Bitcoin Drops 1.5% on Iran Strikes, Rebound 7.6% on Trading Volume Surge

This week, the cryptocurrency market experienced significant volatility and notable developments. Bitcoin, the leading cryptocurrency, saw a sharp decline following U.S. military strikes on Iran’s nuclear sites, dropping below $100,000 to $98,500 on June 22. This event triggered widespread risk aversion and resulted in $855 million in liquidations. However, Bitcoin quickly rebounded, reaching a weekly high of $107,588, driven by a 75.8% surge in daily trading volume and $548 million in spot ETF inflows.

In other news, the U.S. Federal Housing Finance Agency announced plans to study and incorporate cryptocurrency holdings into mortgage qualification criteria. This move, led by Director Bill Pulte, aims to legitimize digital assets as collateral, potentially revolutionizing lending practices. While details are sparse, this initiative reflects growing mainstream acceptance of cryptocurrencies, though regulatory hurdles and market volatility may pose challenges to implementation.

Ethereum, the second-largest cryptocurrency, is set for a significant upgrade with a new improvement proposal (EIP-7782) aimed at reducing block timing by 50%, from 12 seconds to 6 seconds. This upgrade, building on the recent Pectra update that lowered fees and improved staking, could boost transaction throughput and network efficiency, positioning Ethereum to outpace competitors in scalability. If approved, the change could drive further adoption.

SEI, a lesser-known cryptocurrency, stole the spotlight with an explosive surge, skyrocketing 70% from its weekly low to $0.3319. This surge was driven by a 40% single-day increase after Circle’s IPO filing disclosed SEI tokens as a significant component of its balance sheet, underscoring the asset’s growing prominence in the DeFi sector and its high-performance blockchain.

Additionally, the NYSE filed to list the Truth Social Bitcoin and Ethereum ETF, proposed by Trump Media & Technology Group. This ETF, with Crypto.com as custodian and Yorkville America Digital as sponsor, aims to offer investors exposure to the two largest cryptocurrencies via traditional brokerage platforms. The ETF would allocate 75% to Bitcoin and 25% to Ethereum under the ticker B.T.

In other developments, Texas Governor Greg Abbott signed SB 21 bill to establish the Texas Strategic Bitcoin Reserve, making Texas the third U.S. state to adopt Bitcoin as a strategic asset. Meanwhile, OKX crypto exchange is exploring a U.S. initial public offering following its April 2025 re-entry into the American market after a $505 million settlement with the Department of Justice. Anthony Pompliano’s ProCap BTC, a $1B Bitcoin treasury firm, is also eying to go public via a $1B SPAC merger.

Bit Digital, a Nasdaq-listed company known for its Bitcoin mining capabilities, made headlines with a strategic pivot to Ethereum. The firm announced its complete exit from Bitcoin mining to focus exclusively on Ethereum staking and treasury operations. Bit Digital holds 24,434.2 ETH and 417.6 BTC as of June 28, 2025, and plans to convert its Bitcoin holdings into Ether and redirect proceeds from selling its mining assets to bolster its Ethereum staking infrastructure. This shift reflects the company’s bet on Ethereum’s proof-of-stake model for sustainable yields of 4–6.5% annually, driven by the 2022 Merge and rising institutional interest.

Looking ahead, the crypto industry is shaping up to be volatile and eventful, with several key developments on the horizon. Macroeconomic factors, such as Federal Reserve Chair Jerome Powell’s speech on June 30, upcoming GDP data, and Core PCE inflation reports, could sway market sentiment and influence cryptocurrency prices. Furthermore, geopolitical tensions, particularly any escalation involving Iran, may add further uncertainty, potentially impacting Bitcoin and other major assets.