Bitcoin fell to $61,000 as market pressure mounted, though crypto banking pioneer Caitlin Long argued the more significant development is occurring within the U.S. banking system. Speaking on June 23 in a podcast with Scott Melker, Long highlighted Custodia Bank's new Hazel Network initiative, which bridges traditional bank deposits and stablecoins through a single tokenized infrastructure.

Custodia Bank’s Tokenized Infrastructure

Long explained that the Hazel Network allows funds to programmatically change to a GENIUS Act stablecoin when leaving the network perimeter. Unlike traditional stablecoins, the system automatically routes assets back to the originating bank upon return. This mechanism is designed to help community banks retain deposits that might otherwise migrate to external stablecoin issuers.

Long stated that banks are increasingly interested in tokenized deposits due to the clearer legal ownership structures they offer compared to existing stablecoins. She likened the design to an electronic version of a cashier’s check, providing stronger legal certainty for financial institutions. Additionally, the framework embeds compliance and operational controls directly into smart contracts, a feature Long claimed no major stablecoin issuer currently provides.

Market Pressure and Bitcoin Support

Financial markets faced headwinds as tech stocks sold off and South Korean equities triggered circuit breakers. Bitcoin continued to test key support levels during this period. Melker noted growing market sentiment suggesting a potential move toward the $59,000-$60,000 range for Bitcoin. Despite the short-term volatility, panelists maintained that long-term fundamentals for the cryptocurrency remain intact.

Experts observed that market downturns often divert investor attention from structural shifts in crypto and financial infrastructure. "There are short-term stories and there are long-term stories," Tilman remarked, emphasizing the distinction between immediate price action and broader technological adoption.

BitMEX co-founder Arthur Hayes suggests the next major Bitcoin rally could be triggered by an unwind of the artificial intelligence trade. In a Bankless interview on June 22, Hayes stated that AI has absorbed the marginal dollar of speculative capital this cycle, limiting upside for Bitcoin and Ethereum. He remains "very long Bitcoin as always" but has parked capital in Treasury bills while awaiting asymmetric opportunities.

Hayes argued that investors chasing debasement hedges have favored AI stocks over crypto, calling AI the "fastest horse." He believes the AI buildout may become a larger credit bubble than the subprime crisis, driven by aggressive data-center capex, circular revenue deals, and debt backed by fast-depreciating chips. He noted that GPUs are being financed on multi-year schedules despite rapid chip improvements, creating a mismatch between asset life and debt assumptions.

If the AI bubble implodes, Hayes expects authorities to respond with massive money printing. "The Fed can’t print Moore’s law," Hayes said. "The implosion of the AI bubble and the follow-on money printing… is going to dwarf subprime and is going to take us to Bitcoin a million or whatever."

Despite his caution on the broader market, Hayes called Ethereum one of the cleanest large-cap crypto setups. He noted it remains well below its prior all-time high, while Bitcoin and Solana have reclaimed theirs. "If you gave me a dollar fiat capital and said choose one, I’d choose Ether over Bitcoin purely just on a chart perspective," he said.

Hayes also praised Hyperliquid, calling it a stronger product than many traditional exchange offerings. He argued that perpetual futures are structurally built for retail traders due to 24/7 markets and leverage. However, Hayes mentioned he personally does not trade with leverage, stating, "The thing is already so volatile."