The past week in the crypto market was marked by a cautious recovery of Bitcoin amid macroeconomic signals, as well as an unexpected shock in the semiconductor industry caused by a breakthrough in a Chinese AI model. The market continues to balance between hopes for a Federal Reserve policy easing and geopolitical risks.
Bitcoin: From Local Low to Consolidation
The week began with a correction: Bitcoin dropped to $61,000 amid escalating tensions between the US and Iran. However, the release of the US Consumer Price Index (CPI) on July 14 changed sentiment. The core inflation rate, excluding food and energy, came in at 2.6% annually, lower than the forecasted 2.8%. This slowdown in inflation became a key growth driver.
Positive rhetoric from Federal Reserve Chairman Kevin Warsh before Congress also added optimism. A local high of $65,500 was reached on the evening of July 15, after which the asset entered a consolidation phase. By the end of the week, despite a sell-off in traditional markets due to the crisis in the semiconductor sector, Bitcoin recovered its losses and is trading around $64,500, gaining approximately 1% over seven days.
Assets in the top 10 showed mixed dynamics: Ethereum rose 4% to $1,850, while HYPE lost about 8%. Spot Bitcoin ETFs attracted net inflows of $75.5 million, closing a second consecutive "green" week. Ethereum funds also showed positive inflows of $105.5 million. 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 dominance at 57%.
Political Battle Over the CLARITY Act
Debates have erupted in Washington over the CLARITY Act, a bill aimed at delineating the powers of the SEC and CFTC in regulating digital assets. Three Democratic senators opposed the current version of the document, demanding the inclusion of anti-corruption provisions. They propose banning the president, cabinet members, and congressmen from owning crypto businesses, citing a conflict of interest related to the activities of Donald Trump and his family. Consideration of the amendment is expected from July 20, and 60 votes will be required for its passage.
BIP-110: An Unclaimed Initiative
Miners ignored the BIP-110 proposal, which limits non-payment data in Bitcoin transactions. Over two weeks, support reached only about 1%, compared to the required 55%. The initiative was criticized by Michael Saylor and Adam Back, who consider it overly radical. Against this backdrop, the founder of Runestone presented an alternative client, DOG Mode, which increases the transaction limit and reduces the "dust limit," simplifying work with Ordinals and Runes.
Kimi K3: A New Round in the AI Race
Chinese company Moonshot AI released the open-source model Kimi K3 with 2.8 trillion parameters, which trails only proprietary solutions from Claude and GPT in performance. The model can conduct lengthy engineering sessions and design chips independently. Its launch triggered a massive sell-off in chipmaker stocks worldwide, reminding the market of the "DeepSeek effect" from January 2025.
My professional opinion: The launch of Kimi K3 is not just a technical achievement but a clear signal that open-source AI models are moving into a new weight class. For the crypto market, this means a dual effect: on one hand, growing interest in decentralized computing networks, and on the other, increased volatility in traditional markets, from which Bitcoin cannot yet fully distance itself. Investors should closely monitor developments in the semiconductor sector, as it is becoming a new trigger for capital movement.