Crypto Market Grows Rapidly – Altcoins Recover After Billion-Dollar Liquidations

Over the weekend, crypto markets saw over $1 billion in liquidations, particularly shaking leveraged positions. By Monday the 23rd, major altcoins like Solana, XRP, and Dogecoin began showing signs of recovery as funding rates normalized and investors saw opportunities for favorable entry points.

Bitcoin stayed above $100,000 throughout, demonstrating that investor confidence remains despite volatility.

Stablecoin Regulation Advances in the US

The US Senate passed the so-called "Genius Stablecoin Act," which aims to regulate fiat-backed stablecoins. The law emphasizes transparency, full backing, and regular audits. It would restrict the use of algorithmic stablecoins and could form the foundation for broader stablecoin adoption. The bill now moves to the House of Representatives for consideration.

CEX Outside, DeFi Inside – "DeFi-Mullet" Model Gains Traction

Centralized crypto exchanges like Coinbase and Binance have begun quietly integrating DeFi infrastructure in the background to offer users a traditional finance-like experience combined with blockchain efficiency. This model is called the "DeFi-mullet" – centralized front-end, decentralized back-end. The goal is to make crypto services more user-friendly without compromising on the underlying technology.

OKX Prepares US Listing

Asia-headquartered crypto exchange OKX plans to go public in the United States. This would be the first major Asian-origin crypto exchange to list in the US. Coinbase and Circle have previously listed, and OKX's initiative reflects growing confidence in the US regulatory environment, or at least the ability to survive within it.

DeFi Rising as Financial Infrastructure

According to an Alchemy report, banks and fintechs are increasingly using DeFi protocols as backend systems without end-users noticing. Lending processes and identity verification are examples of areas where DeFi is increasingly used for efficiency reasons. This development emphasizes blockchain technology's original goal: making the financial system faster and more efficient.

Polymarket: 52% Chance of Strait of Hormuz Closure

Following US airstrikes on Iran's nuclear program facilities over the weekend, Polymarket's prediction market estimates a 52% probability that Iran will close the Strait of Hormuz. Closure would significantly affect global oil availability. While the situation isn't directly related to crypto markets, such geopolitical tension can also reflect on digital assets like Bitcoin.

Revolut Launches Its Own Stablecoin

British digital bank Revolut is preparing to launch a new stablecoin, RevolutX. The currency will be 1:1 pegged to fiat (USD) and will function in both crypto payments and traditional payment systems. Revolut is among the first major fintech players in the stablecoin market and aims to control both payment rails and user interfaces.

Geopolitical Uncertainty and Return to Zero Rates

The summer solstice on June 21 brought not only light but geopolitical uncertainty to markets. US strikes on Iran's nuclear facilities overshadowed an otherwise calm macroeconomic environment. While Bitcoin and other crypto markets reacted with declines, stock, bond, and currency markets remained relatively stable. This suggests the worst fears may be behind us and markets could recover quickly.

The FOMC meeting brought no major surprises, but inflation and unemployment forecasts were raised while growth expectations were lowered. Two rate cuts are still expected for 2025. Fed member Christopher Waller hinted that a rate cut could be possible as early as July. The Bank of England also held rates steady, but the Swiss National Bank cut its policy rate back to zero. This may signal a return to zero interest rate policy and could affect global interest rates more broadly.

In Japan, interest rates were held at 0.5%, but the central bank announced it would slow the reduction of government bond purchases. In summary: global economic outlook remains favorable, and central banks appear ready to support risk asset classes like cryptocurrencies.

JPMorgan and Visa Expand Crypto Operations

JPMorgan announced it is launching a pilot for a permissioned USD deposit token (JPMD) on the Base blockchain network. The token enables trading, transfers, and payments for digital assets. Simultaneously, JPMorgan is taking its first steps in deploying its new Kinexys technology on a public blockchain.

Visa is expanding its stablecoin operations to Central and Eastern Europe, the Middle East, and Africa, and is partnering with African crypto exchange Yellow Card. The goal is to develop cross-border payment services and improve liquidity management in the region.

BBVA Advises Clients on Crypto Allocation

Spanish bank BBVA is advising wealthy clients to allocate 3-7% of their assets to cryptocurrencies, depending on risk profile. BBVA's Swiss unit has been executing client crypto purchases since 2021.

Texas Establishes First State Bitcoin Reserve

Texas became the first US state to establish a state-funded, independent Bitcoin reserve. The state plans to use $10 million for Bitcoin acquisition and manage the reserve separately from other state treasury management.