Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch.

Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch.

Bitcoin price traded near $62,800 on Monday after slipping about 1.5% over 24 hours, according to crypto.news market data. 

The move kept the largest crypto above the $60,000 support area, even as the latest U.S.-Iran strikes triggered sharper moves across oil, stocks, bonds and gold. Ether traded near $1,779, XRP stood around $1.08 and Solana changed hands near $76.40. 

Crypto prices weakened, but they avoided the steep losses seen in several Asian equity markets. Bitcoin’s limited reaction contrasted with its sharp selloffs during earlier rounds of conflict this year.

Brent crude climbed more than 4% to about $79.31 a barrel as traders assessed threats to shipping through the Strait of Hormuz. Gold fell about 1.5% toward $4,060 as higher Treasury yields reduced demand for assets that pay no interest. 

Japan’s Nikkei dropped 2.2%, while South Korea’s KOSPI lost 7.6%. The two-year U.S. Treasury yield reached its highest level since early 2025 as markets raised expectations for tighter Federal Reserve policy.

U.S.-Iran attacks revive oil and inflation concerns

The latest market moves followed another exchange of attacks between the United States and Iran. U.S. Central Command said its forces struck dozens of Iranian military sites after Iran attacked a container ship near the Strait of Hormuz. 

Iran again claimed control over the waterway, while U.S. officials said the route remained open. Those statements remain disputed, and shipping data showed traffic through the strait stayed limited.

The route carried about one-fifth of global oil and liquefied natural gas flows before the war, making any disruption important for energy prices. Higher oil can raise transport and production costs, which may keep inflation elevated. 

Minutes from the Federal Reserve’s June meeting showed that a few officials saw a case for raising rates, although they supported holding the target range at 3.5% to 3.75%. Officials also listed Middle East conflict and energy prices among the risks that could keep inflation high.

Bitcoin ETF inflows provide support after eight weak weeks

U.S. spot Bitcoin ETFs recorded $197 million in net inflows from July 6 through July 10, ending eight straight weeks of withdrawals, according to SoSoValue data. The reversal followed $527 million in outflows during the shortened week ending July 2. 

Source: SoSoValue

BlackRock’s IBIT led the latest weekly inflows with about $292 million, while Grayscale’s smaller Bitcoin trust added roughly $95 million. GBTC recorded about $108 million in withdrawals, leaving demand uneven across individual funds.

As crypto.news previously reported, Bitcoin ETF selling had removed a key source of demand during the June decline. The return to weekly inflows supports the recovery from the $58,000 to $60,000 area, but the total remains modest compared with the money withdrawn during the previous eight weeks. 

Bitcoin also failed to hold above $65,000 after several tests, showing that fund inflows have not yet produced a clear breakout.

Bitcoin indicators improve but $65,000 remains key

Bitcoin’s recent structure remains sideways to slightly positive after the late-June bottom. The price has stayed above the main support zone near $60,000, while sellers continue to defend the area around $65,000. 

The relative strength index stands near 47, close to its moving average and below the neutral 50 level. That reading shows that buying pressure has improved from oversold conditions but has not taken control of the market.

The moving average convergence divergence indicator also shows an early recovery. Its histogram remains positive, and the MACD line sits above the signal line. Both lines remain below zero, which means the wider trend has not turned firmly positive. 

A daily close above $65,000 would improve the technical setup and open the way toward higher resistance. A fall below $60,000 would weaken the recovery and return attention to the June lows.

In addition, Crypto analyst Crypto Patel said exchange-to-exchange Bitcoin flows fell 91% in 30 days, from 1,800 BTC on June 14 to 166 BTC on July 12. He linked the decline to European users moving away from Binance after the exchange lost access to regulated services in the European Union under MiCA. 

He called the move “the Bitcoin signal almost everyone missed,” but the flow figures and the claimed direct link have not received independent confirmation.

Binance suspended several services for European Union users on July 1 after failing to secure a MiCA license before the deadline. The exchange kept withdrawals available and said it planned to seek authorization in another member state. 

Patel said flows above 800 to 1,000 BTC could show that European liquidity had settled on new venues. For now, Bitcoin remains inside its recent range while traders watch ETF demand, exchange liquidity, oil prices and the next Federal Reserve decision.

Democratic senators have renewed calls for Senate hearings into President Donald Trump’s cryptocurrency business interests after his latest financial disclosure reported about $1.4 billion in crypto-related income as lawmakers prepare to vote on the CLARITY Act.

A notice released on July 10 by the Democratic ranking members of five U.S. Senate committees and subcommittees called for congressional hearings to examine what they described as the national security implications of Trump’s cryptocurrency holdings.

The lawmakers said the president’s 2025 financial disclosure, which reported roughly $1.4 billion in earnings linked to ventures including his memecoin and the Trump family-backed World Liberty Financial platform, has intensified concerns over Congress advancing digital asset legislation while Trump maintains significant financial interests in the sector.

“We call on our respective Committees to hold hearings to investigate the national security implications of President Trump’s cryptocurrency holdings, including the influence of the UAE or unknown third parties on President Trump’s actions,” the senators wrote in the notice.

The statement comes as the Senate prepares to consider the Digital Asset Market Clarity (CLARITY) Act later this month. The legislation is expected to establish a regulatory framework for the U.S. crypto market, though negotiations over its final language are still underway.

Ethics concerns continue to shape CLARITY debate

Among the signatories were Senators Elizabeth Warren, Richard Blumenthal, Gary Peters, Dick Durbin, and Ron Wyden, who have previously argued that Trump’s crypto businesses create potential conflicts as Congress debates legislation affecting the industry.

Earlier this month, the same group pointed to Trump’s financial disclosure and said unidentified third parties continued to hold interests in the Trump family’s World Liberty Financial project. They argued those business ties should receive additional scrutiny before lawmakers approve the CLARITY Act.

Separately, Warren has urged Senate negotiators to add ethics provisions that would bar the president, vice president, members of Congress, senior administration officials and their immediate families from profiting from cryptocurrency ventures while in office. She has previously described Trump’s crypto businesses as a conflict of interest that Congress should address through the legislation.

Republicans hold the Senate majority, leaving Democrats unable to convene hearings without Republican support. Still, Senate rules require 60 votes to overcome a filibuster, giving Democratic lawmakers leverage as Republicans seek enough bipartisan backing to advance the CLARITY Act.

Some Republicans continue to press ahead despite the criticism. Senator Cynthia Lummis has maintained support for moving the legislation forward, while Representative French Hill, who chairs the House Financial Services Committee and helped advance the bill through the House in 2025, has acknowledged that Trump’s crypto ties have made the legislative process more difficult.

The Senate is expected to take up a consolidated version of the bill that combines proposals from the Banking and Agriculture committees. Previous reporting has indicated the updated draft includes stronger consumer protection measures, while disputes over ethics rules, decentralized finance provisions and protections for non-custodial blockchain developers remain unresolved.

CBDC ban set to take effect without Trump’s signature

Hours after the Democratic notice was released, a separate crypto-related measure was expected to become law without presidential approval.

The 21st Century ROAD to Housing Act, which contains a provision prohibiting the Federal Reserve from issuing or creating a U.S. central bank digital currency until Dec. 31, 2030, is set to take effect automatically after Trump declined to sign the legislation and did not issue a veto.

Trump previously said on Truth Social that he was withholding his signature because the Senate had not yet passed the Save America Act, an election bill he has repeatedly urged lawmakers to approve. A White House official had also confirmed earlier that the president did not intend to veto the housing legislation, allowing it to become law once the constitutional review period expired.

The CBDC restriction builds on Trump’s earlier executive order directing federal agencies not to pursue the creation of a U.S. central bank digital currency, adding another crypto policy measure as Congress continues debating the CLARITY Act and ethics concerns surrounding the president’s digital asset holdings.

John Deaton has credited 75,000 XRP holders with helping Ripple executives resist pressure during the company’s legal fight with the U.S. Securities and Exchange Commission. 

In a July 12 post, the crypto lawyer praised chief executive Brad Garlinghouse and executive chairman Chris Larsen for refusing to settle early. He also accused SEC lawyers of using tactics to force a deal. His comments followed Garlinghouse’s account that Ripple considered closing after the agency filed its complaint in December 2020.

Deaton responded to comments from Ripple co-founder David Schwartz, who said outside lawyers once viewed the company as “unsavable.” Schwartz suggested that naming Garlinghouse and Larsen personally may have encouraged them to protect themselves through separate settlements. 

That account describes internal advice and personal views. It does not establish the SEC’s motive for bringing claims against both executives. Garlinghouse has said Ripple instead spent about $150 million defending the business and protecting hundreds of jobs.

XRP holders entered the case as amici

Deaton entered the case after organizing XRP holders who opposed the SEC’s broad treatment of the token. A federal judge granted him permission to participate as an amicus, allowing him to present arguments from holders who bought or used XRP in different ways. 

His group argued that secondary-market transactions should not automatically receive the same legal treatment as Ripple’s institutional sales. The group also submitted declarations about purchase reasons and uses unrelated to investment.

As crypto.news previously reported, Ripple deputy general counsel Deborah McCrimmon later said community members supplied research and records that saved the company millions of dollars in legal costs. 

Deaton has also said holder declarations helped show that many buyers did not rely on Ripple’s promises. The court did not rule that the 75,000 holders alone decided the case. Their role formed one part of a larger record involving sales contracts, marketing and buyer expectations.

Court blocked the SEC’s broad records request

Deaton also returned to the SEC’s attempt to obtain years of personal financial records from Garlinghouse and Larsen. In 2021, a magistrate judge blocked subpoenas seeking broad banking information after finding that the regulator had not shown the records were relevant. The executives had already agreed to provide records tied to their XRP transactions, according to reports from the case.

His post called the requests an “intimidation tactic” and described some SEC lawyers as “ethically challenged.” Those phrases reflect Deaton’s allegations, not court findings in the Ripple action. 

He also referred to sanctions against the SEC in the separate Debt Box case. A Utah judge found that agency lawyers made misleading statements there, but that ruling did not decide misconduct claims in Ripple’s case.

Final judgment remains in force

The Ripple lawsuit produced a divided result. Judge Analisa Torres ruled in 2023 that Ripple’s programmatic XRP sales on public exchanges did not qualify as securities transactions under the facts presented. 

She ruled that institutional sales violated federal securities law. The SEC later dismissed its remaining claims against Garlinghouse and Larsen before trial, ending their personal exposure in that action.

The court imposed a $125 million civil penalty and an injunction against Ripple in 2024. Ripple and the SEC later sought a lower penalty and removal of the injunction, but Torres rejected that request. 

Both sides dismissed their appeals in August 2025, leaving the final judgment intact. Deaton’s description of an overall “win” therefore reflects a favorable reading of a mixed legal outcome.

Ross Gerber has renewed his criticism of Strategy founder Michael Saylor, saying the company’s financing model is hurting Bitcoin. 

The chief executive of Gerber Kawasaki made the claim after Saylor posted an AI-generated video titled “The Right to Bear Arms.” Gerber replied that Saylor was “destroying Bitcoin,” but he did not provide data showing that Strategy alone caused the market’s recent losses.

The latest remark follows Gerber’s earlier attacks on Strategy’s treasury plan. In June, he accused Saylor of creating a “negative cycle” by selling Bitcoin after promoting a long-term holding message. He also used the term “rug pull” for the company’s actions. Those comments represent Gerber’s view. Public filings do not describe Strategy’s sales as fraud or market manipulation.

Criticism centers on leverage and value creation

Gerber’s main complaint concerns the use of financial markets to increase Bitcoin exposure. Strategy has issued common shares, preferred stock and convertible notes to raise funds. It has used much of that capital to buy Bitcoin. Gerber argues that this process adds obligations without creating an operating asset that produces cash.

He also says investors can gain Bitcoin exposure through regulated exchange-traded funds instead of buying Strategy shares. Gerber has promoted active ETFs as a way to manage capital gains. 

Tax outcomes vary by fund structure and investor circumstances, so his statement does not apply equally to every holder. Strategy says its model combines Bitcoin reserves with equity and credit products rather than copying a spot ETF.

Strategy’s Bitcoin sales fuel the dispute

As crypto.news reported, Strategy sold 3,588 BTC for about $216 million between June 29 and July 5. The company used the proceeds to fund dividends on several preferred stock products. After the sale, Strategy held 843,775 BTC and $2.55 billion in dollar reserves. 

The transaction followed a wider plan that allows up to $1.25 billion in Bitcoin sales for liquidity needs. The company sold the coins below its average acquisition cost, according to disclosed figures, adding to debate over whether recurring payments could force more sales during weak markets.

The sale gave Gerber fresh material for his criticism because Saylor had spent years promoting a buy-and-hold approach. However, Strategy had already changed its public position. In May, Saylor said a Bitcoin sale before year-end was “not unlikely.” As previously reported, the company sold 32 BTC in late May, then bought 1,550 BTC and later added another 1,587 BTC.

Strategy supporters reject Gerber’s claims

Supporters reject Gerber’s description of the model. Blockstream chief executive Adam Back said limited Bitcoin sales showed treasury flexibility rather than weak conviction. He argued that Strategy could use part of its reserve to meet investor payments while keeping Bitcoin at the center of its balance sheet. The company remains the largest public corporate holder of Bitcoin despite its recent sales.

Questions remain over how Strategy’s capital structure performs during a prolonged market decline. The company’s enterprise value had fallen below the value of its Bitcoin holdings for the first time. Its preferred products also create recurring dividend needs. 

Thailand’s central bank is tightening its scrutiny of stablecoin activity as part of a broader campaign against money laundering, illicit finance and what officials describe as “gray money” flowing through cash-heavy channels. The Bank of Thailand says it is working alongside the Securities and Exchange Commission to audit high-volume stablecoin transfers—particularly those involving USDT—to uncover suspicious patterns and disrupt illicit funds.

According to local media outlet The Nation, Bank of Thailand Governor Vitai Ratanakorn said the response is designed to be ongoing rather than a one-time intervention. The push comes as stablecoins remain attractive for large cross-border movements due to fast settlement times.

Key takeaways

• Thailand’s Bank of Thailand and the Securities and Exchange Commission plan to audit high-volume stablecoin transactions, with a specific focus on USDT (USDT).
• The surveillance effort targets multiple channels, including cash transactions, currency exchanges and “suspicious stablecoin transactions,” to prevent regulated entities from being used for illicit flows.
• New rules expand compliance obligations for banks across cash networks and currency exchange activity, including source-of-funds declarations for certain high-value cash deals.
• Cash deposit thresholds are also being tightened: deposits above 5 million baht (about $150,000) require full disclosure, and large exchanges of big notes for smaller denominations may be monitored if they lack a clear business rationale.
• The crackdown is set against a backdrop of prior anti-scam measures that resulted in widespread account restrictions in 2025, according to earlier reporting.

Why Thailand is turning attention to stablecoin flows

The Bank of Thailand’s initiative is aimed at identifying illicit financial activity that can be hidden within high-volume transfers. The focus on stablecoins—especially USDt (USDT)—reflects their growing role as a transfer mechanism across borders, where near-instant settlement can make transactions harder to slow down or interrupt through traditional payment monitoring.

Thailand’s authorities are also targeting what they call the “gray economy,” a category that the article describes largely as cash that may have originated from suspicious activities, including scam call centers that have spread across the region. While the piece notes there are no reliable overall figures for the gray economy, it cites reported scam losses of 115 billion THB (about $3.4 billion) in 2025, alongside roughly 173 million scam calls and texts recorded.

For market participants, the implication is clear: even where crypto trading is regulated or legal, stablecoin transfer activity may face increased compliance scrutiny—particularly when transaction behavior resembles laundering patterns or attempted integration of illicit funds into legitimate financial systems.

What Thailand’s surveillance and compliance expansion includes

Beyond stablecoins, the planned measures would extend existing compliance expectations across several financial touchpoints. The reporting says the initiative will expand how commercial banks handle monitoring duties for cash networks, currency exchanges, gold bullion trading and suspicious stablecoin activity.

Among the specific steps highlighted in the article:

• High-value cash transactions would require a source-of-funds declaration.
• Banks and related institutions would monitor large exchanges of major banknotes for smaller denominations when there is no clear business justification.
• Cash deposits exceeding 5 million baht (about $150,000) would require full disclosure.

These provisions matter because they shift compliance from a reactive model—where suspicious activity is addressed only after the fact—to a more structured approach focused on documentation and transaction context. In practice, businesses and individuals moving cash at scale may face added paperwork burdens, while intermediaries may need tighter internal controls to flag unusual flows earlier.

The measures also reinforce a message Thailand has been sending for some time: stablecoin use and broader digital-asset payments do not fall into a completely hands-off category. Even with a thriving domestic market for crypto trading, policy authorities continue to tighten oversight around how digital assets interact with the traditional financial system.

Thailand’s crypto environment: legal trading, tighter rules for payments

The article reiterates that Thailand’s central bank has previously outlawed stablecoin and digital asset payments, even while crypto trading itself remains legal. It also points to ongoing regulatory tightening affecting crypto businesses.

Still, activity is visible. The piece cites CoinGecko data indicating Thailand’s largest exchange, Bitkub, is seeing about $26 million in daily volume. However, it also notes that close to 40% of that volume is attributed to forex, with the USDT/THB trading pair described as the most popular.

This split between legal trading and restricted payments is important for traders and compliance teams. Increased stablecoin monitoring could affect liquidity patterns, exchange volumes, and how firms approach onboarding, transaction monitoring, and internal risk assessments—especially if authorities emphasize stablecoin transfers even when trading itself is permitted.

From anti-scam account freezes to stablecoin audits

Thailand’s stablecoin surveillance drive is landing after a major episode of enforcement actions targeting scams and “mule” accounts. The article references an earlier crackdown in 2025 in which banks reportedly imposed sweeping account restrictions and froze three million bank accounts.

But it also highlights that the operation reportedly ensnared thousands of individuals and legitimate businesses. Media coverage referenced in the article characterized the situation as a “scammer crackdown gone wrong,” emphasizing the risk of overreach when targeting illicit activity.

That background shapes how market participants may interpret the new stablecoin focus. It suggests regulators are trying to improve how they detect harmful activity—potentially by extending scrutiny to structured transfer mechanisms such as stablecoins—while still confronting the real-world challenge of avoiding collateral damage to legitimate users.

At the same time, the article signals that authorities plan to deploy “multiple parallel strategies,” rather than relying on one narrow fix. If implemented carefully, that approach could refine targeting over time; if not, it may again raise friction for compliant users who don’t fit laundering profiles.

For investors, exchanges, and compliance teams, the next question is how Thailand will operationalize this stablecoin auditing—particularly what qualifies as “high-volume” and what transaction behaviors trigger deeper review. Monitoring whether enforcement focuses narrowly on suspected illicit patterns or broadens to capture ordinary stablecoin usage will likely determine how disruptive the policy becomes for legitimate market activity.

The moves priced a single fear, that a wider war keeps oil elevated and forces the Federal Reserve to hold rates higher for longer. Minutes of the Fed’s June meeting show a few policymakers saw a case for raising rates before backing a hold. Gold fell because a higher-for-longer path lifts real yields and dulls the appeal of metal that pays nothing, and bonds fell for the same reason.

But bitcoin sat all of it out. Ether was little changed at about $1,800, up 2% on the week, and the rest of the majors barely moved on the day, with Solana the weakest at $76, down 5% over seven days. XRP held $1.09 and dogecoin sat near $0.07.

The one crypto-relevant thread runs through Korean stocks. SK Hynix shares plunged 12% in Seoul after the chipmaker’s U.S.-listed shares surged 13% on their Friday debut, a reversal that helped drag the Kospi down 7%. That chip trade drove the rally that lifted bitcoin on Friday, and its sharp reversal on Monday still left crypto flat, in either direction.

Bitcoin has now held a tight range through a weekend of strikes, a Monday selloff in every asset that usually reacts to war, and a hawkish repricing of the Fed. That is a marked change for a market that once sold off fast on a single Hormuz headline. It is no longer trading the war at all, taking its direction from dollar liquidity and the chip cycle while oil, gold and rates do the reacting.