gm 06/11

Summary
gm, Bitcoin briefly fell below $100,000 for the first time since June, triggering over $2 billion in liquidations predominantly affecting long positions. Amid this downturn, two major DeFi incidents captured attention: Stream Finance's stablecoin crashed 77% after a fund manager lost $93 million in user assets, and Balancer faced issues following a $128 million exploit. Despite the negative market sentiment, there were notable institutional developments, including Ripple raising $500 million at a $40 billion valuation and announcing a partnership with Mastercard to pilot RLUSD stablecoin for credit card settlements on the XRP Ledger, while Chainlink introduced its Runtime Environment to facilitate institutional smart contract deployment across multiple blockchains.

News Headlines
🚨 Hong Kong Charges 16 in $205M JPEX Crypto Fraud

• Hong Kong authorities have charged 16 individuals, including influencer Joseph Lam Chok, in connection with the $205 million JPEX crypto fraud that defrauded over 2,700 investors through an unlicensed cryptocurrency exchange.
• Investigators have made over 80 arrests, seized approximately $28 million in assets, and issued Interpol red notices for three alleged ringleaders who remain at large, marking the first application of Hong Kong's anti-money laundering laws to a cryptocurrency case.

🔒 Monero Gains Value Amid Market Downturn as Privacy Narrative Strengthens

• Despite the broader crypto market decline, Monero experienced a significant rally, reaching $377.63 as investors seek privacy-focused alternatives. Other privacy coins like Zcash and Dash have also seen strong interest.
• The surge is attributed to upcoming regulations expected in 2026 that will require greater wallet ownership transparency, driving interest in privacy-preserving assets as users seek protection from increasing surveillance on mainstream blockchains.

🔄 ZKsync Proposes Tokenomics Revamp to Link $ZK Token to Network Revenue

• ZKsync is proposing to transform its $ZK token from a governance-only tool to one with economic utility, directly linking its value to network activities such as interoperability and enterprise licensing.
• The proposal outlines two primary revenue streams: on-chain interoperability fees and off-chain licensing revenue, which would be used to buy back $ZK tokens for burning, staking rewards, or ecosystem development funding.

🏦 Coinbase Faces Opposition from Banking Groups Over Trust Charter Application

• Traditional banking groups, including the Independent Community Bankers of America (ICBA), are opposing Coinbase's application for a national trust bank charter, citing concerns about the exchange's risk controls and profitability in bear markets.
• Coinbase CLO Paul Grewal argues this opposition is "protectionism" designed to keep crypto unregulated and protect banking interests. The charter would enhance Coinbase's custody operations and allow it to offer additional services like staking and trading.

Market Metrics

Fundraising & VC
1. Ripple (Strategic, $500M) - Blockchain-based payment network
2. Future Holdings (Undisclosed, $35M) - Swiss-based Bitcoin treasury company
3. Harmonic (Seed, $6M) - Open block-building system for Solana

Regulatory
🔐 Circle Updates USDC Terms to Allow Legal Firearm Purchases

• Circle has revised its terms of service to permit USDC stablecoin use for legal firearms purchases following pressure from gun rights advocates and Republican senators.
• Experts warn the policy change highlights how centralized stablecoin issuers remain vulnerable to political pressures and could face challenges balancing compliance with user privacy.

💰 Canada Announces Framework for Stablecoin Regulation

• The Canadian government has allocated $10 million to create a legal framework for fiat-backed stablecoins, to be overseen by the Bank of Canada.
• The regulations will require issuers to maintain adequate reserves, establish clear redemption policies, and implement robust risk management frameworks to protect consumers and the financial system.

🌐 EU Arrests Nine in $689M Crypto Scam Network

• Authorities across Cyprus, Spain, Germany, France, and Belgium arrested nine individuals involved in a cryptocurrency money laundering scheme that defrauded victims of $689 million.
• The operation, coordinated by Europol and Eurojust, identified a network operating fraudulent investment platforms that laundered approximately $600 million through various blockchain platforms.

🚨 Former Australian Rugby Star Arrested Over Alleged Crypto Theft

• Former Rugby League star Trent Merrin has been arrested and charged with allegedly stealing $91,000 AUD (approximately $140,000) in cryptocurrency.
• Police raided Merrin's home in Australia, seizing electronic devices for forensic examination following a year-long investigation into the unauthorized transfers from a victim's crypto account.

⚖️ Government Shutdown Endangers Crypto Legislation

• The U.S. government shutdown has reached a record 36 days, potentially delaying critical market structure legislation for cryptocurrency.
• Experts warn that the prolonged shutdown diminishes the likelihood of timely crypto regulation, with some suggesting progress might now be pushed beyond 2025.

Technical Analysis
Bitcoin - Bitcoin has broken down from an approximate horizontal trend channel in the short term. This signals a continued weak development, and the currency now meets resistance on possible reactions up towards the floor of the trend channel. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the currency has resistance at 107000 points. Negative volume balance indicates that sellers are aggressive while buyers are passive, and weakens the currency. The currency is overall assessed as technically negative for the short term.

Ethereum - Ethereum has broken the falling trend channel down in the short term, which indicates an even stronger falling rate. It also gave a negative signal from the rectangle formation at the break down through the support at 3777. Further fall to 3189 or lower is signaled. There is no support in the price chart and further decline is indicated. In case of a positive reaction, the currency has resistance at 3830 points. Volume has previously been low at price tops and high at price bottoms. Volume balance is also negative, which confirms the trend. The currency is overall assessed as technically negative for the short term.