You hear that whooshing sound? That’s the sound of Twitter celebrities, from TechLead to Mark Cuban, rushing for the exits and dumping their Bitcoin.
Naturally, many feel compelled to explain on the way out that it’s Bitcoin which has lost its way rather than admitting they may have misunderstood it in the first place.
But dear Bitcoiner, take comfort in this. Bear market bottoms are often built on the graves of celebrity Bitcoin tourists.
Could Bitcoin fall further from here? Absolutely. But bear markets also provide something valuable. They provide the chance to reflect on why you’re here in the first place and to discover whether your conviction can withstand a prolonged downturn.
The price may be back where it was five years ago, but Bitcoin’s core properties remain exactly the same. It is still permissionless, censorship-resistant, and absolutely scarce.
Buckle up, buttercup. The road ahead may remain rocky, but throughout its history, Bitcoin has always emerged from bear markets to reach new highs.
Other top stories from the week include:
Sparrow Wallet wins its fight with Apple to remain on the App Store.
Catholic groups oppose Bitcoin developer protections in the CLARITY Act.
Law firm launches a class action investigation into Strategy.
Latest News
Adoption
PakoVM, Bitcoin educator, launches a Bitcoin crowdfunding campaign to provide food, medicine, hygiene products and emergency supplies to people affected by the devastating earthquake in Venezuela.
Alex Waltz, Bitcoin researcher and filmmaker, releases a viral investigation into Bitcoin’s launch, revealing the network stalled 8 times, came surprisingly close to never taking off, and uncovering much more.
Sparrow Wallet is safe on macOS after Apple reversed plans to terminate developer Craig Raw’s account following community backlash. Fake Sparrow Wallet apps still remain on the App Store.
Regulation
Illinois lawmakers introduced legislation to repeal the state’s newly enacted Digital Asset Tax Act, just days after approving a first-of-its-kind tax on digital asset transfers, exchanges and custody.
Catholic groups urge Senate leadership to oppose Bitcoin developer protections in the Blockchain Regulatory Certainty Act, citing concerns over enforcement and illicit finance.
Europe’s MiCA deadline could force hundreds of thousands of crypto users off their preferred exchanges as firms including Binance, Bitget, and KuCoin remain in licensing limbo ahead of the July 1 cutoff.
Markets
Bitcoin sees a record 10.83M BTC now held at an unrealized loss, wwhile long-term holders own a record 14.8 million BTC, signaling continued accumulation despite the market downturn.
US Bitcoin ETFs record their worst monthly performance ever, with $6.35B in outflows.
Charles Schwab, the $12.6T brokerage and financial services giant, has begun rolling out direct spot Bitcoin trading to eligible U.S. customers, allowing clients to buy and sell bitcoin alongside traditional investments.
Treasury
Rosen Law Firm launches a webpage allowing Strategy investors to join its class action investigation as it probes whether the company misled investors about its Bitcoin strategy as $STRC falls below $75.
H100 Group shareholders approve the authorization required to complete the acquisitions of Moonshot AS and Never Say Die AS, taking the company from 1,051 BTC to approximately 3,500 BTC.
Cantor Equity Partners delays its shareholder vote on merging with Adam Back’s Bitcoin Standard Treasury Company until July 2 as it finalizes a previously announced private fundraising round.
Mining
Hut 8 agrees to pay $2.35M to settle a proposed investor securities class action tied to operational problems following its 2023 merger with U.S. Bitcoin Corp.
Major crypto industry groups urge Congress to pass Rep. Mike Carey’s Tax Clarity for Mining and Staking Act, taxing newly mined Bitcoin only when sold rather than upon creation.
Sphere 3D signs a 30 MW Bitcoin co-mining agreement with Bitdeer, monetizing power capacity while preserving flexibility to convert sites for future AI and high-performance computing infrastructure.
Politics
US Senate passes a housing bill containing a provision banning the Federal Reserve from issuing a CBDC through 2030, while exempting private dollar-backed stablecoins from the restriction.
Wall Street Journal reports Iranian-linked entities moved more than $3.84 billion through CoinEx since 2019, highlighting how cryptocurrency has continued connecting Iran to global markets despite U.S. sanctions.
CLARITY Act faces a key House hearing on July 17 as lawmakers push forward with crypto market structure legislation, while Polymarket assigns a 41% chance of passage this year.
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Bam’s 2 Sats
Bear Market Vibes In Full Swing
What a week to be a bear, especially a Strategy bear. Selling pressure persisted throughout all five trading days. While Bitcoin found support around $60,000, Strategy absorbed the bulk of the pain.
Strategy’s common stock fell to its lowest level since early 2024, down more than 84% from its peak. As one of the market’s primary proxies for Bitcoin exposure, the decline has intensified criticism from skeptics while testing the conviction of its most loyal supporters.
Its STRC preferred stock came under even greater pressure, falling into the low $70s. Even with its effective yield climbing above 15%, buyers showed little willingness to push the price back toward its $100 par value.
And that is the part that matters.
STRC is not just another preferred stock. Strategy has positioned it as its “iPhone moment” and one of its primary vehicles for funding additional Bitcoin purchases. When a product marketed as a stable, retirement-friendly investment trades this far below par, it raises legitimate questions about whether investors are still willing to finance Strategy’s Bitcoin accumulation at the same pace.
Strategy now finds itself under scrutiny from several directions at once.
A Bitcoin bear market.
Large debt obligations.
Common stock dilution.
A preferred stock trading at distressed levels.
Confidence Begins to Crack
The market also appears increasingly uncertain that the yield is sufficient to compensate for the risk.
The mood is undeniably bleak. This is the kind of sentiment typically seen deep in a bear market. That doesn’t necessarily mean the bottom is in, but it does show just how far confidence has deteriorated.
This week also saw legal pressure begin to mount against Strategy, echoing the wave of lawsuits that emerged during the summer of 2022. At the same time, speculation spread across social media that the company itself may be under coordinated pressure, with some suggesting the ultimate goal is to force Strategy to sell part of its Bitcoin holdings.
If that were ever to happen, the consequences would extend well beyond Strategy.
It would likely put additional downward pressure on Bitcoin itself.
Soros-ification of MSTR by Travis Kling
Everyone seems to be watching Strategy now. Some believe the company will eventually be forced to sell part of its Bitcoin holdings to survive, potentially marking the end of the bear market.
Investor confidence is clearly being tested. More people are publicly saying they’ve sold their Bitcoin, while others question whether it’s worth buying the dip when the dip keeps getting deeper.
This Is What Bear Markets Feel Like
With all that said, this is what bear markets usually feel like. They’re ugly. They’re uncomfortable. They make even the strongest convictions feel fragile.
But these are also the periods when it pays to focus on building instead of obsessing over price. Even amid the panic, companies continue laying the foundation for the next cycle.
Take Charles Schwab, for example. One of the largest financial institutions in the United States has begun rolling out direct Bitcoin trading to eligible clients. While sentiment is at its lowest, major players continue building infrastructure, expanding access, and positioning themselves for the future.
History doesn’t guarantee the same outcome, but the bear markets of 2014, 2018, and 2022 ultimately proved to be exceptional accumulation opportunities for long-term Bitcoin investors.
Keep building. Keep stacking.
- Bam
