Bitcoin has climbed back above US$65,000 despite an intensifying conflict between the United States and Iran and renewed threats from Houthi forces to block oil shipping routes.
A surprise decline in the US consumer price index helped restore market confidence even as oil prices continued to rise. Bitcoin finished the week up 5 per cent to trade around US$65,214, while Ethereum gained 7.5 per cent to approximately US$1,902.
Accumulation By Large Holders
Data from CryptoQuant indicates that large Bitcoin holders added approximately 66,700 Bitcoin over the past 60 days while mid-sized wallets were net sellers. This accumulation pattern by larger holders alongside selling by smaller participants has preceded previous price rallies.
The spot Bitcoin ETFs recorded a second consecutive week of net inflows, taking in US$75.7 million. Ethereum ETFs saw larger inflows at US$105.4 million.
JPMorgan analysts have identified what they describe as “encouraging signs” for Bitcoin’s price, pointing to increased institutional demand for Bitcoin futures and easing concerns around Strategy after it increased its cash reserves to cover dividend payments.
Some large options traders are now placing bets worth billions that Bitcoin will reach US$72,000 by the end of the month.
Trading Volumes Decline
Spot trading on the ten largest cryptocurrency exchanges fell 27.9 per cent in the second quarter to US$1.95 trillion, according to CoinGecko. Data from The Block shows seven-day moving average trading volumes are now down 80 per cent from the all-time high recorded in October.
The Crypto Fear and Greed Index sits at 25, which falls in the “Fear” category.
Broader Market Performance
XRP gained 4.7 per cent after securing a licence to offer services across the European Union. Solana increased 4.1 per cent. Hyperliquid lost 1.4 per cent and Dogecoin was flat.
Macro Backdrop
Headline inflation and producer price index readings came in softer than expected, supporting the view that inflation may have peaked. However, further escalation between the US and Iran has pushed oil prices up 25 per cent, complicating the macroeconomic picture.
Market-makers’ hedging activity in the options market could help stabilise Bitcoin’s price between US$65,000 and US$72,000, particularly around the US$70,000 level, though volatility may increase if prices fall toward US$60,000.
CLARITY Act Faces Tight US Senate Timeline
The CLARITY Act has 14 business days to pass the US Senate before the August recess. No date has been set for a vote and the final text has not been released.
A White House meeting with President Donald Trump to discuss a proposed ethics ban on elected officials profiting from cryptocurrency did not produce a compromise. Democrats have indicated they will not support the bill without such a provision.
Senator Elizabeth Warren is pressing for Trump to disclose his cryptocurrency earnings for 2026 ahead of the vote. Plume General Counsel Salman Banaei has reported that banks are still attempting to relitigate the yield issue, law enforcement bodies are divided over developer protections under the BRCA, and Democrats are seeking stronger conflict-of-interest protections for vertically integrated crypto businesses.
Polymarket odds for the bill’s passage have fallen to 32 per cent, though former CFTC Commissioner Summer Mersinger has suggested the prediction market may be underpricing the odds because insiders have been barred from betting on it.
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White House Crypto Advisor Patrick Whitt has been called back from army service to help with negotiations. Whitt has pointed out that even Russia is close to passing its own cryptocurrency legislation.
DTCC Launches Tokenised Securities Pilot
The Depository Trust and Clearing Corporation (DTCC), which processed US$4.7 quadrillion in securities transactions last year, has launched a production trial of tokenised securities that carry the same rights as traditional securities.
Forty financial firms are participating in the pilot including BlackRock, JPMorgan, Goldman Sachs, Vanguard and NYSE. A formal launch is scheduled for October.
Visa Enters Stablecoin Infrastructure
Visa has introduced a Stablecoin Platform designed to help banks and fintechs build products using stablecoins. The platform allows institutions to issue, store, transfer and redeem stablecoins and supports the Open USD stablecoin.
Ethereum Glamsterdam Hard Fork
Ethereum’s Glamsterdam hard fork is due to land on the Sepolia and Hoodi testnets and is reported to be close to deployment. The upgrade will increase the Layer 1 gas limit over time from 60 million to 200 million, though testing on the latest devnet has trialled performance at 300 million.
Separately, a third spinoff from the Ethereum Foundation has been established. EthSystems, a for-profit company, will focus on building confidential systems for institutional Ethereum use.
Japan Recognises Crypto As Financial Assets
Japan’s parliament has passed amendments that recognise cryptocurrency as “financial assets”, moving it out of the Payment Services Act. The revised Financial Instruments and Exchange Act introduces insider trading rules, stricter disclosure requirements, tougher penalties for unregistered firms and new oversight requirements.
The changes open the door to Bitcoin ETFs in Japan and lower crypto taxes to around 20 per cent, though the new rules will not take effect for a year.
South Korea Adds Crypto To National Wealth Framework
South Korea plans to include digital assets in the legal foundation for how the government manages public wealth. The move would make the National Asset Basic Act the first sovereign asset management statute to explicitly include cryptocurrency as a category of property the government is legally required to manage.
Legislators have restarted talks on the Digital Asset Basic Act after a four-month pause. The Bank of Korea will launch the second phase of its central bank digital currency pilot in September, expanded to include nine banks.
Singapore Examines Lower Crypto Fund Taxes
The Monetary Authority of Singapore (MAS) is examining whether to lower taxes on investment fund managers, potentially to as low as 10 per cent, to remain competitive with proposed changes in Hong Kong.
MAS has also issued an information paper raising concerns about how cryptocurrency firms are applying money laundering controls.
Separately, Singapore-based Paymonade has obtained a licence under the EU’s MiCA regulations, enabling it to provide services across the 30-member European Economic Area.
Other Asia-Pacific Developments
In Hong Kong, the Securities and Futures Commission has approved the Baillie Gifford Enhanced Yield Fund. Described as the first “digitally native” tokenised fund, it allows professional investors to directly own underlying assets on a public blockchain.
Network School Founder Balaji Srinivasan has threatened to pull out of Malaysia after a controversy over Israeli citizens attending resulted in an official investigation.
Vietnamese authorities will fine retail cryptocurrency users up to US$1,900 for using unlicensed offshore crypto exchanges, despite the country not having licensed any local exchanges.
Last Updated on July 21, 2026 by Nick Ross
