What a wild first half of 2025 it’s been for the crypto market. Other major cryptocurrencies powered along the explosive new bullish cycle, breaking or bounding towards new all-time highs. At the top of the cryptocurrency food chain sits Bitcoin. As of this past June, it has skyrocketed to an astounding average of $107,521. This performance would put it comfortably above its 50-day moving average of roughly $106k. It’s above the 200-day average of roughly $96,268, a further sign of robust bullish momentum.
Furthering this optimism, technical indicators picture an even broader bullish sentiment. The 14-day Relative Strength Index (RSI) remained around 54, indicating a good mix of bullish and bearish pressure. And the Moving Average Convergence Divergence (MACD) has crossed into positive territory. Even with this surge, that upward trend would likely continue deep into July. And the market’s had a pretty wild ride. Bitcoin reached an all-time high of roughly $112,500 on May 22, 2025, before falling back to just over $106,000 in late June. However, notwithstanding this volatility, the general sentiment continues to be bullish.
Yet, there’s been a tendency to overlook this more expansive economic picture. China's official manufacturing Purchasing Managers Index (PMI) was unchanged at 49.7 in June. This is the third month in a row under the 50-point level, which reflects a contraction in the industry. The headwinds from the global economy are still blowing. Hence, when investors are uncertain or anxious, they might flock to safe-haven assets such as Bitcoin. The Crypto Fear & Greed Index jumped beyond the 70s, indicating an extremely greedy market sentiment in June. Even with extreme crypto market optimism that would normally correlate with high valuations and generalizing market risk, this optimism has not (so far) reached max level at the peak of past market euphoria.
Overview of Dollar Loans with Bitcoin Collateral
Direct information on dollar denominated loans collateralized with Bitcoin is always absent in this report. Yet it’s important to understand what’s behind the curtain, how exactly Bitcoin is used as collateral in this new space of crypto lending and their risks. The big idea behind the new product is unlocking the value of your Bitcoin holdings for fiat currency without ever selling the asset itself. This ensures investors don’t have to sell their Bitcoin to access capital for other investments or urgent liquidity needs.
Introduction to MUSD and its Functionality
While MUSD isn’t specifically referenced, the concept of borrowing against crypto assets usually entails stablecoins such as MUSD. These stablecoins are typically pegged to fiat currencies, most often the US dollar. Lastly, they produce a stable type of flow which is very useful in a lending environment. The mechanics usually include depositing Bitcoin collateral into a Bitcoin lending platform or protocol. The platform then mints a loan, denominated in a stablecoin such as its native MUSD. The total value you’re able to borrow is determined by your collateralization ratio—this ratio looks at the value of your deposited Bitcoin versus the value of the loan.
Benefits of Using Bitcoin as Collateral for Loans
The context of Mezo's preference for tBTC (trustless Bitcoin) over centralized solutions highlights a growing trend in the crypto space: the desire for decentralization and trust minimization. Although this report doesn’t touch on Mezo directly, being familiar with the arguments in favor of tBTC helps explain this preference.
- Access to Liquidity: It allows Bitcoin holders to access cash without selling their Bitcoin, preserving their potential upside exposure.
- Tax Efficiency: Borrowing against Bitcoin may be more tax-efficient than selling, as it doesn't trigger a taxable event.
- Diversification: The borrowed funds can be used to diversify investments into other asset classes.
Mezo's Preference for tBTC Over Centralized Solutions
tBTC offers several key advantages over centralized Bitcoin custodians or wrapped Bitcoin solutions:
Key Advantages of tBTC
June 2025 proved to be a diverse time for yield opportunities across the crypto space. While some sectors thrived, others lagged behind. U.S. spot Bitcoin ETFs were at the center of bringing all this demand. They had a spectacular month’s worth of net inflows, $4.5 billion worth, as investors took advantage of a mid-month sell-off to pounce on their funds with both feet.
- Decentralization: tBTC aims to be a truly decentralized representation of Bitcoin on other blockchains, eliminating the need to trust a single entity to custody the underlying Bitcoin.
- Transparency: The process of minting and redeeming tBTC is transparent and verifiable on-chain, enhancing trust and security.
- Censorship Resistance: Because it's decentralized, tBTC is more resistant to censorship and single points of failure.
Comparison with Centralized Alternatives
DeFi proved to be quite the pillar of strength this time around, closing 2.6% up overall, while exchange tokens climbed 1.2%. Unsurprisingly, market dominance for Bitcoin skyrocketed to nearly 60% of the total crypto market by mid-June. This increase only underscores its historical tenacity as a proven dependable store of value. There were a number of altcoins that did much better than Bitcoin during this time period. Other Upbeat Developments This week, Solana (SOL) rose back to the $145/coin area, a testament to its capability of bouncing back after hard losses. XRP (Ripple) surged, climbing above $2.17.
- Custodial Risk: Users must trust the custodian to securely hold their Bitcoin and not be subject to theft, fraud, or insolvency.
- Regulatory Risk: Centralized entities are subject to regulatory scrutiny and potential intervention, which could impact their ability to operate.
- Lack of Transparency: The operations of centralized custodians are often opaque, making it difficult to verify the safety and security of the custodied Bitcoin.
Yield Opportunities in June 2025
As with every other market advance, one should always pay attention to which sectors led the charge. Both infrastructure and a key new sector, the clean energy economy, lagged badly. Data Availability 33.2% Utilities & Security 20.0% The overall Bitcoin ecosystem 19.2% That’s a clear sign that even though some parts of the market are booming, other parts are waiting to still take off. Bitcoin’s mining hash rate suffered a short-term decline of around 8% during the market turmoil. Soon after, it was restored, showing the durable nature of the Bitcoin network.
DeFi protocols allow users to supply liquidity to a liquidity pool and collect yield, while the liquidity is used for trading on decentralized exchanges. These pools often require the owner to deposit two or more tokens of equal value, effectively creating a marketplace for traders to swap between them. In exchange for supplying this liquidity, users receive a share of the pool’s trading fees. Liquidity pools don’t come without risks, most notably impermanent loss. The first occurs when the prices of deposited tokens significantly diverge, causing the overall value of those assets to plummet.
Lending markets offer a second way to earn yield by lending crypto assets to borrowers. These markets are often highly collateralized, so borrowers have to post a good amount of collateral themselves in order to borrow in such markets. Lenders earn interest on their lent assets, while borrowers get access to capital for trading or other purposes. Layer 2 scaling solutions such as Optimism and Arbitrum among others are growing in adoption. They are tremendous building blocks to produce even more yield generating opportunities in the crypto marketplace. Compared to the Ethereum mainnet, these solutions allow for cheaper and faster transactions. It is for this reason that they are very attractive for DeFi applications and yield farming operations.
Exploring Liquidity Pools
tBTC’s adoption across a range of DeFi protocols reflects a growing need for decentralized and trustless Bitcoin solutions. This change further demonstrates the developing market of the cryptocurrency world. While the report doesn't explicitly detail specific integrations in June 2025, it's valuable to explore the broader impact of tBTC on the DeFi landscape.
Lending Markets and Layer 2 Expansion
Events tBTC has almost seamlessly plugged into DeFi protocols with jaw dropping Total Value Locked (TVL), including some over $100 million. This success serves to illustrate the demand and the viability for a decentralized representation of Bitcoin. For many of these integrations, tBTC is being used as collateral for lending and borrowing. They unlock Bitcoin-denominated trading pairs on DEXs.
tBTC's Impact on June Integrations
The growing usage of tBTC is part of a larger, industry-wide movement within the crypto market towards decentralization and trust minimization. For that reason, users are beginning to realize the risks of centralized custodians and wrapped Bitcoin solutions. As a result, they are urgently looking for safer, more accountable options. tBTC addresses all of these issues. It provides a decentralized and trustless way to leverage Bitcoin’s liquidity in the DeFi ecosystem.
Overview of $100M+ Integrations
The report provides no guidance on how to access MUSD loans in June 2025. We can provide some broad steps and areas of focus based on standard DeFi practices.
The Shift Towards Decentralization
While Gearbox Markets and L2 minting aren’t specifically related, they have a hand in the larger DeFi ecosystem. Getting to know these terms deepens our explanation of what decentralized finance means. Gearbox Protocol, to take one recent iteration as an example, enables users to “leverage” their existing DeFi positions, which can meaningfully amplify users’ gains and losses. Layer 2 minting simply refers to the process of creating new tokens/assets on layer 2 scaling solutions. These layer 2 solutions deliver much faster and cheaper transactions compared to traditional Layer 1 blockchains such as Ethereum. These innovations are constantly reshaping the landscape of DeFi yield opportunities.
How to Access MUSD Loans and Other Opportunities
The crypto market in June 2025 was a rich tapestry of innovation, potential, and regulatory ambiguity. Bitcoin maintained its status as a safe haven asset and U.S. spot ETFs continued to attract solid inflows. The performance of altcoins and different DeFi sectors was all over the board. This demand for decentralized solutions such as tBTC only further emphasizes the current trend toward trust minimization and greater transparency. The reality is that our market is changing every day. It is crucial that investors remain nimble in today’s ever evolving climate, constantly recalibrating their approach, balancing risks and returns across a wide spectrum of investment opportunities.
Steps to Access MUSD Loans
- Identify a Lending Platform: Research and identify a reputable DeFi lending platform that supports MUSD loans and accepts Bitcoin as collateral.
- Connect Your Wallet: Connect your crypto wallet (e.g., MetaMask, Ledger) to the chosen lending platform.
- Deposit Bitcoin as Collateral: Deposit the required amount of Bitcoin into the platform's collateral vault. Ensure you understand the collateralization ratio and liquidation risks.
- Borrow MUSD: Once your Bitcoin is deposited, you can borrow MUSD up to the maximum allowable amount based on the collateralization ratio.
- Manage Your Loan: Monitor your collateralization ratio and repay the loan (plus interest) before it reaches the liquidation threshold.
Overview of Gearbox Markets and L2 Minting
Though Gearbox Markets and L2 minting aren't directly mentioned, it is important to note that these concepts are relevant to the broader DeFi ecosystem. Gearbox Protocol, for example, allows users to leverage their DeFi positions, potentially amplifying both gains and losses. Layer 2 minting refers to the process of minting new tokens or assets on Layer 2 scaling solutions, which can offer faster and cheaper transactions compared to Layer 1 blockchains like Ethereum. These innovations are continuously evolving and shaping the landscape of DeFi yield opportunities.
The crypto market in June 2025 presented a complex landscape of opportunities and challenges. While Bitcoin maintained its safe-haven status and U.S. spot ETFs continued to attract significant inflows, the performance of altcoins and various DeFi sectors was mixed. The demand for decentralized solutions like tBTC highlights a growing trend towards trust minimization and transparency. As the market continues to evolve, investors must remain informed, adapt to changing conditions, and carefully assess the risks and rewards associated with different investment strategies.
