Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 1 - June 7, 2025

Crypto Weekly Market Update

Table of Contents

Market Movements and Trends

• Crypto Weekly Recap

Market-Moving News and Major Events

• Trump-Musk Feud Leads to $980M Crypto Liquidation, $27B Loss for Musk, and Tesla's Biggest Stock Drop
• Circle's IPO Sets Records with 168% Surge Amid Crypto-Community Backlash
• JPMorgan Expands Crypto Services, Allowing Bitcoin Collateral for Loans Amid Regulatory Easing
• Musk's X Partners with Polymarket for Blockchain Prediction Markets After Kalshi Deal Fails

Institutional Adoption and TradFi-Crypto Integration

• TradFi-Crypto Integration Grows: JPMorgan Allows Crypto for ETFs, Circle’s IPO Soars 4x
• Public Companies Surge Bitcoin Holdings to 3.2% of Total Supply, Marking Significant Adoption Trend

Regulation and Policy Developments

• Crypto Policy Update: California Seizes Assets, Singapore Licenses Firms, SEC ETF Calls, France Arrests Kidnappers
• Trump Media's Truth Social Files for Bitcoin ETF Approval with SEC

Stablecoins, Liquidity, and Token Risks

• Dego Finance Plummets 60% Amid USD1 Stablecoin Liquidity Concerns

NFTs and Digital Collectibles

• Moonbirds NFT Sales Surge 2,525% After IP Acquisition by Orange Cap Games

Crypto Weekly Recap

Total crypto market cap: 3.24T

Crypto Fear & Greed Index: 52 (Neutral)

BTC.D: 64.60%

Bitcoin:

• Weekly performance: +1.32%
• US Spot BTC ETFs: -$128.81M
• Bitcoin started the week at $105,642.93 and ended at $104,949.00, down 0.66%.
• Price hit $106,808 on Tuesday after Powell hinted at softer policy, then fell to $101,508 on Thursday amid Trump–Musk feud and delayed Fed rate cuts despite ECB's eighth cut since June 2024.
• Realized profit hit $1.5B on June 3, 2025 (Glassnode), with selling pressure when price peaking before retracing to $105.2K.
• May’s jobs report added 139,000 jobs, beating forecasts and lifting Bitcoin and stocks while pushing gold lower.
• Q1 2025 13F filings showed the first decline in spot Bitcoin ETF allocations since launch, as hedge funds exited collapsed basis trades and firms like Trump Media and GameStop opted for direct holdings.
• 13F data remained incomplete, missing offshore flows and small advisors; some capital likely shifted from ETFs to other products.
• Binance Research reported surging institutional crypto adoption, driven by SEC clarity, ETF progress, and Circle’s IPO impact on Wall Street strategy.
• Trump vowed to replace Powell with Kevin Warsh and pushed for a full 1-point rate cut, calling Powell’s delay a costly error.
• G7 debt hit alarming highs in 2025, with Moody’s stripping the U.S. of its AAA rating and Jamie Dimon warning of a bond market “crack”—boosting BTC appeal amid instability.

Ethereum:

• Weekly performance: -0.84%
• US Spot ETH ETFs: +$281.07M
• Ethereum hit a high of $2,668 on Wednesday and a low of $2,404 on Thursday.
• The Ethereum Foundation announced to restructure its core division in a major operational shift, drawing mixed but hopeful reactions.
• Ethereum funds led $286M in weekly crypto inflows, with $321M added—marking $1.2B over six weeks, the strongest run since Dec 2024.
• Strong June 6 jobs and spending data lifted ETH to $2,489 by Friday.
• Ethereum-focused ETFs saw 14 straight days of inflows in 2025, signaling rising investor confidence.
• Hyperliquid posted a record $248B perp volume in May, narrowing the DEX-CEX gap and capturing over 10% of Binance’s flow.

Altcoins:

• X launched XChat with upgraded cryptography for secure messaging.
• Binance’s CZ proposed a dark pool DEX after a $100M Hyperliquid liquidation to prevent front-running and MEV.
• World Liberty Financial airdropped USD1 tokens to WLFI holders; Eric Trump confirmed WLF would buy a large TRUMP memecoin stack.
• Stablecoin protocol USDT0 aimed to bring tokenized gold closer to DeFi use.
• Binance added a "Monitoring Tag" to BIFI, FIS, KMD, and MDT.
• Coinbase launched wrapped XRP and DOGE tokens on Base.
• Pump.fun announced it would distribute protocol revenue to PUMP holders.
• Yuga Labs began winding down Apecoin DAO and launched Apeco.

Trump-Musk Feud Leads to $980M Crypto Liquidation, $27B Loss for Musk, and Tesla's Biggest Stock Drop

The feud between Donald Trump and Elon Musk erupted following Musk's criticism of Trump's $2.4 trillion spending bill, leading to significant financial repercussions. Musk's net worth plummeted by $27 billion, and Tesla stock dropped over 14%, losing $152 billion in market cap, its largest one-day drop. The conflict triggered $980 million in crypto liquidations, with Bitcoin falling to around $101,000. Musk accused Trump of being linked to the Epstein files, intensifying the rivalry. The situation has deteriorated Musk's standing with GOP members and raised concerns over his companies' federal contracts, affecting Tesla's long-term viability amidst geopolitical tensions.

Circle's IPO Sets Records with 168% Surge Amid Crypto-Community Backlash

Circle's IPO on June 5, 2025, marked a record-setting debut on the NYSE, closing with a 168% gain after opening at $69 and peaking at $123.5, resulting in a market cap surge to $16.7-18.4 billion, surpassing its IPO valuation of $6.8 billion. The firm issued 34 million shares, raising $1.05 billion amid heavy demand, especially from institutional investors like Ark Invest. However, the pivot towards institutional focus resulted in backlash from long-time supporters, particularly Arca, highlighting tensions within the crypto community as Circle transitions to align with traditional finance and regulatory environments.

JPMorgan Expands Crypto Services, Allowing Bitcoin Collateral for Loans Amid Regulatory Easing

JPMorgan Chase is expanding its crypto services, enabling clients to use Bitcoin holdings as collateral for loans and integrating digital assets into financial assessments. This shift comes as U.S. regulators ease restrictions on crypto. The bank plans to offer financing backed by cryptocurrency ETFs, particularly BlackRock’s iShares Bitcoin Trust (IBIT), which dominates the market with $69 billion in assets, holding 77% of the spot Bitcoin ETF market. Despite CEO Jamie Dimon’s skepticism about crypto, the expansion reflects increasing institutional adoption and client demand for crypto-related financial products, while JPMorgan remains involved in advising industry players like Circle.

Musk's X Partners with Polymarket for Blockchain Prediction Markets After Kalshi Deal Fails

Elon Musk's X platform has partnered with Polymarket for blockchain-based prediction markets after a failed deal with Kalshi, hindered by regulatory issues. The collaboration will display Polymarket's real-time betting odds directly under trending posts, enhancing user engagement. Despite Kalshi's tightly regulated framework, Polymarket processed over $8 billion in wagers last year, making it a more adaptable choice for X. The integration will feature a probability bar, live odds, and insights from X's AI system, Grok, designed to inform users without legal infractions. This partnership could redefine how digital communities engage with forecasting and market predictions.

TradFi-Crypto Integration Grows: JPMorgan Allows Crypto for ETFs, Circle’s IPO Soars 4x

This week highlighted significant developments in the TradFi-crypto space. JPMorgan will allow crypto as loan collateral for specific ETFs, enhancing its crypto offerings. Major companies like Apple and Google are exploring stablecoin adoption, contributing to a record $250 billion stablecoin market cap. Circle's IPO soared 168%, raising over $1 billion amid criticisms from early crypto backers. Gemini plans an IPO following this success, while Tether's $2.7 billion Bitcoin transfer indicates growing institutional interest. Additionally, IG Group launched crypto trading for retail investors, and the Moscow Exchange commenced Bitcoin ETF futures trading, showcasing increased crypto integration in traditional finance.

Public Companies Surge Bitcoin Holdings to 3.2% of Total Supply, Marking Significant Adoption Trend

The increasing corporate adoption of Bitcoin as a treasury asset marks a significant trend in the financial landscape. As of June 2025, 61 public companies hold 3.2% of Bitcoin's total supply, doubling their holdings to 673,897 BTC in just two months. Notable players include Strategy, raising $1 billion to increase its 580,995 BTC, and Metaplanet, aiming for 210,000 BTC by 2027. Furthermore, Trump Media plans a $12 billion raise for Bitcoin acquisitions. Despite challenges, firms like Semler Scientific and Vanadi Coffee are committing significant investments, reflecting a broader trend toward cryptocurrency-based financial strategies.

Crypto Policy Update: California Seizes Assets, Singapore Licenses Firms, SEC ETF Calls, France Arrests Kidnappers

This week's global policy developments include California's bill to seize unclaimed cryptocurrency after three years, Singapore's MAS requiring crypto firms to license overseas services by June 30, and the Senate's confirmation of Michelle Bowman as Fed Vice Chair, deemed a win for crypto. VanEck and others urged the SEC for a fairer ETF approval process. The UK's FCA plans to lift its crypto ETN ban for retail, while Hong Kong is set to launch crypto derivatives for professionals. Additionally, Australia is tightening regulations on crypto ATMs following scam losses. France charged 25 in kidnapping plots against crypto professionals.

Trump Media's Truth Social Files for Bitcoin ETF Approval with SEC

Trump Media's Truth Social has filed a 19b-4 application with the SEC through NYSE Arca for a Bitcoin ETF, aiming to provide regulated exposure to Bitcoin by tracking its spot price. The proposed ETF, sponsored by Yorkville America Digital, will utilize NYSE Arca Rule 8.201-E, enabling the creation and redemption of shares in baskets of 10,000. The SEC has 45 days to decide, with an ultimate deadline of January 29, 2026, for final approval. Positive odds are suggested due to 11 previously approved spot Bitcoin ETFs. TMTG is also pursuing various ETF-related trademarks and partnerships.

Dego Finance Plummets 60% Amid USD1 Stablecoin Liquidity Concerns

Dego Finance (DEGO) experienced a dramatic 60% price drop following its announcement of supporting the USD1 stablecoin on BNB Chain. This move sparked investor fear, as 93% of USD1’s liquidity is held by just three wallets, raising concerns about potential manipulation. Despite the sharp selloff, Dego Finance reassured the community that there were no changes to its fundamentals or long-term vision and emphasized the initiative’s role in strengthening the DeFi ecosystem. The price of DEGO fell to $1.26 amidst ongoing skepticism about USD1’s adoption and market demand, reflecting fragile investor confidence.