Crypto Bites | Recap 08072025
Hello crypto fren,
Today, July 8, 2025, the crypto world witnessed significant developments, with BlackRock's spot Bitcoin ETF continuing its impressive run, Bitcoin's long-term holders hinting at potential rallies, and Hong Kong making strides in stablecoin regulation. Despite rising geopolitical tensions and President Trump's tariff announcements, major cryptocurrencies largely held steady, with some notable outperformance from Ethereum.
BlackRock's IBIT Dominates, Nears Top Spot Among ETFs
BlackRock's iShares Bitcoin Trust (IBIT) has solidified its position as a powerhouse in the crypto ETF space, surpassing an astounding 700,000 BTC ($76 billion) in assets under management. Launched just 18 months ago in January 2024, IBIT now accounts for approximately 56% of the total 1.25 million BTC held by all spot Bitcoin ETFs. This remarkable growth places IBIT as BlackRock's third-highest revenue-generating ETF out of 1,197 funds, with Bloomberg Senior ETF Analyst Eric Balchunas highlighting that it's only $9 billion away from becoming the firm's top earner. This robust performance underscores the surging institutional demand for regulated Bitcoin exposure.
Bitcoin's Long-Term Holders Signal Potential Rallies
A historically significant indicator is flashing green for Bitcoin enthusiasts: the supply held by long-term holders (LTHs) has hit 80% in July. This metric has only crossed the 80% threshold twice in Bitcoin's 15-year history – in February and October 2024 – each instance preceding substantial BTC price rallies of 72% and 84%, respectively. This "supply shock" suggests strong conviction among long-term investors and a shrinking available supply, which could pave the way for an intensified breakout for BTC price.
Hong Kong's Stablecoin Momentum Fuels Crypto Stock Surge
Optimism is high in Hong Kong's crypto sector, with crypto-related stocks experiencing significant jumps today. This surge is primarily driven by anticipation of the region's forthcoming stablecoin licensing framework, set to come into effect on August 1st. Shares of licensed crypto exchange OSL climbed 12.2%, while Dmall Inc. rose 8.9%, and Victory Securities' stock leaped 9.2%. This regulatory clarity is expected to attract further institutional participation and foster innovation in the region's digital asset ecosystem.
Crypto Market Holds Steady Amid Geopolitical Headwinds
Despite President Trump's announcement of plans to impose steep tariffs (25-40%) on goods from nearly a dozen countries starting August 1, 2025, major cryptocurrencies largely held their ground. Bitcoin remained near $108,400, showing resilience in the face of rising geopolitical tensions. Ethereum, meanwhile, outperformed, rising 1.6%, while XRP saw a slight dip of 2.1%. The global crypto market cap experienced a modest 3% decline to $3.43 trillion, with leveraged liquidations reaching $149 million, of which Bitcoin accounted for $33.6 million.
Interestingly, U.S. spot Bitcoin ETFs continued to see healthy inflows, with nearly $217 million on July 7th, and spot ETH ETFs attracted around $62 million, indicating continued investor appetite. Adding to the intrigue, over 80,000 BTC last active over 5 years ago moved on-chain last Friday, marking the third-largest revival of dormant BTC in history.
Trump Media Enters the ETF Arena with a "Crypto Blue Chip" Offering
In a notable move, Trump Media and Technology Group has filed a registration statement with the SEC for its "Crypto Blue Chip ETF." This new fund is planned to be composed of a diversified basket of cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Cronos. This filing follows previous indications from TMTG about its interest in offering a spot Bitcoin ETF, as well as a joint Bitcoin and Ethereum ETF, signaling a growing embrace of crypto within the Trump sphere.
Bitcoin Volatility at Historic Lows, But "Beware the Quiet"
While Bitcoin volatility hovers near historical lows, analysts from QCP Capital are sounding a cautionary note, warning that Q3-Q4 could bring "fireworks." This anticipation is fueled by sustained ETF inflows that are creating a supply squeeze in the market. With BlackRock's IBIT alone holding over 700,000 Bitcoin (3.52% of the total supply), the potential for significant price movements due to demand outstripping supply remains high.
ReserveOne Eyes Nasdaq Listing via $1 Billion SPAC Deal
Further demonstrating the institutionalization of crypto, Crypto Treasury ReserveOne is eyeing a Nasdaq listing through a $1 billion SPAC deal with M3-Brigade. The company plans to accumulate Bitcoin, Ethereum, and Solana, leveraging staking and lending, and making venture capital investments. Its board of directors boasts prominent figures from the crypto and traditional finance worlds, including names from Coinbase, Binance, and former U.S. Treasury Secretary Wilbur Ross.
Ethereum "Mega Whales" Accumulating Ahead of Potential Rally
Not to be outdone by Bitcoin, Ethereum is also showing bullish signals. "Mega whales" – Ethereum wallets holding at least 10,000 ETH – are accumulating at a faster pace than they did before the 95% rally in mid-2022. This aggressive accumulation by large holders, coupled with increasing flows into Ethereum-focused investment funds, suggests that the current accumulation phase for ETH is still flying under the radar and could precede a significant price increase.
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