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In a post, Zcash co-founder Eli Ben-Sasson proposes rethinking Bitcoin's fixed 21 million supply cap.

According to Ben-Sasson, capping the supply of Bitcoin at 21 million BTC does not make sense. This is because, over time, keys will be lost. He believes that this will eventually happen over an infinite time horizon.

The maximum number of Bitcoins that can ever exist is 21 million BTC. This hard cap on the total Bitcoin supply is a fundamental part of Bitcoin's monetary policy, which is designed to promote scarcity and prevent inflation. Bitcoin creator Satoshi Nakamoto encoded this limit into the cryptocurrency's source code.

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Zcash Co-Founder Suggests Bitcoin Move Away From Fixed 21M Supply Cap and Grow 4% Annually

Zcash co-founder Eli Ben-Sasson said on X that he questions the rationale behind Bitcoin's fixed 21 million supply cap. He argued that private keys will continue to be lost over time and… pic.twitter.com/Vvag8PJnry

— Wu Blockchain (@WuBlockchain) July 8, 2026 Rather than a fixed supply, Ben-Sasson indicated strong support for a clear monetary policy with an "absolute cap" but suggested adjusting the strategy, such as setting a fixed maximum issuance rate — for example, 4% per year — to keep the circulating supply aligned with human growth and ensure sufficient liquidity.

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"This way, you ensure there's enough to go around," Ben-Sasson stated.

Can Bitcoin's supply limit be changed?Changing Bitcoin's hard cap is possible, but it would not be an easy task, as it would require collaboration from developers, community members, and nodes. Developers would have to put this in a proposal and publish written code to implement the change. The proposal would lead to community discussion, which might not be accepted by all in the Bitcoin community.

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If the change were agreed upon, it would be integrated into Bitcoin Core. This leaves the question of how the change would be activated. Once this is answered, it must be agreed upon by the community to ensure compliance. Changing Bitcoin's supply might require a hard fork, which all nodes on the network would have to accept.

Bitcoin's fixed 21 million supply cap might never be changed, given these hurdles that need to be cleared.

US spot Bitcoin ETFs just strung together three straight days of net inflows, a modest but meaningful reversal after weeks of investors heading for the exits. The total haul on April 23 came in at $31.64 million. Not exactly a tidal wave, but after five consecutive days of outflows, even a trickle feels like rain in the desert.

Who’s buying, who’s selling The breakdown across individual ETFs tells a familiar story. BlackRock’s IBIT fund led the pack with $37.92 million in inflows on April 23, extending what had been a remarkable 70-day consecutive inflow streak.

ARK Invest’s ARKB followed with $33.28 million, and Bitwise’s BITB pulled in $23.23 million. These three funds have consistently been the magnets for new capital since spot Bitcoin ETFs launched in January 2024.

Then there’s the other side of the ledger. Grayscale’s Bitcoin Trust, GBTC, continued its role as the group’s chronic bleeder, shedding $66.88 million on the same day. The pattern has been relentless since GBTC converted from a closed-end fund structure: investors rotate out of the higher-fee legacy product and into newer, cheaper alternatives.

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Here’s the thing. The net inflow number, $31.64 million, only looks small because GBTC’s outflows are dragging down the total. Strip out Grayscale, and the rest of the field had a genuinely strong day.

The bigger picture since January Zoom out and the cumulative numbers tell a more compelling story. Since their January 2024 debut, US spot Bitcoin ETFs have attracted $12.42 billion in total net inflows. Assets under management across the group stood at $55.82 billion as of April 23.

BlackRock’s IBIT alone accounts for $15.48 billion in cumulative inflows. Bitcoin was trading around $66,675 during the reporting period.

Why the halving changes the calculus Bitcoin’s fourth halving event, which cuts the block reward miners receive in half, is the elephant in the room. Every previous halving has preceded a significant bull run, though the timing and magnitude have varied. The supply reduction is straightforward economics: fewer new coins entering circulation while demand stays constant or grows.

What’s different this cycle is the existence of spot ETFs as a demand channel. In previous halvings, institutional investors had limited options for gaining Bitcoin exposure. Now they can buy shares of a regulated fund through their existing brokerage accounts.

What this means for investors The competitive landscape among Bitcoin ETF issuers is starting to crystallize. BlackRock, ARK Invest, and Bitwise are emerging as the clear winners in the fee war and distribution battle. GBTC continues to hemorrhage assets, and the gap between the leaders and the rest of the pack is widening with each passing week.

GBTC’s persistent outflows remain a structural headwind that won’t disappear overnight. With nearly $56 billion in assets under management, these products have already cemented themselves as permanent fixtures of the institutional investment landscape.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Binance founder maps out a two-cycle path to seven figures while warning that timing any price prediction is super difficult.

Changpeng Zhao, the founder of Binance widely known as CZ, has laid out a scenario where Bitcoin reaches $1 million by the 2033 market cycle, while being careful not to present the call as a firm prediction.

Speaking in an interview with The Block, CZ mapped out the math behind the timeline, rooted in Bitcoin's historical cycle behavior rather than a specific model.

Two cycles, two multipliersCZ's reasoning is straightforward. He views 2025 as a bear market year, followed by a bull cycle in 2029 and another in 2033, two complete cycles from here. Using a rough historical multiplier of three to five times per cycle, he said Bitcoin could approach $1 million within that window.

"If the next cycle goes 5x, then you'll be at around 600,000. And then the cycle after that only needs 2x to get to a million," he said. "Totally possible."

He was quick to add the caveat. "I'm not saying that it will happen. It's totally possible." He acknowledged the difficulty of attaching price targets to specific dates, noting that predicting a price level is hard enough, predicting when it gets there is harder still.

“Each rise may be slow maybe less than the previous one. But I think the counterargument to that is Bitcoin is nowhere near saturated. The current people holding Bitcoin in terms of wealth is probably less than 1%,” Zhao said.

Why he thinks the last cycle was weakCZ called the most recent cycle unusually muted, noting Bitcoin only achieved roughly a 2x move, well below historical norms.

He attributed the underperformance partly to the war, elections, and macro disruptions that clouded sentiment throughout the period, as well as significant capital being absorbed by AI companies competing for the same speculative dollars.

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“We got disrupted by the war and the election. That was a weak cycle that Bitcoin only went 2x,” he said.

“We're not at a saturation point yet. The demand for Bitcoin or for crypto in general can be significant. So I thought the last cycle was a bit weak,” he continued.

Not a Bitcoin maximalist, but closeDespite his bullishness on Bitcoin, CZ stopped short of advocating for a Bitcoin-only approach to the industry.

Trending on TheStreet RoundtableDonald Trump breaks silence on $1B crypto earningsMichael Saylor reveals why Strategy sold Bitcoin and why critics are wrongBillionaire investor reveals key reasons behind Bitcoin's declineHe argued that multiple blockchains innovating simultaneously actually accelerates development overall, with Bitcoin able to absorb useful innovations over time. His view: a handful of competing chains is healthy, hundreds is excessive.

“I think it's having a million blockchains is probably not necessary but having like 10, 20, or 30 blockchains or even a couple hundred blockchains innovating is probably a good thing but couple hundred is probably already a long tail. So many of them will not do stuff but every now and then somebody will have a new idea and it'll be quite hard to implement that on existing blockchain,” Zhao said.

“I wouldn't say the more the more blockchains the better but having some more blockchains will allow more innovation,” he added. 

The cryptocurrency market experienced a sharp selloff on Wednesday after tensions over geopolitical matters escalated. The uncertainty comes as U.S. President Donald Trump said that the memorandum of understanding with Iran is now “over.” With this, Bitcoin fell below the $62,000 mark, leading the crypto market downturn. This causing nearly $450 million worth of leveraged liquidations in the market.

Crypto Market Liquidations Surge Amid US-Iran War Data from CoinGlass shows that over the last 24 hours, 145,221 traders were liquidated, totaling $449.63 million in liquidations. The losses at $343.43 million were mainly on the long side with $106.20 million being on the short side. Binance had the largest liquidation, with a $7.24 million ETHUSDT position being liquidated.

The most liquidated cryptocurrencies were Bitcoin with $99.90 million and Ethereum with $90.67 million. Other cryptocurrencies experienced a collective $60.83 million in liquidations, and Solana had $24.19 million in liquidations. Selling activity also was widespread throughout the market, with XRP seeing more than $9 million in liquidated positions.

This plunge in the market followed a sign that the diplomatic agreement between Washington and Tehran has failed. Speaking at the NATO summit, Trump said, “To me, I think it’s over. I don’t want to deal with them anymore.” He also described further negotiations as “just a waste of time dealing with them.”

Trump repeated that Iran would never get a nuclear weapon, but said that the negotiators were still eager to talk but “they have to come back” to me.

BTC Under Pressure With Fresh US-Iran Strikes Trump’s comments came on the heels of a new escalation in the Middle East. The Islamic Revolutionary Guard Corps, Iran’s tough force, has announced it had responded to a series of U.S. strikes, ratcheted up sanctions on Iran’s export of oil and reacted to attacks on ships in the Strait of Hormuz by launching its own attacks on Washington’s military targets in Bahrain and Kuwait.

Geopolitical risks continued to drive oil prices up and weighed on risk assets such as crypto. Hence, Bitcoin price fell below $62,000 amid the ongoing US-Iran conflict.

In separate news, Israel’s Ynet news reported that U.S. Defense Secretary Pete Hegseth had cancelled his trip to Israel when tensions were ratcheting up in the region. This also led to a negative sentiment in the crypto market as geopolitical tensions continue.

For those looking for decentralized futures trading, visit our page on Perp DEXs.

Synopsis

Crypto futures trading in India saw significant growth from smaller cities. Women traders showed lower leverage and preferred specific digital assets. Bitcoin and Ethereum comprised a smaller portion of futures volume. Tamil Nadu led regional participation in crypto futures trading. Traders demonstrated tactical approaches and risk awareness in leveraged products.

ET OnlineWomen investors accounted for over 13% of crypto futures traders and their average leverage remained lower than that of male traders, according to a release by Giottus analysing its 1.3-million-strong customer base during the September 2025-May 2026 period.

The release further said that women traders also showed a stronger preference for XRP, Bitcoin, and gold-linked assets.

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Nearly half of the country’s crypto futures participation now comes from tier-2 cities even as futures trading has overtaken spot volumes. Crypto Futures contributed 57.22% of total platform trading volume, ahead of spot at 42.78%. At the same time, 48% of futures participants came from tier-2 cities, compared with 31% from tier-1 locations, and 21% from other locations.

The figures point to a broader shift in Indian crypto trading behaviour. Leveraged products (like futures) are no longer driven mainly by metro traders. The smaller-city participation is now emerging as a major force in crypto derivatives activity.

The report also showed strong acceleration in user growth during 2026. Futures participation grew 42.5% in February. It rose another 28.5% in March. April recorded 35.3% growth. In May, it was 30.3%.

Futures users currently account for only 24% of Giottus’ active user base. The data suggests there is still considerable expansion headroom within existing platform users.

“India’s crypto participation story is becoming geographically broader. We are seeing increasing engagement from smaller cities in products that were once viewed as niche or high-complexity,” said Vikram Subburaj, CEO of Giottus.

The dataset further showed unusually high engagement intensity among active traders. Average trades per active user peaked at 330 trades in January 2026. Even after moderation in April, users still averaged more than 51 trades a month. The figure was 45 in May.

Another major behavioural trend emerged in trading preferences. Bitcoin and Ethereum together accounted for only 15.35% of total Futures volume during the review period.

Ethereum accounted for 7.07% of the traded Futures volume. Solana accounted for 5.76% and XRP contributed 5.24%.

The figures suggest Indian retail traders are increasingly moving beyond Bitcoin exposure into higher-volatility altcoin opportunities. Trading behaviour appears to be becoming more tactical and event-driven.

Also Read | Smallcap funds deliver 22% average return in 3 months. Is it time to invest, hold or rebalance?

Tamil Nadu emerged as the dominant regional market in the dataset. The state contributed 46.6% of all futures traders. It also accounted for 59.26% of the platform’s total Futures trading volume. Kerala contributed 10.23% of the total trading volume.

The report also showed relatively balanced market positioning among traders. Long positions accounted for 52.79% of trades and short positions accounted for 47.21%.

Average leverage among Giottus Futures traders stood at 10x. More than 30% of trades used leverage above 10x. Despite that, monthly liquidation ratios ranged between 0.55% and 2.52% during the review period.

“The liquidation trends are important because they suggest participation is not entirely speculative or reckless. Users are showing greater awareness around position sizing and risk management while using leveraged products,” Vikram said.

The report further showed that Indian retail traders were most active between 7 pm and 10 pm. The lowest trading activity was recorded between 3 am and 6 am. The pattern reflects post-work retail participation and overlap with US market hours.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Cryptocurrencies are broadly extending declines on Wednesday, after last week’s recovery. The sell-off has seen Bitcoin (BTC) slide below $62,000, increasing downside risks toward the next key support at $60,000.

Ethereum (ETH) is edging lower, targeting the demand range at $1,700, while Ripple (XRP) remains under pressure, trading around $1.08.

Crypto sell-off intensifies as sellers assess Middle East conflictHeadwinds continue to weigh on the crypto market, as geopolitical tensions in the Middle East escalate. According to AP News, Iran launched attacks on American military bases in the Middle East on Wednesday in retaliation for attacks by the United States (US) on several places in Iran. The US has also reinstated sanctions on Iran’s Oil sales, saying that the developments were in response to Iranian attacks on ships in the Strait of Hormuz.

The fresh attacks have ignited fears that the war between the US and Iran could resume. US President Donald Trump fueled the fears, stating that the Memorandum of Understanding (MoU) that paused fighting is “over.” However, Trump added that negotiations will be allowed to continue.

Oil prices jumped amid the attacks and geopolitical uncertainty. West Texas Intermediate (WTI) Crude traded at $74 on Wednesday, up from $67 the previous day.

WTI Oil price chartAs tensions in the Middle East remain high, sentiment in the crypto market has deteriorated.  At 20, embedded in the Extreme Fear territory, the crypto Fear & Greed Index shows that appetite for risk assets is significantly suppressed.

Crypto Fear & Greed Index | Source: AlternativeBitcoin and Ethereum post mild ETF inflowsBitcoin spot Exchange-Traded Funds (ETFs) saw inflows resume, attracting $21 million on Tuesday, down from $266 million on Monday. This drawdown mirrors investors' concerns about tensions in the Middle East. Activity over the remaining days of the week would either reinforce the deteriorating sentiment or uphold a positive outlook. Besides, cumulative outflows stand at $51.37 billion, with net assets under management at $77.26 billion.

BTC ETF flows | Source: SoSoValueEthereum ETFs similarly extended the mild inflow streak with nearly $27 million recorded on Tuesday, up only slightly from $21 million on Monday. Cumulative inflows average $10.94 billion, with net assets under management at $9.53 billion.

ETH ETF flows | Source: SoSoValueAs for XRP, activity remained muted on Monday and Tuesday, according to SoSoValue data. This shows that while institutions appear to withdraw demand, long-term conviction in XRP remains intact, with cumulative inflows steady at $1.49 billion and net assets holding above $1 billion.

XRP ETF flows | Source: SoSoValuePrice analysis: Bitcoin losses deepen, eyes short-term supportBitcoin maintains a bearish near-term bias as the price remains well below the 50-day, the 100-day and the 200-day Moving Average Exponentials (EMAs). Moreover, the Crypto King is tracking a broader downward resistance trendline on the daily chart.

Momentum appears mixed, as the Relative Strength Index (14) around 45 leans slightly to the downside on the same chart, while the Moving Average Convergence Divergence (MACD) histogram stays positive, hinting that selling pressure is moderating rather than reversing decisively.

BTC/USDT daily chartOn the topside, initial resistance lies at the 50-day EMA near $65,540, with further supply layered at the 100-day EMA around $69,207 and the 200-day EMA close to $75,246, where the broader downtrend would be challenged. On the downside, first support emerges at the Parabolic SAR level around $59,434, followed by the prior trendline break price at $59,104, where buyers would need to step in to avoid a deeper slide toward the late-June lows.

Altcoins technical outlook: Ethereum and XRP remain under tight bearish gripEthereum trades at $1,738, maintaining a capped tone as it holds below the 50-day, 100-day and 200-day EMAs. Although momentum had improved with the MACD histogram in positive territory on the daily chart, the RSI has declined near the midline, suggesting that sellers are gaining traction.

ETH/USDT daily chartImmediate resistance lies at the 50-day EMA around $1,803, followed by the 100-day EMA near $1,964 and then the 200-day EMA around $2,251, where a reclaim would be needed to ease the broader downside pressure. On the downside, initial support lies at the current price area, with stronger underlying demand suggested by the Parabolic SAR level near $1,616. A daily close below this latter zone would likely reopen a deeper corrective phase.

XRP, on the other hand, maintains a bearish near-term bias. The token remains below the 50-day, 100-day and 200-day EMAs. The MACD indicator upholds a positive outlook on the daily chart. However, the RSI near 42 signals bears are tightening their grip.

XRP/USDT daily chartInitial resistance is seen at the descending trendline barrier around $1.16, followed by the 50-day EMA at $1.18, with the 100-day EMA at $1.28 and the 200-day EMA near $1.49 reinforcing a broader cap on recovery attempts. On the flip side, the first support sits at the Parabolic SAR level of $1.02. A daily close below this floor would open the way to a deeper retracement, while holding above it would keep XRP confined to a bearish but stabilizing range beneath the clustered EMAs.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Bitcoin, altcoins, stablecoins FAQs Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Cardano Founder Hoskinson Claims Ethereum Is Secretly Copying Its Biggest Innovation

Tether will invest $20 million in a strategic growth financing round for Mercado Bitcoin, Latin America's largest onchain financial services platform, the stablecoin issuer said in a statement published July 7.

The deal deepens Tether's exposure to Brazil at the same time its flagship stablecoin, USDT, is being pushed out of the European Union under new licensing rules.

Mercado Bitcoin, founded in 2013, has grown from a digital asset exchange into a full-stack financial platform spanning trading, tokenized investment products, credit and lending, stablecoin-powered payments and cross-border services. The company said it serves 4.5 million users, has issued more than R$2 billion ($370 million) in tokenized assets, and holds more than ten licenses across Brazil and Europe, including a Payment Institution license from Brazil's central bank, the Banco Central do Brasil.

"Mercado Bitcoin has built exactly that, a regulated, full-stack on-\chain financial platform serving millions of users across one of the world's most dynamic financial markets," said Tether chief executive Paolo Ardoino in the statement.

Mercado Bitcoin chairman and CEO Roberto Dagnoni said the capital would support expansion of payments infrastructure, tokenized investment offerings, lending and on-chain capital markets, along with continued international growth.

The investment lands three days after the European Union's Markets in Crypto-Assets regulation (MiCA) reached its final transition deadline on July 1, requiring any stablecoin operating on a licensed EU exchange to hold an e-money token authorization backed by reserves largely held in European bank deposits. Tether never sought that authorization, and MiCA-licensed exchanges including Coinbase, Kraken and Crypto.com have removed USDT from their EU order books over the past eighteen months, with Revolut following suit ahead of the deadline.

Ardoino has publicly argued that MiCA's requirement to hold 60% of e-money token reserves in European bank deposits introduces its own risk to reserve safety, a position Tether has used to justify not pursuing the license.

The Mercado Bitcoin deal is the latest example of Tether directing capital toward markets outside the EU's regulatory perimeter. The company has also led a financing round of up to $1.4 billion for humanoid robotics firm NEURA Robotics and signed a memorandum of understanding with Dubai's Multi Commodities Centre on tokenization, moves that sit alongside a broader pattern of expansion in Latin America, the Gulf and parts of Asia even as its stablecoin loses shelf space in Europe. Whether that regional pivot offsets the loss of the EU market for USDT trading volume remains an open question, though Brazil's rapidly developing tokenization market and Mercado Bitcoin's existing licensing footprint give Tether a regulated entry point into one of the region's largest crypto economies.

XRP Is Set for a 16% Breakout, but Only if the Market Leader Behaves

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Bitcoin’s fixed 21 million supply has always been one of the biggest reasons investors call it digital gold. But now, Zcash co-founder and StarkWare CEO Eli Ben-Sasson suggests Bitcoin should remove its supply cap and allow the supply to grow by up to 4% every year.

Here’s why he is proposing such a major change.

Why Eli Wants to Change Bitcoin’s Supply?In a post on X, Eli Ben-Sasson questioned whether Bitcoin’s fixed supply still makes sense in the long run. 

“Capping the supply of Bitcoin at 21M doesn’t make sense. Because over time, keys will be lost. In fact, as time goes to infinity, all keys will be lost.”

As of now, an estimated 2.3 million to 4 million Bitcoin are believed to be permanently lost (including Satoshi Nakamoto’s estimated 1.1 million Bitcoin stash). 

With around 20 million BTC already mined, this means nearly 11% to 19% of Bitcoin’s total supply has disappeared from circulation forever.

According to him, if this continues for decades, a large part of Bitcoin’s supply could disappear forever.

Therefore, instead of keeping a fixed supply cap, he suggested allowing Bitcoin to issue new coins every year at a maximum rate of around 4%, helping replace lost coins and keeping enough Bitcoin available in circulation.

He say, “fix a max issuance rate and you get that (a good choice is 4% a year, this is a reasonable upper bound on human population expansion).”

What’s Behind 4% Annual Supply Growth?When one X user questioned why Bitcoin should only grow by 4% every year, Ben-Sasson replied that 4% represents a reasonable upper limit for long-term human population growth.

He also added that 1% to 2% annual issuance could also work, saying the goal is simply to make sure there is “enough to go around.”

Ben-Sasson noted that he was not only talking about replacing lost coins but also about Bitcoin’s future security budget, which many believe could become a challenge as block rewards continue to decline.

The proposal quickly faced criticism from Bitcoin supporters. One X user called the idea “terrible,” arguing that Bitcoin’s scarcity is the foundation of its value. The user warned that changing one core rule could eventually lead to more changes, weakening Bitcoin’s original purpose.

Another user pointed out that even if developers attempted to remove Bitcoin’s supply cap, the result would likely be another Bitcoin fork, similar to what happened with Bitcoin Cash and Bitcoin SV.

Many people in the Bitcoin community believe removing the 21 million BTC limit would destroy Bitcoin’s biggest strength, its fixed supply. And this will destroy investor trust and weaken Bitcoin’s value as digital gold.

Story Ends Here

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Key Takeaways Bitcoin commands 40% allocation due to institutional adoption and proven market stability Ethereum captures 25% for its leadership in decentralized finance and smart contract platforms Solana secures 15% thanks to superior transaction speed and expanding ecosystem Chainlink holds 10% as critical oracle infrastructure supporting real-world data integration Near Protocol takes 5% for its emerging AI integration and Layer 1 innovation Distributing $1,000 strategically across five digital assets plus a stable reserve creates a framework that manages volatility while capturing growth potential.

Building the Foundation With Market Leaders Bitcoin anchors this allocation strategy with a 40% position worth $400. As the pioneering cryptocurrency with the largest market capitalization, it benefits from unmatched liquidity and growing institutional acceptance through exchange-traded funds and corporate balance sheet adoption. Its established position makes it the most dependable choice among digital currencies.

Bitcoin (BTC) Price Ethereum claims the second-largest portion at 25%, representing $250. This network underpins the majority of decentralized financial applications and stablecoin infrastructure while serving as the primary platform for asset tokenization. Traditional financial players exploring blockchain solutions consistently choose Ethereum’s established ecosystem.

Combined, these two assets account for 65% of the total allocation. This concentration acknowledges their relatively lower volatility compared to emerging alternatives.

Adding High-Growth Exposure Solana receives a 15% allocation worth $150. This blockchain challenges Ethereum with superior transaction throughput and minimal fees, establishing significant presence in decentralized finance, payment systems, and mainstream crypto applications. While introducing additional risk, it offers substantial upside potential through continued network adoption.

Chainlink captures 10%, translating to $100. Its decentralized oracle infrastructure bridges blockchains with external data sources, creating essential functionality for DeFi protocols and enterprise applications. Growing tokenization of traditional assets should drive increased demand for reliable data feeds.

Near Protocol completes the portfolio with 5%, or $50. This platform emphasizes artificial intelligence infrastructure alongside its Layer 1 capabilities. Though representing the smallest and most speculative position, it provides meaningful exposure to the convergence of AI and blockchain technology.

Complete Allocation Breakdown
Bitcoin: 40% ($400)
Ethereum: 25% ($250)
Solana: 15% ($150)
Chainlink: 10% ($100)
Near Protocol: 5% ($50)
Stablecoins: 5% ($50)

Maintaining Liquid Reserves The remaining 5%, worth $50, remains in stablecoin holdings. This represents a strategic buffer rather than idle capital. Maintaining liquid reserves enables opportunistic purchases during market corrections without liquidating existing positions.

Cryptocurrency markets experience dramatic price movements. A modest reserve provides tactical flexibility when attractive entry points emerge.

The Case for Strategic Allocation No individual asset guarantees superior returns. Distributing capital across five cryptocurrencies with distinct applications and risk characteristics helps minimize portfolio damage when individual assets decline sharply.

Bitcoin and Ethereum establish the baseline stability. Solana, Chainlink, and Near deliver growth potential. The stablecoin reserve maintains optionality for market dislocations.

This framework avoids speculation in favor of methodical market exposure. It represents a rational entry point for allocating $1,000 toward digital assets without concentrating risk excessively.

The allocation mirrors current market dynamics: institutional participation continues expanding, artificial intelligence intersects with blockchain infrastructure, and fundamental protocol layers gain importance in how decentralized networks operate.

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Strike Unveils Bitcoin Loans Without Margin Calls or Forced Liquidations

Bitcoin has shed over half its value since its October 2025 peak, drifting to roughly $63,000 at press time. Presently, it has largely held a tight range between $58,000 and $63,000.

The decline stems mostly from mounting geopolitical tension that built after the peak—the U.S.-China tariff war and the unresolved West Asia conflict—which pulled capital out of Bitcoin.

Sentiment has since settled on the geopolitical front, but moves by major holders cast doubt on whether a sustainable rally is coming. Michael Saylor’s Strategy recently sold $216 million worth of Bitcoin to fund a dividend payment, sharpening that uncertainty. On-chain data offers a cleaner answer.

Bitcoin’s apparent demand signals quiet accumulation Despite the outflows, Bitcoin’s apparent demand on a 30-day basis points to a silent, growing accumulation of the asset.

Since June 3, buyers have scooped up roughly 200,000 Bitcoin, lifting apparent demand from -275,000 to -75,000 Bitcoin. The metric measures the gap between newly issued Bitcoin and the supply that has stayed inactive.

Source: CryptoQuant The rise reflects a degree of accumulation, though it stops short of confirming a bullish market.

Apparent demand still sits in negative territory on the chart. A material run looks unlikely until the metric flips positive, particularly while the upward push toward the positive end stays weak. For now, the trend warrants caution rather than a bullish read, and the market has yet to confirm otherwise.

Structure hints at limited downside Structurally, the king cryptocurrency shows signs that further downside from this level carries a lower probability.

Bitcoin has found a base at the lower band (green line) of the Bollinger Bands, a level that has often played a critical support role once price trades there for a stretch.

The Bollinger Bands have repeatedly flagged rebound points on the chart. Each of the last five instances, circled in red, typically carried price to the blue or upper red line—levels that currently sit at $69,928 and $82,544.

The moving average convergence divergence (MACD) indicator, on the other hand, suggests a rally may not materialize soon, with Bitcoin more likely to tick slightly lower or consolidate further within its present range.

The MACD blue line crossing the orange line—while holding a narrow gap—implies Bitcoin keeps trading in the direction it currently sits, between $58,000 and $63,000, before any surge materializes. It also suggests the odds of an extreme plunge remain slim.

Bitcoin season index and exchange reserves stay calm The market has not entered a Bitcoin season, the euphoric stretch where the asset prints fresh local highs and potentially tests an all-time high.

The index tracking this currently reads 52, lending modest support to the view that select altcoins are drawing renewed capital flow.

Source: CryptoQuant Bitcoin is likely to meet lighter selling pressure as it stands, given the overall decline in supply held on exchange reserves. That availability has dropped from 2.715 million Bitcoin to roughly 2.707 million on the chart.

For now, capital movement points to settled sentiment, and Bitcoin looks set to stay calm as the gradual decline tendency holds steady.

Final Summary Bitcoin remains range-bound, with on-chain data pointing to accumulation but not a confirmed bullish reversal. Apparent demand is improving as buyers accumulate BTC, though the metric remains negative, warranting caution.

Michael Saylor spotlighted Strategy’s BTC Breakeven ARR on Tuesday, July 7. He argued Bitcoin (BTC) only needs 3.3% yearly growth to fund the firm’s preferred dividends from capital gains indefinitely.

The metric divides annual preferred dividend obligations, now roughly $1.76 billion by company figures, by the value of the corporate Bitcoin reserve. Saylor called it one of the most misunderstood numbers attached to Strategy (formerly MicroStrategy).

What BTC Breakeven ARR Means for MicroStrategyStrategy reports holding 843,775 BTC, worth roughly $53.8 billion with Bitcoin trading near $63,603, and the stack keeps growing. The company disclosed 818,334 BTC in its May earnings release, meaning it added over 25,000 coins through a drawdown.

Saylor, the company’s founder and executive chairman, made the case in a Tuesday post on X (Twitter).

“One of the most misunderstood $MSTR metrics is BTC Breakeven ARR. If BTC appreciates faster than 3.3% over time, BTC capital gains can fund $STRC dividends indefinitely.”

A companion chart from Strategy illustrates the trade-off. At zero Bitcoin growth, the reserve plus a $2.55 billion cash buffer covers about 31 years of payments, per the company’s dashboard. The buffer alone funds roughly 17 months.

BTC capital gains fund STRC credit dividends. Source: MicroStrategyThe pitch leans on a real track record. MicroStrategy has paid 23 consecutive preferred distributions totaling over $693 million since early 2025, per its Q1 release.

Critics Question the Bitcoin Dividend MathThe model assumes obligations stop compounding, and so far, they have not. Preferred dividends hit $229.5 million in the first quarter of 2026, up from $10.6 million a year earlier. Preferred equity outstanding has swelled past $13.5 billion.

Skeptics also doubt the funding side. JPMorgan recently warned that Strategy’s Bitcoin sales policy could add up to $1.25 billion in sell pressure. On-chain data already pointed to a new Bitcoin sale of 491 BTC on July 1, which was later confirmed to be 7x bigger.

Meanwhile, STRC paid an 11.5% annualized rate in May yet trades below its $100 par target. Preferred holders still price in risk despite the low breakeven hurdle.

STRC Price. Source: StrategyWhether 3.3% proves a low bar depends on Bitcoin reclaiming its long-term trend, with the price down nearly 49% from its October peak.

However, coming payments may reveal how much of the burden falls on BTC sales rather than capital gains.

Bitcoin financial services platform Strike has launched a “volatility-proof” Bitcoin-backed loan that eliminates margin calls and forced liquidations amid the depths of a bear market, but only for those who can pay on time and handle a 14% interest rate.

In an announcement on Tuesday, Strike CEO Jack Mallers said the offering came in response to broad customer feedback on Strike’s first Bitcoin loan product, which launched in May 2025 and triggered many liquidations during a timeframe in which Bitcoin (BTC) dropped 54% from peak to trough.

“No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn't move,” Strike CEO Jack Mallers said of the new Bitcoin loan product. The trade-off is an expensive interest rate, a shorter six-month loan term, and an obligation to pay on time to avoid liquidation, Mallers said.

Strike’s Jack Mallers is presenting the new Bitcoin-backed loan product. Source: Jack Mallers

The Bitcoin industry has spent the better part of a decade racing to build financial products that expand Bitcoin's use case beyond a savings technology. A report in June from crypto lending platform Ledn, however, found that while 88% of surveyed crypto investors said they would consider a crypto-backed loan, only 14% use them.

Ledn said confidence in crypto-lending products and market volatility are among the main reasons for this 6-to-1 “crypto collateral gap” that has slowed adoption.

Volatility has been one of the biggest obstacles behind that push, with Bitcoin dropping 30% or more in 10 of the past 12 years, while also experiencing a 50% or more drawdown four times since 2014, Mallers noted.

Other crypto market participants offering Bitcoin-backed loans are Binance, Coinbase, Nexo and Xapo Bank.

Strike charges double-digit interestThe maximum initial loan-to-value ratio for the volatility-proof loans is 45%, meaning that a customer who puts up $100,000 in Bitcoin as collateral can borrow up to $45,000, while the annual percentage rate (APR) is also 2.95 percentage points higher than Strike’s standard loan product.

“The secret sauce is that we’re taking the extra charge that we’re giving you guys and we’re putting it on extra hedges in the market to protect all of us.”Strike’s standard Bitcoin loans charge an annual percentage rate between 7.75% and 11.25%, meaning the volatility-proof products could carry interest between 10.7% and 14.2%. 

"If you're OK with a slightly shorter term and a little bit higher of a fee, there is no price move that can liquidate you," Mallers said.

Over the past year, Bitcoin has fallen 54% from its all-time high of $126,080 in October to $58,190 on June 25.

Bitcoin investor Fred Krueger said the loan product "could eliminate one of Bitcoin's biggest structural problems: forced selling during market crashes." 

“Instead of volatility causing automatic liquidations, defaults would be driven by borrowers' inability to service debt rather than by temporary price swings," he said.

“Great product for those who need near-term liquidity and don’t want to risk liquidation,” added Vibes Capital Management executive chairman Rob Topping, though he also acknowledged the 14% APR was expensive. 

Customers must pay up or face consequencesIf a client misses a payment, they have 10 days to make the payment or contact Strike to explain their financial situation, Mallers said.

Failing to pay after that 10-day period may mean Strike starts liquidating their Bitcoin to cover the overdue amount, Mallers warned.

“If we don’t hear from you for a few weeks, then I may have no choice but to sell off some of the Bitcoin because it seems like you’re doing a hit-and-run.”“That’s why we call it ‘volatility-proof,’ not ‘liquidation-proof,’” Mallers added.

The Bitcoin loans are offered in most US states and can be taken out in both personal and business names. They can be used for new loans, refinancing or consolidating.

While the minimum loan amount varies from state to state, the minimum loan offered through personal loans is $10,000, while businesses in certain states can access loans as low as $5,000.

Features: Bitcoin miners are pivoting to AI, so why is the hashrate near ATHs?

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Prediction market platform Polymarket has announced support for instant, self-custodial deposits via the Bitcoin Lightning Network, with the new feature backed by the Spark Protocol. Compared to prior on-chain deposit methods that required waiting for 3 to 6 block confirmations and took 10 to 60 minutes, the new solution delivers near-instant settlement while lowering deposit barriers and transaction costs. According to details, Spark can conduct checks for double-spend risks, transaction fees, and Replace-by-Fee (RBF) at the time of transaction broadcast, enabling "zero-confirmation" posting. It also supports on-chain, Lightning Network, and stablecoin payment rails, removing the need for the platform to operate its own Lightning Network nodes. Polymarket noted that this step will further boost Bitcoin users' capital efficiency and strengthen its competitiveness against rival Kalshi.

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Why crypto traders are watching the Gulf During a May 2026 escalation in the same regional conflict, Bitcoin dropped below $73,000. Liquidations tied to that move totaled $1 billion as traders caught on the wrong side of leveraged positions got wiped out in a compressed timeframe.

The June 2 interception event did not produce an immediate, documented move in crypto markets. But the pattern established over the prior months is clear: major escalation events in the Iran conflict have corresponded with Bitcoin price drops and significant liquidation cascades.

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For crypto specifically, traders running leveraged long positions on Bitcoin or other major assets should be pricing in the possibility of additional sharp drawdowns if the conflict escalates further. The May liquidation event, totaling $1 billion, demonstrated how quickly an adverse geopolitical headline can cascade through a market where leverage is common and stop-loss clusters are tight.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Iran’s Islamic Revolutionary Guard Corps shot down a US MQ-9 Reaper drone over Jam County in Bushehr Province, and crypto markets responded the way they always do when geopolitical risk spikes: violently and without mercy.

Bitcoin fell below $73,000 in the immediate aftermath, while roughly $1 billion in liquidations swept across cryptocurrency exchanges. The vast majority of those liquidations hit leveraged long positions, meaning traders betting on continued upside got caught flat-footed by a military escalation thousands of miles from any blockchain node.

What happened in Iranian airspace The IRGC confirmed the shootdown on June 9-10, citing what it called “precise intelligence monitoring” as the basis for engaging the American drone. The MQ-9 Reaper carries a price tag of approximately $32 million per unit.

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The incident fits into a broader pattern of aerial confrontations between the US and Iran throughout 2026, with multiple reported drone encounters this year alone. Iran has a history of intercepting American unmanned aircraft, most notably the downing of a US RQ-4 Global Hawk back in June 2019, an incident that nearly triggered a military response from the Trump administration at the time.

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Why crypto markets care about a drone over Bushehr When Bitcoin moves against leveraged bets sharply enough, exchanges automatically close positions to prevent further losses. That forced selling creates a cascade effect, pushing prices down further, which triggers more liquidations, which pushes prices down further. The nearly $1 billion in liquidations tells you exactly how many market participants were positioned for calm seas when a storm rolled in.

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The liquidation data itself is worth monitoring, because the $1 billion figure suggests significant leverage had built up in the system, and clearing that out could actually create a healthier market structure going forward if no further escalation occurs.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

New Hampshire is taking another big step toward using Bitcoin in public finance. On Wednesday, the state’s Governor and Executive Council will hold a public hearing . They will decide whether to approve a plan for up to $100 million in Bitcoin-backed bonds.

If approved, the plan would move forward as one of the first municipal bond projects in the US linked to Bitcoin.

What Is the Plan?The bonds would help finance private Bitcoin purchases through a company connected to Bitcoin miner CleanSpark. The state would not borrow the money itself. Instead, it would act as a middleman by issuing the bonds. Meanwhile, the private borrower is responsible for paying investors back.

State officials say this means taxpayer money is not at risk.

Governor Kelly Ayotte has called the idea a way to attract investment. Additionally, it would make New Hampshire a leader in digital finance without using public funds.

Granite Staters pay way too much for electricity, and it’s unacceptable that utilities would attempt to block relief after overcharging for more than a decade.

New Hampshire joined fellow New England states in calling for the return of $1.5 billion to ratepayers, including $150… pic.twitter.com/3DyjjlmiiN

— Governor Kelly Ayotte (@KellyAyotte) July 6, 2026 Why It MattersNew Hampshire has been one of the most crypto-friendly states in the US. In 2025, it became the first state to create a strategic Bitcoin reserve. This allows the government to invest a small portion of public funds in large digital assets like Bitcoin.

The new bond proposal is another move that could strengthen the state’s position in the crypto industry.

But There Are RisksNot everyone is convinced the idea is a good one.

Financial experts warn that Bitcoin’s price can change very quickly. If the value of the Bitcoin used as collateral drops too much, around 12.5% from the required level, the bonds could be forced into early liquidation.

Moody’s has also given the proposed bonds a Ba2 rating. This rating is considered speculative and carries higher credit risk than investment-grade bonds.

Finance professor David Krause said the project could be a useful experiment. However, it may not be practical as a long-term public financing tool because of Bitcoin’s volatility.

Looking AheadThe hearing is expected to be the final major government step before the bonds can be issued. While approval seems likely, the real challenge will come after launch. The project’s success will depend heavily on Bitcoin’s price and market conditions.

If the plan moves forward, New Hampshire could set an example for other US states. Other states are exploring new ways to use digital assets in public finance.

Story Ends Here

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New Hampshire is about to do something no state has ever done: put Bitcoin behind a municipal bond. The state’s lawmakers and Executive Council are set to review a $100 million Bitcoin-backed bond issuance at a public hearing on July 8, 2026, a move that could fundamentally reshape how governments interact with digital assets.

The hearing will take place before Governor Kelly Ayotte and the five-member Executive Council, representing the final approval hurdle after the New Hampshire Business Finance Authority board gave its endorsement back in November 2025. If this gets the green light, it becomes the world’s first Bitcoin-backed municipal bond.

How the bond actually works The bonds will be secured by $160 million worth of Bitcoin collateral, creating a 160% over-collateralization ratio. The bond includes a mandatory liquidation clause: if the Bitcoin coverage ratio drops below 140%, the collateral gets liquidated automatically.

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The proceeds from the bond will finance Bitcoin acquisitions by CleanSpark, a publicly traded Bitcoin mining company. BitGo, one of the largest digital asset custodians in the industry, will handle custody of the collateral. The bond carries a 2029 maturity date.

Moody’s has assigned a provisional Ba2 rating to the bond. That’s below investment grade, sitting in the upper range of what’s commonly called “junk” territory. The rating agency’s caution reflects Bitcoin’s price swings, which could trigger that liquidation mechanism during a downturn.

The players and the politics The deal involves a handful of key partners beyond CleanSpark and BitGo. Wave Digital Assets and Rosemawr Management are facilitating the transaction, with law firm Orrick providing legal counsel. The New Hampshire BFA itself earns fees from the arrangement, which will flow into a newly created Bitcoin Economic Development Fund.

Governor Ayotte has positioned the initiative as a way to put New Hampshire at the forefront of digital finance innovation, emphasizing that the structure eliminates taxpayer exposure. The July 8 hearing is a public proceeding, meaning residents and stakeholders can weigh in before the Executive Council makes its decision. The BFA board’s November 2025 approval was a necessary prerequisite, but the Executive Council holds final authority over whether the bonds actually get issued.

What this means for investors and the broader market Moody’s Ba2 rating signals that the credit markets aren’t ready to treat these bonds like traditional munis. Institutional investors who are restricted to investment-grade holdings won’t be able to touch them, limiting the buyer pool to funds and individuals comfortable with speculative-grade debt.

The over-collateralization structure and automatic liquidation trigger at 140% address the most direct objection to crypto-backed debt: what happens when the collateral crashes. The mandatory nature of the liquidation removes human judgment from the equation during periods of market stress. Municipal bonds represent a $4 trillion market in the US, making even a $100 million issuance a symbolic entry point.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Stablecoins are, undoubtedly, the main operating assets in digital finance. Visa’s stablecoin analytics dashboard showed more than $51 trillion in total transaction volume over the past 12 months.

Meanwhile, TRM Labs estimated stablecoins at 30% of all on-chain crypto transaction volume in 2025. This one asset category carried almost one-third of tracked crypto value movement, while Bitcoin and all other altcoins together accounted for the remaining share.

Almost every blockchain activity today runs through these dollar-pegged assets, whether it’s trading, treasury movement, or cross-border settlement. 

So, stablecoins are arguably the most explosive asset class in terms of growth. What’s the next phase? As with any financial product, its adoption. And that can only happen through local-currency settlement, regulated access, and payment use cases tied to national economies. 

In the UAE, this is already happening.  

Not enough people are paying attention to what just happened in the UAE.$DDSC – a regulated, dirham-backed stablecoin – is now live on ADI Chain, approved by the Central Bank of the UAE.

Every transaction on ADI Chain needs $ADI for gas.

Now think about the UAE processing… https://t.co/OOtC1sS7vJ

— Sjuul | AltCryptoGems (@AltCryptoGems) February 12, 2026 UAE’s Financial Future is Running on Stablecoins Chainalysis estimated more than $56 billion in crypto value received by the country during its 2024 to 2025 reporting window, up 33% year over year, with institutional transfers driving a large share of activity and merchant services expanding across smaller retail transaction sizes.

On July 3, 2026, DDSC, the UAE dirham-backed stablecoin developed by International Holding Company, First Abu Dhabi Bank, and Sirius International Holding, received approval from the Central Bank of the UAE to partner with selected exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority. 

The approval gives DDSC a regulated route from institutional settlement into wider market access, allowing users to access, buy, and redeem a dirham-backed stablecoin through compliant exchange channels.

UAE Stablecoin Adoption Stats A Dirham Stablecoin for a Dollar-Dominated Market Most stablecoin liquidity today remains tied to the US dollar. This gives global crypto markets deep liquidity and a familiar settlement currency, while domestic payment use cases still depend on conversion, exchange access, and banking relationships.

DDSC brings a local-currency option into the UAE’s own monetary environment. Pegged 1:1 to the UAE dirham and settled on ADI Chain, the token gives users a digital asset denominated in AED instead of forcing local commerce into dollar units.

This distinction is important for payment adoption because UAE shoppers, merchants, suppliers, and treasury teams all price everyday obligations in dirhams.

A stable asset in AED can keep pricing and settlement aligned while adding blockchain settlement speed, programmable payments, and 24/7 availability.

The UAE has already built much of the regulatory base around this category: 

The Central Bank’s Payment Token Services Regulation created a framework for stablecoin-related services, including issuance, conversion, custody and transfer.  VARA maintains a public register of licensed Virtual Asset Service Providers in Dubai, including platforms authorized for exchange services. DDSC connects these two regulatory channels. Central Bank approval covers the payment-token side, while access through selected VARA-regulated platforms gives users a familiar exchange route into the asset.

From Treasury Flows to Everyday Payments DDSC entered the market with an institutional focus. Since launch, IHC says it has processed more than AED 150 million in transactions. In May 2026, IHC executed an AED 110 million DDSC transaction on ADI Chain, presented as one of the region’s largest disclosed stablecoin transactions.

DDSC is more than able to support high-value settlement. The new approval, therefore, adds distribution, giving individuals, merchants, and businesses a route to acquire and redeem the asset through regulated exchange platforms.

DDSC is left with a more complete adoption path. Large transactions can prove settlement capacity, while exchange availability can bring the asset into daily commercial use. The first phase demonstrated settlement readiness, and the next phase focuses on availability through licensed venues.

VARA-Regulated Platforms and Compliance Control The approval applies to selected exchange platforms regulated by VARA, giving DDSC a controlled rollout through licensed channels and keeping access aligned with the UAE’s compliance framework.

For context, VARA oversees virtual asset activity in and from Dubai, excluding the Dubai International Financial Centre. Its public register lists licensed Virtual Asset Service Providers and the activities each provider is authorized to offer, including exchange services, broker-dealer services, custody, lending and investment management.

Indeed, stablecoin payments touch redemption confidence, merchant settlement, AML controls, custody, user access, and financial institution requirements. Exchange access through regulated platforms helps combine these requirements within a market structure users already understand.

DDSC’s rollout also shows how the UAE is separating regulated payment tokens from general crypto assets. Bitcoin, Ethereum, and volatile tokens continue to serve trading and investment use cases, while stablecoins such as DDSC are designed around payment value, redemption, and settlement.

This gives businesses a more suitable instrument for pricing, invoices, supplier transfers and customer payments.

A View Toward Merchant and Business Payments IHC said the stablecoin can support everyday payments once available through selected regulated platforms, including shoppers paying merchants, businesses settling with suppliers and transfers between people.

Retail customers want fast payments, merchants want predictable settlement, and businesses want lower operational friction across invoices, treasury, and cross-border counterparties. There is no doubt that stablecoins can support these flows when they combine price stability, reliable redemption, and regulatory acceptance.

DDSC’s AED designation gives it a local advantage. A UAE merchant accepting a dollar stablecoin still faces accounting and FX conversion work. A dirham-backed token fits local pricing more naturally, while on-chain settlement can reduce delays linked to banking hours and intermediary processing.

A Local Currency Asset for the UAE Digital Economy The UAE has spent years building a regulated digital asset environment across Abu Dhabi, Dubai and federal authorities. DDSC adds a local-currency payment asset to this environment, backed by major UAE institutions and aligned with the Central Bank’s payment-token framework.

DDSC’s growth ultimately depends on platform availability, merchant acceptance, redemption experience and business integration. 

Even so, its Central Bank approval to partner with selected VARA-regulated exchange platforms brings the UAE dirham further into on-chain finance and gives the country’s digital asset market a regulated payment token built for domestic use and future regional settlement.

Tom Lee’s Ethereum conviction heading into Q3 is starting to look like a well-timed move.

For context, BitMine Immersion recently added another 42,197 ETH, taking its holdings to more than 5.74 million ETH.

On the other hand, Michael Saylor’s Strategy sold 3,588 BTC, setting up an interesting ETH vs. BTC treasury debate as Q3 gets underway.

Notably, this debate isn’t just playing out on social media. 

As the chart below shows, the ETH/BTC ratio has opened Q3 with a nearly 5% rally after three straight losing quarters. That suggests ETH is beginning to regain relative strength against BTC, supporting Tom Lee’s decision to keep accumulating Ethereum. 

Source: TradingView (ETH/BTC) However, Tom Lee’s conviction isn’t based on hope alone. 

In a recent post on X, BitMine said the improving odds of the CLARITY Act are the main reason behind its growing ETH position.

According to the company, prediction markets now put the odds of the CLARITY Act passing at around 50%, the highest level in two weeks. BitMine argues that regulatory clarity would be a major catalyst for Ethereum, as smart contract platforms become more integrated into everyday finance.

So, from BitMine’s perspective, the recent rise in the ETH/BTC ratio simply reflects the market assigning a higher probability to the CLARITY Act becoming law.

Naturally, the bigger question now is whether that repricing has further to run. Can ETH continue outperforming BTC through the rest of Q3, or is BMNR’s bullish Ethereum [ETH] thesis getting ahead of the fundamentals?

Can Ethereum stay ahead as Bitcoin regains momentum?  BitMine’s ETH accumulation is built around Ethereum’s long-term DeFi story. 

But the on-chain data suggests that the narrative hasn’t fully played out yet.

According to DeFiLlama, Ethereum’s DeFi activity remains well below previous highs. Total value locked (TVL) is still under $40 billion, compared with around $89-90 billion before the October correction.

At the same time, Ethereum has started Q3 with its stablecoin supply down by more than $5 billion from roughly $160 billion at the end of June.

In other words, the market is pricing in the CLARITY Act before Ethereum’s on-chain fundamentals have caught up.

Adding to the challenge, BlackRock has resumed buying Bitcoin, recording more than $209 million in net inflows after 11 straight days of selling. The move signals renewed confidence in BTC at a time when ETH’s on-chain fundamentals are still lagging.

Source: SoSoValue Against this backdrop, Tom Lee’s ETH thesis looks increasingly ambitious. 

Despite Strategy selling BTC, Bitcoin has continued to hold around $64k, suggesting BlackRock’s buying was enough to absorb the supply. That leaves the ETH vs. BTC treasury debate finely balanced, with Ethereum backed by policy optimism while Bitcoin continues to benefit from strong institutional demand. 

As a result, the edge still leans toward Bitcoin.

ETH/BTC has rallied on CLARITY “expectation”, but Ethereum’s on-chain activity hasn’t followed through. Bitcoin, meanwhile, is seeing fresh institutional inflows. Unless Ethereum’s DeFi metrics begin to recover, sustaining ETH/BTC’s early Q3 momentum could prove difficult.

Final Summary ETH/BTC is rallying on CLARITY Act optimism, but Ethereum’s DeFi activity hasn’t caught up yet. BlackRock is buying BTC again, giving Bitcoin stronger support and making it harder for ETH/BTC to keep outperforming in Q3.