Botanix said it will wind down its Bitcoin layer-two network after four years, with mainnet operations expected to stop this summer. Users have until July 9, 2026 to withdraw bitcoin and other assets from Spiderchain, after which remaining balances will be swept by the federation and become unrecoverable. The team cited insufficient fee income versus infrastructure costs and a market shift toward more convenient, centralized venues.

U.S. inflation picked up in May, with headline CPI rising 0.5% month over month and 4.2% year over year, as energy remained a key driver. The hotter reading adds friction to expectations for near-term Federal Reserve rate cuts, keeping Bitcoin traders focused on how interest-rate prospects may shape risk assets.

More than half of Bitcoin's circulating supply is now below its onchain cost basis, with the share in loss rising to 51.6% from 34% in about a month. The shift leaves the market nearly evenly split between coins held at a profit and those held at a loss, a setup the article notes has been uncommon in Bitcoin's historical record.

Bitcoin traded near $61,100 on Wednesday, down 3% in 24 hours and 6.9% on the week, as a stronger May U.S. jobs report pushed expectations for higher rates and triggered broad risk-off selling. Gold also fell 2% to below $4,200 per ounce, while the 10-year Treasury yield rose to 4.54% and markets priced a 75.5% chance of rate hikes before year-end. The report showed 172,000 non-farm payrolls versus a 130,000 consensus estimate, with April revised up to 214,000.

Bitcoin has recently dropped below $60,000 to a new cycle low, reviving debate over whether the market is near a bottom. Grayscale says on-chain signals suggest BTC is technically undervalued, though not at the extreme discounts seen in past crash periods. The firm also flags the CLARITY Act's progress and leverage conditions as key factors that could shape near-term sentiment and liquidation risk.

Billionaire investor Tim Draper says quantum computing poses a more immediate risk to traditional banks than to Bitcoin, arguing blockchain networks can recover by reverting to the last uncompromised block. The debate intensified as Moody’s and industry groups flagged post-quantum migration timelines, while Bitcoin was cited trading at $61,383 after nearly a 9% drop over the last 7 days.

Capriole Investments founder Charles Edwards says Bitcoin has moved back to its "Production Cost" level, a mining-based metric he cites as a key long-term valuation area. The indicator is currently around $62,650, close to BTC's spot price near $62,400, while network hashrate has recently slipped to about 837 EH/s after frequently touching 1,000 EH/s in May.

Wintermute said bitcoin’s slide below $62,000 was driven mainly by U.S. institutional selling and spot ETF redemptions, rather than Strategy’s 32 BTC sale. The firm noted U.S. spot Bitcoin ETFs posted 10 consecutive sessions of outflows from May 15 to May 29 totaling about $2.97B, and said a market bottom remains unconfirmed without renewed inflows.