The past week has been a stark confirmation that the crypto market remains hostage to macroeconomic turbulence and technological shifts. Bitcoin, starting the week with a drop to $61,000 amid geopolitical tensions, managed to recover ground thanks to positive US inflation data. Core CPI, excluding food and energy, came in at 2.6% annually, below forecasts of 2.8% — this served as a powerful catalyst for recovery.
By July 15, the leading cryptocurrency reached a local high of $65,500, after which it entered a consolidation phase. However, Friday's crisis in the semiconductor sector, triggered by the launch of a new AI model, caused a temporary dip. At the time of writing, Bitcoin is trading around $64,500, up about 1% over the week. The Fear and Greed Index rose to 28 points but remains in the "fear" zone, indicating continued investor caution.
ETF Market and Altcoins: Mixed Dynamics
Spot Bitcoin ETFs attracted net $75.5 million over the week — the second consecutive "green" week. Ethereum funds also showed positive dynamics with inflows of $105.5 million. However, among the top 10 assets by market cap, the picture is uneven: Ethereum rose 4% to $1,850, while HYPE lost about 8%. The total market capitalization stands at $2.27 trillion, with Bitcoin dominance at 57%.
CLARITY Act Under Fire
US Democratic senators have opposed the current version of the CLARITY Act, demanding the inclusion of anti-corruption provisions. They propose banning the president, vice president, and cabinet members from owning crypto businesses or profiting from them. The bill, which aims to delineate the powers of the SEC and CFTC, will face significant procedural hurdles — requiring 60 votes in the Senate for passage.
BIP-110: Initiative Fails
Over two weeks, no major mining pool supported BIP-110, which limits non-payment data in Bitcoin transactions. The adoption rate stood at just 1% against the required 55%. The initiative faced criticism from Michael Saylor and Adam Back. In contrast, developer Runestone introduced the DOG Mode client, which raises the transaction limit to 3.9 million WU and lowers the "dust limit" to 1 satoshi — to simplify sending Ordinals and Runes.
Kimi K3: A New Era of AI or a Threat to the Chip Market?
China's Moonshot AI unveiled the Kimi K3 model with 2.8 trillion parameters, native vision, and a 1 million token context. The model only trailed proprietary Claude Fable 5 and GPT 5.6 Sol, but it already triggered a massive sell-off in chipmaker stocks. Taiwan's index lost over 6%, Japan's fell 4%, and the Nasdaq dropped 1.5%. Investors compare the situation to the "DeepSeek effect," when in January 2025, Nvidia lost about $590 billion in market cap in a single session.
My expert opinion: The launch of Kimi K3 is not just a technological breakthrough but a signal that open AI models are beginning to threaten the monopoly of proprietary solutions. However, volatility in the semiconductor market is temporary — long-term demand for AI chips will remain high, especially given China's plans to develop its own technologies.