Cryptocurrency markets met new regulations and restrictions amid the global post-COVID finance crisis, with Bitcoin rejecting $10k one more time. News of the week of June 8-14 in the BTCMEX recap. 

Bitcoin’s playing with $10,000

On June 10, Bitcoin price once again rose above $10k for a short time, falling back to $9,600 trading range. Soon after, Bitcoin slipped further down to $9,100, losing 8% in value and hitting 2-week low. The resistance level rejection happened for the third time in one month.

Analysts give three possible reasons for current bearish trends. According to them, the main contribution to volatility was made by the Federal Reserve’s Federal Open Market Committee meeting, the liquidation of $14 million worth of short contracts, and the continued resilience of the multi-year resistance area from $10,000–$10,500.

Meanwhile, an unknown whale has moved $1.3 billion BTC in three transactions on June 11. The massive volume led to speculation the BTC belonged to exchange or custodial service.

The Bitcoin mining community expects the spike in the operation costs, as the difficulty is set to adjust by 10%. The mining difficulty adjustment that occurred around 40 days ago caused the hash rate of the Bitcoin blockchain network to surge as it made mining BTC cheaper than before.

Ethereum: one step closer to 2.0

The latest update moves the Ethereum community one step closer to the launch of the highly-anticipated Ethereum 2.0. Blockchain firm Prysmatic Labs announced the launch of a new test network – Onyx – to facilitate staking. Ethereum staking is an upcoming Ethereum 2.0 feature that would allow Ether holders to run nodes that confirm new blocks on the network in exchange for rewards, similar to mining.

Confusing transactions

Ethereum community witnessed three confusing transactions with enormous fees. 0.55 ETH that incurred a $2.6 million transaction fee ended up in one of the exchange’s wallets on June 10, followed by 350 Ether with an incredible $2.6 million gas fee. The last transaction contained 2,310 Ether. Unlike the previous two transactions, this one had a substantial transaction volume of 3,221 Ether with a value higher than the fee.

Estonia cracks down on crypto

According to Bloomberg, one of the most crypto-friendly countries – Estonia – is revoking crypto companies’ licensees. The measures were taken in response to a $220 billion money-laundering scandal. The money was detected in the Estonian unit of Denmark’s largest lender Danske Bank A/S. About 500 companies —  about a third of the total — which had failed to start operations in Estonia within six months of being licensed, have seen their permits withdrawn. regulators suspect that licensed crypto firms are abusing their Estonian credentials to commit fraud elsewhere.

Lebanon: central bank is burning

The fiat currency crisis put the central bank of Lebanon on fire. Protesters in Lebanon have set fire to the central bank in Tripoli in a show of anger with the country’s deepening economic crises and stagnant political orthodoxy. 

Lebanese pound (LBP) is trading for more than 5,000 per $1 on June 11, which drove protestants to embrace Bitcoin (BTC) as a means of bypassing Lebanon’s failing monetary system.

India’s hard crypto relationship

India seemed to enter crypto spring with more exchanges evolving in the region, and three months after the Supreme Court ruling to lift the banking ban, when India’s Ministry of Finance has proposed to ban cryptocurrencies by law. The proposal will first be sent to the Union Council of Ministers and then be forwarded to the parliament for final review. 

While much enthusiasm was seen in the crypto space in the past three months as new startups sprouted to push crypto adoption across the nation, this proposal could be a hard blow to all businesses and individuals involved in the space.