The past week was packed with regulatory initiatives and macroeconomic signals. Kazakhstan took a decisive step toward integrating digital assets into its financial system, the European Parliament set its sights on regulating DeFi and NFTs, and the ambitious U.S. plan to create a strategic Bitcoin reserve got stuck in bureaucratic disputes. Against this backdrop, the market showed surprising resilience.
Market: Bitcoin weathers the storm, fear index retreats
The week began with a sharp drop in Bitcoin below the $62,000 mark amid escalating geopolitical tensions between Iran and the U.S. However, unlike previous crises, digital gold quickly recovered, ending the seven-day period with a 2.2% gain, around $64,000. Ethereum showed similar dynamics, rising 2.6%. Many altcoins, on the other hand, went into the red: Dogecoin lost 4%, and Solana fell 4.4%.
A key positive signal was the turnaround in spot Bitcoin ETFs. After a record eight-week streak of outflows, these products attracted $197.4 million, increasing total assets under management to $77.4 billion. A similar inflow was seen in Ethereum funds — $84.4 million over the week. The Fear and Greed Index left the extreme fear zone, rising to 26 points, indicating a gradual return of cautious optimism. Total market capitalization grew from $2.07 trillion to $2.2 trillion, while Bitcoin's dominance held steady at 58.4%.
Kazakhstan: New decree as a springboard for the crypto industry
President Kassym-Jomart Tokayev signed a decree aimed at creating a "modern and transparent ecosystem of digital financial services." The document, prepared by relevant ministries and the National Bank, includes several breakthrough measures. First, it explores mechanisms for using digital assets and stablecoins in cross-border settlements, giving businesses new channels for export-import operations. Second, it brings crypto asset transactions into the legal framework through voluntary disclosure of assets previously held on foreign unregulated platforms. And most importantly, it exempts income from transactions through regulated Kazakh infrastructure from individual income tax. This is a powerful incentive for capital repatriation.
Europe: MiCA expands its boundaries
The European Parliament approved its official position on further regulation of digital assets, calling for the extension of the MiCA regulation to sectors that have so far remained outside its scope. This includes DeFi, crypto lending, staking, and NFTs. This step is a logical continuation after the end of MiCA's transitional period on July 1, when all crypto companies in the EU switched to mandatory licensing. The main goal is to prevent fragmentation of the single market and create unified rules for all participants. I believe this is a timely decision: regulating DeFi is one of the most complex but necessary challenges for the industry, and the EU is once again acting as a pioneer.
USA: Bitcoin reserve stuck in interagency disputes
The Trump administration's initiative to create a Strategic Bitcoin Reserve (SBR) has faced serious legal and organizational hurdles. Although the presidential decree mandated placing the reserve in the Treasury Department, doubts arose about the agency's legal authority to manage such a volatile asset. As a result, the Commerce Department emerged as an alternative candidate, while the Justice Department seeks legally flawless options. While the White House determines the optimal structure, the U.S. continues to hold the largest state reserve of 328,372 BTC (~$21 billion). Simultaneously, bills are advancing in Congress aimed at acquiring 1,000,000 BTC over five years. This bureaucratic delay is a classic example of how innovation collides with the inertia of state institutions.
My view: The market is showing maturity, ignoring geopolitical noise, but regulatory uncertainty in the U.S. remains the main brake on institutional adoption. Kazakhstan, on the other hand, demonstrates how attractive jurisdictions for crypto business can be created quickly and effectively. Expanding MiCA to DeFi is an inevitable, albeit painful, process that will strengthen the sector's legitimacy in the long term.