Crypto is no longer an alternative asset class anymore. Binance Research’s June 6 report shows how digital assets like Bitcoin and Ethereum are increasingly becoming a part of mainstream traditional finance architectures—despite short-term market volatility because of political tensions.
Market Downturn Amid Political Tensions
According to Binance Research, the crypto market sold off last week partly because of a very public sparring match between Elon Musk and Donald Trump. This one-upmanship that involved one of the most vocal supporters of crypto resulted in a slide. Bitcoin dropped as low as $101,500 weekly, Ethereum dropped to $2,388.
Despite these downturns, statistics show a decline in exchange balances for BTC and ETH, which may reflect investors liquidating assets to cold storage for hoped-for long-term gains.
Institutional Momentum Building
JP Morgan reported on accepting crypto ETF holdings as collateral for loans—a benchmark for institutional onboarding. The bank will also factor such holdings in client net worth measurement, another sign of embedding crypto in conventional finance systems.
SEC Relaxes Perspectives on Staking
The SEC under the Trump presidency published fresh guidance on proof-of-stake (PoS) networks, indicating that staking is not an activity of a security. This adjustment makes way for offerings like Solana and Ethereum staking ETFs, giving institutions legitimacy and transparency.
Circle IPO Illustrates Investor Demand
Another robust sign of crypto growing legitimacy was the IPO by Circle on June 5. The company’s shares jumped 120% on its debut day, showing sustained interest in crypto-native companies from mainstream market participants.
Outlook: Mainstream Integration Accelerates
Despite near-term mishaps, the long-term prospects for Bitcoin, Ethereum, and the rest of the crypto realm look strong. Institutional action by JP Morgan and regulatory clarity by the SEC signal the crypto-to-mainstream pipeline is quickly filling up.
