Bernstein said that it remains overweight on the Bitcoin mining sector, citing the growing partnerships between Bitcoin mining companies that are necessary to address the power constraints of artificial intelligence (AI) data centers.

The investment manager’s Bitcoin mining industry deal tracker registered a new AI-related deal every week in July, with combined deals standing at more than 7.5 gigawatts or the contracted equivalent of $150 billion in multi-year contracts, according to a Thursday research note shared with Cointelegraph. 

The analysts said that third-party computing capacity from Bitcoin miners will remain highly valuable as access to power remains the AI industry’s real bottleneck amid growing political pushback against building new US data centers.

Bitcoin mining stocks logged double-digit gains on Monday after Bitcoin mining companies Hut 8 and IREN announced major AI infrastructure deals. Hut 8 announced a 15-year, $9.8 billion lease for its AI data center campus and IREN disclosed $2.8 billion in cloud services contracts with AI developers.

“IREN is beginning to convert that infrastructure advantage into contracted and more predictable revenue,” said Seeking Alpha contributor The Curious Analyst on Thursday. “The biggest risk to my thesis is execution,” they said. The contributor rates IREN a strong buy.

July sees slew of AI-miner tie-ups

Other publicly traded Bitcoin mining companies have also expanded into AI.  Earlier in July, MARA Holdings announced plans to acquire a Texas site with up to 2 gigawatts of capacity to expand its AI and digital infrastructure business. 

Days earlier, TeraWulf signed a 20-year data center lease with AI startup Anthropic, a deal the company said could generate roughly $19 billion in contract revenue. 

Bitcoin mining infrastructure company Bitdeer has also expanded into AI cloud services and high-performance computing. 

Most of the miner stocks were poised for gains on Thursday, based on premarket activity. HUT 8’s shares were up 5.23%, IREN was up 1.89% and TeraWulf was up 1.49%. Sector tracking exchange-traded fund CoinShares Bitcoin Mining ETF (WGMI) was up 1.47% ahead of the Nasdaq open. Bernstein has an outperform rating on all of the stocks it named, except for MARA, which it rates as market perform.

Related: Foundry asks Bitcoin miners to vote on BIP-110 support

AI data centers face political pushback

Bernstein’s research note said that Bitcoin miners and third-party computing power providers will remain important for AI companies, as the construction of new data centers is facing growing bipartisan political pushback.

On Wednesday, Texas Democratic Senate candidate James Talarico reportedly shared a proposal to create stronger local approval processes and to repeal tax breaks for AI data centers.

In April, US Senator Ron Wyden shared concerns that AI data centers in his home state of Oregon could worsen water scarcity during persistent droughts. He said that large data centers can consume up to 5 million gallons of water per day and asked large data center operators to explain how they would reduce groundwater withdrawals to protect the local water supply.

In March, President Donald Trump’s administration published a Ratepayer Protection Pledge aiming to expand AI infrastructure without increasing electricity bills for households and small businesses.

In January, several state governors published plans to expand the grid to meet the rapidly growing demand from AI data centers, but stated that new data centers should bear the costs they create, rather than shifting these to existing residential customers and small businesses.

Magazine: Bitcoin’s quantum dilemma: Bigger blocks or STARK proofs?

Ether is becoming increasingly attractive from a valuation standpoint, particularly relative to Bitcoin, but onchain data suggests the market has yet to reach a definitive cycle bottom, according to CryptoQuant.

In its latest weekly report, the analytics company said Ether (ETH) is trading roughly 17% below its realized price, or the average onchain acquisition cost of all ETH in circulation, of about $2,300. Historically, ETH trading below its realized price has coincided with periods of market undervaluation and long-term bottoms.

Ether is also showing signs of improving relative to Bitcoin (BTC). CryptoQuant said that ETH’s market value-to-realized value (MVRV) ratio has retreated from extreme overvaluation, exchange inflows have declined, exchange-traded fund (ETF) holdings have begun to recover after months of weakness, and ETH/BTC spot trading volumes have fallen into a range historically associated with market bottoms.

CryptoQuant says two of five key ETH bottoming indicators have been confirmed. Source: CryptoQuant

Even so, only two of CryptoQuant’s five bottoming indicators have reached historical reversal levels. The remaining metrics are improving but have yet to reach the extremes that have marked previous cycle lows, suggesting Ethereum’s bottom may still be forming.

The report comes as Ether briefly climbed above $1,950 this week and Bitcoin topped $67,000, buoyed by optimism surrounding the US CLARITY Act. At the same time, some market analysts have pointed to the potential for capital to rotate out of richly valued AI stocks and back into crypto, a shift that could further support Ether if risk appetite broadens.

The ETH/BTC MVRV ratio has fallen from nearly 0.95 in August 2025 to around 0.65, signaling that Ethereum has become significantly cheaper relative to Bitcoin. Source: CryptoQuant

Related: Grayscale plans regular cash payouts from ETH, SOL staking rewards

Ethereum supply tightens as exchange outflows and staking climb

Ethereum has shown several constructive onchain signals over the past month. During the week beginning June 29, withdrawal activity on Binance, the world’s largest crypto exchange by trading volume, climbed to its highest level in more than three years.

Analysts generally interpret sustained exchange outflows as a sign that investors are moving assets into self-custody or staking rather than keeping them on exchanges for potential sale, although such flows do not guarantee accumulation.

Meanwhile, a record 34% of Ethereum’s circulating supply is now staked, according to Staking Rewards. As Cointelegraph previously reported, higher staking participation reduces the amount of ETH readily available for trading, potentially easing short-term selling pressure if demand remains resilient.

Tom Lee’s Bitmine Immersion Technologies, the biggest corporate ETH holder, continues to accumulate Ether, boosting its holdings by 325,000 ETH over a one-month period, despite sitting on large unrealized losses. It has set a target to hold 5% of the second-biggest crypto.

Related: Will the US get CLARITY this week? Bitcoin’s new $80K target: Hodler’s Digest, July 19

Cathie Wood’s ARK Invest has purchased 220,012 Circle Internet Group shares worth about $13.9 million as CRCL stock has fallen below $64 and every major daily moving average.

According to ARK Invest’s trading disclosure, the firm divided the purchase among three actively managed exchange-traded funds. The ARK Innovation ETF acquired 159,517 shares, while the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF added 42,400 and 18,095 shares, respectively.

The transaction extended ARK’s buying during a steep decline in Circle’s market value. CRCL traded at $63.38 on July 23 after falling 4.20%, with the session producing a high of $65.41 and a low of $61.49, according to the daily TradingView chart.

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Circle’s stock has struggled as weaker sentiment toward crypto-linked companies has reduced investors’ willingness to hold volatile digital-asset equities. Circle operates USDC, a dollar-backed stablecoin used across exchanges, payment services and decentralized finance applications.

Wood’s purchase suggests ARK remains willing to increase its exposure during the decline, although the investment manager has not guaranteed that CRCL has reached a bottom. ARK describes its investment approach as focused on companies tied to disruptive technologies and long-term growth, a strategy that can leave its funds exposed to sharp price swings.

Earlier this week, ARK used a similar approach with another high-volatility holding. As reported by crypto.news, four ARK funds purchased 170,634 SpaceX shares worth about $20.45 million while the stock traded below its $135 initial public offering price.

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SpaceX then climbed 7.10% to $128.37, handing ARK an early unrealized profit on the new position, according to the crypto.news report. Although SpaceX and Circle operate in different industries, the transactions show ARK adding to selected companies after large declines rather than waiting for their charts to confirm a recovery.

CLARITY Act progress offers Circle a regulatory catalyst

Circle’s outlook has also become tied to negotiations over the Digital Asset Market Clarity Act, which could establish federal rules for digital-asset markets and divide regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Senator Cynthia Lummis released an updated version of the legislation on July 22, combining texts advanced by the Senate Banking and Agriculture committees. In her announcement, Lummis described the coming weeks as a critical window for reaching an agreement that could allow the bill to become law.

Senate Banking Committee Chairman Tim Scott and Senate Agriculture Committee Chairman John Boozman have backed the revised framework. According to Lummis’ official release, Boozman argued that the proposal would give consumers, companies and markets clearer rules while adding safeguards for digital-asset activity.

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For Circle, passage could reduce uncertainty surrounding businesses that issue stablecoins or provide related financial services. Such an outcome may make it easier for institutions to assess USDC-based products, but the proposal still requires enough Senate support and final approval before its provisions can take effect.

The latest draft faces political obstacles despite Republican support. Some Democrats have reportedly objected to the proposal’s treatment of crypto-related conflicts involving government officials, an issue that could complicate efforts to secure the 60 votes generally needed to advance legislation in the Senate.

CRCL remains bearish despite improving MACD momentum

CRCL’s daily chart shows that sellers still control the main trend even though one momentum indicator has started to improve. At $63.38, the stock sits below its 20-day simple moving average at $65.68, while the 50-day average is much higher at $84.24.

Longer-term resistance remains even further away. The chart places the 100-day moving average at $95.02 and the 200-day average at $92.14, leaving CRCL below all four trend indicators after a decline from its May peak near $140.

A recent rebound reached the $70–$72 region but failed to hold, according to the chart. Buyers would first need to recover the 20-day average at $65.68 before challenging that recent rejection zone. A daily close above $72 would provide stronger evidence that demand is returning, while the 50-day average at $84.24 would remain the next major obstacle.

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On the downside, the July 23 intraday low places immediate support near $61.50. The chart also shows a demand area between $58 and $60, where buyers previously interrupted the decline. A sustained move below $58 would extend the sequence of lower lows and leave CRCL vulnerable to another leg down.

Momentum has offered one early sign of relief. The daily moving average convergence divergence line has risen to minus 4.74, above its signal line at minus 6.10, while the histogram has turned positive at 1.36.

Because both MACD lines remain below zero, the chart indicates that selling momentum has eased without confirming a trend reversal. Until CRCL recovers $65.68 and then $70–$72, ARK’s latest purchase remains a bet against an established downtrend rather than confirmation that Circle stock has formed a durable bottom.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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The announcement comes as stablecoins move further into mainstream finance following the passage of the GENIUS Act. Wall Street firms and banks are expanding stablecoin initiatives, while Citi projects the market could reach roughly $4 trillion by 2030.

At that scale, Sussman said, concentrating reserves among a few institutions could create liquidity and deposit risks.

“If you assume stablecoins scale to $5 trillion or $10 trillion, then there has to be something that helps the market reach equilibrium,” Sussman said. “It can’t just live in a really small circle because that will compound the risk on both sides.”

The platform itself will not run on a blockchain, though Tassat plans to connect it with tokenized asset and deposit networks. Sussman said that approach lowers the technical burden for smaller banks.

“There is a real risk that vast swaths of the U.S. banking ecosystem get left out in the cold,” he said. “I don’t think that’s healthy politically for the United States. I don’t think it’s healthy economically.”

Goldman Sachs CEO David Solomon has voiced support for a US Senate bill intended to reshape crypto market structure, arguing that the proposed Digital Asset Market Clarity (CLARITY) Act is “not perfect” but could help create a more consistent framework for participants.

According to a Thursday report by Politico, Solomon framed the legislation as necessary to establish a “level playing field” that could improve market stability as digital asset markets continue to develop.

Key takeaways

• David Solomon says the CLARITY Act is “not perfect,” but supports it for creating a more “level playing field” to bolster stability.
• Many industry leaders oppose the bill’s approach, including concerns that it would allow certain crypto firms to pay yield related to stablecoins outside existing financial-institution rules.
• Republicans released the CLARITY Act text ahead of a potential Senate vote, but Senate leaders had not scheduled timing as of Thursday.
• Democrats and critics highlighted ethics provisions, with objections centered on enforcement and accountability mechanisms.
• The bill likely requires additional Democratic votes to reach the Senate’s 60-vote threshold.

Solomon’s “level playing field” argument

In comments reported by Politico, Solomon emphasized that legislation is rarely flawless, but maintained that CLARITY’s central purpose is to normalize how digital asset markets operate—at least relative to how traditional finance is regulated.

His view stands in contrast to broader skepticism within parts of traditional banking circles, where executives have questioned whether CLARITY expands regulatory permission in ways that could weaken investor and depositor protections.

Politico’s report also notes that Solomon’s endorsement is relatively uncommon among leaders at major financial institutions considering the bill.

Banking concerns over stablecoin yield permissions

A key point of contention involves whether crypto firms would be allowed to offer interest or yield on stablecoins under rules that critics say do not map cleanly to the protections expected of regulated financial institutions.

Earlier coverage highlighted that many peers oppose the bill on these grounds, arguing that the proposal’s stablecoin yield approach does not provide the guardrails banks would be expected to meet. Cointelegraph previously reported on these concerns.

The contrast in views is also reflected in remarks from JPMorgan Chase chief Jamie Dimon. As reported in an interview conducted in May, Dimon said CLARITY would let crypto companies pay interest on stablecoins “without the protection that they should have,” arguing that banks would not accept a similar arrangement. The interview was shared on YouTube.

Democrats focus on ethics provisions and enforcement

Even as the CLARITY Act moves toward a possible Senate vote, Democratic lawmakers have signaled resistance—not only on technical market-structure issues, but also on ethics language attached to the bill.

As described in reporting from Cointelegraph and subsequent commentary, Democrats are concerned that the ethics provisions do not go far enough and that enforcement would be left to the US Department of Justice rather than state authorities. If Republicans are unable to secure enough support beyond their ranks, the bill could stall at the 60-vote threshold required to advance in the Senate.

Senator Elizabeth Warren, a leading Democratic critic, said in a statement released alongside the Wednesday publication of the bill text that she believes the legislation is designed to protect President Donald Trump’s crypto profits and that it fails to adequately safeguard investors, the financial system, and national security. The statement was posted by the Senate Banking Committee’s minority.

Cointelegraph earlier also reported on Democrats’ objections to the ethics language during the markup process, underscoring how these provisions have become a central political obstacle for CLARITY. Earlier coverage details the core Democratic concerns.

What happens next in the Senate

Republicans released the full CLARITY Act text on Wednesday, setting the stage for potential Senate action. However, as of Thursday, Senate leaders had not scheduled a vote, according to the Politico report.

With multiple factions still divided—particularly over stablecoin yield permissions and ethics/enforcement mechanics—the immediate question for investors and market operators is whether amendments can narrow the gap between competing priorities or whether the bill will face a larger momentum reversal.

Readers should watch for whether Senate leaders set a vote date soon and, more importantly, whether any compromise emerges that could attract enough Democratic support to meet the 60-vote threshold—since the bill’s advancement appears tightly linked to both ethics politics and the future regulatory treatment of stablecoin-related yield.