Crypto faced a week of high-stakes volatility, policy momentum, and stablecoin breakthroughs.
From traders hedging Ethereum risk to global watchdogs sounding alarms over crypto’s systemic threat, these are the biggest stories that defined the week in digital assets.
Over $1B wiped from crypto markets amid global risk-off shift
Crypto markets suffered a sharp downturn this week as escalating geopolitical tension triggered a broad risk-off move across global assets.
Bitcoin fell 3.5% to $104,112, while Ethereum and Solana posted losses of more than 9%. Highly speculative altcoins like Fartcoin and ENA dropped over 15%, compounding the selloff.
In total, 247,769 traders were liquidated, mostly from long positions in BTC and ETH, contributing to over $1.15 billion in wiped-out value, according to CoinGlass.
While some analysts, including Peter Schiff, framed the crash as a failure of Bitcoin’s “digital gold” narrative, others like Anthony Pompliano pointed to historical rebounds after similar crises.
Oil up.
Gold up.
Bitcoin down.Initial reaction follows exactly what happened when Iran shot 300 missiles at Israel.
Bitcoin ended up outperforming the other two over the first 48 hours in that situation.
Will be interesting to see what happens here.
— Anthony Pompliano 🌪 (@APompliano) June 13, 2025
Ethereum options expiry reveals market split and hedging shift
Friday’s expiration of $3.5 billion in crypto options injected fresh volatility into the market, especially around Ethereum, where traders showed signs of rising caution.
As reported by Deribit, the put-to-call ratio for ETH reached 1.14, reflecting a tilt toward downside protection despite recent bullish flows.
Spot prices fell below the max pain point of $2,650, suggesting sellers retained control through expiry.
Bitcoin’s options market was less skewed, with a 0.91 ratio and a max pain level at $106,500, also above the prevailing price.
According to Greeks.live, the expiry revealed a growing divide in trader expectations, with a notable shift toward defensive hedging amid macro uncertainty and geopolitical pressure that continue to cloud short-term market direction.
https://t.co/n0OcjSGEsP Community Daily Digest
Published: 2025-06-11
Overall Market Sentiment
The group appears divided on market direction, with bears dominating the conversation as multiple traders have shifted to buying puts for protection. Key disagreement centers around…
— Greeks.live (@GreeksLive) June 11, 2025
USDC launches on XRP Ledger to boost cross-chain stablecoin utility
Circle has officially deployed USDC on the XRP Ledger, marking a major step in the stablecoin’s cross-chain expansion strategy.
With over $61 billion in market cap, USDC‘s integration will enable low-cost, fast settlements via XRP’s auto-bridging feature on decentralized exchanges.
Ripple’s SVP Markus Infanger emphasized the growing importance of stablecoins in real-world use cases beyond speculation, citing their role in remittances and business payments.
The launch also aligns with broader U.S. regulatory support for dollar-backed stablecoins, as policymakers push to strengthen the dollar’s global role.
However, voices like Max Keiser argue that gold-backed tokens may eventually prove more resilient. Still, the move reinforces Circle’s focus on interoperability and institutional utility.
GENIUS stablecoin bill heads to U.S. Senate vote June 17
The upcoming Senate vote on the GENIUS Act could mark a watershed moment for stablecoin regulation in the U.S.
The bill outlines strict requirements for full dollar reserves, independent audits, and compliance obligations for both domestic and foreign issuers, including firms like Tether.
Backed by President Donald Trump and endorsed by Treasury Secretary Scott Bessent, the legislation reflects growing consensus that a stablecoin framework is essential to safeguard U.S. financial leadership.
If approved, the bill will advance to the House for reconciliation with parallel proposals. Treasury projections suggest that legal clarity could fuel a $2 trillion stablecoin market by 2028, placing digital dollars at the heart of future financial infrastructure.
FSB warns crypto nearing systemic financial risk threshold
In a notable shift from previous positions, the Financial Stability Board (FSB) warned that crypto markets are approaching a point of systemic importance.
Outgoing chair Klaas Knot highlighted the increasing entanglement between digital assets and traditional finance, especially through vehicles like stablecoins and crypto ETFs.
Speaking in Madrid, he cited stablecoin exposure to U.S. Treasuries and the growing retail access to complex crypto products as major concerns.
Knot urged global regulators to act before crypto becomes too embedded in the financial system to contain.
The statement mirrors recent alerts from the European Central Bank, underlining the urgency of proactive oversight as crypto moves closer to mainstream finance.
Germany sees record crypto-linked suspicious activity in 2024
Germany’s Financial Intelligence Unit reported a record 8,711 suspicious activity reports (SARs) related to crypto in 2024. This is an 8.2% increase from the year before, even as overall SARs declined.
The most frequently flagged assets were Bitcoin, Ethereum, Tether, and Litecoin, often linked to mixers, gambling services, and unregistered exchanges.
Despite new compliance frameworks, illicit actors continued to exploit decentralized infrastructure.
German authorities responded with stronger enforcement, including the seizure of $38 million tied to the Bybit hack and raids on unlicensed ATM operators.
The trend points to mounting regulatory pressure as the EU’s sweeping AML regulation, expected to take effect by 2027, moves closer to implementation.
Societe Generale to issue first EU bank-backed USD stablecoin
Societe Generale is preparing to launch USD CoinVertible (USDCV), a dollar-backed stablecoin set to operate on Ethereum and Solana, making it the first major European bank to issue a USD-pegged token.
Backed by reserves held at BNY Mellon, USDCV will support foreign exchange settlements, on-chain payments, and treasury operations for institutional clients.
The move builds on the bank’s earlier euro-pegged token, EURCV, launched in 2023 under the MiCA framework.
Meanwhile, South Korea introduced its own bill to allow domestic stablecoin issuance, reflecting a broader global push for compliant digital currencies.
As the stablecoin market surpasses $250 billion, regulated bank-issued tokens could reshape the next wave of crypto-financial integration.
