Cryptocurrencies have concluded their worst week since February of this year as the price of Bitcoin (CRYPTO: $BTC) fell 17% in the last five days to reach its lowest level in two years.
Bitcoin and other cryptocurrencies like Ethereum (CRYPTO: $ETH) have taken a beating in early June as the narrative around the digital assets turns sour. In afternoon trading on June 5, the price of Bitcoin was down 6% to $59,550, its lowest level since October 2024.
Analysts are starting to sound the alarm, seeing an absence of short-term catalysts that could help reverse the current decline in cryptocurrencies. Over the past week, Bitcoin’s so-called “fear gauge” has risen more than 20% as retail investors become increasingly nervous about the sell-off.
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Institutional investors are also moving capital out of cryptocurrencies, with exchange-traded funds (ETFs) that track the BTC spot price recording 13 consecutive days of capital outflows, resulting in a $25 billion US capital exodus.
Prediction markets like Kalshi and Polymarket see more losses ahead. The current bet on both platforms is that the price of Bitcoin will fall to $50,000 during the current recession.
Here’s what happened with cryptocurrencies this week:
Strategy sells Bitcoin: Strategy (NASDAQ: $MSTR) sold some of its Bitcoin holdings for the first time in four years. A regulatory disclosure showed that Strategy sold 32 Bitcoin for profits of US$2.5 million. The amount is small considering Strategy owns over 840,000 Bitcoin, but is still significant as it suggests potentially larger sales in the coming months. Strategy is under pressure to finance dividend payments on its preferred stock (NASDAQ: $STRC), which yields 11.5%.
Hut 8 bond sale raises $17 billion: A bond sale by Hut 8 (NASDAQ: $HUT) has attracted $17 billion in investor orders. The Canadian Bitcoin miner turned data center operator raised four times the $4.25 billion it had anticipated from the bond sale. Hut 8 management said the proceeds will support the development of a 352-megawatt data center in Texas. The facilities have been leased to chipmaker Nvidia (NASDAQ: $NVDA).
US banks launch tokenization network: Major US banks JPMorgan Chase (NYSE: $JPM), Bank of America (NYSE: $BAC) and Citigroup (NYSE: $C) are joining forces in a new tokenization network. Banks plan to build a network of shared tokenized deposits to protect their deposits from the threat posed by stablecoins. The system will be operated by The Clearing House, the banks’ collectively owned payments company. Internally, banks call the new tokenized network “the bridge.”
Bitmine offers a 9.5% yield on preferred shares: Ethereum treasury company Bitmine (NYSE: $BMNR) is offering a 9.5% yield on its new preferred shares. The company led by Chairman Tom Lee is borrowing a page from the playbook and launching $300 million in preferred stock in the United States. The preferred shares will be listed on the New York Stock Exchange under the symbol “BMNP.”
Kalshi builds a prediction market terminal: Kalshi is building a market prediction terminal for professional traders similar to a Bloomberg Terminal. Kalshi is developing a new interface that will allow traders to track the company’s prediction market bets and contracts. The new terminal is currently in testing phase with a small group of merchants.
Cardano Summit Cancelled: The annual Cardano (CRYPTO: $ADA) summit will not take place this year after the community rejected the cost of hosting the event. A proposal to fund this year’s summit failed to secure the supermajority needed for approval under the new blockchain governance system. The Cardano Foundation said it would cancel the Singapore-based event and begin finalizing preparations. Cardano requires community approval for major treasury withdrawals due to its new “Voltaire” governance process.
Grayscale sets a 0.29% fee for the hyperliquid ETF: Asset manager Grayscale has set a 0.29% management fee for its new Hyperliquid exchange-traded fund (ETF), undercutting competitors who have launched similar funds. Grayscale has filed a registration for its new “Grayscale Hyper-Liquid Staking ETF” under the symbol “HYPG.” Grayscale is expected to launch its Hyperliquid fund within weeks. Hyperliquid is a decentralized derivatives exchange that allows people to trade perpetual futures contracts on a blockchain.
Binance closes NFT market: Cryptocurrency exchange Binance has shut down its non-fungible token (NFT) platform following a prolonged slump in the digital art market. NFTs are digital art that contain a unique digital identifier registered on a blockchain that certifies authenticity. The NFT market saw a peak of US$50 billion in 2022. Currently, the market generates around US$5.5 billion in trading volumes after a crash.
HIVE Digital reports 158% revenue growth: Canada’s HIVE Digital Technologies (NASDAQ: $HIVE) reported a 158% increase in revenue as it transitions from a Bitcoin miner to an artificial intelligence (AI) data center operator. The company reported total revenue of US$297.8 million for its fiscal year ending March 31, up 158% from the same period a year earlier. HIVE said it mined 2,885 Bitcoin during the fiscal year, up 104% from 2025.
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