Blockchain
Bitcoin creeps up but is still below $70,000
Key points
- The price of bitcoin fell last week ahead of news about inflation and the Federal Reserve, but it hasn’t rebounded as much as other risky assets.
- US presidential candidates Donald Trump and Joe Biden continue to demonstrate that cryptocurrencies are a major election issue.
- Terraform Labs has agreed to a $4.5 billion settlement with the SEC.
- Binance founder Changepeng Zhao was found to be one of the 25 richest people in the world.
- This week, crypto analysts are closely watching the price of bitcoin to see if the recent volatility is over.
The past week has been a wild ride for the price of bitcoin (Bitcoin).
The price of bitcoin it fell below $67,000 on Tuesday ahead of May inflation data and the Federal Reserve meeting. Bitcoin it regained ground on Wednesday before falling again on Friday. While other risky assets, such as stocks, have recovered thanks to colder-than-expected inflation data, bitcoin has failed to recoup its losses.
Despite Bitcoin’s performance last week, cryptocurrencies are going through an important moment on the US presidential election campaign trail. Presumptive Republican nominee Donald Trump met with bitcoin miners last week, and a leaked email showed that members of President Joe Biden’s administration will meet with members of the crypto community.
Elsewhere, Terraform Labs has agreed to a massive $4.5 billion deal with US Securities and Exchange Commission (SEC) for what concern TerraUSD stablecoin disaster from 2022and an investigative report concluded it Binance founder and former CEO Changpeng “CZ” Zhao is one of the 25 richest people in the world.
The growth of cryptocurrencies is an issue for the US presidential elections
Former President Donald Trump has changed his stance on cryptocurrencies during the current election cycle, now actively courting the crypto community to gain an advantage over rivals Joe Biden and Robert F. Kennedy Jr.
After meeting with bitcoin miners at his Mar-a-Lago estate, Trump urged cryptocurrency enthusiasts on his Truth Social platform to “vote for Trump,” positioning himself as a defender against what he calls “Biden’s hatred of Bitcoin”.
This new approach follows Trump’s strong criticism of cryptocurrencies earlier during his presidency, when he labeled them as highly volatile and unregulated assets that facilitate illegal activities. Now, however, Trump’s campaign has announced plans to accept cryptocurrency donations, with the aim of mobilizing a “cryptocurrency army” to ensure his election victory.
Across the street, the Biden administration’s approach to Bitcoin and cryptocurrencies has been criticized, especially given the recent veto on legislation to support the custody of cryptocurrencies by financial institutions and proposed taxes about Bitcoin mining. According to a report from The Block, Biden is also expected to start accepting campaign contributions via cryptocurrencies.
Biden supporters will participate in a roundtable on Bitcoin and blockchain next month, Bitcoin Magazine reports.
Terraform Labs agrees to $4.5 billion settlement with SEC
On Wednesday, a court document revealed that Terraform Labs agreed to a settlement of nearly $4.5 billion to resolve an SEC lawsuit. The filing sought court approval for the deal, which would end a legal battle over the company’s role in TerraUSD’s dramatic bankruptcy in May 2022, which led to an estimated $40 billion loss for investors.
The settlement includes approximately $3.5 billion in restitution, more than $460 million in prejudicial interest and $420 million in civil penalties. Former CEO Do Kwon will personally contribute more than $200 million to Terraform’s bankruptcy estate and will be barred from serving as an officer or director of a public company.
This settlement, originally reached prior to the May 29 hearing, aims to impose substantial financial remedies and facilitate a rapid recovery for investors. The SEC emphasized that these sanctions are intended to discourage future fraudulent activity in the cryptocurrency market. Terraforming laboratories declared bankruptcy earlier this year, shortly before her SEC trial, where she was found guilty of defrauding investors.
Binance founder Changpeng Zhao is estimated to be the 24th richest person in the world
Since his imprisonment, Binance founder Changpeng “CZ” Zhao has seen a significant increase in his net worth.
Forbes now estimates Zhao’s wealth at $61 billion, making him the 24th richest person in the world.
This increase comes from its 90% stake in Binance, valued at $33 billion. Zhao stepped down as CEO of the company in November 2023 following a plea bargain with the United States Department of Justice. Despite the company’s legal challenges and a $4.3 billion fine, Zhao’s personal financial impact was limited to a $50 million fine. Since then, Binance has continued to grow, with its market share rising to 42% from 38% before Zhao’s departure.
A notable boost to Zhao’s wealth comes from his holdings Binance Coin (BNB). Forbes estimates it owns approximately 94 million tokens, or 64% of all BNB tokens. Despite Binance’s legal troubles, BNB grew 100% in 2024, reaching a market capitalization of $110 billion.
Binance’s initial coin offering in 2017 was undersubscribed, and forensic analysis indicates that Zhao and Binance retained a significant portion of the tokens unsold. Currently, BNB is traded heavily on Binance’s platform, and the token’s performance has continued to add billions to Zhao’s net worth, even as he serves his sentence.
What to expect from the markets this week
All eyes are on the price of bitcoin this week, as digital asset investment products, which include US-based bitcoin ETFs, saw more than $600 million in outflows during bitcoin’s price decline last week, according to CoinShares.
Despite the price decline, MicroStrategy’s infamous bitcoin bulls (MSTR) announced another $500 million convertible note offering to buy more bitcoin before upgrading the offering to $700 million later in the week.
Although bitcoin has traded in a relatively tight range this month, the cryptoasset has been outperformed by several bitcoin mining stocks, as noted by a report from JPMorgan. This is thought to be an answer to Core Scientific’s question (CORZ) deal with CoreWeave related to artificial intelligence.
SEC approval of spot ether ETFs also now appears to be a question of “when” rather than “if.” SEC Chairman Gary Gensler indicated at a Senate hearing last week that the issue will be resolved over the summer. Furthermore, Bloomberg analyst Eric Balchunas gives a 50% chance that approval will take place by July 2. Prediction market Polymarket estimates the odds of a spot ether ETF trading by July 4 at 75%.