Key Highlights

• Ethereum has rallied approximately 10% throughout July, yet underlying demand signals remain subdued
• Binance holdings expanded by 221,000 ETH from late June onward, adding to tradable inventory
• Large holder transaction volumes have fallen to “Whale Left” territory according to CryptoQuant metrics
• Spot Ethereum ETFs in the United States recorded consecutive inflows over four sessions, accumulating $91.5 million
• A decisive move above $1,803 resistance (the 50-day EMA) is necessary for ETH to target $2,400

Ethereum has managed to climb roughly 10% since July began, yet the upward momentum appears increasingly precarious. Evidence from various market indicators suggests buyer participation exists but lacks conviction.

The Net Unrealized Profit/Loss (NUPL) indicator has improved from -0.46 to -0.30, signaling that while holders remain underwater on their positions, losses have contracted somewhat compared to previous levels.

Spot Ethereum exchange-traded funds in the United States experienced their first streak of positive net flows since early May, recording four straight days of capital entry. SoSoValue data confirms these combined inflows reached $91.5 million.

While encouraging on the surface, historical patterns indicate sustained ETF capital influx over extended periods is required to catalyze significant price appreciation. Current activity falls short of that threshold.

Crypto analyst Ash Crypto noted on X that ETH has retreated 6% from recent peaks following rejection at the 50-day moving average. He highlighted critical support zones at $1,670 and $1,500, emphasizing that reclaiming the MA 50 and breaking through $1,850 are essential steps toward reaching $2,400.

Large Holder Activity Contracts

Data from CryptoQuant reveals that average whale transaction size declined from approximately 1,500 ETH per trade in mid-May to roughly 1,000 ETH currently, entering territory the analytics platform designates as “Whale Left.”

This retreat by institutional and high-net-worth participants reduces the volume of substantial orders flowing through markets. The resulting environment leaves pricing more vulnerable to smaller transactions, potentially amplifying near-term price swings.

Addresses containing between 10,000 and 100,000 ETH did absorb approximately 100,000 ETH during the previous week. However, total balances in this cohort have remained essentially unchanged across the past three weeks, indicating accumulation has not intensified.

Growing Supply on Trading Platforms

Binance’s Ethereum reserves expanded from 3.64 million ETH to 3.87 million ETH since late June concluded—a notable addition of 221,000 ETH representing one of the more substantial reserve buildups observed in recent months.

Expanding exchange inventories signal greater availability of ETH for immediate market transactions. While this doesn’t guarantee imminent selling, it introduces additional supply-side pressure into a market already demonstrating fragility.

The Coinbase Premium Index, which measures sentiment among United States-based traders, has recovered from -0.169 to -0.076. Despite improvement, the negative reading indicates American buyers continue transacting at discounts relative to international markets.

ETH currently trades in the $1,740 to $1,777 range, maintaining position above the 20-day EMA situated at $1,714. Open interest in derivatives markets has remained stagnant, suggesting leveraged participants are adopting a wait-and-see approach.

Sen. Ron Wyden has urged Senate leaders to keep legal protections for non-custodial blockchain developers in the CLARITY Act as negotiations over the crypto market structure bill continue.

In a letter sent to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer, Democratic Senator Ron Wyden urged congressional leaders to retain Section 604, known as the Blockchain Regulatory Certainty Act (BRCA), in any future version of the CLARITY Act.

The BRCA, originally introduced by Senators Cynthia Lummis and Ron Wyden earlier this year, has been folded into the CLARITY Act and would clarify that non-custodial software developers are not considered money transmitters under federal law. Wyden remains the bill’s only Democratic cosponsor.

In the letter, Wyden said the provision would allow law enforcement to focus on unlicensed money transmitters while giving software developers legal certainty. He argued that the language aligns with existing policy at the U.S. Department of Justice and the Financial Crimes Enforcement Network instead of creating new exemptions.

“The provision also includes a common-sense exception that any non-custodial developers found to be transferring or using funds originating from illicit activity are not protected,” Wyden wrote, adding that the proposal would ensure bad actors remain accountable while preventing neutral software developers from being treated as financial intermediaries.

Developer protections remain at the centre of Senate talks

Developer liability has remained one of the most disputed parts of the Senate’s market structure bill for months.

In March, Senator Cynthia Lummis dismissed concerns raised by crypto lawyer Jake Chervinsky that Title 3 of the Senate draft could still expose some non-custodial developers to money transmitter rules. Lummis said bipartisan revisions would make the legislation “the strongest protection for DeFi and developers ever enacted” and urged lawmakers to pass the CLARITY Act for those safeguards to take effect.

A month later, Lummis said she was working on additional changes to strengthen protections for non-money transmitting developers while preserving law enforcement’s ability to pursue criminal actors. She also said discussions included clarifying how assistance in illicit activity should be interpreted and whether safe harbour periods should apply to newly launched protocols.

The U.S. Department of Justice has also signalled a similar enforcement approach. Acting Attorney General Todd Blanche previously said developers with no involvement in criminal conduct would not face prosecution, with enforcement focused instead on those directly participating in illegal activity.

Industry groups have backed Section 604, arguing it would reduce legal uncertainty for open-source software developers and discourage blockchain projects from moving overseas. At the same time, some law enforcement organisations and Catholic leaders have warned the measure could weaken efforts to investigate human trafficking and other financial crimes.

Senate negotiators are also still trying to resolve disagreements over ethics rules tied to public officials with digital asset interests. Previous negotiations have linked progress on the legislation to bipartisan agreement on conflict-of-interest provisions, while separate discussions continue over stablecoin yield rules that have divided banks and crypto companies.

With Congress expected to leave Washington in August and the November elections approaching, lawmakers face a narrowing window to advance the CLARITY Act through the Senate.

TLDR

• Block reached a $45 million agreement with 46 state regulators to resolve allegations of inadequate fraud protection
• State authorities claim Cash App deceived consumers by advertising bank-level security features it didn’t provide
• Investigators found Block prioritized marketing expansion over security improvements as fraud incidents increased
• The settlement requires Block to implement round-the-clock customer service with live representatives accessible for a minimum of 13.5 hours each day
• Block’s stock price dropped approximately 1.5% following the announcement; the company maintains its innocence

Block Inc. has reached a $45 million agreement with 46 state regulators to resolve accusations that its Cash App platform failed to adequately safeguard customers from fraudulent activity. Shares of Block (XYZ) declined approximately 1.5% following the announcement.

Block, Inc., XYZ

The resolution stems from a multi-state probe conducted by attorneys general who determined that Cash App promoted itself as providing security comparable to established banking institutions, despite lacking those actual safeguards.

New York’s Attorney General Letitia James stated clearly: “For years, Cash App users lost money to costly scams because Block cared more about profits than protecting its users.”

State investigators discovered that Cash App operated without a reliable fraud monitoring system and failed to maintain a functional customer support line for reporting fraudulent transactions. When customers found themselves locked out of accounts, many fell victim to fraudulent support numbers operated by scammers.

Regulators also noted that Cash App permitted account creation without requiring a Social Security number or birth date verification, while allowing unlimited account creation per individual — circumstances that investigators say facilitated fraudulent activity.

State attorneys general determined Block recognized the escalating fraud problem but chose to amplify marketing efforts instead of strengthening security measures. The investigation revealed Block specifically targeted individuals without traditional banking access, for whom Cash App frequently served as their principal financial platform.

A particular promotional campaign labeled “Cash App Friday” drew regulatory scrutiny. Participants were prompted to share their unique app handles on social platforms for prize opportunities. Scammers exploited this by contacting participants, falsely claiming they’d won prizes, and manipulating them into surrendering account credentials.

Authorities allege Block understood these scams were occurring but continued the promotional campaign and prepared customer service teams to handle calls from victimized users.

What Block Must Now Do

The settlement terms mandate that Block must completely restructure its customer assistance and security protocols. This includes establishing 24-hour customer support infrastructure with live representatives available for no less than 13.5 hours daily.

Block is also prohibited from making unsubstantiated assertions about Cash App’s security features.

Washington State Adds Another Hit

In a separate action, Washington State’s Attorney General Nick Brown revealed a $20 million agreement with Block concerning fraudulent unemployment benefit transactions processed during the COVID-19 crisis.

Brown’s office reported that throughout a five-month window in 2020, Cash App facilitated at least $22 million in unemployment payments illegally obtained through stolen personal data belonging to Washington residents. Block disputed liability in this matter as well.

This represents a recurring pattern for Block. In the previous year, the company committed to paying as much as $120 million — including $40 million specifically to New York — to settle distinct state allegations that Cash App inadequately prevented money laundering activities.

In an official response, Block characterized the multi-state agreement as “a previously disclosed legacy matter that primarily relates to historical aspects of our business” and emphasized that Cash App has invested significantly in consumer safeguards and regulatory compliance.

Every U.S. state participates in the current agreement with the exception of Hawaii, Missouri, South Carolina, and Wyoming.

Key Takeaways

• BTC declined 2.1% to approximately $62,115 following Trump’s announcement that the US-Iran ceasefire has ended
• Brent crude oil prices spiked, momentarily exceeding $80 per barrel
• Crypto analyst Michaël Van de Poppe identified $61,000 as a critical support threshold
• Federal Reserve meeting minutes revealed internal disagreement about potential rate increases, pressuring risk-on assets
• Bitcoin spot ETFs in the US recorded three consecutive days of positive net flows despite price weakness

Bitcoin experienced a decline exceeding 2% on Wednesday as heightened tensions between the United States and Iran disrupted global financial markets and triggered a sharp rally in crude oil prices.

The leading cryptocurrency by market capitalization retreated to approximately $62,115, down from levels above $64,600 observed earlier in the trading week. The pullback intensified after President Donald Trump, addressing attendees at the NATO summit in Ankara, Turkey, declared the ceasefire arrangement “over.”

US military forces conducted strikes targeting Iranian positions on Tuesday in response to assaults on three commercial oil vessels operating near the strategically vital Strait of Hormuz. Tehran retaliated with its own military actions. Trump further cautioned that Iran would face another “hard” strike that evening, with the Pentagon subsequently confirming additional operations had been executed.

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Trump indicated the possibility of reinstating a naval blockade targeting Iranian ports. Additionally, Washington revoked a general license that had previously permitted Iranian oil production and sales activities.

Brent crude futures momentarily surpassed the $80 per barrel threshold, marking their strongest performance since June 22. Meanwhile, US WTI crude climbed past $75 per barrel during the session.

Federal Reserve Concerns Add Downward Pressure

Minutes from the Federal Reserve’s June 16-17 policy meeting, published Wednesday, revealed significant disagreement among committee members regarding the appropriate trajectory for interest rates. Several participants advocated for immediate rate increases.

The majority of participants highlighted multiple scenarios where inflationary pressures could remain persistent, citing potential energy supply disruptions in the Middle East, artificial intelligence-driven demand growth, and tariff implementations. Recent CME FedWatch data indicates increasing probability of a rate hike at the September policy meeting. Traders on prediction platform Kalshi currently assign 55% odds to a rate increase occurring sometime in 2026.

Elevated interest rate expectations typically create headwinds for speculative investment vehicles including digital currencies.

Cryptocurrency analyst and trader Michaël Van de Poppe shared on X that Bitcoin might test the $61,000 support zone. He elaborated: “This to happen, and then 1-2 days later; we’re in talks again. And the markets reverse.” Van de Poppe had previously indicated there was “no problem” with Bitcoin’s price movement provided it maintained levels above $60,000.

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Analyst Ted, writing on X, observed that Bitcoin had developed a hidden bearish divergence pattern on its daily timeframe chart, cautioning: “$BTC has formed a hidden bearish divergence on the daily timeframe. Bitcoin needs to reclaim $62,500 soon, or else things could get ugly.”

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Exchange-Traded Fund Inflows Remain Strong

Notwithstanding the price decline, US-listed spot Bitcoin exchange-traded funds logged three consecutive trading sessions of net positive inflows through Tuesday, per SoSoValue tracking data. This trend helped offset a prior sequence of outflows and bolstered Bitcoin’s rebound from its late-June price lows.

Glassnode analytics revealed that Bitcoin has been trading beneath its True Market Mean level of $76,600 and the short-term holder cost basis of $72,200 for approximately five months. Daily ETF trading volumes ranging from $650 million to $950 million represent roughly 80% below the peak levels recorded in October 2025.

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A crypto user lost nearly $1 million on Wednesday after signing a phishing token approval on Ethereum, according to onchain data. It comes as the industry recorded $366 million in phishing losses in the first half of the year. 

A Scam Sniffer alert on Thursday revealed a victim lost 999,999 USDt (USDT) to an Ethereum phishing token approval scam. Scammers first tried draining a rounded $1 million via multicalls but failed due to insufficient funds, then succeeded seconds later by pulling the exact remaining balance in follow-up transfers.

“The script recalculated and pulled the exact remaining balance,” Scam Sniffer said.

Social engineering via phishing token approvals has become a common crypto scam tactic. Phishing losses totaled $723 million across 248 incidents in 2025, according to CertiK. Scammers trick a victim into giving a malicious actor access to their wallet, taking the form of an innocuous-seeming transaction. 

The victim falsely believes that clicking “approve” will only initiate a minor task, but malicious links give the attacker approval to drain funds from the wallet. 

Attackers extracted $999,999 in three transactions. Source: Etherscan 

Scammers reuse the same wallets

Earlier this month, a wallet holder reportedly lost $1.65 million after connecting to a fake exchange and signing a malicious contract in a similar incident.

“The approval gave attackers unlimited access, enabling an automated sweeper to drain funds,” researcher Ryan Coleman said on Friday. 

Related: France to strengthen response as crypto wrench attacks hit 77 

Blockchain security firm Chainalysis reported in June that onchain scams pulled in at least $14 billion in 2025. Investment scams remained the dominant category, and approval phishing is how some of them play out onchain, said Chainalysis.  

“Scammers reuse the same wallets, legitimate approval features from contracts, and cash-out routes across victims, which means each report exposes a wider network,” said Renato Bastos, a senior investigator at Chainalysis. 

Scam Sniffer advised crypto users to double-check all signature requests before approving, avoid rushed transactions and use tools such as scam detection extensions.

Address poisoning remains a threat 

Address poisoning is another attack vector that scammers use alongside phishing token approvals. 

Scammers create addresses very similar to their target wallets and send a tiny amount of “dust” funds to the address, so the user mistakenly sends to this address instead of the legitimate one. 

Popular Ethereum wallet MetaMask launched live address poisoning detection in June, a tool that compares each pasted address with addresses that the wallet has previously interacted with.

Features: The biggest blockchain upgrades still to come in 2026

AI Financial, formerly known as Alt5 Sigma, is in talks to sell its core payments business to Tokyo-based blockchain firm Perpetuals.com. The Wall Street Journal reported that the deal could be worth up to $15 million.

The possible sale would cover Alt5 Sigma Canada, a payments subsidiary owned by AI Financial. Perpetuals.com said in a July 7 filing that it had signed a non-binding term sheet to explore the acquisition.

The filing said, “No decisions have been made,” while Perpetuals.com reviews the business. The company also said it is carrying out due diligence before any final agreement.The talks mark a sharp turn for AI Financial. Less than a year ago, the company became tied to World Liberty Financial, the Trump-linked crypto project behind the WLFI token and USD1 stablecoin.

WLFI deal weighs on AI Financial shares

AI Financial’s earlier deal with World Liberty made WLFI a central part of its balance sheet. crypto.news reported in August 2025 that World Liberty Financial invested 7.5% of the total WLFI token supply in ALT5 Sigma’s $1.5 billion capital raise.

The company later raised about $750 million to buy more WLFI tokens. After the transaction, WLFI fell about 70%, according to the WSJ report cited by Wu Blockchain.

AI Financial’s shares also dropped more than 90%, leaving the company with a market value near $80 million. The decline placed pressure on a company that had promoted its World Liberty link as part of a wider crypto payments plan.

The WSJ report said AI Financial also faced losses tied to the fall in WLFI holdings. The proposed sale would remove one of the company’s main operating businesses if the parties reach a final deal.

Trump-linked proceeds face renewed attention

World Liberty Financial remains closely tied to the Trump family. crypto.news reported that the project issues the WLFI governance token and the USD1 stablecoin, and that it made up a large share of Trump’s reported crypto income in 2025.

The WSJ report said the Trump family is entitled to 75% of proceeds from WLFI token sales. It also said AI Financial’s WLFI purchases generated about $540 million in cash for Trump-related entities.

crypto.news also reported that Trump’s 2025 financial disclosure showed more than $1.4 billion in crypto-related income. The report said crypto earnings outpaced income from real estate, golf and resort businesses that year.

The White House has denied conflict claims in earlier coverage. Critics, including Democratic lawmakers and public interest groups, have called for tighter rules around officeholders and crypto-linked businesses.

Perpetuals.com review keeps deal uncertain

Perpetuals.com has not agreed to a final purchase. The company said the term sheet is exploratory and that due diligence is still underway.

Its filing identified Alt5 Sigma Canada as a profitable AI Financial subsidiary. Perpetuals.com said the possible deal could fit its product roadmap, which includes AI-powered trading products and prediction markets.

Earlier report in June indicated that World Liberty was nearing possible OCC trust bank approval while facing conflict concerns. That report also noted public disclosures showing that 75% of WLFI token sale proceeds go to DT Marks DEFI LLC, an entity controlled by Trump.

For AI Financial, the sale talks place new focus on what remains of its business after the WLFI bet. Any final outcome will depend on price, due diligence, board approval and whether both companies sign binding terms.

Nexo launched the Nexo Card in Argentina, giving eligible users a way to spend digital assets or borrow against them through one product. The card supports debit mode for direct spending and credit mode for borrowing against crypto collateral without selling holdings.

• Nexo’s dual-mode card lets eligible Argentine users spend crypto or borrow against holdings without selling.
• Buenos Aires now anchors Nexo’s Latin America strategy after Buenbit acquisition and Argentina football partnership.
• Andres Ondarra’s appointment gives Nexo a local lead with finance, fintech and crypto experience depth.

The company said users can switch between both modes inside one interface. Nexo also said the card supports purchases in Argentine pesos and U.S. dollars, with cashback on eligible spending and interest on idle in-app balances.

Nexo said the product is available through its app and website for eligible clients in Argentina. The launch gives the company a local payments tool in a market where crypto use remains tied to saving, payments and access to dollar-linked assets.

Incoming Argentina general manager Andres Ondarra said, “Argentine clients have spent a decade making digital assets part of how they manage wealth.” He added that the card lets users spend, borrow and earn “without having to sell.”

Ondarra takes over Argentina operations

The card launch came with Nexo’s appointment of Andres Ondarra as General Manager of Nexo Argentina. Ondarra will oversee local operations from Aug. 1, according to the company.

Bitcoin held above $62,000 on Thursday while the assets that are supposed to absorb a war premium moved in opposite directions.

Brent crude climbed 1% to $78.80 a barrel, a third consecutive session of gains, after the U.S. military completed another round of strikes against Iran and both sides raised the prospect of closing the Strait of Hormuz.

Gold extended its slide to a fourth day at around $4,060 an ounce. Government bonds in Japan, Australia and New Zealand fell, extending Wednesday’s global selloff, with two-year Treasury yields pushing toward their 2026 high.

Bitcoin traded at $62,009, down 1.2% over 24 hours and up 1.6% on the week. Ether was at $1,730, also off 1.2% on the day but up 5.7% over seven sessions. Solana was the laggard at $77.25, shedding 1.8% and 1.7% on the week. XRP slipped 0.7% to $1.09, TRON added 4% over seven days, and hyperliquid’s HYPE gained 5.9% on the week despite a 1.2% daily dip.

The escalation reignited inflation concerns and pulled forward rate expectations.

Federal Reserve officials were divided last month on whether to raise interest rates or keep them steady, as meeting minutes released Wednesday pointed to accelerating demand for artificial intelligence infrastructure as a factor sustaining inflation.

The minutes cover the first Federal Open Market Committee (FOMC) meeting under Chair Kevin Warsh and highlight how strong AI-driven spending may keep prices elevated for certain technology inputs—especially chips—and for electricity used to power data centers.

Key takeaways

• FOMC meeting minutes cited “ongoing strong demand for AI infrastructure” as likely to sustain upward pressure on prices for technology products and electricity.
• Officials expected inflation to stay “elevated in the near term,” with risks still “tilted to the upside.”
• Projections implied a hawkish path: the “dot plot” showed hikes, not cuts, with many members expecting at least one increase before the end of 2026.
• The Fed’s year-end PCE inflation projection rose, reinforcing the view that policy may remain restrictive for longer.

AI demand enters the Fed’s inflation discussion

According to the minutes, many participants argued that demand for AI infrastructure is acting as an inflation support rather than a one-time impulse. They specifically noted that continued demand for technology products and electricity could keep price pressures from fading quickly.

In practice, the minutes’ logic points to the economics of AI buildouts: higher demand for semiconductors used by data centers, combined with competition for energy, can lift consumer prices across a wide range of electronic goods, devices, and power-related costs. This process is often described in policy and financial circles as “chipflation.”

For crypto and other risk-sensitive assets, the implication is straightforward: higher inflation tends to reduce liquidity and spending power while supporting higher interest rates—conditions that can weigh on speculative exposure.

Near-term inflation expected to remain sticky

Fed participants anticipated inflation would remain “elevated in the near term.” They also discussed the possibility that disinflation could improve if the Middle East conflict eases, but they judged that the overall balance of risks to inflation was still skewed upward.

AI played a dual role in these deliberations. The minutes state that strong AI-related investment can lift growth above potential output, which can in turn contribute to more persistent inflationary pressure—essentially keeping demand strong while costs remain elevated for critical inputs.

“Most participants remarked that growth in economic activity that exceeded that of potential output, owing in part to strong AI business investment, could contribute to more persistent inflationary pressures.”

Dot plot and projections reinforce “higher for longer”

While the minutes reflect a split among officials, the broader policy signal leaned hawkish. The Fed’s dot plot, as cited in the report, suggested rate increases rather than cuts. Nine of 18 voting members projected at least one rate hike before the end of 2026, while six expected two 25-basis-point increases.

Inflation expectations also moved in the minutes’ framing: the central bank’s PCE inflation projection for year-end increased from 2.7% to 3.6%. Together, those changes point to an outlook where the Fed may need to tolerate a longer period of restrictive policy to bring inflation back toward target.

At the Fed’s June meeting, rates were held steady at 3.5% to 3.75%. In parallel, CME futures markets indicated a roughly 70% probability that rates would remain unchanged at the next meeting scheduled for July 29, according to the CME FedWatch tool.

Why AI infrastructure may complicate monetary policy

One notable theme in the discussion was how AI infrastructure buildout can produce near-term inflation pressure even while promising longer-term productivity improvements. Nick Ruck, director of LVRG Research, told Cointelegraph that the Fed’s recent meeting underscores this tension: massive AI infrastructure expansion can lift inflation through surging demand for semiconductors, energy, and data centers, even as it sets the stage for productivity gains over time.

That mix matters because it challenges a common policy assumption that technological investment uniformly improves efficiency quickly enough to ease inflation. If the cost of deploying AI systems remains concentrated in specific supply chains and energy systems, the benefit to productivity may arrive later than the price pressure created by demand for the underlying infrastructure.

Ruck’s comments also framed the issue as one that may require solutions beyond traditional monetary tools—particularly approaches that improve how resources are allocated and reduce bottlenecks in the digital economy. While the minutes focused on conventional price dynamics, the investor takeaway is that AI-driven inflation can interact with monetary policy in ways that are harder to neutralize quickly.

What it could mean for crypto market conditions

In general, elevated inflation and restrictive rate expectations tend to tighten financial conditions, which can reduce risk appetite and liquidity. The minutes’ emphasis on technology and electricity price pressures strengthens the case that inflation may not fall as quickly as some investors might hope, especially if AI-related capex continues expanding.

At the same time, investors are also watching for how the Fed’s approach could evolve if inflation pressures prove to be structural rather than transitory. That question is likely to remain central for markets, including crypto, where broader liquidity conditions often play an outsized role in determining price behavior.

Readers should watch the next phase of Fed communication for signs that officials see AI-related inflation as temporary supply bottlenecks or as a more persistent feature of the pricing environment—because that distinction could shape how long “higher for longer” expectations last and, by extension, how supportive macro conditions remain for risk assets.