Trakx Weekly Update: Crypto Relief Rally

Key Crypto Market Figures

CTIs Weekly Performance

Digital asset prices rebounded nicely over the past seven days, finishing the month of June with positive momentum, as evidenced by the 10% rally in our flagship large cap Top10 Crypto CTI. Top of the performance tables though was the higher beta Meme and CTI Agents CTIs, gaining 24% and almost 22% respectively. As typically occurs during periods when investor risk appetite is rebounding, the performance laggard was the defensive Inflation Hedge CTI, which slipped 0.6% over the past week.

Easing Geopolitic Tensions

Like the dog that didn’t bark in the famous Sherlock Holmes Story The Adventure of Silver Blaze (well worth a read!) the lift experienced by crypto prices last week was primarily driven by something that didn’t happen, namely the absence of further missile strikes in the Middle East. Although the ceasefire between Israel and Iran, unexpectedly announced by President Trump last Monday, was tested very early on – prompting some very unpresidential like language from him – both sides refrained from escalating the situation, and the resultant easing in geopolitical tension was sufficient to generate a relief rally in crypto prices.

As mentioned, the higher beta tokens may have outperformed the large cap tokens, but flow data confirmed that investor interest in holding the major cryptocurrencies remained solid. In fact, US Bitcoin ETFs in aggregate witnessed 13 consecutive days of inflows totalling almost $3bn – the longest sustained period of net buying since the start of the year. One consequence of such sustained net purchases is that Bitcoin reserves held on all exchanges continued to trend down. Last week saw the total fall to less than 2.5 million BTC – its lowest level recorded in over three years. Such a lack of inventory suggests the current bull market still has some way to run.

Crypto Gaining Respectability

Back in the depths of the 2022 crypto winter the naysayers felt their belief that crypto was nothing more than a hi-tech Ponzi scheme was firmly validated and that the industry was in its final death throes. Fast forward three years and, as has happened many times before, the doubters have been proved wrong and the crypto faithful have been rewarded for their conviction by having even bigger bags than before. Not only that, but crypto is becoming much more respected as a legitimate asset class. The creation of the just-mentioned crypto-based ETF products by large tradfi firms last year was the first step. More recently, the US regulator ordered Fannie Mae and Freddie Mac, two government-sponsored entities which support the US mortgage lending market, to include cryptocurrency holdings held on US regulated centralized exchanges as eligible assets when assessing the risk of borrowers.

Also, last week, Fed Chair Jerome Powell reaffirmed that the US central bank has no objections to financial institutions participating in crypto-related activities or providing services to crypto companies—as long as they comply with applicable regulatory requirements. This statement signals that Operation Chokepoint 2.0—the unofficial name for the previous administration’s anti-crypto posture—appears to be effectively over.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Ethereum and XRP Pump on Relief Rally, But These Coins Are Mooning Harder: Analysis: Decrypt
• Bitcoin Exchange Balance Drops To Lowest, Will BTC Price Reclaim $111K?: The Crypto Times
• Regulator orders Fannie, Freddie to consider crypto holdings in loan assessments: Reuters
• Powell reaffirms Fed has no issues with banks conducting crypto activities: CryptoSlate
• Leading Crypto Senator Sees End of Year as U.S. Legislation Target: CoinDesk
• FTX seeks to block 3AC’s $1.5bn claim, says fund ‘fumbled’ trades and piled on debt: DLNews

Trakx News

• Lionel is attending ethcc in Cannes this week. If you’re there too, feel free to stop by and say hello!
• Ryan published the June crypto update June 2025 in Crypto: Israel-Iran, GENIUS Act, and More examining how digital asset prices responded to the surge in geopolitical tension in the Middle East.

Trakx CTIs Performance

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.

Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors with a high degree of compliance, custody and liquidity.

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Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.