Good morning everybody.
Bitcoin finally caught a bit of a rally today, climbing back above $66,000 after another strong day of ETF inflows. While it’s encouraging to see green on the charts, I’m still not convinced we’re seeing a full reversal from bear to bull just yet.
Let’s get into the news.
Bitcoin ETFs Extend Winning Streak
U.S. spot Bitcoin ETFs attracted approximately $227 million in net inflows Monday, marking their fifth consecutive dayof positive flows.
That five-day streak has now brought in roughly $727 million, helping total Bitcoin ETF assets recover from approximately $75 billion earlier this month to around $79 billion.
Ethereum ETFs also continued attracting capital, adding roughly $38 million, with BlackRock leading the inflows.
CLARITY Act Gains Momentum
Polymarket is reporting that President Trump has agreed to key ethics provisions tied to the CLARITY Act, removing one of the major obstacles to advancing the crypto market structure bill through the Senate.
According to CoinDesk, the legislation would establish clearer distinctions between digital commodities and securities, replacing years of regulation driven primarily through enforcement actions.
Following the report, Polymarket odds predicting passage of the CLARITY Act in 2026 moved higher.
Matt questioned whether the final version of the legislation will ultimately benefit everyday retail investors or primarily serve larger institutional players.
Tokenized Assets Continue Rapid Growth
Solana’s tokenized asset market reached approximately $5.8 billion during the second quarter, representing 114% quarter-over-quarter growth, according to CoinDesk.
Across the broader industry, tokenized real-world assets, including stablecoins, have grown to more than $33 billion, nearly tripling from roughly $12 billion one year ago.
UK Launches Inquiry Into Crypto Banking Restrictions
A parliamentary group in the United Kingdom has launched an investigation into banking barriers facing crypto businesses and customers.
The inquiry will examine banks refusing accounts for crypto firms, restricting crypto-related transactions, and how those policies affect competition and investment.
Matt compared the situation to the United States’ own debanking debate, noting that while crypto on-ramps have become much more accessible domestically, limiting access to banking services elsewhere can push users toward less secure over-the-counter transactions.
Washington Judge Blocks Kalshi Sports Markets
A judge in Washington state ruled against Kalshi’s sports prediction markets, siding with state regulators who argue the contracts constitute gambling under state law.
Kalshi maintains that its event contracts fall under federal regulation, while states continue arguing that sports prediction markets are gambling products subject to state oversight.
Matt reiterated his view that these products are gambling and suggested many of the legal battles ultimately come down to governments determining who gets to regulate—and tax—the activity.
Base Prepares Tokenized Equities Launch
Base creator Jesse Pollak says the network’s fully backed tokenized equities platform is nearing launch.
Backed by Coinbase, Base has increasingly positioned tokenized stocks as one of the next major areas of growth for the cryptocurrency industry.
SEC Files $22 Million Crypto Mining Fraud Case
The SEC filed charges against Mining Automatic and its founder, alleging a $22 million crypto mining investment scheme.
According to regulators, investors were promised guaranteed returns, while only a small portion of customer funds were actually used for mining operations.
The story led Matt back to yesterday’s discussion about Strategy, questioning whether continually raising capital to support investor returns creates uncomfortable comparisons that investors should consider carefully.
Celsius Founders Reach FTC Settlement
Former Celsius executives Shlomi Leon and Nuke Goldstein agreed to pay more than $6 million to settle FTC claims stemming from the failed crypto lender.
Matt reflected on his own interactions with former Celsius CEO Alex Mashinsky and recalled remaining skeptical of the company’s yield-focused business model long before its collapse.
Exodus Cuts Workforce
Crypto wallet provider Exodus announced it will reduce its global workforce by 25% following its acquisitions of Monavate and Baanx as it shifts toward becoming a full-stack payments platform.
The layoffs are expected to generate between $10 million and $13 million in annual savings.
AI Is Giving Bitcoin Miners Another Option
Shares of AI-focused Bitcoin mining companies rallied after Hut 8 and IREN announced major AI infrastructure and data center contracts.
Matt explained that this shift isn’t unusual. Throughout every Bitcoin cycle, miners constantly reallocate computing power toward whatever produces the strongest returns. Today that’s AI infrastructure, but if Bitcoin prices rise enough during the next bull market, that same computing power can quickly return to mining.
Historically, he said, miners shutting down equipment or redirecting compute has often marked the beginning of market bottoms before the next cycle begins.
Crypto Prices
Bitcoin: $66,460
Ethereum: $1,940
BNB: $577
USDC: #5
XRP: $1.13
Solana: $78.40
TRON: $0.327
Hyperliquid: $62.67
Dogecoin: $0.073
My Take
Today’s rally is nice to see, but I’m not ready to call this the beginning of another bull market.
What I found more interesting was the discussion around Bitcoin miners shifting compute toward AI. This isn’t a new phenomenon. Miners have always followed profitability, whether that’s mining Bitcoin, shutting machines down during bear markets, or now renting compute to AI companies. Eventually, if Bitcoin becomes the more profitable business again, that compute will swing right back.
Markets are cyclical, and I think this is just another example of that playing out.