The past week was marked by several landmark events that are shaping a new landscape for digital assets. From a breakthrough decree in Kazakhstan to the expansion of European regulation, the market is receiving clear signals of a move toward institutionalization.

Bitcoin Shows Resilience Amid Geopolitical Risks

The leading cryptocurrency started the week with a drop below $62,000, triggered by the escalation of the conflict between Iran and the US. However, subsequent rounds of tension, including statements about blocking the Strait of Hormuz, failed to break the bullish sentiment. By the weekend, the price recovered to $64,000, gaining 2.2% over the week.

Ethereum showed similar dynamics (+2.6%), while most altcoins came under pressure. The most significant losses were seen in Dogecoin (4%) and Solana (4.4%). The total market capitalization rose from $2.07 trillion to $2.2 trillion, while Bitcoin's dominance remained at 58.4%.

An important signal was the interruption of a record eight-week streak of outflows from spot Bitcoin ETFs. Over the week, $197.4 million flowed into these instruments, increasing the total assets under management to $77.4 billion. Ethereum-based ETFs also attracted $84.4 million, restoring AUM to $9.6 billion.

The Fear and Greed Index left the zone of extreme fear, rising to 26 points, indicating a gradual restoration of confidence among market participants.

Kazakhstan: A New Crypto Innovation Hub in Central Asia

President Kassym-Jomart Tokayev signed a decree aimed at forming a "modern and transparent ecosystem of digital financial services." The document, prepared by the Ministry of Artificial Intelligence and Digital Development jointly with the National Bank and the AIFC, provides for the legalization of operations with digital assets.

Key measures include developing mechanisms for using stablecoins in cross-border settlements, voluntary disclosure of assets held on foreign unregulated platforms, and their transfer to the platforms of Kazakhstani providers. Of particular interest is the exemption from individual income tax on income from digital asset operations through regulated infrastructure — a powerful incentive for local investors.

EU Prepares "Second Wave" of Regulation: MiCA to Reach DeFi and NFTs

The European Parliament approved an official position on further regulation of digital assets, calling for expanding control to sectors that remained outside the scope of the current MiCA regulation. The focus is on DeFi, crypto lending, staking, and NFTs.

This decision came immediately after the end of the MiCA transitional period on July 1, when crypto companies in the EU switched to mandatory licensing. The main goal is to prevent fragmentation of the single market and create uniform standards for all participants. In my opinion, this is a logical step, as DeFi and NFTs remained a "gray area" attracting both innovation and unscrupulous players.

US Bitcoin Reserve: A Bureaucratic Dead End

The Trump administration's initiative to create a Strategic Bitcoin Reserve (SBR) has encountered serious obstacles. Disagreements between the Treasury, Commerce, and Justice departments over the structure and oversight have stalled the process. The main issue is the legal authority of government agencies to manage a highly volatile asset.

Despite the US already holding the largest state reserve of 328,372 BTC (~$21 billion), and bills in Congress pushing for the purchase of 1 million BTC, the plan's implementation is stalling. This is a classic example of political will breaking against bureaucratic procedures. While the White House seeks the optimal legal form, the market is losing clarity regarding one of the most powerful catalysts.

Other Events of the Week

  • SWIFT launched a pilot project for blockchain infrastructure for round-the-clock cross-border payments involving 17 banks.
  • Strategy sold 3,588 BTC for $226 million.
  • CertiK estimated crypto industry losses from hacks at $1.32 billion for the first half of the year.
  • StarkWare CEO proposed changing Bitcoin's emission model.

My conclusion: The week showed that the industry is moving towards maturity. Kazakhstan and the EU are setting clear regulatory frameworks, Bitcoin confirms its status as a safe-haven asset, and institutional products continue to attract capital. The only "bottleneck" is the delay with the US Bitcoin reserve, which could cost the country leadership in the global race for digital assets.