Spotlight
The digital asset market saw positive momentum last week, the first week of the new quarter. Bitcoin confirmed the strong support zone at ~$60,000 and initiated a small uptrend. Most other digital assets followed suit, with Ethereum rising more than 10% over the week and Bitcoin gaining ~6.5%. The main drivers behind this positive development are, on the one hand, encouraging progress on the Clarity Act (market regulation in the U.S.), which is now likely to take effect as early as 2026, and, on the other hand, the onset of net inflows into Spot-ETFs.
Similarly, gold reached a new multi-week high, causing nearly all markets to rise in unison. A rotation of capital from AI stocks into other “risk-on” assets is becoming increasingly likely as stock markets have gradually stabilized and seen some profit-taking, which could allow fresh capital to flow into the markets.
Source: CoinMarketCap, Teroxx Research
The eurozone saw a noticeable easing of economic pressures last week as the inflation rate fell to 2.8% in June, primarily due to falling energy prices. At the same time, the latest U.S. jobs data, showing only 57,000 new jobs created, signaled a significant slowdown in the overseas economy. This combined easing of price and employment pressures alleviated concerns on global financial markets about persistently high interest rates and bolstered market sentiment. This trend was accompanied by a noticeable easing in oil prices and a continued, robust AI-driven corporate investment cycle; until the Fed's posture shifts meaningfully, Bitcoin breaking from that pattern looks unlikely.
At crypto pioneer Strategy (formerly MicroStrategy), the previously highly tense mood also brightened noticeably last week. The announcement of a new, flexible capital framework (Digital Credit Capital Framework), which now allows the company to strategically sell up to $1.25 billion worth of Bitcoin, triggered a sigh of relief in the markets. By moving away from its previous, uncompromising accumulation strategy, Strategy is securing crucial liquidity for dividends and share buybacks while stabilizing its balance sheet amid the recent crypto market correction. Investors promptly rewarded this newfound financial flexibility, propelling the stock to a strong weekly gain of over 22% after a long slump.
On the global stage, all eyes are on the upcoming NATO summit in Ankara, which is taking place against a backdrop of palpable transatlantic tensions and announced U.S. troop reductions in Europe. The deadline for extending the North American USMCA agreement has passed without a resolution, causing further uncertainty in global trade, as Washington is demanding far-reaching renegotiations before agreeing to an extension. At the same time, geopolitical risks in the Middle East flared up again as renewed military incidents in the Persian Gulf abruptly halted the recent diplomatic rapprochement between the U.S. and Iran. The gradual implementation of a new security framework between Israel and Lebanon, which provides for a controlled disengagement of troops in the border regions did, however, offer a small strategic ray of hope.
Driven by weak U.S. labor market data and dovish signals from the central bank, a sudden price surge triggered a massive short squeeze, liquidating $281 million in bearish positions and catapulting the token back above $1,700. The official launch of the new Ethereum Institutional initiative, which aims to bring traditional banking relationships and institutional capital to the blockchain at scale, provided additional fundamental momentum. Despite heavy ETF outflows in June, declining exchange holdings and a demonstrative staking signal from the Foundation stabilized the ecosystem, temporarily easing the previously extreme market anxiety.
Looking Ahead
This week, attention will be focused primarily on the minutes of the U.S. Federal Reserve’s meeting (FOMC Minutes), due out on Wednesday, from which market participants hope to see clearer signals of upcoming interest rate cuts following the weak jobs report. In addition, new economic data—such as the U.S. Institute for Supply Management (ISM) Services PMI and fresh inflation figures from China and Germany—are likely to show that global growth remains stable amid easing price pressures. The unofficial kickoff of the second-quarter earnings season is providing additional momentum in the stock markets, with major U.S. companies such as PepsiCo and Delta Air Lines offering a glimpse into their financial results. For the crypto and tech markets, this packed macroeconomic agenda will be the key indicator of whether the recent recovery rally is built on solid ground or volatility returns.
