The cryptocurrency market experienced a volatile week as Bitcoin dipped to $66,000 despite encouraging inflation data, while major regulatory, political, and technological developments continued to shape the digital asset landscape.
Soft Inflation Data Sparks Brief Rally
U.S. Consumer Price Index (CPI) data for May 2024 revealed a year-over-year increase of 3.3%, slightly below the expected 3.4% and April’s reading. More significantly, core CPI—excluding volatile food and energy prices—rose just 0.2%, better than the projected 0.3% and down from the previous month’s 0.3%. The numbers signaled cooling inflation, a key factor that could influence Federal Reserve interest rate decisions.
Initially, markets responded positively. On Wednesday, Bitcoin surged nearly 4%, reaching $69,400. However, the momentum didn’t last. By Thursday, BTC had retreated to $66,000 as traders adjusted expectations for Federal Reserve rate cuts. Earlier in the year, investors anticipated up to six potential cuts in 2024, but current projections suggest only one 25-basis-point cut by year-end—likely in September.
👉 Discover how macroeconomic trends are shaping crypto’s next move.
This shift in sentiment coincided with outflows of approximately $200 million from spot Bitcoin ETFs ahead of the CPI announcement, reflecting investor caution despite favorable data.
Political Momentum Builds Around Crypto
The 2024 U.S. presidential race is increasingly spotlighting cryptocurrency policy. Former President Donald Trump recently hosted a meeting with Bitcoin miners at Mar-a-Lago, where he pledged support for domestic Bitcoin mining operations. He emphasized the sector’s potential to stabilize the energy grid by utilizing excess or stranded power.
Attendees included executives from Nasdaq-listed mining firms CleanSpark Inc. and Riot Platforms. High-profile tech investors like David Sacks and Chamath Palihapitiya have also backed Trump, hosting a $12 million crypto-focused fundraiser in Silicon Valley. Additionally, Trump has announced he will accept political donations in cryptocurrency—a symbolic yet significant gesture for crypto advocates.
However, President Joe Biden’s re-election campaign is also engaging with the crypto industry, seeking input on digital asset policies. This marks a notable evolution from previous regulatory stances and highlights the growing political importance of crypto-friendly platforms ahead of November’s election.
👉 See how policy shifts could unlock new crypto investment opportunities.
Spot Ether ETFs Nearing U.S. Launch
A major regulatory milestone is on the horizon: spot ether exchange-traded funds (ETFs) are expected to begin trading in the U.S. this summer. SEC Chairman Gary Gensler confirmed the timeline during a Senate Banking Committee hearing on June 13, 2024.
While the SEC approved the necessary 19b-4 filings for eight spot ETH ETFs in late May, final S-1 registration statements are still pending. Once approved, these ETFs will allow traditional investors to gain exposure to ether’s price movements without managing private keys or using crypto exchanges.
The launch follows the successful debut of spot Bitcoin ETFs in January 2024, which attracted billions in inflows. Analysts anticipate similar demand for ETH ETFs, potentially accelerating institutional adoption of Ethereum-based assets.
GameStop Volatility Spills Over to Meme Tokens
GameStop (GME) stock fell 12% recently, closing at $24.89—down 62% from its two-year high of $61 reached just days earlier. The decline followed the company’s announcement of a new share offering of up to 75 million shares, coming shortly after a previous sale of 45 million shares raised $933 million.
Compounding the pressure, GameStop reported a 29% year-over-year drop in Q1 sales, falling to $882 million from $1.24 billion in the same period last year.
The downturn rippled through related meme tokens:
- GME (Solana-based): Down 25%, reversing a 200% weekly rally.
- Roaring Kitty (KITTY): Lost over 10%.
- DOGE, SHIB, FLOKI: Each declined between 4% and 10%.
The volatility was initially fueled by Keith Gill (aka “Roaring Kitty”), who revealed a $580 million position in GME equity and options last week—briefly reigniting retail investor enthusiasm.
HSBC China Launches e-CNY Services for Corporates
HSBC’s mainland China branch has become the first foreign bank to offer digital yuan (e-CNY) services to corporate clients. The initiative allows businesses to link their traditional bank accounts with e-CNY wallets for seamless asset management and transactions.
The e-CNY, issued by the People’s Bank of China, is a central bank digital currency (CBDC) designed to complement physical cash. Since its pilot launch in late 2019, the digital yuan has expanded across multiple cities and sectors—including payments to government employees and educational institutions.
HSBC China recently facilitated e-CNY payments for an educational group across branches in Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou. Hong Kong has also introduced personal e-CNY wallets to support cross-border transactions—a step toward broader regional integration.
ZKsync Announces Massive Token Airdrop
ZKsync is set to distribute 3.675 billion ZK tokens—17.5% of the total 21 billion supply—in a one-time airdrop starting next week. The distribution will remain open for claims until January 3, 2025.
Eligibility was determined by a snapshot taken on March 24, 2024—marking the one-year anniversary of ZKsync Era’s mainnet launch. A total of 695,232 wallets will receive tokens based on activity across ZKsync Era and ZKsync Lite.
The airdrop is split into two categories:
- 89% for users who transacted and met activity thresholds.
- 11% for contributors such as developers, researchers, and community members.
Additional allocations include:
- 49.1% for ecosystem initiatives.
- 17.2% for investors.
- 16.1% for the Matter Labs team.
This move aims to decentralize governance and incentivize continued participation in ZKsync’s Layer-2 scaling solution for Ethereum.
Core Keywords
Bitcoin price, inflation report, spot ether ETF, Bitcoin mining, e-CNY, ZKsync airdrop, GameStop stock, crypto policy
Frequently Asked Questions
Q: Why did Bitcoin drop despite lower inflation?
A: Although softer CPI data initially boosted Bitcoin to $69,400, traders reacted to revised expectations of only one Fed rate cut in 2024—down from earlier projections of five or six. This dampened bullish sentiment and triggered ETF outflows.
Q: When will spot ether ETFs launch?
A: SEC Chairman Gary Gensler confirmed they are expected to begin trading in summer 2024. Final S-1 approvals are pending after 19b-4 filings were cleared in May.
Q: Who qualifies for the ZKsync airdrop?
A: Users active on ZKsync Era or Lite before March 24, 2024, and contributors to the ecosystem qualify. Claims open next week and run through January 3, 2025.
Q: What is e-CNY and who can use it?
A: The e-CNY is China’s digital yuan—a CBDC issued by the central bank. HSBC China now offers it to corporate clients for transactions and asset management.
Q: How are political candidates addressing crypto?
A: Trump supports Bitcoin mining and accepts crypto donations; Biden’s campaign is consulting the industry on digital asset policy—both recognizing crypto’s growing voter influence.
Q: Why did GameStop and meme tokens fall?
A: GameStop announced another large share sale and reported declining sales. This reversed recent gains driven by Roaring Kitty’s disclosed position, affecting linked meme tokens like GME and KITTY.
All data referenced as of June 13, 2024, at 2:30 PM ET. Market movements reflect trends over the past seven days.