Weekly recap: Bitcoin at $64,500, new AI model Kimi K3, and political battles over the CLARITY Act
The past week was packed with events that once again confirmed the crypto market remains sensitive to macroeconomic and geopolitical factors. Bitcoin, starting the week with a drop to $61,000 amid the escalation of the conflict between the US and Iran, managed to recover and even update its local high.
Bitcoin: From Correction to Consolidation
The key driver of growth was the slowdown in US inflation. The release of Consumer Price Index (CPI) data, where the core figure stood at 2.6% annually against the expected 2.8%, instantly spurred the market. Positive rhetoric from Fed Chair Kevin Warsh added optimism, and on July 15, Bitcoin reached the $65,500 mark. However, by the end of the week, the market faced a new wave of uncertainty related to the crisis in the semiconductor industry, causing a correction in both traditional and digital markets. Nevertheless, by the weekend, Bitcoin recovered from the decline, settling around $64,500, which corresponds to an increase of approximately 1% over the week.
The Fear and Greed Index rose to 28 points but remains in the "fear" zone, indicating continued investor caution. The total market capitalization stands at $2.27 trillion, with Bitcoin's dominance holding at 57%.
CLARITY Act Under Fire: Democrats Demand Anti-Corruption Provisions
The political struggle over cryptocurrency regulation in the US is reaching a new level. Three Democratic senators — Chris Murphy, Jeff Merkley, and Chris Van Hollen — have opposed the current version of the CLARITY Act. Their main objection is the lack of anti-corruption provisions that would prohibit the president, his family members, and high-ranking officials from owning or profiting from crypto businesses. This is a direct reference to the conflict of interest associated with Donald Trump's business.
The bill, designed to delineate the powers of the SEC and CFTC and create a federal regulatory framework for digital assets, risks getting bogged down in procedural disputes. Overcoming the barrier would require 60 votes in the Senate, which seems unlikely in the current political climate without significant concessions.
Miners Reject BIP-110, and DOG Mode Takes the Stage
The BIP-110 initiative, aimed at limiting non-payment data in Bitcoin transactions, suffered a crushing defeat. Over two weeks, no major mining pool showed support — the adoption rate hovered around 1% against the required 55%. Heavyweights like Michael Saylor and Adam Back opposed it.
In contrast, a developer under the pseudonym Leonidas introduced the DOG Mode client, which does not require majority consensus — support from just one miner is enough. The solution radically increases the transaction limit and reduces the "dust limit," simplifying work with Ordinals and Runes. This is a vivid example of how the community finds workarounds when consensus is blocked.
Kimi K3: The Chinese AI Giant That Crashed the Chip Market
The most striking event outside the crypto sphere was the launch of the Kimi K3 model by the Chinese company Moonshot AI. With 2.8 trillion parameters and a context of 1 million tokens, it is the largest open AI model. According to the developers, its efficiency is second only to proprietary models like Claude Fable 5 and GPT 5.6 Sol.
The news sent shockwaves through the stock market: shares of chip manufacturers plummeted worldwide. The Taiwanese index lost over 6%, the Japanese index fell 4%, and the Nasdaq dropped 1.5%. Investors, frightened by the "DeepSeek effect" — when Nvidia lost $590 billion in market capitalization in January — began massively taking profits. Kimi K3 demonstrated that Chinese developers are capable of creating competitive solutions, calling into question the current valuations of monopolists like Nvidia.
My View
The week showed that the market is in a state of fragile equilibrium. Bitcoin is holding up thanks to macroeconomic data, but political uncertainty in the US and external shocks (like the semiconductor crisis) could easily disrupt this balance. The situation with Kimi K3 deserves special attention — it is not just news, but a signal of the beginning of a new phase of competition in AI, which could have long-term consequences for the entire technology sector.