Bitcoin tests $112,000 as support

Last week, the crypto market saw red across the board. Financial markets are under pressure due to concerns about the U.S. economy. Bitcoin tested its previous all-time high of $112,000 as support. But that doesn't mean the world is standing still: in this Market News, we take a closer look at the striking and dramatic shift by the U.S. Securities and Exchange Commission (SEC).

Market update

For twenty consecutive days, Bitcoin’s daily closing price remained in a narrow range between $117,200 and $120,000—a difference of just 2.3%. A breakout to the upside or downside was only a matter of time. On Thursday, July 31, it finally happened: on the last day of the month, the price dropped to $115,000.

On Saturday and Sunday, Bitcoin briefly touched $112,000. That’s exactly the previous all-time high from May 22. It also aligns with the 50-day moving average. If the zone between $108,000 and $112,000 turns out to be the bottom of this correction, it would provide an excellent foundation for a new period of upward movement.

For bitcoin, we want to see a rise above $135,000. That would put BTC at an all-time high not just in dollars, but also in euros, Swiss francs, and gold. Only then will the months-long battle around the 100k mark be truly behind us.

The selling pressure last week came from the United States. During European and Asian trading hours, the price remained stable or showed a slight increase. But during U.S. trading hours, it consistently took a sharp dive. There are concerns about the economy, while the central bank remains determined to maintain a mildly restrictive monetary policy. A return of confidence would be beneficial for the recovery of the crypto market.

Featured

SEC reverses course: from opposition to catalyst

For years, the U.S. Securities and Exchange Commission (SEC) pushed strong regulations. Under Chair Gary Gensler, lawsuits were filed against a swath of crypto activities: exchanges, tokens, and other crypto projects. The result? American entrepreneurs and developers moved their operations abroad.

That now seems to be a thing of the past. On July 31, new chairman Paul Atkins unveiled the ambitious “Project Crypto.” The tone was strikingly different: no more warnings, but invitations. According to the SEC, the United States must become the global leader in crypto.

The plan is broad in scope. The regulator aims to provide clear guidelines for different types of tokens, from stablecoins to digital collectibles. Early-stage projects will be given more room to grow through safe harbor provisions, and exceptions will be made for airdrops. The SEC also wants to enable so-called super apps: a single platform for trading, staking, lending, and custody should be possible—as long as it operates under regulatory oversight.

Anyone comparing this to the previous policy can see a radical shift in direction. While Gensler relied primarily on oversight and regulatory enforcement, Atkins is focused on clarity and collaboration. He calls it a "digital financial revolution," where blockchain technology should become as commonplace as using a smartphone.

Still, there are many uncertainties. Project Crypto is not yet law, and the U.S. Congress still needs to weigh in. But one thing is certain: the SEC no longer sees crypto as a threat, but as something to be embraced and given room to grow.

This is good news for crypto investors around the world—not just because the U.S. is getting back in the game, but also because it signals that the sector is maturing. Crypto can no longer be ignored, not even by the most powerful regulator in the world.

In other news

• Crypto quarterly results reveal winners and losers. Robinhood surprised with a 45% revenue increase. Tether posted $4.9 billion in profit and now holds $127 billion in U.S. Treasury bonds. Coinbase disappointed with revenue coming in 6% below expectations. MicroStrategy (MSTR) reported significant unrealized profits but won’t sell any shares as long as its stock price remains below 2.5x book value—which is currently the case. The crypto sector is growing, but the tension between profit, valuation, and trust remains palpable.

• Ethereum celebrated its tenth anniversary this week. On July 30, it marked exactly ten years since the first block was mined. Vitalik Buterin and Joseph Lubin reflected on the journey during a livestream, which featured a symbolic NFT torch passed through the community. Ethereum has grown from an ICO experiment into the backbone of DeFi, and now accounts for over $100 billion in invested capital.

• Windtree Therapeutics plans to invest $700 million in BNB. The biotech company received approval to allocate nearly all its capital toward purchasing Binance Coin. To facilitate the acquisition and custody, Windtree is partnering with Kraken. Following the announcement, the price of BNB rose by 7%. The move appears opportunistic: a publicly traded company choosing an altcoin as its reserve asset.

• The White House has released a new crypto report. President Trump’s task force outlines plans for clear regulations, the dominance of dollar stablecoins, and bringing traditional financial markets on-chain. At the same time, CBDCs are rejected, while the right to self-custody is explicitly supported. One notable omission: there is no mention of the promised Strategic Bitcoin Reserve.

Satoshi Radio: In the latest episode of Satoshi Radio, the hosts reflect on a quiet week in the crypto market. It was remarkable though that the euro fell slightly against the dollar. Why is that good news for bitcoin holders? You'll find out in the market update. The news section updates you on a lawsuit against the developers of Samourai, an interim report from the US government on digital assets, and the bitcoin whale who sold 80,000 (!) BTC.

This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.