The past week was eventful: Bitcoin surged to $64,000, miners ignored another network upgrade proposal, and China's AI model Kimi K3 triggered a sell-off in semiconductor stocks. Let's break down the key events.
Bitcoin: From Correction to Consolidation
The week began with the leading cryptocurrency falling to $61,000 amid renewed geopolitical tensions between the U.S. and Iran. However, by July 14, the market started recovering following the release of U.S. Consumer Price Index (CPI) data. The core indicator, excluding food and energy, came in at 2.6% year-over-year against an expected 2.8% — inflation slowed more than forecast. Positive rhetoric from Fed Chair Kevin Warsh in Congress further boosted risk appetite.
A local peak was reached on July 15 at $65,500, after which Bitcoin entered a consolidation phase. On Friday, July 17, the crypto market dipped alongside traditional markets due to a crisis in the semiconductor sector, but the asset recouped losses by the weekend. At the time of analysis, Bitcoin is trading around $64,500, up about 1% over the week.
Assets in the top 10 by market cap showed mixed dynamics: Ethereum rose 4% to $1,850, while HYPE lost about 8%. Spot Bitcoin ETFs attracted net $75.5 million, marking the second consecutive "green" week, while Ethereum funds saw inflows of $105.5 million. The Fear and Greed Index rose to 28 points but remains in the "fear" zone. Total market capitalization stands at $2.27 trillion, with Bitcoin dominance at 57%.
CLARITY Act Under Fire: Anti-Corruption Amendments
Democratic Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen opposed the current version of the CLARITY Act, which aims to delineate the powers of the SEC and CFTC in regulating digital assets. In their view, the document does not address conflicts of interest related to President Donald Trump's and his family's crypto business. They proposed incorporating provisions from the MEME Act or the End Crypto Corruption Act, which would prohibit senior officials and their relatives from owning crypto businesses. Consideration of the proposal is expected starting July 20, and 60 votes in the Senate will be required for its passage.
BIP-110: Initiative Failure and Alternative from Ordinals Creator
No major mining pool supported the BIP-110 proposal, which limits non-payment data in Bitcoin transactions. Adoption stands at about 1% against the required 55%. The voluntary activation threshold expires in early August. Against this backdrop, Runestone founder under the pseudonym Leonidas presented an alternative client, DOG Mode, which increases the transaction limit and lowers the "dust limit" to simplify work with Ordinals and Runes. This solution does not require a majority vote — just one miner is enough.
Kimi K3: A New Era of AI and Chip Market Crash
China's Moonshot AI released the largest open model, Kimi K3, with 2.8 trillion parameters, native vision, and a context of 1 million tokens. In the overall benchmark rankings, the model only trailed proprietary Claude Fable 5 and GPT 5.6 Sol. The launch triggered a massive sell-off in chipmaker stocks: Taiwan's index lost 6%, Japan's 4%, and the Nasdaq fell 1.5%. Nvidia temporarily ceded the title of the world's most valuable company to Apple. Investors compare the situation to the "DeepSeek effect" in January 2025, when Nvidia lost about $590 billion in market cap in a single session.
Expert Opinion: The launch of Kimi K3 demonstrates that the AI market is entering a phase of hyper-competition, where each new model can reshape the capitalization of an entire sector. For the crypto industry, this is a dual signal: on one hand, growing computing power stimulates demand for GPUs and ASIC miners; on the other, volatility in traditional markets may temporarily distract institutional investors from digital assets. Bitcoin's current consolidation around $64,000 looks healthy ahead of a potential move toward $70,000, but geopolitical risks and regulatory uncertainty remain key triggers.