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    Saylor Says Bitcoin Slide Is Capital Rotation as Strategy Loss Grows

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    Saylor Says Bitcoin Slide Is Capital Rotation as Strategy Loss Grows

    Strategy’s Bitcoin holdings fell deep into paper-loss territory as BTC traded below the company’s average purchase price, renewing scrutiny of Michael Saylor’s Bitcoin treasury model.

    Strategy holds 843,706 Bitcoin (BTC) acquired at an average price of $75,699 per coin, with a total cost basis of $63.8 billion. However, the latest Bitcoin downturn sank the value of Strategy’s Bitcoin reserve to $52.6 billion, pushing its unrealized loss to $11.2 billion, according to the company’s dashboard.

    Strategy’s variable-rate perpetual preferred stock, STRC, has also declined below its intended $100 value and is traded at $94.6 at the time of writing. Strategy’s (MSTR) stock price was down 1.5% in pre-market trading to $124.7 on Thursday, Yahoo Finance data shows.

    The paper loss adds to scrutiny of Strategy’s Bitcoin treasury model as BTC trades below the company’s average acquisition price, while the downturn in STRC price could complicate future preferred-stock issuance to fund its Bitcoin acquisitions. It comes days after Strategy announced the sale of 32 BTC, its first sale since 2022.

    Strategy dashboard with key metrics on its Bitcoin reserve. Source: Strategy.com

    Saylor pushed back on the bearish read Thursday, saying that mounting exchange-traded fund (ETF) outflows are “pressuring BTC,” and capital markets have poured $400 billion into AI infrastructure over the past six months.

    “This is a capital rotation, not a Bitcoin impairment. Volatility creates opportunity,” said Saylor in an X post.

    Source: Michael Saylor

    Bitcoin’s price is down around 4.7% in the past 24 hours and 13.8% in the past week. The cryptocurrency traded at $63,157 at the time of writing, down over 20% in the past month, according to TradingView. Spot Bitcoin ETFs have logged $4.4 billion in outflows in the past 13 trading days, Cointelegraph reported earlier on Thursday.

    BTC/USD, 1-month chart. Source: Cointelegraph/TradingView

    Some market watchers said the STRC move was not unusual.

    “STRC’s $100 par value is not a price floor. It’s the stated value used for liquidation preference and certain redemption provisions,” wrote popular investor and podcast host Scott Melker, adding:

    “A 5% discount to par is not evidence that something is broken. It’s evidence that investors are demanding a higher yield, pricing risk, or reacting to market conditions – exactly what preferred stocks do.”

    Others were less optimistic. Gold bug and long-time Bitcoin critic Peter Schiff said that the lower the STRC price falls, the higher MSTR will be forced to increase dividend payments to “bring the share price back up to $100,” which means that “MSTR will run out of cash much sooner, pulling forward Bitcoin sales to fund payments.”

    Related: Capital B seeks $122B funding mandate to buy more Bitcoin

    Standard Chartered says Bitcoin bottom near, depending on Strategy’s next move

    Despite the sell-off, Standard Chartered predicted that the Bitcoin market bottom may be near, depending on Strategy’s next purchase.

    “I would see it as a tentative sign the low has been printed, and given that logic, suspect selling over the weekend will be muted,” said Geoffrey Kendrick, global head of digital asset research at Standard Chartered.

    Kendrick said a purchase of 320 BTC or 3,200 BTC, equal to 10 times or 100 times the recent sale, could signal a market bottom.

    Following Strategy’s prior tax-loss sale of 704 BTC in 2022, the company purchased 810 BTC just two days later.

    Magazine: Bitcoin ETFs bleed $1B, Aave’s $71M ETH unfreeze bid delayed: Hodler’s Digest, May 10 – 16 

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    AAVE Price Prediction: Oversold Bounce to $80 Within 48 Hours as Whales Load Up

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    AAVE Price Prediction: Oversold Bounce to Within 48 Hours as Whales Load Up


    Lawrence Jengar
    Jun 04, 2026 08:54

    AAVE’s brutal 6.5% slide has pushed RSI to extreme oversold levels at 23, while smart money maintains 61.7% long positioning. Target $75-80 rebound within 2 days before potential retest of $67 supp…

    The Immediate Setup

    AAVE is getting absolutely hammered today, down 6.5% and trading at $71.12 after touching a session low of $68.21. The momentum is clearly bearish with price sitting well below all major moving averages, but the severity of this selloff has created a classic oversold condition that’s screaming for a relief bounce. With RSI cratering to 23.03 – deep into oversold territory – and the MACD histogram flatlining at zero, we’re seeing textbook capitulation behavior that often precedes sharp reversals in crypto markets.

    The 24-hour trading volume of nearly $20 million on Binance alone tells us this isn’t some low-volume drift lower. Real money is changing hands here, and according to Blockchain.news market analysis, these high-volume oversold conditions in DeFi blue chips typically don’t last more than 1-2 sessions before smart money steps in.

    Key Levels Exposed

    AAVE is trading dangerously close to its immediate support at $67.23, with strong support not appearing until $63.35. The fact that we’re already below the lower Bollinger Band at $73.14 with a %B reading of -0.10 shows just how extended this move has become. Every moving average is acting as resistance now – the 7-day SMA at $78.13 represents the first meaningful hurdle, followed by the 20-day at $83.70.

    The pivot point sits right at $72.10, essentially where we’re trading now. This level will be critical for any bounce attempt. If we can reclaim and hold above $75.98 (immediate resistance), it opens the door to test that $80.85 strong resistance zone where the real selling pressure likely sits.

    Sentiment vs Reality

    Here’s where it gets interesting – while the price action looks brutal and recent KOL sentiment appears muted with no major calls in the past 24 hours, the derivatives data tells a completely different story. Blockchain.news tracking of whale positioning shows top traders maintaining a hefty 61.7% long bias despite today’s carnage. That’s not the behavior of smart money if they expect further downside.

    The funding rate remains neutral at 0.0004%, suggesting no panic in the perpetual markets, while open interest actually increased 2.61% today to over $41 million. This divergence between brutal spot price action and calm derivatives positioning often signals we’re near a local bottom.

    Actionable Trade Strategy

    The setup here is straightforward – we’re looking for a dead cat bounce play with tight risk management. Entry zone is $70-72 on any signs of stabilization, with a hard stop at $67 (below immediate support). The initial target is $75.98 for a quick 6-8% gain, with extension targets at $78-80 if momentum builds.

    Given the 4-hour ATR of $4.54, expect volatile price swings, but the risk-reward at these oversold levels favors the bulls for at least a short-term bounce. According to Blockchain.news derivatives analysis, when whale positioning diverges this sharply from spot price action in major DeFi tokens, the correction typically lasts 24-48 hours maximum.

    The invalidation level is clear – any close below $67 and we’re likely heading to test that $63.35 strong support. But with RSI this oversold and smart money still positioned long, the probability heavily favors a bounce before any further breakdown materializes.

    Blockchain.news Crypto Market

    Image source: Shutterstock



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    US Democrats Push for FTC Investigation Into Prediction Markets

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    US Democrats Push for FTC Investigation Into Prediction Markets

    Nine Democratic lawmakers in the US House of Representatives have called on the Federal Trade Commission to launch a probe into how prediction markets are advertising to customers compared to how they present themselves to regulators.

    In a statement on Wednesday, US Representatives Kevin Mullin and Gabe Vasquez said the FTC should investigate whether online prediction market platforms are misleading customers by advertising as gambling platforms while telling regulators they are financial tools offering investment products.

    Prediction markets allow users to trade contracts on the outcome of future events. They have also been facing scrutiny over insider trading, with Congress launching a probe into Polymarket and Kalshi in May and questioning the companies’ responses to insider-trading incidents on their platforms.

    The Democratic lawmakers allege that prediction market platforms use language associated with sports gambling, including legal betting and betting on sports without a sportsbook, while attempting to evade state gambling regulations.

    A group of nine Democratic lawmakers is calling on the FTC to launch a probe into prediction markets. Source: Kevin Mullin

    “These prediction market companies are presenting themselves differently to regulators than they are to the public, and that kind of contradictory messaging can mislead consumers about what rules and protections actually apply,” Mullin said.

    “We are urging the FTC to investigate these practices and ensure consumers are protected from this potentially deceptive activity,” he added.

    In their letter, the lawmakers are also asking the FTC for detailed information by June 29 on whether it has plans to take investigative or enforcement action against prediction market platforms for possible deceptive practices.

    Related: Kalshi bans 3 US politicians for betting on their own election races

    At the same time, the lawmakers have asked whether the FTC has received complaints about prediction markets and if the FTC considers public perception and legal filings when determining if a company has engaged in possible deceptive practices.

    US Representatives Jared Huffman, Raul Ruiz, Salud Carbajal, Mike Levin, Dina Titus, Paul Tonko, and Valerie Foushee have also signed the letter.

    Prediction markets have emerged as a significant real-world use case for blockchain, with some platforms relying on crypto rails and stablecoins for settlement and payments.

    In March, transactions hit record highs amid growing interest in political and geopolitical event contracts, improved accessibility and positive regulatory developments for the industry.

    Magazine: Big Questions: Do we really only need 2–5 cryptocurrencies?  

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    Bitcoin Faces a ‘Likely’ Breakdown From a 50-Month Trend Line

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    Bitcoin Faces a ‘Likely’ Breakdown From a 50-Month Trend Line

    Bitcoin (BTC) hovered near two-month lows on Wednesday as 2022 bear-market comparisons returned.

    Key points:

    • Bitcoin traders bring back the 2022 bear market to assess where BTC price action might go next.
    • History shows a new lower high followed by a breakdown of a key 50-month trend line.
    • That trend line has held throughout 2026 so far.

    Analysis: Bitcoin 50-month trend line break down “likely”

    Data from TradingView showed cooling BTC price volatility after a trip to $65,362 on Bitstamp — a level last seen in early April.

    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    After billions of dollars in liquidations, BTC/USD fielded new warnings that the worst of the bear market may still be ahead.

    Trader and analyst Rekt Capital focused on the 50-month exponential moving average (EMA) trend line at $66,628.

    “Over time, Bitcoin is likely to breakdown from this EMA and continue macro downside in this Bear Market,” he warned in one of several posts on X.

    Rekt Capital said that if history were to repeat from the 2022 bear market, price should now see a relief bounce to form a lower high before returning to the 50-month EMA, which would in turn fail as support.

    “Historically, Bitcoin tends to rebound initially from the 50-Month EMA but then loses it as support as the Bear Cycle progresses,” he added.

    BTC/USD one-month chart with 21, 50EMA. Source: Rekt Capital/X

    Continuing, trader Leviathan argued that the 2026 bear market was copying its predecessor “almost perfectly.”

    “Every stage printing in the same order,” an X post reported, calling $60,000 the “line that matters.”

    “Hold it – liquidity flush complete, recovery begins. Lose it – deeper correction, no support below. One level, two completely different outcomes. Market makes the call soon.”

    BTC/USD two-week chart comparison. Source: Leviathan/X

    Another trader, Killa, leveraged 2022 price action to suggest “weeks” of consolidatory movement between $63,000 and $65,000 next.

    BTC price chart comparison. Source: Killa/X

    BTC price support reclaim could offer 700%+ returns

    A silver lining on the day came from historical reactions to the 50-month EMA.

    Related: Bitcoin has hit ‘max fear’ below $67K as analysis sees BTC price rebound

    Analytics account Paradox noted the extent of potential gains that could come from Bitcoin’s eventual reclaim of the trend line after losing it.

    “$BTC lost the monthly 50MA in 2022. It reclaimed it 5 months later, delivering a 715% return over the next 2 years,” it told X followers.

    In February, BTC/USD saw several daily closes below the trend line, ultimately avoiding a full breakdown. In March and April, meanwhile, it functioned successfully as support.

    BTC/USD one-day chart with 50-month EMA (blue line). Source: Cointelegraph/TradingView

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    Zcash Fixes Privacy Pool Bug After Explorer Confusion

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    Zcash Fixes Privacy Pool Bug After Explorer Confusion

    Zcash developers temporarily suspended Orchard transactions after discovering a critical vulnerability in the privacy-focused blockchain’s latest shielded pool, then restored functionality through an emergency network upgrade.

    On Wednesday, the Zcash Foundation said the vulnerability affected Orchard’s zero-knowledge proof circuit and could have allowed invalid state transitions within the pool. However, the Foundation said there was no evidence that the bug was exploited, no unauthorized value creation was detected, and user privacy was not affected.

    The fix was carried out through a two-step emergency upgrade. Zebra 4.5.3 temporarily disabled Orchard actions, while Zebra 5.0.0 activated the NU6.2 upgrade to re-enable Orchard with a corrected circuit, according to the Foundation. 

    The emergency response shows how a bug in core privacy infrastructure can require coordinated action across miners, exchanges and node operators, even when user funds and total supply are not affected.

    The upgrade also appeared to have caused confusion across parts of the Zcash ecosystem. One Zcash block explorer showed block 3,364,601 as the latest block mined at 5:27 am UTC, while the page listed it as mined about four hours earlier, prompting reports on X that the Zcash network was down. 

    Zcash Open Development Lab (ZODL)-affiliated contributor Tatyana said the network experienced “a brief period of instability” as miners upgraded and converged on new consensus rules. The post did not directly name the block explorer or wallet issues, but said network stability had been fully restored by about 3:00 am Eastern Time on June 2.

    Cointelegraph reached out to the Zcash Foundation for comment but had not received a response by publication. 

    Zcash Block Explorer showing the last mined block four hours ago. Source: Zcash Block Explorer

    According to the Zcash Foundation, the vulnerability was discovered on May 29 by independent security researcher Taylor Hornby during an ongoing protocol audit for Shielded Labs. The issue was disclosed to ZODL core engineers, who confirmed it and began preparing remediation options.

    Zcash incident sparks confusion among community members

    Mert Mumtaz, CEO of Solana infrastructure firm Helius, disputed the reports, saying the network was “not down” and that some explorer apps were connected to a bad node. 

    Pseudonymous community member Zerodarts echoed the sentiment, saying that “blocks are being mined” and that most block explorers need to update their nodes.

    Related: Zcash is ‘running its own bull market’ as ZEC price paints 88% rally setup

    However, community member Railgoon said Zcash miners and developers had frozen the Orchard shielded pool to patch a vulnerability before a hard fork. He said the network was therefore “partially intentionally down” at the time, but had since recovered. 

    Zcash’s ZEC token briefly fell below $600 to $599 after reaching a daily high of $637, according to CoinGecko data. However, it had recovered to $614 at the time of writing. 

    Magazine: Korea’s first memecoin rug-pull case, China’s crypto rules review: Asia Express

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    Russian Ruble Stablecoin Kept Growing Despite Western Sanctions: CertiK

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    Russian Ruble Stablecoin Kept Growing Despite Western Sanctions: CertiK

    The Russian ruble-backed A7A5 stablecoin continued to grow despite Western sanctions, processing more than $110 billion in cumulative onchain transactions, according to CertiK.

    CertiK said A7A5 captured about 43% of the global non-US dollar stablecoin market, and that its holder count rose from 13,000 to 29,000 wallets between February 2025 and May 2026.

    The security company described A7A5 as one of the clearest examples of a sanctions-evasion stablecoin ecosystem, linking it to Russian cross-border settlement companies.

    The growth highlights the limits of Western sanctions against blockchain-based payment systems, including the European Union’s 19th sanctions package, adopted on Oct. 23, 2025, which prohibited transactions involving A7A5 from Nov. 12. CertiK said the reserve structure places key assets outside direct Western enforcement reach.

    A7A5 cumulative activity, all-time chart. Source: CertiK

    A7A5 was issued in January 2025 by Old Vector LLC, a Kyrgyz entity acting on behalf of the Russian cross-border-settlement firm A7 LLC, which is co-owned by Moldovan-Russian oligarch Ilan Shor and Russian state-owned defense sector lender Promsvyazbank.

    Russian authorities later recognized A7A5 under the country’s digital financial asset framework.

    The stablecoin recorded $11.2 billion in trading volume across A7A5/RUB and $6.1 billion in A7A5/USDT trades, primarily through Grinex, which is the successor to Garantex, the platform that previously functioned as a laundering venue for Conti, Black Basta, LockBit and some illicit funds attributed to North Korean-linked actors, including $30 million from the 2022 Horizon Bridge hack sent to Garantex in February 2023.

    US Secret Service seized the Garantex domain in March 2025, while Tether froze approximately $28 million in USDt (USDT) held by Garantex-controlled wallets.

    A7A5 was designed to replicate some of USDT’s stablecoin utility while keeping issuance, reserves and freezing authority outside Western-controlled infrastructure.

    Related: Recovery hopes fade as Kelp DAO hacker launders nearly all $220M in stolen funds

    Can Western sanctions curb A7A5’s circulation?

    The creators of the ruble-backed stablecoin have designed it without a centralized kill switch, meaning that the smart contracts responsible for wallet and fund freezes are controlled entirely by its Russian and Kyrgyz developers, according to Jonathan Riss, OSINT and blockchain intelligence analyst at CertiK.

    The stablecoin’s reserves also sit in Central Asian banking networks, predominantly in Kyrgyzstan and in the Russian banking system, meaning that the funds are outside the reach of Western sanctions.

    A7A5 also relies on a distributed distribution model through decentralized finance (DeFi) liquidity pools such as Curve and Uniswap to prevent getting frozen by centralized exchanges, CertiK’s Riss told Cointelegraph, adding:

    “While Western regulators cannot directly rewrite the Ethereum or Tron blockchain to erase A7A5, the EU’s 19th package and parallel US/UK actions target the physical and digital choke points.”

    The stablecoin’s creators designed A7A5 with careful consideration of the above three “immunities” to evade sanctions that crippled their previous evasion methods, such as Tether’s USDT, Riss said.

    A7A5 network chart. Source: CertiK

    Shor owns 51% of A7 LLC as the majority owner. He served as a former Moldovan parliament member until 2017, when he was convicted by a Moldovan court in connection with a 2014 theft of around $1 billion from three Moldovan Banks. He fled Moldova in 2019 and obtained Russian citizenship.

    He was sentenced in absentia to 15 years in prison in 2023. He currently resides in Moscow.

    Magazine: The legal battle over who can claim DeFi’s stolen millions 

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    Mastercard Adds Stablecoin Settlement for Card Transactions

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    Mastercard Adds Stablecoin Settlement for Card Transactions

    Mastercard announced its plans to expand its settlement capabilities to let issuers and acquirers settle some card transactions using regulated stablecoins. 

    On Wednesday, Mastercard said the new capabilities will include intraday, weekend and holiday card settlement, supporting both fiat currencies and onchain settlement through regulated stablecoins. The company said the new options are designed to give its partners more flexibility in managing settlement liquidity and timing. 

    The expansion shows stablecoins moving deeper into mainstream financial infrastructure as major payments networks test tokenized dollars for settlement. It follows Mastercard securing a New York BitLicense in May, allowing its US transaction services unit to conduct regulated digital asset business activity in the state. 

    The stablecoin settlement option will support Circle’s USDC, Paxos-issued PYUSD, USDG and USDP, Ripple’s RLUSD and SoFi’s SoFiUSD. Mastercard said the stablecoins will be enabled across supported blockchain networks, including Arbitrum, Base, Canton, Ethereum, Polygon, Solana, Tempo and XRPL.

    ARQ, formerly known as DolarApp, CBW Bank, Cross River, Lead Bank and Nuvei are expected to be among the first to support stablecoin settlement optionality in the United States and Latin America, Mastercard said. 

    The role stablecoins would play within Mastercard’s ecosystem. Source: Mastercard

    Payment firms deepen stablecoin integrations

    Mastercard’s settlement expansion with stablecoins follows a series of stablecoin-related moves from major payments and remittance companies. 

    Visa said in April that its stablecoin settlement pilot reached a $7 billion annualized run rate, up 50% from the previous quarter, after adding five blockchains to bring its supported settlement networks to nine. The company said the expansion was aimed at giving issuers and acquirers more ways to settle with the network as stablecoins move into mainstream payment flows. 

    The stablecoin market is currently valued at about $320 billion.

    Related: Solana lands Mastercard, Western Union on new dev platform

    The remittance sector has also dived deeper into stablecoins. On Tuesday, MoneyGram launched MGUSD, a USD stablecoin on Stellar, saying that the token would support treasury management settlement and currency trading in the United States, before a broader rollout worldwide.

    In early May, Western Union has also launched its US dollar-denominated USDPT stablecoin on Solana, rolling out in the Philippines and Bolivia at launch, with plans to expand in 2026. 

    Magazine: Korea’s first memecoin rug-pull case, China’s crypto rules review: Asia Express

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    AAVE Price Prediction: $65 Retest Imminent Before Dead Cat Bounce to $85

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    AAVE Price Prediction: Oversold Bounce to Within 48 Hours as Whales Load Up


    Rongchai Wang
    Jun 03, 2026 09:31

    AAVE’s RSI at 30 signals oversold relief incoming, but smart money positioning at 61% long suggests a tactical bounce to $85 before deeper correction. 65% probability of $65 retest within 7 days.

    The Immediate Setup

    AAVE is bleeding at $75.87, down 2.15% and trading dangerously close to its lower Bollinger Band at $75.58. The momentum picture screams capitulation with RSI hitting 30.10 – classic oversold territory that usually triggers relief rallies. However, the MACD flatlined at zero histogram tells us sellers aren’t done yet. Price action is grinding below all meaningful moving averages, with the 7-day SMA at $79.73 acting as immediate resistance. The $18.3M volume spike suggests institutional unloading isn’t finished, and Blockchain.news data confirms this bearish positioning across multiple timeframes.

    Key Levels Exposed

    The technical architecture reveals a brutal setup. AAVE sits $9 below its 7-day average and a staggering $53 below the 200-day SMA at $128.59 – this isn’t a dip, it’s structural damage. Immediate support clusters around $72.59, but the real test comes at $69.31 where strong support waits. These levels align perfectly with the lower Bollinger Band breach scenario. On the upside, any relief bounce faces a wall of resistance starting at $78.69, then the critical $81.51 level. The 4.18 ATR suggests we’re looking at $4+ daily moves, so expect violent swings in both directions.

    Sentiment vs Reality

    Here’s where it gets interesting. While recent Crypto.com analysis highlighted the KelpDAO hack fallout and $6B deposit outflows creating structural headwinds, the derivatives market tells a different story. Top traders are positioned 61% long with a 1.56 ratio – smart money is quietly accumulating into this weakness. The balanced retail positioning at 53.5% long suggests most traders are paralyzed, creating perfect contrarian setup conditions. Blockchain.news tracking shows open interest jumped 7.59% to $44.8M, indicating fresh institutional positioning despite the negative headlines.

    Actionable Trade Strategy

    The probability matrix favors a two-phase move: 65% chance AAVE retests $65-69 support zone within 7 days as final capitulation, followed by 70% probability of relief bounce to $82-85 resistance cluster. Entry strategy: Scale into longs between $67-70 with tight stops below $65. Target the first bounce to $78-80 for quick 12-15% gains, then reassess. Risk management is critical here – this isn’t a buy-and-hold setup. The funding rate at 0.0055% remains neutral, suggesting no immediate squeeze pressure either direction. Blockchain.news derivatives data supports this tactical approach over blind catching of falling knives.

    Blockchain.news Crypto Market

    Image source: Shutterstock



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    Crypto Becomes Contrarian Play as AI Stocks Dominate

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    Crypto Becomes Contrarian Play as AI Stocks Dominate


    Luisa Crawford
    Jun 03, 2026 04:12

    Bitwise CIO Matt Hougan says crypto shifts to a contrarian bet amid AI stock dominance. What this means for traders and institutional flows.

    Crypto’s status as a market darling is fading, according to Bitwise CIO Matt Hougan, who argues the asset class has shifted from a momentum trade to a contrarian bet. In a June 2 market note, Hougan cited the spectacular rise of artificial intelligence (AI) stocks as a key reason for the shift, with crypto now requiring a “long-term orientation” rather than a speculative mindset.

    The numbers back this up. Nvidia (NASDAQ: NVDA), widely considered the bellwether of AI, has soared nearly 1,500% since the public debut of OpenAI’s ChatGPT in late 2022. As of June 3, 2026, Nvidia is trading at $222.82 with a staggering $5.43 trillion market cap, underscoring the gravity of the AI boom. Stocks linked to AI are now driving 45% of the S&P 500’s valuation, according to recent estimates.

    “The crypto market is brutal right now,” Hougan stated, adding that the sector’s fundamentals are starting to matter more than hype. “When AI is sucking all the oxygen out of the room, crypto has to pivot from momentum to fundamentals. That’s the only way forward.” Hougan pointed to smaller assets like Stellar (XLM) and Hyperliquid as examples of cryptos benefiting from this shift, emphasizing on-chain utility and real adoption metrics over speculative bets.

    Institutional flows appear to validate this narrative. LVRG Research director Nick Ruck told Cointelegraph that crypto is emerging as a contrarian play for “sophisticated investors seeking directional upside in a maturing market.” While AI stocks continue to dominate portfolios, Ruck noted that regulatory clarity and on-chain utility are quietly driving crypto’s evolution.

    That said, the short-term picture for crypto remains bleak. Total market capitalization fell 5.3% on June 2, hitting $2.38 trillion—46% below its October 2025 peak. For context, this decline coincides with broader bearish conditions tied to regulatory overhangs and thinning momentum in Bitcoin, traditionally the sector’s safe haven during bear cycles.

    However, Hougan sees signs of recovery brewing. “In the heart of a crypto winter, everything’s red. When the green starts to look like real growth, the season is changing,” he said, hinting that the market could be closer to the end of the bear cycle than the beginning. While historical patterns suggest crypto bear markets last 12–18 months, this cycle’s trajectory is being reshaped by external forces, particularly the AI-driven equity rally.

    For traders, the key takeaway is patience. As crypto transitions into what Hougan calls a “grind” phase, focus will likely shift to assets with improving fundamentals and clear use cases. Whether this contrarian bet will deliver outsized returns remains uncertain, but for now, the sector’s role in portfolios is evolving from speculative froth to disciplined strategy.

    Image source: Shutterstock



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    Georgia Announces Crackdown on Illegal Bitcoin Mining

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    Georgia Announces Crackdown on Illegal Bitcoin Mining

    Georgia will reportedly install electricity meters across villages and settlements in Mestia as part of a crackdown on illegal crypto mining that officials say is straining the region’s power grid.

    Vice Prime Minister Mamuka Mdinaradze said Monday that illegal mining had pushed Mestia’s electricity consumption to 133 million kilowatt-hours in 2025, more than 13 times the level of comparable municipalities, according to local outlet 1tv.

    Large-scale illegal mining operations have led to deteriorating energy supply and grid overload, resulting in numerous outages in the region, affecting both residents and tourists, Mdinaradze reportedly said, adding that law enforcement agencies have also been tasked with identifying illegal mining operations.

    Cointelegraph reached out to the Georgian government for comment on the sanctions for illegal mining activities and whether these operations are offered a licensing pathway for legitimization.

    Mdinaradze speaking at a Monday press conference. Source: 1tv.ge 

    Illegal Bitcoin mining cost Mestia $9.5 million annually, says vice PM

    Illegal Bitcoin mining operations in the Municipality of Mestia pushed the region’s electricity consumption to 133 million kilowatt-hours in 2025, exceeding the ordinary average of about 10 million kilowatt-hours for similar regions.

    This additional electricity output resulted in financial damages of about 20-25 million lari, or up to $9.4 million annually, according to Mdinaradze.

    He added that metering will be implemented both locally and on a larger scale across each village or settlement, helping identify the exact sources of illegal mining operations.

    He added that electricity in Svaneti will remain free for every consumer up to a predetermined quantity and that the new arrangements only serve to crack down on illegal mining operations.

    Related: Maestro launches mining-backed Bitcoin credit market for institutions

    Georgia offers cheap electricity due to abundant hydropower from the Caucasus Mountains, making it a popular destination for Bitcoin mining operations seeking cheap energy sources.

    Georgia has also attracted crypto-mining activity through low electricity costs and favorable tax treatment, including free industrial zones and value-added tax exemptions on certain crypto-related activities.

    Bitcoin mining company Bitfury was among the first major companies to establish operations in the country. In 2014, Bitfury built a 20-megawatt Bitcoin mining facility known as the Gori Data Center.

    Magazine: 6 weirdest devices people have used to mine Bitcoin and crypto 

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