The past week was marked by a confident recovery of Bitcoin from the June slump and the entry into force of the key European regulation MiCA. The leading cryptocurrency recouped its losses, and the market as a whole is showing signs of stabilization, although the Fear and Greed Index remains in the anxiety zone.
Bitcoin Recovers Losses: Bounce from Two-Year Low
The beginning of July marked a turning point for Bitcoin. After the worst June in four years, when the price dropped to the $57,700 mark, the asset rebounded sharply. On July 1, the price surpassed the $60,000 level, and by July 4, it reached a local high of $63,300 on Binance. The week ended with a correction to around $62,700, representing a 4.6% increase over seven days.
Interestingly, the upward movement began amid statements by Federal Reserve Chairman Kevin Warsh about persistently high inflation in the US. This indicates that the market is pricing in a possible tightening of monetary policy, which traditionally puts pressure on risky assets. However, Bitcoin appears to have found support and is demonstrating resilience.
Altcoins in the top 10 by market capitalization showed even more impressive dynamics. Solana gained 12.7%, Ethereum — 11.7%, and the Hyperliquid token rose by more than 10%. This suggests a flow of liquidity from the flagship asset into more volatile market segments.
Nevertheless, outflows from spot Bitcoin ETFs continued for the eighth consecutive week, totaling $526.6 million. Notably, on July 2, the products attracted $221.7 million, which may indicate a short-term surge in institutional interest. Ethereum-based funds also saw outflows of $13.7 million.
The total market capitalization recovered from $2.07 trillion to $2.17 trillion. However, Bitcoin's dominance decreased from 58.1% to 57.9%, while Ethereum's share rose from 9.2% to 9.8%. This confirms a shift in sentiment in favor of altcoins.
MiCA Takes Effect: A New Era of Regulation in the EU
On July 1, 2026, the transition period for cryptocurrency platforms under the MiCA regulation ended. Now, all companies that have not obtained a license must cease servicing European clients. According to ESMA, by the end of the transition period, 244 crypto service providers were authorized in the EU and EEA, including major platforms such as Kraken, Coinbase, and Bitstamp.
This is a landmark event for the entire industry. MiCA creates uniform rules of the game across a vast market, which should increase institutional investor confidence and reduce regulatory risks. The European Commission has already begun reviewing the regulation, assessing its alignment with current market realities.
Russia Prepares for Crypto Regulation
Progress in regulation has also been noted in Russia. First Deputy Chairman of the Central Bank Vladimir Chistyukhin stated that the law on regulating the crypto market could come into force on September 1. After that, market participants will be given time to prepare until July 1, 2027, after which administrative and criminal liability for illegal operations is expected to take effect.
The first operations under the new regime are expected by the end of this year or the beginning of next. This is an important step for the legalization of the crypto industry in Russia, which could attract new participants and capital.
Ethereum Ecosystem: Institutional Bridge and Protection Against Quantum Threats
In the Ethereum ecosystem, an independent non-profit organization, Ethereum Institutional, has been launched, aimed at promoting the network among banks and asset managers. This testifies to the maturity of the ecosystem and its drive for institutional integration.
In parallel, StarkWare presented a roadmap for transitioning the L2 network StarkNet to post-quantum cryptography. The plan involves replacing dependencies on elliptic curves and implementing quantum-resistant signatures. This is a preventive measure demonstrating the developers' foresight.
Expert Commentary: The week showed that the market is capable of recovering even amid macroeconomic uncertainty and continued ETF outflows. The entry into force of MiCA is a long-awaited step towards legalizing the crypto industry in Europe, which could become a catalyst for a new influx of capital. However, the Fear and Greed Index remaining in the extreme fear zone (23 points) indicates that full confidence recovery is still far off. The market is in a consolidation phase, and regulatory clarity could be the key driver for further growth.