Crypto Markets Mixed: BTC Steady Amid Major Trade and Regulatory Updates
Cryptocurrency Market Update: SOL and DOGE Stand Out Amidst Regulatory Developments
The cryptocurrency landscape experienced a mixed start to the week, with most major assets showing little movement, except for notable gains in Solana (SOL) and Dogecoin (DOGE). This comes against a backdrop of rising concerns regarding tariffs and potential Bitcoin sales by the UK government.
Market Overview
As of Monday, July 21, the cryptocurrency market displayed a varied performance. Major assets remained largely unchanged after a weekend filled with significant news, including the signing of the GENIUS Act by President Donald Trump on Friday.
Bitcoin (BTC) maintained its position just below $118,600, reflecting a 1.7% decline over the past week. This follows a peak of $123,000 reached last week, marking an all-time high.
Ethereum (ETH) also showed stability over the last 24 hours, trading around $3,781 after surpassing $3,700 for the first time since December. ETH has seen impressive growth, up over 27% in the past week and 57% for the month, driven by record inflows into exchange-traded funds (ETFs) and increased institutional interest.
XRP has gained nearly 3% today, trading at $3.62 after a robust week that saw it rise over 22%, crossing the $3 threshold for the first time since January.
In contrast, Solana (SOL) and Dogecoin (DOGE) emerged as exceptions among large-cap cryptocurrencies, with SOL surging 8% and DOGE climbing 6% today.
The total market capitalization for cryptocurrencies reached a new high of $4.048 trillion earlier today, following its first breach of the $4 trillion mark on Friday. However, it has since retracted slightly to $4.01 trillion, reflecting a 3% drop today, with trading volumes hitting $253 billion.
Liquidations and ETF Inflows
In the last 24 hours, over $422 million in cryptocurrency positions were liquidated, according to data from CoinGlass. Short positions accounted for $203 million, while long positions totaled $219 million. Ethereum led the liquidations with $128 million, followed by Bitcoin at $63 million.
On the ETF front, U.S. spot Bitcoin ETFs saw inflows exceeding $363 million on Friday, while Ethereum ETFs attracted $402 million in net inflows on the same day.
Trade Tensions and Regulatory News
The recent activity in the cryptocurrency market coincided with significant trade-related headlines, including the Trump Administration’s impending tariffs and reports that the UK may sell part of its seized Bitcoin holdings. Analysts from Bitunix have indicated that such a sale could exert considerable selling pressure on the market.
Top officials from the Trump Administration have reiterated that August 1 is a critical deadline for the implementation of tariffs. Commerce Secretary Howard Lutnick stated that while negotiations can continue post-deadline, tariffs will still take effect.
Treasury Secretary Scott Bessent added that the planned tariffs, some potentially reaching 40%, are intended to encourage better trade agreements rather than serve as an absolute deadline. He also mentioned that these tariffs could be postponed if negotiations yield positive results.
This follows a pivotal week in U.S. cryptocurrency regulation, with the House of Representatives passing three significant bills: the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act, culminating in Trump signing the GENIUS Act into law on Friday.
Implications for Bitcoin
Investment manager Werner Brönnimann from crypto bank AMINA noted that the current regulatory environment provides essential support that differentiates this market cycle from previous speculative rallies. He emphasized that the increasing regulatory clarity, particularly with the GENIUS Act’s passage and bipartisan backing for the CLARITY Act, is removing barriers that have historically limited institutional investment in Bitcoin.
However, Brönnimann cautioned that macroeconomic factors could complicate Bitcoin’s trajectory, despite the growing institutional interest. He pointed out that Bitcoin remains sensitive to shifts in monetary policy, suggesting that aggressive Federal Reserve tightening in response to inflation driven by tariffs could overshadow strong institutional demand.
Brönnimann concluded by highlighting Bitcoin’s evolution as it increasingly attracts institutional capital, noting that it is no longer merely an alternative asset with unique return drivers but is beginning to behave more like a risk-on asset.
