Bitcoin has dropped below the lowest band of the long-running Bitcoin Rainbow Chart for only the second time in its history, sliding into the original model's "Bitcoin Is Dead" zone around $62,500 — down roughly 50% from its October 2025 all-time high of $126,000. The chart, created by a Reddit user in 2014, plots bitcoin's price against a logarithmic regression and uses color bands to signal sentiment zones from "Fire Sale" at the bottom to "Maximum Bubble Territory" at the top. The only prior instance of the price breaching the floor was in 2022 when bitcoin hit a cycle low near $15,000. Analysts are split on what the breach means. XYO co-founder Markus Levin argued it's bullish: "I do not read this as bitcoin being dead, I read it as the Rainbow Chart being dead, and that is actually a bullish statement about how far the asset has matured." Bitget's Ryan Lee and Ethra COO Emad Shahin countered that the chart functions better as a sentiment gauge than a forecasting tool — it's built on historical logarithmic regression, not on the macro forces, ETF flows, or institutional dynamics that increasingly drive price today. 10x Research puts potential further downside at $55,000; a floor around $50,000 appears in several analyst models if the current chip-stock selloff deepens into a broader risk-off event.
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President Trump cancelled a signing ceremony for the 21st Century ROAD to Housing Act just hours before it was scheduled — pulling the plug on a bill that passed the Senate 85–5 and the House 358–32, and which contained a four-year ban on the Federal Reserve issuing a CBDC through 2030. Trump declared he won't sign anything until Congress passes the SAVE America Act, a strict voter ID and elections bill that currently lacks the Senate votes to clear the 60-vote threshold. The crypto industry had welcomed the CBDC ban as one of its major legislative wins of the year. It still becomes law automatically after ten days if Trump neither signs nor vetoes it — and both chambers passed it by margins that clear the veto-override bar — but the signing delay also creates a knock-on risk for the Clarity Act: Trump's stance suggests he may hold other legislation hostage, and the Senate calendar only has about five weeks before August recess. TD Cowen called the situation "a reminder of how quickly political dynamics can shift in Washington, even on bills with strong bipartisan support."
This week's Protocol Newsletter synthesizes Ethereum's most turbulent week in years: the simultaneous launches of EthLabs (backed by Bitmine, SharpLink, and Joe Lubin), the Ethereum Foundation's 54-person layoff and 40% budget cut, Vitalik's transition to an endowment model, and Hsiao-Wei Wang's resignation — the ninth senior departure since January. The bullish counterargument: Consensys' Joe Lubin told CoinDesk the EF should adopt a narrower role focused on core technology stewardship. Tom Lee's Bitmine bought 126,971 ETH last week at a cost of approximately $214 million — its largest single Ethereum purchase of 2026 — despite Lee's own prior public guidance to reduce buying activity amid falling prices. The structural case: corporate treasury holders including Bitmine (nearly 5.4 million ETH) and SharpLink now collectively control roughly 7% of circulating supply and generate $500 million in annual staking rewards, replacing EF grants as the primary funding mechanism for the ecosystem. "The Ethereum Foundation should adopt a narrower role," Lubin said — and some of the biggest names in crypto appear to agree that a leaner EF is, counterintuitively, a reason to be more optimistic about Ethereum, not less.
Everyone is watching bitcoin. But there’s a forgotten coin with a halving coming in July 2027 that has historically outperformed before that event — and at current sentiment levels, it may have more room to surprise than BTC does. Meanwhile, Wintermute puts the short-term BTC range at $61,242–$63,563 with $59,000 as the bear case if liquidity keeps draining. And five Senate Democrats are demanding hearings into the $500 million UAE investment in Trump’s World Liberty Financial — arguing it bought more than a crypto stake.
Grayscale Solana Trust ETF (ticker: GSOL) is now delivering enhanced value to investors, including 100% staking.* Solana staking rewards have historically averaged 6-8% a year.2
GSOL, an exchange traded product, is not registered under the Investment Company Act of 1940, as amended (“40 Act”), and therefore is not subject to the same regulations and protections as 40 Act registered ETFs and mutual funds. GSOL is subject to significant risk and heightened volatility. GSOL is not suitable for an investor who cannot afford to the loss of the entire investment. An investment in GSOL is not a direct investment in Solana.
Please read the prospectus carefully before investing in the Fund. Foreside Fund Services, LLC is the Marketing Agent for the Fund.
Potential staking rewards are earned by the Fund. Staking rewards are not guaranteed and should not be considered an indication of Fund performance. The Fund’s ability to engage in staking is conditional and may be modified. Staking requires that the Fund lock up SOL for the period of time required by the staking protocol, meaning the Fund cannot sell or transfer the staked SOL, thereby making it illiquid for the period it is being staked.
1 As of 6/4/26
2 Stakingrewards.com. The range observed is from 09/16/22 to 09/28/25 and the average over this period is 7.10%. Past performance is not indicative of future results.
CoinDesk Disclosure: The information contained in this newsletter, and any information linked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. You should seek additional information regarding the merits and risks of investing in any cryptocurrency or digital assets.
L1.co Disclosure: This material is for informational purposes only, and the content contained herein should not be considered investment advice or a solicitation, offer, or recommendation to sell or buy any asset, strategy, or product. Investing in digital assets involves a high degree of risk, including the loss of principal.
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This forgotten coin could surprise everyone before its next halving.
Litecoin’s next halving is scheduled for July 2027 — roughly 13 months away — and the playbook from prior cycles is consistent: LTC has historically begun outperforming in the 6–12 months before the event as supply-shock anticipation builds. The coin is deeply out of fashion, having been overshadowed by Ethereum’s ecosystem, Solana’s speed narrative, and the meme coin cycle. But “out of fashion” is precisely the setup that has preceded LTC’s most significant pre-halving runs. At current levels, LTC is trading near its lowest valuation relative to BTC since 2019. Litecoin processes transactions every 2.5 minutes, secures the Dogecoin network through merged mining, and has a 12-year track record with zero major exploits. Bitcoin’s OG holders — wallets that have been dormant for more than five years — have also slowed selling to the lowest levels in nearly two years, a historically bullish signal for the broader market that tends to set up alts for outsized moves once BTC stabilizes.
Bitcoin could drop to $59,000 in the short term as liquidity dries up.
Wintermute’s options desk puts bitcoin in a $61,242–$63,563 range for Wednesday, derived from one-day straddle pricing that implies a 1.9% expected move. But the trading firm flags $59,000 as the level to watch: it’s the bear market low and the key support if current pressure continues. Three conditions are making that downside scenario more credible than a week ago: token correlations are rising — meaning assets are moving together on macro, not on their own fundamentals — liquidity is thinning into summer with no fresh ETF bid visible, and gold is sliding toward $4,000, undermining the debasement narrative that had broadly supported crypto in 2025. Three catalysts remain for the rest of the week: Thursday’s PCE inflation print (the Fed’s preferred measure), whether the US-Iran peace deal holds through the weekend, and Friday’s $10.5 billion quarterly options expiry, which can amplify moves as traders roll or close large positions. Micron reports earnings Wednesday after the close — its AI memory demand picture will directly affect whether semiconductor stocks can stabilize and relieve the pressure on risk assets.
Trump lands in Senate’s crosshairs over the $500 million UAE investment in his crypto venture.
Five Senate Democrats — Elizabeth Warren, Gary Peters, Ron Wyden, Richard Durbin, and Richard Blumenthal — formally demanded hearings on June 23 into a $500 million UAE investment in World Liberty Financial, the Trump family’s crypto venture. The deal, signed by Eric Trump four days before the inauguration, gave an entity tied to Sheikh Tahnoon bin Zayed Al Nahyan — the UAE’s national security adviser — a 49% stake in WLFI, with $218 million paid upfront to entities connected to the Trump family and Middle East envoy Steve Witkoff. Two G42 executives, the Abu Dhabi AI firm chaired by Sheikh Tahnoon, joined WLFI’s five-member board. Within months of the deal, the Trump administration approved a $1.4 billion arms sale to the UAE, created a CFIUS fast-track program the UAE had lobbied for, and reversed Biden-era AI chip export restrictions — allowing the UAE to receive triple or quadruple the previous chip allocation. Senators are demanding sworn testimony from White House officials on what they knew and when. Republican control of both chambers means these hearings are unlikely to be scheduled — but the political pressure on the GENIUS Act and other crypto legislation that requires bipartisan goodwill is real.
CoinDesk Disclosure: The information contained in this newsletter, and any information linked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. You should seek additional information regarding the merits and risks of investing in any cryptocurrency or digital assets.
L1.co Disclosure: This material is for informational purposes only, and the content contained herein should not be considered investment advice or a solicitation, offer, or recommendation to sell or buy any asset, strategy, or product. Investing in digital assets involves a high degree of risk, including the loss of principal.
Crypto Daybook Americas: A newsletter from CoinDesk
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