud companies—Amazon, Google, Meta, and Microsoft—are projected to spend nearly $200 billion on new data centers next year alone, according to Leon.

However, the demand is outpacing supply, with more than 80% of data center capacity under construction already leased in advance, as reported by commercial real estate firm CBRE Group. This shortage presents a substantial challenge for the AI industry.

Bitcoin miners possess valuable infrastructure that could alleviate some of the AI industry's growing pains. While the application-specific integrated circuits (ASICs) used in bitcoin mining are not suitable for AI applications, the miners' extensive storage, cooling systems, and access to cheap power at scale could be repurposed to support AI’s computational needs. This infrastructure is critical for the large data centers required to store and process the vast amounts of information that AI systems generate.

Donald Trump Backs Bitcoin Mining in Mar-a-Lago Meeting with Industry Leaders

Former U.S. President Donald Trump voiced strong support for bitcoin mining during a Tuesday night meeting with several Bitcoin miners at his Mar-a-Lago resort. This move underscores Trump's growing embrace of the cryptocurrency sector as he gears up for the upcoming November election.

In the meeting, Trump told participants that he would advocate for Bitcoin mining if he returns to the White House, emphasizing the role miners play in stabilizing the energy grid. This statement aligns with Trump's recent pro-crypto position, which he has been vocal about on the campaign trail.

The gathering at Trump’s Palm Beach resort included representatives from prominent bitcoin mining firms such as CleanSpark Inc. and Riot Platforms. Several attendees posted pictures with the former president, reflecting the positive reception of Trump's remarks within the crypto community.

S. Matthew Schultz, co-founder of CleanSpark, shared his enthusiasm on social media, posting on X (formerly Twitter), “I just ran into a guy that’s a huge fan of bitcoin and loves what we’re doing at CleanSpark Inc. in Georgia and Mississippi and Wyoming.”

Trump's endorsement of Bitcoin mining has not only garnered applause from industry leaders but has also translated into significant fundraising success. A recent $12 million fundraising event in Silicon Valley saw attendance from notable figures like Gemini founders Cameron and Tyler Winklevoss, further solidifying Trump’s support among crypto enthusiasts. Last month, Trump also announced that his campaign would accept political donations in the form of cryptocurrencies.

Circle Expands Web3 Services to Solana Blockchain, Introducing Programmable Wallets and Gas Stations

Circle, the digital asset firm and issuer of USDC, is extending its Web3 services to the Solana blockchain, introducing features such as programmable wallets and gas stations. This move is set to enhance Solana's capabilities and align it with other blockchains already supported by Circle, including Ethereum, Polygon, and Avalanche.

The integration will occur in two distinct phases. According to Circle's announcement on June 12, the initial phase will focus on rolling out programmable wallets and sponsored transaction fees via the gas station feature. Programmable wallets will allow developers to automatically manage assets based on predefined rules, facilitating smoother and more efficient transactions.

The second phase, slated for a later date, will introduce support for non-fungible tokens (NFTs) and enhanced program interactions through Circle’s Smart Contract Platform. This comprehensive integration aims to bolster Solana's position within the Web3 ecosystem.

Programmable wallets, a key feature of this integration, can be configured to interact with smart contracts autonomously. This means that tasks typically requiring manual intervention, such as executing transactions when specific conditions are met, can now be automated. This feature is expected to significantly streamline operations for developers and users alike.

Circle's gas station feature will further enhance the Solana ecosystem by sponsoring transaction fees, making it easier and more cost-effective for users to engage with the blockchain. This is particularly beneficial for developers looking to build and deploy decentralized applications (dApps) without the burden of high transaction costs.

Circle acknowledged this growth in its announcement, stating, “The Solana developer community has witnessed remarkable growth.” To accommodate the rising demand, the Solana network is preparing for significant upgrades, including the much-anticipated Firedancer upgrade slated for 2025. This upgrade aims to enhance Solana’s scalability and eliminate network downtime, addressing issues that have plagued the blockchain in the past, such as a recent outage that lasted nearly five hours.

Bitcoin Surges as Cooler Inflation Revives Rate Cut Hopes

Bitcoin and other cryptocurrencies rallied on Wednesday after U.S. inflation data came in slightly below expectations, boosting hopes that the Federal Reserve could start cutting interest rates later this year.

The world's largest cryptocurrency spiked over 4% to above $69,500 within minutes of the inflation report's release.

The Labor Department reported that the annual inflation rate cooled to 3.3% in May, down from 3.4% in April.

While still elevated, the lower-than-expected readings could allow the Fed to eventually ease off its aggressive rate hike measures.

"Progress on cooling inflation appears to have resumed in the second quarter, keeping Fed rate cuts on the table for later this year," said Scott Anderson, chief U.S. economist at BMO Capital Markets.

Crypto prices surged on the inflation data, with Bitcoin climbing over $1,900 in a matter of minutes. Ether and other altcoins also posted gains as traders reassessed the macroeconomic situation.

Still, Wednesday's report may not be enough to convince Fed Chair Jerome Powell and colleagues to immediately start slashing rates. At 3.3%, inflation remains well above the historically acceptable 2% target.

The Fed is scheduled to conclude its latest policy meeting later on Wednesday.

Also Read: Rate Hikes and the Fed – How Do They Affect Crypto Markets?

Solana Price Hits Four-Week Low Amid Macroeconomic Uncertainty

Solana (SOL) recently hit a four-week low, testing the $145 support level on June 11. This came after a sharp 15.8% decline over four days, underperforming the broader cryptocurrency market, which saw a 10% drop in total capitalization during the same period. Despite the downturn, some indicators suggest that the current macroeconomic instability may present a buying opportunity for SOL.

Investor sentiment has been rattled by mixed economic signals, prompting concerns over a potential correction in the stock market. This uncertainty is influencing expectations around interest rate cuts by the United States Federal Reserve (Fed). According to the CME FedWatch tool, traders now see a 48% chance of rates remaining unchanged until September, up from 39% a month ago. The S&P 500 index, which reached a record high on June 7, has since plateaued, with investors eagerly awaiting comments from Fed Chair Jerome Powell on June 12.

Stuart Kaiser, Citigroup’s head of U.S. equity trading strategy, has indicated that a Consumer Price Index (CPI) increase above 0.4% compared to the previous month could trigger a broad market selloff. This could potentially lead to a 1.5% to 2.5% drop in the S&P 500. Kaiser also warned that the S&P 500 might experience its largest single-day movement since March 2023, with the U.S. inflation data set for release on June 12 being a critical factor ahead of the Fed's rate decision.

SOL’s recent underperformance can also be linked to network issues, particularly around maximum extractable value (MEV). Validators on the Solana network were found exploiting traders through sandwich attacks, manipulating transaction prices for profit at the expense of retail investors. In response, the Solana Foundation has excluded these validators from its delegation program, aiming to reduce incentives for such detrimental actions.

Despite the steep 15% drop, the demand for leverage through SOL futures has remained unaffected by the recent market decline. Data from Coinglass shows that SOL's funding rate has held steady at 0.01% per eight hours since June 8, equating to about 0.2% per week. This stability in the funding rate, despite a significant price drop, indicates market resilience. Typically, a sharp increase in the funding rate would suggest that bulls are over-leveraged, but this has not been the case for SOL.

US Spot Bitcoin ETFs Ended Record 19-Day Inflow Streak Following $65M Outflow

11 U.S. spot Bitcoin exchange-traded funds (ETFs) recorded a net outflow of $64.93 million on Monday. This marked the end of a historic 19-day inflow streak that had seen consistent daily investments. Grayscale’s GBTC led the outflows this week, with investors pulling out $40 million. This trend was echoed across other funds; Invesco and Galaxy Digital's BTCO saw net outflows of $20 million, while Valkyrie's bitcoin ETF reported $16 million in redemptions. Fidelity's FBTC, which had enjoyed positive flows since May 2, experienced $3 million in net outflows.

Despite the general trend, not all funds saw redemptions. BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, recorded net inflows of $6 million. Similarly, Bitwise’s BITB saw $8 million in new investments, indicating some continued confidence in the market. The record 19-day inflow streak concluded last Friday, amassing over $4 billion in net inflows. Since their launch in January, the 11 spot bitcoin ETFs have collectively attracted $15.62 billion in net investments.

The recent outflows come amid a dip in Bitcoin’s price, which fell following the release of conflicting U.S. non-farm payroll and unemployment data. The mixed economic signals have created uncertainty, prompting investors to move away from riskier assets, as noted by crypto trading firm QCP Capital. The CME Group forecasts a 99.4% probability that the Federal Reserve will maintain the current interest rate of 5.25% to 5.50%.

While the Bitcoin ETFs have garnered significant attention, U.S. spot Ethereum ETF issuers are also awaiting feedback from the Securities and Exchange Commission (SEC) on their S-1 registration statements, which were submitted at the end of last month. Approval of these forms is necessary for the official launch of spot ether ETFs.

Political-Themed Memecoins Face Steep Declines Amid Broader Market Selloff

Memecoins themed around U.S. President Joe Biden and Republican frontrunner Donald Trump, is experiencing a more severe selloff than the broader crypto market. The Political memecoin market cap has plummeted by over 13% in the past 24 hours. In comparison, Bitcoin has dropped around 4%, while Ethereum has fallen 5.4% in the same timeframe.

Leading the downturn is the FreeTrump token ($TRUMP), which has seen its value nosedive by 45% over the past 24 hours. MAGA (TRUMP), the largest PolitiFi coin by market cap at $560 million, has also taken a significant hit, declining by 13%. The market turmoil coincides with significant political news. A federal jury found Hunter Biden guilty on three federal felony gun charges, determining that he violated laws meant to prevent drug addicts from owning firearms. This verdict marks an unprecedented event, as it is the first time a sitting president's son has been found guilty of a crime while his father is in office, according to CNN.

Interestingly, around the time the guilty verdict was announced on Wednesday, the Solana-based Hunter Boden token (HUNTERBODEN) experienced a sharp spike, surging more than 30% over the past 24 hours to $0.001514. This surge stands in stark contrast to the overall decline in the PolitiFi sector. Meanwhile, another popular memecoin of 2024, Jeo Boden (BODEN), saw a decline of 5.5%, trading at $0.1855.

The broader equity market has also faced selling pressure ahead of Wednesday’s key macroeconomic updates. Investors are anxiously awaiting the monthly Consumer Price Index (CPI) report and a Federal Reserve monetary policy announcement. In recent weeks, expectations have waned regarding the possibility of the Federal Reserve cutting interest rates, adding to the market's cautious sentiment.

ZKsync to Airdrop 3.675 Billion Tokens to Early Users and Contributors

The ZKsync Association has announced a major airdrop of 3.675 billion ZK tokens to early users and contributors of its Ethereum Layer 2 network, ZKsync. This airdrop, set to begin next week, represents a substantial 17.5% of the total ZK token supply of 21 billion tokens.

The ZKsync Association shared that this will be a one-time airdrop, with users able to claim their tokens from next week until January 3, 2025. Contributors, specifically, will be able to start claiming their tokens from June 24. The distribution is part of a broader token allocation strategy, wherein 49.1% of the total supply will be distributed through ecosystem initiatives, 17.2% will be allocated to investors, and 16.1% to the Matter Labs team.

"Awarding more tokens in the airdrop than to the Matter Labs team and investors is more than a symbolic decision for the community," the ZKsync Association stated. "When the ZKsync governance system launches in the coming weeks, the community will have the largest supply of liquid tokens to direct protocol governance upgrades."

The long-anticipated airdrop will involve 695,232 wallets, with eligibility and allocations determined based on a snapshot of activity on ZKsync Era and ZKsync Lite taken on March 24, 2024, exactly one year after the ZKsync Era mainnet launch. The 17.5% ZK airdrop is divided into two segments: 89% for users and 11% for contributors. Users include those who have transacted on ZKsync and met specific activity thresholds, while contributors encompass individuals, developers, researchers, communities, and companies that have supported the ZKsync ecosystem.

Additionally, just under half a percent of the token supply is set aside for what ZKsync calls "experimental communities." These include wallets that received the Degen and Bonsai airdrops due to activity on decentralized social networks Farcaster and Lens, as well as those involved in Crypto the Game—recently acquired by Uniswap Labs—and NFT projects like Pudgy Penguins and Milady Maker.

Crypto Market Faces Major Selloff, Triggering $270M in Liquidations

The cryptocurrency market has faced a significant selloff over the past two days, resulting in a wave of liquidations across various platforms. Bitcoin (BTC), the largest cryptocurrency by market capitalization, saw a decline of 3.5% over the past 24 hours, trading at $67,275. Ethereum (ETH), the second-largest cryptocurrency, fell even more sharply, down 4.6% to $3,495.

This substantial market downturn has led to the liquidation of approximately $270.4 million in leveraged positions over the past 24 hours, according to CoinGlass. A notable majority of these liquidations, totaling $238 million, were from long positions. Ether led the liquidation tally with $70.5 million, of which $64.6 million were long positions, closely followed by Bitcoin with $68.88 million in liquidations. Binance emerged as the top exchange for these liquidations, recording $99.7 million at the time of publication.

The market downturn comes at a critical time, with investors bracing for significant macroeconomic updates. The monthly Consumer Price Index (CPI) report and a Federal Reserve monetary policy announcement are both scheduled for Wednesday. These reports are expected to provide crucial insights into the economic outlook, influencing market sentiment and trading strategies.

The heightened correlation between Bitcoin and traditional risk assets suggests that cryptocurrencies are not immune to broader market dynamics. This is particularly evident as traders adopt more conservative strategies in anticipation of key economic data releases. The drop in implied volatility across Bitcoin and Ether indicates a more cautious market stance, with investors possibly waiting for clearer signals before making significant moves.

Mark Cuban Believes Crypto Will Play Decisive Role in 2024 Presidential Election

Billionaire entrepreneur Mark Cuban has emphasized the significant role that cryptocurrency will play in the upcoming U.S. presidential race, particularly focusing on President Joe Biden's allegiance to Securities and Exchange Commission (SEC) Chairman Gary Gensler.

Cuban expressed doubts about whether either President Biden or former President Donald Trump truly understands cryptocurrency, despite Trump's venture into non-fungible tokens (NFTs) as a fundraising tool. Nevertheless, Cuban believes that the stance on cryptocurrency could become a key differentiator between the two candidates in the November 2024 presidential election.

"I have said many times that Biden has to choose between Gensler or crypto voters or it could cost him the White House," Cuban stated on the social media platform X on Saturday. He further commented, "As far as who will be appointed, I wouldn’t take anything as a given."

Cuban has previously criticized Gensler, stating that the SEC has failed to protect investors from fraud while simultaneously making it "nearly impossible" for cryptocurrency firms to operate. "Crypto voters will be heard this election," Cuban asserted on May 10.

Iggy Azalea's MOTHER Token Soars 30% After Utility Announcement

Iggy Azalea’s newly launched cryptocurrency, the Mother Iggy (MOTHER) token, has experienced another dramatic surge following a surprising announcement about its real-world utility. The Australian rapper revealed that holders of the MOTHER memecoin will soon be able to purchase mobile phones and monthly cellphone subscription plans, coinciding with the relaunch of her old telecommunications company.

Azalea took to the social media platform X on June 9 to share the exciting news: "Tomorrow, I’m finally relaunching the telecommunication company I co-founded, and you will be able to purchase phones or month-to-month cell plans using MOTHER or Sol." This announcement ignited immediate interest in the MOTHER token, driving its value up by over 30% within 24 hours, according to CoinMarketCap data. MOTHER is currently trading at $0.1631, and is down 17.3% in the past 24 hours amid a wider market selloff. However, the token has gained 120% in the past week.

Azalea also hinted at a forthcoming advertising campaign for the telecom company’s relaunch, set to begin this week. This campaign is expected to generate additional social media buzz and potentially further boost the memecoin’s value. By linking the token to real-world products and services, Azalea is attempting to bridge the gap between digital currencies and everyday consumer transactions.

Despite the significant intraday surge of the MOTHER token, the broader market for meme tokens remains largely unaffected. According to CoinMarketCap data, the total trading volume of meme tokens fell by over 12.8% to $5.46 billion in the past 24 hours, indicating a general slump in interest. Several popular memecoins have experienced notable losses over the past week. The Pepe (PEPE) token dropped 17%, Bonk (BONK) fell over 20%, and Book of Meme (BOME) also decreased by more than 20% during the same period.

AI Tokens Failed To Rally After Apple Intelligence Announcement, Elon Musk Threatens Apple Device Ban

Apple’s 2024 Worldwide Developers Conference saw the tech giant unveil “Apple Intelligence” — a suite of new generative AI features set to be included in iOS 18, iPadOS 18, and macOS Sequoia later this year. One of the key features revealed was Siri’s ability to relay user questions to ChatGPT when necessary, with user consent required before any data, documents, or photos are sent to the AI. The responses would then be delivered directly by Siri, powered by OpenAI’s latest iteration of ChatGPT, GPT-4o.

However, the announcement of Apple Intelligence did not trigger a price rally for AI-linked cryptocurrencies. Render (RNDR), Fetch.ai (FET), and Bittensor (TAO) have all seen declines of 7.5%, 3.5%, and 6.6% respectively over the last 24 hours, despite the buzz around AI.

Meanwhile, billionaire entrepreneur Elon Musk has threatened to ban the use of Apple devices at his companies if Apple integrates OpenAI’s ChatGPT into its iPhone, iPad, and Mac operating systems. Musk expressed his concerns via a post on X, formerly known as Twitter, on June 10. “If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation,” Musk asserted. He even suggested that visitors to Tesla, Space Exploration Technologies Corp (SpaceX), and his other ventures would need to "store their Apple devices in a Faraday cage" upon entry to prevent any potential security breaches.

Musk criticized Apple for relying on OpenAI instead of developing its own AI technology. “It is patently absurd that Apple isn’t smart enough to make their own AI,” he said. “They’re selling you down the river. Apple using the words ‘protect your privacy’ while handing your data over to a third-party AI that they don’t understand and can’t themselves create is *not* protecting privacy at all.”

Bitcoin's Short-Term Holders' Realized Price Rises Showing Bull Market Trend

The realized price of Bitcoin (BTC) held by short-term holders (STHs) has shown a significant increase, indicating robust market confidence. The price of BTC has surged from around $68,000 to $70,232 over the past week. During this period, the realized price for STHs, the average acquisition price for coins moved within the last 155 days and held outside exchange reserves, rose by 1.5%, according to James Van Straten, lead analyst at Cryptoslate. However, Bitcoin has gone back below $70,000, declining 2.45% in the past 24 hours to trade at $67,856.

This group of short-term holders primarily includes those who purchased Bitcoin around the approval of the U.S. spot Bitcoin ETF in January and just before Bitcoin breached its previous all-time high of $69,000 in March. According to data from market intelligence firm Glassnode, the STH realized price has been steadily increasing, nearing $64,000, which underscores Bitcoin’s uptrend over the last 18 months.

“This metric provides crucial support, with Bitcoin testing this level at the start of May. The STH realized price rose 1.5% in the past week, signaling increased short-term speculation,” Van Straten explained.

As long as Bitcoin holds above $64,000 in the coming months, the long-term outlook remains bullish. This level is seen as a significant support zone, reinforcing the positive market sentiment.