Bitcoin’s price has dropped nearly 2% to around $105,560 over the past day, but market sentiment remains relatively strong.
The Crypto Fear & Greed Index registered a score of 63 on Wednesday, down just one point from the previous day, indicating continued market confidence.
Bitcoin had nearly reached $108,000 on Tuesday before sliding into a short-term correction. Analysts are closely watching to see if the cryptocurrency will retest its all-time high of $111,970 set on May 22.
Historical Trends Cast Shadow Over Q3
Analysts have flagged the third quarter as historically slow for Bitcoin.
“From the historical data, this quarter is generally the slowest out of all, for both $BTC and $ETH,” said trader Daan Crypto Trades.
Since 2013, Bitcoin has averaged just a 5.47% gain during Q3. If the trend continues, Bitcoin could rise to about $111,000 by September 30.
Daan attributes the slower performance to “slower summer months where there’s generally less action, volumes [and] liquidity.”
Q2 Outperforms Averages
Bitcoin delivered a solid second quarter with a 31% gain, ending at $108,383—about 4% above the historical Q2 average of 27% since 2014. June also saw the asset print its highest monthly candle.
Despite short-term volatility, Bitcoin continues to dominate the crypto market.
Its dominance stands at 65.5%, up nearly 13% year-to-date, according to TradingView.
Meanwhile, CoinMarketCap’s Altcoin Season Index stands at 20 out of 100, suggesting it is still Bitcoin’s market.
However, CryptoQuant’s head of research Julio Moreno noted a waning bullish signal.
“Bitcoin Bull Score is in NEUTRAL territory now–50. Needs to be 60 or above for prices to sustain a rally,” Moreno said.
Cryptocurrency-linked payment cards are rapidly gaining traction in Europe, particularly for small purchases typically dominated by cash.
According to a new report from CEX.IO, 45% of crypto card transactions fall under the 10-euro mark, reflecting a shift in consumer behaviour and highlighting crypto’s growing role in day-to-day payments.
The report, shared with Cointelegraph, noted a 15% year-on-year increase in newly issued CEX.IO crypto cards across the continent in 2025.
This trend indicates a broader acceptance of digital assets as a means for routine purchases and suggests that crypto cardholders are now mirroring traditional banking habits, especially when it comes to online spending.
Online Spending Nearly Doubles Traditional Usage Rates
While the European Central Bank (ECB) reports that 21% of card payments in the eurozone are made online, CEX.IO data shows that 40% of crypto card transactions occur via the internet.
This figure nearly doubles the regional average, showcasing the comfort crypto users have with digital platforms.
“What we’re seeing in Europe is that crypto card users aren’t just experimenting with new tech — they’re showing us what everyday spending might look like in a truly cashless future,” said Alexandr Kerya, Vice President of Product Management at CEX.IO.
He also revealed that average payment volumes have jumped 24% in the past month alone.
Crypto Spending Patterns Mirror Traditional Banking
The data further illustrates how crypto cardholders are incorporating digital currencies into their daily routines.
Groceries represent 59% of crypto card purchases, which is close to the ECB’s 54% average for traditional bank cards.
Spending at restaurants and bars accounts for 19% — a higher figure than typical bank card usage in that category.
The average crypto card transaction stands at €23.70, lower than the €33.60 average for traditional bank card payments, based on Mastercard’s Q1 2025 data.
Stablecoins Lead Transactions as Other Cryptos Gain Ground
Stablecoins play a dominant role in these transactions, powering 73% of all crypto card activity.
Nevertheless, other leading digital assets such as Bitcoin, Ether, Litecoin, and Solana are also being used for essentials like groceries, dining, and transport.
This mirrors broader usage trends across the crypto sector.
For example, platforms like Oobit and Crypto.com are also reporting strong transaction volumes related to everyday spending and online shopping across their European user base.
Institutional Pushbacks Continue Despite Adoption Gains
However, not all financial institutions are welcoming this trend.
Barclays has announced that it will block crypto purchases on its Barclaycard credit cards.
The bank cited concerns over the volatility of digital assets and the lack of consumer protections available through traditional financial mechanisms.
Barclays emphasized that crypto transactions are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme, leaving users exposed in case of disputes or losses.
Despite such institutional caution, the momentum behind crypto card usage continues to grow, reflecting an evolving financial landscape that is increasingly embracing digital innovation.
Only a limited number of Bitcoin treasury companies are expected to weather the storm as market conditions tighten, according to a recent report from venture capital firm Breed.
The report highlights the risk of a “death spiral” for firms holding Bitcoin that trade near their net asset value (NAV), potentially leading to widespread market instability.
The Role of MNAV in Treasury Company Resilience
The success of Bitcoin treasury companies is closely tied to their ability to maintain a market value that exceeds their NAV, referred to as MNAV.
According to Breed, the higher this multiple, the greater the firm’s ability to attract critical debt and equity financing needed for converting fiat capital into Bitcoin.
When this premium erodes, the risk of financial instability increases sharply.
Breed outlined a seven-stage process that begins with a decline in Bitcoin’s price.
As Bitcoin value falls, so does the company’s MNAV, bringing share prices closer to their underlying NAV.
This dynamic reduces investor confidence and makes it increasingly difficult to raise additional capital.
This lack of access to fresh credit, combined with looming debt maturities, can trigger margin calls.
Firms may be forced to liquidate their Bitcoin holdings at inopportune times, further depressing the asset’s price.
This may result in a consolidation wave, with stronger companies absorbing weaker ones, potentially leading to a broader crypto market downturn.
“Ultimately, only a select few companies will sustain a lasting MNAV premium,” Breed’s report stated.
“They will earn it through strong leadership, disciplined execution, savvy marketing, and distinctive strategies that continue to grow Bitcoin-per-share regardless of broader market fluctuations.”
Equity Financing Provides Some Market Protection
The report notes that the potential fallout from the “death spiral” may be limited, at least in the near term.
Breed’s researchers said most Bitcoin treasury companies are currently funding their operations through equity rather than debt.
This reduces the risk of forced Bitcoin sales due to debt pressures, which could otherwise cause more significant market disruptions.
However, this balance could shift in the future.
If debt financing becomes more attractive or widespread, the sector might face deeper vulnerabilities, increasing the chance of systemic risk.
Treasury Bitcoin Holdings Surge in 2025
The corporate Bitcoin treasury trend has grown rapidly, especially since 2020 when Michael Saylor’s company, Strategy, began acquiring large quantities of Bitcoin as part of its financial strategy.
Since then, the idea has caught on across the financial world.
In 2025, over 250 entities now hold Bitcoin as a treasury asset.
These include corporations, pension funds, ETFs, government agencies, and crypto service providers.
Breed’s report warns that only a fraction of these entities are structurally sound enough to withstand extended volatility and maintain a MNAV advantage.
The concern is that others, particularly those heavily reliant on market price appreciation and external financing, may not survive prolonged market downturns.
As competition intensifies and the market consolidates, only the most disciplined and strategically agile companies will likely remain standing.
Bitcoin experienced significant volatility at the start of the week, leading to a dramatic shakeout in the derivatives market and underscoring a growing phase of market uncertainty.
On-chain analytics firm Glassnode reported that within 24 hours, long positions worth $28.6 million and short positions worth $25.2 million were liquidated.
This rare two-sided flush left many leveraged traders caught off guard and highlighted the fragility of current sentiment.
Speculative Leverage Clears as Open Interest Falls
The volatility also led to a 7% decline in BTC-denominated open interest, which dropped from 360,000 BTC to around 334,000 BTC.
This decline indicates a reset in speculative leverage, potentially paving the way for a more stable market structure.
Bitcoin’s price remained within the $100,000 to $110,000 range, with reduced on-chain activity hinting at a consolidation period rather than the beginning of a new rally.
Glassnode noted that both profitability metrics and user participation are currently subdued.
Technical Indicators Point to Key Support Levels
From a technical viewpoint, Bitcoin’s failure to surpass external liquidity near $109,000 triggered a gradual decline in the short-term trend.
On the 4-hour chart, BTC remains trapped within a descending channel, with a key support zone identified between $103,400 and $104,600.
This area coincides with a daily fair value gap (FVG) and is backed by the 200-day exponential moving average (EMA), raising the likelihood of a short-term bounce if momentum returns.
Market Awaits Breakout as Bullish Momentum Stalls
If BTC can collect internal liquidity within this critical zone, a bullish breakout above the descending channel remains plausible.
However, the current lack of trading momentum and subdued on-chain activity suggests that the market could remain range-bound until stronger demand emerges.
Inflation Concerns Weigh on Sentiment
Adding to the uncertainty are macroeconomic headwinds.
The latest Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred gauge, showed an increase to 2.3%, matching expectations.
However, Core PCE rose to 2.7%, slightly above forecasts.
This marked the first increase in core inflation since February 2025, reinforcing the Fed’s cautious stance.
As a result, expectations of an imminent interest rate cut have been tempered.
Tight Financial Conditions Create Pressure for Bitcoin
With inflation proving sticky, the Fed is unlikely to lower interest rates soon, keeping financial conditions tight.
This environment is generally unfavorable for risk assets like Bitcoin.
Glassnode’s quarterly data further highlights the tepid sentiment, with spot trading volume rising only slightly by $7.7 billion in Q2, while transfer volumes declined 36% earlier in the quarter.
This combination of macroeconomic pressure and market consolidation suggests that Bitcoin’s next move remains uncertain.
The U.S. Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to develop proposals for including cryptocurrencies in their mortgage risk assessments.
This move could allow potential homebuyers to use crypto holdings as reserves when applying for a loan—without needing to convert those digital assets into U.S. dollars.
FHFA Director William J. Pulte issued the directive via letter on Wednesday, asking both government-sponsored enterprises (GSEs) to explore how digital currencies might be treated as part of single-family mortgage loan assessments.
The letter calls on Fannie Mae and Freddie Mac to “prepare a proposal for consideration of cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessments, without conversion of said cryptocurrency to U.S. dollars.”
Historic Shift in Mortgage Criteria
This order marks a significant departure from traditional mortgage qualification standards, where crypto assets have typically been excluded unless liquidated into fiat currency.
The FHFA has overseen Fannie Mae and Freddie Mac since the 2008 financial crisis, when both entities were placed under federal conservatorship.
Since then, the two have provided vital liquidity and stability in the housing market by purchasing loans from lenders, allowing banks to issue more credit.
By considering crypto as part of a borrower’s financial profile, the FHFA aims to modernize underwriting practices in line with broader digital asset adoption.
Aligning with Pro-Crypto Policy Goals
In a post on X, formerly Twitter, Pulte emphasized that this decision was made “after significant studying” and aligns with former President Donald Trump’s ambition to establish the U.S. as the “crypto capital of the world.”
The directive also includes a condition: only cryptocurrencies that are “evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws” will be eligible for consideration.
This restriction is designed to ensure compliance and reduce risks associated with unregulated crypto markets.
Broader Acceptance of Crypto in Finance
The FHFA’s order reflects a broader trend of digital assets becoming more integrated into mainstream financial practices in the United States.
Recent reports from Cointelegraph note that JPMorgan plans to allow select wealth management clients to use crypto-backed products, such as Bitcoin ETFs, as collateral for financing.
In another development, Circle’s USDC stablecoin will soon be eligible collateral for futures trading, through a collaboration between Coinbase Derivatives and Nodal Clear.
Crypto-backed mortgage lending, though still niche, has already begun to emerge.
Mauricio Di Bartolomeo, co-founder of Bitcoin lending platform Ledn, told Cointelegraph that many Bitcoin holders are using digital assets to secure real estate loans without selling their crypto.
“Bitcoin holders have used their digital assets as collateral to purchase real estate,” he said.
As digital finance continues to evolve, this latest FHFA move signals a shift in how traditional financial institutions might assess and interact with cryptocurrencies going forward.
Bitcoin traders may be in for another volatile spell as fresh analysis suggests a new round of liquidity-driven price moves could be on the horizon.
BTC has managed to hold the $105,000 level after rebounding from recent multi-week lows.
The recovery was partly spurred by a ceasefire in the Middle East, providing temporary stability.
Still, data from CoinGlass shows liquidity building up on both sides of the current spot price, setting up what traders refer to as a potential “liquidity grab”—a swift price movement that targets these pools.
“I wouldn’t be surprised to see $BTC push a little higher into the 107K’s before pulling back and taking the liquidity below 105-104K with a quick wick,” said analyst Mark Cullen on X.
He shared a heatmap from CoinGlass that highlighted levels where liquidation events could take place, pointing to growing pressure above and below the current price.
$108K and $111K in Focus for Upside Move
As liquidity accumulates near all-time highs, $108,000 has emerged as another likely price target, with market depth strengthening in that region.
Analyst Jelle suggested that the odds of a move higher are increasing.
“$111,000 looks eager to be tagged next,” he said, pointing to CoinGlass heatmaps showing a strong liquidity cluster at that level.
This view was echoed by others who believe that BTC could extend its rally before experiencing any significant correction.
Fellow trader Skew flagged $103,000 as a key support level to watch in case of a sharp drop.
“Currently market is pretty neutral in terms of positioning, longs opening targeting higher & shorts opening here as hedges,” he wrote on X.
“The more liquidity that gets attracted here = greater the reaction.”
Macro Events and Monthly Close Add to Pressure
Bitcoin’s price trajectory is now at a critical juncture ahead of the monthly candle close and upcoming U.S. economic data releases.
One such release is the Federal Reserve’s preferred inflation gauge, which could influence rate expectations and indirectly impact crypto markets.
If the data shows further disinflation, it may pave the way for a Fed rate cut in the near term.
BTC is currently up 1.7% for the month of June.
A strong monthly close would signal a bullish breakout from its current range, according to technical analyst Rekt Capital.
“A Monthly Close above ~$102400 (blue) would confirm the Monthly Range breakout,” he noted on X, sharing a chart to illustrate the pattern.
Whipsaw Risks Remain Despite Bullish Signs
Despite the upward momentum, traders remain cautious about sudden “whipsaw” price action—quick reversals triggered by aggressive moves toward liquidity levels.
With liquidity clustering both above and below current levels, Bitcoin remains vulnerable to sharp, unpredictable swings.
Until macroeconomic data provides clearer direction, BTC may continue to trade within a wide, volatile band as market participants look for the next breakout or breakdown trigger.
VMS Group, a Hong Kong-based multi-family office managing $4 billion in assets, is preparing to enter the cryptocurrency space for the first time.
According to a Bloomberg report, the firm plans to allocate up to $10 million to crypto investment strategies operated by Re7 Capital, although the exact amount is still under consideration.
The move signals VMS Group’s efforts to diversify its portfolio toward more liquid asset classes, as stated by managing partner Elton Cheung.
“The decision is part of recent moves by VMS to diversify into more liquid investments,” Cheung said.
Shifting from Illiquid Investments
Cheung noted that while VMS has enjoyed success in private equity and other long-term holdings, these investments have become increasingly difficult to exit due to a growing trend of companies delaying public listings.
This shift in market dynamics has influenced VMS Group’s strategy toward more agile asset classes such as crypto.
Indirect Exposure Through Re7 Capital
Rather than investing directly in digital tokens, VMS is opting for an indirect approach by allocating funds to Re7 Capital.
The firm specializes in digital asset strategies, focusing on decentralized finance (DeFi) and other yield-generating crypto opportunities.
This strategy allows VMS to gain exposure to the digital asset ecosystem while maintaining a degree of risk control.
Favorable Regulatory Environment
Cheung emphasized that the firm’s move is also supported by improving global regulations and rising institutional interest in the sector.
“We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement,” he said.
Hong Kong’s Regulatory Push for Crypto
Hong Kong has taken active steps in recent months to encourage innovation in the digital asset space.
In early June, regulators approved a framework allowing professional investors to trade crypto derivatives.
Around the same time, the government reportedly began using Chainlink’s Cross-Chain Interoperability Protocol in its central bank digital currency (CBDC) research.
Additionally, legislation passed in May allows the issuance of fiat-backed stablecoins by the end of the year.
Growing Corporate Interest in Crypto
Several Hong Kong-based firms are already adding digital assets to their treasuries.
Last week, MemeStrategy—an investment firm managed by 9GAG—became the first publicly listed company in the region to purchase Solana (SOL), acquiring over 2,400 tokens for approximately $368,000.
Earlier in May, DDC Enterprise, a ready-meal seller, purchased 21 Bitcoin as part of a larger plan to accumulate 5,000 BTC over the next three years.
These developments reflect a broader shift among businesses in Hong Kong towards embracing crypto assets.
Awaiting Comment
VMS Group has yet to respond to media inquiries regarding the investment and was unreachable for comment at the time of publication.
Semiconductor and IoT module developer Sequans Communications has announced plans to raise $384 million to fund a strategic investment in Bitcoin, underscoring growing corporate interest in using the cryptocurrency as a treasury asset.
The company said it would raise the funds through a combination of equity and convertible debt, with $195 million in equity issuance and $189 million in convertible debentures.
Sequans is collaborating with Swan Bitcoin, a firm that specializes in Bitcoin treasury management, for the execution of this plan.
“Our bitcoin treasury strategy reflects our strong conviction in bitcoin as a premier asset and a compelling long-term investment,” said Sequans CEO Georges Karam.
Corporate Bitcoin Adoption Accelerates
Sequans joins a growing list of companies diversifying their treasuries with Bitcoin.
Over the weekend, Nakamoto Holdings raised $51.5 million for the same purpose, while Metaplanet added 1,111 BTC to its balance sheet on Monday, putting it just shy of Tesla’s Bitcoin holdings.
According to BitcoinTreasuries.NET, roughly 240 companies now hold Bitcoin on their balance sheets.
That figure has nearly doubled in recent weeks.
Together, these firms control around 4% of the global Bitcoin supply.
Market Veteran Sees Trend Shift
Adam Back, CEO of Blockstream and a prominent figure in the early Bitcoin community, commented on the trend on X (formerly Twitter).
“Time to dump ALTs into BTC or BTC treasuries,” Back posted, referring to an emerging pattern where institutions are shifting away from altcoins and favoring Bitcoin.
He characterized the surge in Bitcoin-focused treasuries as a new kind of “alt-season.”
Big Tech Stays on the Sidelines
Despite the growing momentum, many major technology firms are still hesitant.
Amazon, Meta, and Microsoft have refrained from adding Bitcoin to their treasuries, largely due to concerns over its price volatility and ongoing regulatory uncertainty.
Unlike traditional assets, Bitcoin’s market swings can expose shareholders to risks that typical corporate treasuries are designed to avoid.
Strategy Remains the Largest Holder
MicroStrategy, now known as Strategy, continues to dominate corporate Bitcoin holdings.
The company holds approximately 592,345 BTC, valued at about $60.2 billion at current prices.
Strategy has consistently used convertible debt to acquire Bitcoin, underscoring its commitment to a long-term accumulation strategy.
Growing Institutional Confidence
While the debate over Bitcoin’s role in corporate finance continues, the rising number of firms entering the space suggests that institutional confidence in the cryptocurrency is growing.
Sequans’ move marks another major step in the ongoing integration of Bitcoin into mainstream financial strategy.
Texas Governor Greg Abbott has officially signed Senate Bill 21 (SB21), creating the Texas Strategic Bitcoin Reserve, a state-operated fund that will hold Bitcoin as a long-term financial asset.
The move makes Texas the first U.S. state to not only legalize a Bitcoin reserve but also to directly allocate public funds toward building digital asset holdings.
Unlike traditional state investments, the reserve will function outside Texas’ general treasury, serving as a hedge against inflation and a new tool to bolster the state’s financial resilience.
Strict Criteria Ensures Bitcoin-Only Holdings
According to the bill, only assets with a market capitalization exceeding $500 billion are eligible for inclusion in the fund.
Currently, Bitcoin is the only cryptocurrency meeting that requirement.
The Texas Comptroller of Public Accounts will manage the fund with guidance from a three-member advisory board composed of cryptocurrency investment experts.
Reserve Can Grow Through Airdrops and Donations
The legislation allows for the Bitcoin reserve to expand through various mechanisms beyond direct purchases.
These include blockchain forks, investment gains, and even airdrops or public donations.
A transparency provision mandates that a comprehensive report on the fund’s holdings and performance be published every two years.
Legal Protections Cement Reserve Independence
The passage of SB21 follows the earlier signing of House Bill 4488, which protects the reserve from being transferred into the general revenue fund.
This measure ensures the fund remains insulated from broader budgetary shifts and fiscal pressures.
Texas now joins Arizona and New Hampshire as the third U.S. state to approve a Bitcoin reserve policy.
However, Texas is unique in that it is the first to use state funds and establish an independent structure for its holdings.
Corporate Adoption of Bitcoin Continues to Grow
Public interest in Bitcoin reserves is being mirrored in the corporate world.
Nakamoto Holdings, a Bitcoin investment firm founded by David Bailey, a crypto adviser to former President Donald Trump, recently raised $51.5 million through a PIPE (private investment in public equity) transaction to increase its Bitcoin portfolio.
Meanwhile, France’s Blockchain Group has added 182 BTC worth approximately $19.6 million to its reserves, bringing its total to 1,653 BTC.
Growing Institutional Demand Signals Enduring Bitcoin Interest
Recent data from BitcoinTreasuries.NET shows that more organizations have begun holding Bitcoin as a treasury asset over the past month.
This aligns with a broader trend pioneered by Michael Saylor’s Strategy, which has been at the forefront of public company Bitcoin adoption.
The Texas Bitcoin reserve may mark a pivotal step in further institutionalizing Bitcoin’s role within public finance.
Norway is exploring the possibility of imposing a temporary ban on cryptocurrency mining operations as part of a broader effort to safeguard national energy resources and improve the allocation of electricity.
The country’s government announced Friday that it will conduct a detailed investigation this autumn to evaluate the impact of crypto mining on power consumption and local infrastructure.
This process could ultimately lead to a temporary halt in mining operations.
Officials cited the Planning and Building Act, a national legal framework that enables the government to control energy use and zoning policies, as the basis for such an action.
“It is uncertain how big a problem crypto mining will become in Norway in the future,” the government said in a statement.
They added that new regulations requiring registration of data centers involved in mining would provide authorities with greater insight into the scale and scope of the industry.
Rising Energy Demands Prompt Policy Review
The proposal comes amid growing energy concerns across Europe.
Many residents in Norway have experienced significant increases in electricity costs, a trend exacerbated by the ongoing war in Ukraine and the sanctions imposed on Russian oil and gas supplies.
Local communities have also raised objections to crypto mining facilities due to noise pollution and their impact on residential life.
In response to these pressures, some Norwegian regions have already begun pushing for tighter regulations or outright shutdowns of such operations.
A Broader Pattern of Global Crackdowns
Norway’s deliberation reflects a growing international trend.
Countries around the world are becoming increasingly wary of the environmental and energy consequences of crypto mining.
Russia, for example, enacted a ban on mining in ten regions earlier this year in an effort to prevent blackouts and lower electricity usage.
In China, a sweeping nationwide ban introduced in 2021 forced miners to migrate their operations to other jurisdictions, including parts of the United States.
Despite environmental concerns and public scrutiny, crypto mining remains legal across most U.S. states, making the country one of the leading contributors to the global Bitcoin hashrate.
However, voices within the U.S. political landscape have continued to criticize the industry’s environmental footprint, fueling calls for greater regulatory oversight.
Energy Policy and Environmental Impact Under Scrutiny
For Norway, the challenge lies in balancing its goals for digital innovation and energy conservation.
As the country continues to support a digital economy, policymakers appear to be reevaluating how much power can be devoted to non-essential or highly energy-intensive sectors like crypto mining.
The government emphasized that the upcoming investigation will help it make data-driven decisions regarding the sustainability and scale of mining activities.
While no immediate bans have been enforced, the potential for such measures signals a growing readiness to act if crypto mining begins to overwhelm Norway’s power grid or interfere with long-term environmental goals.